In this blog post, we've rounded up some of the most interesting and exciting facts about containers. Hope you like it!
1. Only about half of the containers are owned by shipping lines. The rest are leased, usually for 1 to 10 years.
2.Once an ISO tank has been labelled for food, it cannot be used for other types of goods. The same goes for ISO tanks marked as chemicals. This is to prevent contamination risks.
3.Once an ISO tank is marked as a chemical, the type of chemical it can transportnext depends on the three chemicals it has previously transported.
4. Maersk is the only shippingcompany with GPS on reefer containers. All 270,000.
5. Reefer containers don't generate cold air, they just keep the temperature! They cannot return to their original temperature.
6. About 97% of the containers are made in China. This is due to lower labor costs. Also, it is easier to produce containers close to where most products in the world are produced.
7. With proper maintenance, a container can last about 30 years - maybe more! 40ft containers tend to last longer than 20ft containers. This is because, unlike 20-foot containers, they are usually not packed within their weight limit.
With the U.S. accounting for more than 26% of the world's total consumption, it's no surprise that the maritime industry is critical to its economy. That said, some of the largest and busiest ports in the world originate from their coastal regions. If you're considering importing, exporting to or importing from the US, in addition to checking container shippingrates, I suggest you do some research on the major US ports. In this article, we'll take a more detailed look at the top 10 US ports.
1. Port of Los Angeles
The Port of Los Angeles is located in San Pedro Bay, California, in the western United States. Given its strategic location, it's no wonder it is responsible for much of the trans-Pacific trade. Also known as Port of America, it covers 7,500 acres and has 43 miles of waterfront. Currently, it is the 19th busiest port in the world in terms of container volume. It is estimated that approximately $1.2 billion in cargo is shipped to and from the Port of Los Angeles every day.
2. Port of Long Beach
Next to the Port of Los Angeles is its sister port, the Port of Long Beach. Together with the Port of Los Angeles, they are responsible for more than a quarter of the total North American container trade. The Port of Long Beach is worth $180 billion in annual trade activity. Container shipping to and from Long Beach is very popular as it is considered one of the main gateways for trade with Asia.
3. Ports of New York and New Jersey
On the East Coast, the Port of New York and New Jersey are the top ports. It is the largest and busiest port on the East Coast of the United States and the third largest port in the United States. It offers access to one of the most concentrated consumer markets in the world.
4. Georgia Port
The main ports of the Port of Georgia are the Port of Savannah and the Port of Brunswick. The Port of Savannah has the largest single-dock container facility in North America and the largest concentration of import distribution centers on USEC. The Port of Brunswick is considered the port of choice for new car imports, with over 500 acres leased or owned by the automotive industry.
5. Port of Seattle-Tacoma
Washington State's two major ports merged in 2015 to jointly operate their cargo terminals. The Ports of Seattle and Tacoma are jointly operated by the Northwest Seaport Alliance. The two ports combined accounted for 5.3% of the North American market in 2015, handling more than 2.1 million TEUs. As container traffic to the ports of Seattle and Tacoma increased in April 2017, both ports recorded their strongest international container traffic in the first quarter since 2005.
When we send LCL (Less than Container Load) shipments, the merchandise needs to be prepared carefully. When you are preparing an LCL shipment from an FCL (full container load) shipment, it is important to keep the differences in mind. More specifically, since LCL shippingrequires container sharing, you should be extra careful.
The most common cause of LCL shipment damage is insufficient packaging. It is important to note that some insurance companies do not provide coverage in this situation. That said, the right packaging and finding the right material is almost a science in itself. This is not a risk you should take. The difference between using the best and most adequate material and using material that may be a little too big or too small is huge.
If you are a frequent exporter/shipper, you should already know the specifications for preparing LCL shipments. However, if you're just starting out in the export world, here's a tip: Before you start looking for container shippingrates, it's recommended that you read what to expect and how to properly prepare a LCL shipment.
This problem is best broken down into the various factors that ensure the safe transportation of goods. This includes whether your item contains fragile items and the total number of boxes. Once we have these answers, we need to reflect that as clearly and accurately as possible on packaging and labels.
Some aspects to consider include:
1. Box and Packaging
Pack all items in boxes. Not in a suitcase, nor in a bag or any other type of container. Certain companies sell boxes designed for export. If you are shipping delicate items, it is recommended to first fill the box with plastic wrapping bubbles to protect your item. Additionally, each box must be properly sealed. Keep in mind that these boxes may be susceptible to strenuous exercise during sea travel.
2. Labels
Clearly identify each box: shipper name, consignee name, destination country, freight forwarder name and booking number.
If possible, mark these details on each side of the box. This ensures visibility of cargo as it is palletized and stacked in containers. As containers are consolidated, your cargo may go through various stages of loading and unloading.
3. Counting
Mark each box with a number that indicates its position relative to the total number of boxes. For example, if your shipment consists of 30 boxes, you should label your boxes as follows: 1 of 30 boxes, 2 of 30 boxes, 3 of 30 boxes, So on and so forth.
You can include this number on the main label of the box or write it separately.
4. Fragile labels
If shipping fragile items, be sure to label them clearly and visibly on each box that contains fragile items.
Just like the number of the box, you can note it on the main box label. But we recommend that you put a special "fragile" label on the box. Place it on all four sides of the box to ensure visibility as your box may move around in transit.
5. Palletizing and shipments
To get a LCL shipment quote, you need to provide the total amount of the item. If you are not sure how to calculate it, the following video will explain how.
6. Labeling of non-stackable pallets
As mentioned before, you should properly palletize the cargo inside the container. It is not uncommon for trays to be stacked together. However, you may not always want your cargo to be stacked, especially if they contain fragile items. If you want your pallets not to be stacked, you should explain this to your forwarder when booking. We also recommend putting this label on the box - on the four sides of each box.
7. Automatic palletizing
Palletizing of goods usually takes place when the goods arrive at the warehouse. If you prefer to DIY this part of the shippingprocess, be sure to use plastic pallets or fumigated wood. This prevents the risk of your shipment being rejected by customs authorities at your destination port for non-compliance.
8. Uniform packaging
Arrange your items evenly and uniformly. Avoid a section protruding too high or having an unbalanced weight. Shippingcharges are calculated based on the cubic volume of the item. Uneven distribution can increase your numbers and lead to higher costs.
Why you should choose FOB over CIF when importing from China
Significance of choosing a CIF
Under CIF, the buyer takes ownership of the goods only at the port of destination. The seller is responsible for cost and shipping, and the transfer of title takes place at the port of destination. This is usually subject to a third person, usually a customs agent whose consignee is listed on the bill of lading.
This means that the agent, not the buyer, has the legal right to claim against the goods. The agent will then ask the buyer to pay for the destination, including customs clearance, taxes, etc.
Many novice buyers find this option particularly advantageous because they are relatively not responsible for the goods - logistically and financially. Also, Chinese suppliers often offer lower prices if buyers agree to CIF Incoterms.
Why are you so obsessed with CIF?
As you can imagine, there is a problem with choosing a CIF. This is a pretty bad practice for importsfrom China. Here are some features of CIF incoterm:
Prices for purchasing items under CIF are very low and competitive - often much lower than under FOB incoterms.
You usually don't know about item management as this is handled by the seller.
You are also often unaware that the consignee on the bill of lading is listed as the clearing agent (at destination), not yourself. (This applies to MBL or Carrier B/L)
After the goods arrive at the port of destination, certain decisions made by the agent may result in you having to pay five times the actual required fee. In addition to the arrival fee that every importer should pay above, you run the risk of ending up having to pay more. These include handling fees, exit fees, entry fees, etc. - basically the agent's concept of "own" to drive up prices, or unexpected surcharges on standard fees such as terminal fees.
Plus, having control over merchandise means they have better control over time. This means they may be in their favor - waiting for your item to arrive before notifying you. This will incur additional charges because you do not have enough time to schedule the delivery. This results in delays and additional charges that you must pay and settle before picking up your shipment.
FOB or CIF: Investigate Before Choosing
Common practices include an agreement between the destination agent and the seller to set a low price for the item being sold. This is to lure you before the destination inflates the cost, and then divide that profit among them. This has happened quite a bit with products imported from China, and such cases have been on the rise in recent years, especially in Latin America.
FOB works well for LCL as profit margins tend to be lower. As a result, this gives sellers and agents more power to drive up prices. If you're considering choosing a CIF Incoterm, you should ask yourself if it's really worth exposing yourself to such a risk at a low cost.
Advantages of choosing FOB over CIF
Unless you are dealing with a seller or agent you can trust, or have an agreement to list yourself as the consignee on the bill of lading, it is best to choose FOB Incoterm to avoid risk. FOB Incoterm provides features that CIF Incoterm does not. The responsibility for paying, contracting and managing the goods rests with you, the buyer.
Although it requires some extra effort on your part compared to a CIF, it is much less risky as you get immediate clarity on the costs involved. That said, problems like delays and unexpected extra costs can be avoided with good planning.
FOB also has the following advantages:
By controlling the agents involved, the buyer is able to exert pressure to lower the commercial price.
By minimising costs, it enables buyers to obtain tax benefits, such as a reduced VAT burden.
FOB also allows buyers to get better insurance prices, as you'll be looking for deals that cover most of your logistics. Unlike CIF, CIF only covers the movement of goods from the port of destination to the buyer's facility.
FOB or CIF: Considerations
One thing to keep in mind when choosing FOB is that complications can arise if the supplier refuses to work with the shippingcompany of your choice. Suppliers sometimes receive certain rebates for using specific freight forwarders and may therefore be reluctant to work with other consignees. This is a fairly common question. Therefore, the consignee should be prepared to put pressure on the shipper to help the freight forwarder smooth the process.
In short, new importers should not commit to CIF Incoterm unless you are familiar with seller practices. This is especially true when dealing with products imported from China. It is always recommended to use the services of afreight forwarder and choose FOB Incoterm when the situation allows. This is to avoid unpleasant surprises when the goods arrive. If you have any questions about choosing FOB or CIF, please feel free to contact our sales experts atTJ chinafreight!
Given the number of NVOCCs in the world, choosing the right NVOCC for you can be a daunting task. How do you know which one is best for you? The first and most important step in this process is to ensure that your NVOCC is licensed by the Federal Maritime Commission (FMC).
What is NVOCC?
Let's start with the basics. N VOCC stands for Non-Vessel Operating Common Carrier. Its role includes contracting sea freightand shipping companies to move cargo from one point to another. It has agreements with carriers to provide its ships with a fixed number of slots each year in exchange for low rates.
NVOCCs are the largest traders in the container shippingindustry. It issues bills of lading, takes responsibility and liability for the goods, and can also own and operate its own or leased containers.
NVOCC andfreight forwarders are OTIs (Ocean Transportation Intermediaries). But they are not synonyms. NVOCCs can issue their own bills of lading, freight forwarders cannot; they can only work against carrier (or NVO) bills of lading.
Perhaps the most important difference is that, in some cases, NVOCC accepts all responsibility and liability for the goods. On the other hand, freight forwarders are not responsible for this. In addition, freight forwarders can act as agents or partners of NVOCC, but the reverse is not possible.
What does FMC do?
The Federal Maritime Commission is the U.S. federal agency responsible for regulating international shipping by U.S. ocean freight. FMC was established in 1961 to take over the responsibilities of the Federal Maritime Commission and has since been responsible for administering the regulatory provisions of shipping law. Today, it has more than 6,250 NVOCC registrations in its database.
What does it mean for NVOCC to have an FMC license?
With the FMC license, NVOCC can negotiate contracts with steamship companies. It also allows them to confirm their own House Bill of Lading as a Carrier Bill of Lading. For customers and suppliers, this is proof that the NVOCC is legally conducting business within the regulations set forth in the United States.
What happens if you work with a non-FMC licensed NVOCC?
This is the equivalent of hiring an unlicensed and uninsured contractor to work on your property. If something goes wrong, you have nowhere to go for help and support. In a more drastic way, basically, the only rules unlicensed NVOCCs have to worry about is getting paid and doing minimal work for the carrier/customs to accept your cargo as they are not subject to the regulations set by the FMC and obligations.
Ifocean shippingis not a sufficiently challenging process, try to imagine pharmaceutical shipping. We are talking about the logistics of drugs, pharmaceuticals, biomaterials, etc. Not only do these need to be kept at extremely precise temperatures, any issues in shipping can result in huge financial losses or worse, without potentially saving a life.
Logisticscompanies are often under enormous pressure to deliver medicines under high demand. These typically include zero damage, zero lateness and the possibility of track and trace.
To maintain accurate temperatures during transport, companies often use special equipment, including cryogenic containers, dry ice, thermal blankets, and insulating packaging. Sometimes temperature sensors are also included to monitor the temperature of the product throughout shipping.
But, of course, it never goes as smoothly as it looks in transit, and it's always a good idea to have extra resources on hand. In the event of delays such as Food and Drug Administration (FDA) inspections or other unexpected setbacks, further steps may be required.
Here are six interesting facts about pharmaceutical shipping.
Medicines need to be kept at precise temperatures to maintain their efficacy. These include the flu shot and insulin.
Pallet insulation blankets can be used to protect from sunlight, humidity, etc. It maintains a constant temperature range around 15°C to 25°C.
7 out of 10 leading pharmaceutical products require temperature-controlled shipping.
Biological materials (e.g. blood, tissue, reproductive material) and clinical trials need to be stored in cryogenic containers that can be kept at -150°C for at least 10 days.
A temperature change of as little as 2°C can completely destroy a drug product.
Pharmaceutical companies lose an average of $150,000 per small package shipped due to cooler temperatures. For larger shipments, this can cost millions of dollars.
There is no shortage of complex paperwork and documentation in the maritime world. You may know the more important bill of lading and packing list etc. But there are other equally important ones. In this article, we'll learn more about a letter of credit, what it is, and how it works.
What is a letter of credit?
According to the International Chamber of Commerce, a letter of credit is:
What is a letter of credit?
“On behalf of the buyer (customer/importer), the bank undertakes to pay the seller (beneficiary/exporter) the specified amount in the agreed currency, provided that the seller submits the required documents within the predetermined period.”
In other words, a letter of credit is a way, and one of the most common, where an importer promises to pay its foreign seller. It acts as a formal, binding legal agreement. Additionally, shippers generally consider this to be one of the safest payment methods.
In every transaction, there are sellers and buyers. In the vast world of trade, there is no way to know if the person you are dealing with is reliable. Given that it takes a long time for the goods to arrive by sea, the importer needs to guarantee payment before the goods arrive. This guarantee comes in the form of a letter of credit.
How does a letter of credit work?
It serves as a regular instruction from the importer's bank to the bank guaranteeing advance payment to the exporter. However, this first requires both parties to meet certain requirements. Buyers usually set these terms and conditions, which usually include:
Once the seller agrees to these terms, the buyer's bank (or issuing bank) proceeds to issue the letter of credit. This will be sent to the seller and his bank (designated bank). According to these conditions, the seller prepares his goods and documents. After shipment, the seller will bring the copy of the document to the designated bank for verification.
When the nominated bank verifies that the documents match those listed on the letter of credit, it pays the seller. Then it goes to the issuing bank with the documents. The issuing bank then certifies itself. Upon satisfaction, it will refund the amount paid to the seller to the nominated bank.
When complete, it notifies the buyer that the shipment is complete and that all documents are correct and in their possession. The buyer then pays the issuing bank, which signs the bill of lading to allow the goods to be released to the buyer.
Nestled in the clear blue waters of the Greater Antilles in the Caribbean Sea, the Dominican Republic is perhaps best known for its white sandy beaches and world-class golf courses. But here's a little-known economic fact: According to the World Bank, the Dominican Republic has actually enjoyed one of the strongest growth rates in Latin America and the Caribbean over the past 25 years.
The Dominican Republic's economy has largely rebounded from the global recession. It remains one of the fastest growing economies in the region. Its top three trading partners include the United States, China and Haiti. As a small island nation, the Dominican Republic relies far more on imports than on exports. In this article, we will take a closer look at importsfrom the Dominican Republic.
What are the main imports of the Dominican Republic?
Destination ship generation: your eyes and ears are there
The world of shippingis huge, complex, and definitely not lacking in regulations. Given the complex systems of this sprawling industry, hiccups are not uncommon. Whether you are an experienced shipper or not, it is always advisable to have an agent at the destination. This avoids unnecessary problems that can result in additional costs, delays, not to mention headaches.
Freight Forwarder: The designated party at the destination who handles your shipment and helps monitor it.
In case of unexpected problems, you can rely on your proxy. It is his/her responsibility to properly identify and resolve these issues. All this without any hassle for yourself - the client. Generally speaking, the responsibilities of an agent include document presentation, customs clearance, and delivery. It can even be a combination of these. But this is just an overview. What an agent is really responsible for varies from situation to situation and largely depends on the scope of the job.
What could be wrong
Shipping regulations and processes vary widely. Typically, they depend on the type of cargo, the country of destination, etc. Certain countries require very specific paperwork, not to mention the different logistics availability at each port. It is a risk not to pre-register an agent at the destination before the shipment leaves. This means having to deal with your own customs clearance, delivery services and any other unexpected issues.
All of this can lead to additional costs and logistical inefficiencies. The shipper/consignee will have a lot of extra work to do to determine what went wrong. This is just the first step. Then he may have to find a provider who can solve his problem. This all translates into unnecessary extra costs and delays.
Shipping without a shipping agent at the destination
At TJ chinafreight we are sometimes hired to deliver to port and told not to entrust to any agent. In this case, we only communicate all relevant information to the shipper. We send final warnings of estimated departure time and estimated arrival time to customers. But no one is responsible for notifying the consignee of the arrival of the goods.
If you use a vetted TJ chinafreightagent, we send alerts to shippers and agents at no extra cost. Our agents don't just check that all documents are correct. They also ensure destination charges meet expectations and adhere to industry and national practices. They can also meet any other requirements the consignee may have.
Importing from China: What you need to know (Part 2)
What do you think of China's unclear regulation of imports? What is the best way to overcome this problem?
I don't think the lack of clarity in Chinese regulations actually affects importers directly. If you import shoes, you won't have any problems with Chinese regulations. Suppliers load goods into containers (for FOC Incoterm) and you won't have any problems.
Importing from China does have tax benefits. But this is already included in our supplier's FOB price. That said, we don't need to know about legislation. There are also regulations that control and monitor the products that suppliers can export. For example, shoe suppliers cannot export sofas. This is why so many manufacturing companies in China entrust their exports to other companies. All of this is done to avoid China's strict regulations. But as mentioned earlier, this has little impact on importers.
What are the main difficulties and challenges that importers face when importing from China?
For first-time importers, the lack of understanding of the entire process is undoubtedly the biggest hurdle. They don't know how to hire a shippingcompany or who they have to pay duties and taxes to when shipping containers.
For experienced importers, their biggest problem is often the volatility of container prices. You can agree to a price of $500, but it goes up to $2,500 on the day it ships. Right now, this is the most vexing problem.
What advice do you have for shippers importing from China?
I recommend working under FOB Incoterm. Always negotiate FOB prices to avoid surprises from CIF prices. Under FOB conditions, you can control the entire shipping process from the origin port to the warehouse. This way, you can avoid any unexpected charges and get everything organized before the importprocess begins.
Can China maintain its status as the world's largest producer for a long time? Are there any signs that this will change?
I have no doubt that China will continue to be the world's largest producer for quite some time. What is happening today is that the processes that took place in China ten years ago have moved to other countries where labor costs are low, just like China ten years ago.
But having said that, some processes are just moved. A large portion remains in China. I think the production of raw materials in China will continue for some time.
How can importers minimize the impact of the General Tax Rate Increase (GRI)?
Since most GRIs are in effect in the first week of the month, importers can avoid the impact of GRIs by billing in the last week. Another option is to negotiate with your forwarder to get a better price than another shipping company that is not affected by GRI.
In terms of technology, what are the main opportunities for imports from China? What are the main advantages of using technology to book ocean freight?
Find suppliers through the Alibaba platform, new payment methods with companies like Transfermate, container tracking, and door-to-door services with companies like TJ chinafreight. Technology has definitely made life easier for importers.
In your opinion, which markets in China currently offer the greatest potential and opportunities for exporters?
I am not an expert on exporting to China. But every time I travel to China, I always try to find out what the Chinese are looking for.
I talk to people in my China office and they always tell me the same thing. Health and quality of life are the top concerns for Chinese people. Being able to feed a family is one of them, especially after the tainted baby milk incident. Pollution is also a big problem in China. That said, anything that offers a solution or can improve the quality of life in China is always a huge business opportunity.
As always, luxury. international well-known brand. The Chinese middle class is willing to pay higher prices for quality European products than for local Chinese products.
