/ By tjchinafreight ivy / Shipping

What is dual brokerage?

What is dual brokerage?
What is dual brokerage?

What is dual brokerage?

Double brokerage occurs when a freight broker accepts cargo and then hands it to another freight broker without telling the client. (i.e. after accepting a proxy load, if the broker re-proxies the load to another carrier, this is double proxying.) That's not what a broker should do.

Some background

Brokers, carriers and freight forwarders are the three recognized forms of transportation providers. "Dispatch services" are new to the market and try to circumvent the rules by acting as a broker, carrier or both...without abiding by the rules and regulations of either party. This means that shippers have no legal protection when it comes to delivery services.

As part of the regulations, shippers should know who they have contracted for goods and whether they have contracted with a broker, carrier or freight forwarder.

It is generally accepted that an entity (company) should be one of three: a broker, a carrier or a freight forwarder. However, it is common practice for carriers (especially) to accept more loads than the trucks they own and then "lay off" the extra loads to other carriers. These carriers may or may not have broker authorization...but in either case act like a broker (and re-broker) without disclosing (i.e. act like a co-broker).

Companies that refer freight are notorious for "disappearing" and don't pay the carrier or break up or hold the freight hostage until the shipper (broker) pays. In general...if you don't follow the rules you are doing it on purpose and for a reason...

Going back to dual brokerage...this practice has many risks and relatively no benefits. When one broker hands over their cargo to another, they no longer know who is actually handling the cargo, or if they are using the proper licenses and insurance, nor can they track the cargo.

While technically legal, dual brokerage is a contentious issue in the shipping world. (Side note: It may be illegal if a broker accepts payment for an agent shipment, forwards it to another shipping company, and then does not pay the carrier after the shipment is shipped.)

Freight brokers can avoid double brokers by not "biting too much". In other words, if you can't tow the goods yourself, don't say you can tow the goods. If you cannot handle shipping and need to pass it on to another broker, you must do so with the client's consent.

Dual brokerage should not be confused with joint brokerage, which can be a beneficial practice. Co-brokering is when a freight broker cooperates with another broker to meet demand - a collaboration that is known to all parties. Ultimately, co-broking is there to help clients. Sometimes brokers have a specialized niche, so it makes sense to co-broker with the company instead of rejecting client requests.

/ By tjchinafreight ivy / Shipping

How to Ship Goods from China to the US

International shipping is equally complicated and expensive, particularly when it comes to long-distance freight. When importing from China to the USA, it’s important to focus on shipping companies and methods to reduce freight costs and times.

 The flag of the United States of America and the flag of the Republic of China fly together on flag poles next to each other on a sunny, windy day.
 The flag of the United States of America and the flag of the Republic of China fly together on flag poles next to each other on a sunny, windy day.

How to Ship from China to the US

Importers who manufacture products in China and sell in the U.S. can choose from a variety of shipping methods, including express, air, and ocean.
Regardless of the method used, most importers will rely on Chinese freight forwarders to manage their shipments. This is because a reputable freight forwarder like TJ-chinafreight can help them with their complex logistical needs, and at the same time, they can save a lot of money due to their large number of shipping agreements with major airlines and freighters serving China.

What is the best way to ship from China to the US?

Sea ​​freight

Sea freight from China to America
Sea freight from China to America

Ocean freight is by far the most common type of international shipping method. Around 90% of all shipping is carried out by ocean transport. If you’re transporting high volumes of goods, this should be your go-to option.

Ocean shipping vessels are capable of transporting enormous weight and quantities of goods. It is perhaps the most cost-effective mode of transport from China to the USA, and the CO2 emissions are relatively low compared to other options. There are generally fewer restrictions for ocean freight when compared to air transport.

Transit time

Sea freight is by far the slowest option you can choose: you should consider sea freight from both countries to take around 30-40 days. This transit time is not only due to upfront preparations, but also because shipping lines are now moving slower in order to be able to save on fuel costs. Also, keep in mind that many unexpected events can happen: bad weather, port congestion, etc. Regardless, TJ-chinafreight only works with the best and most reliable shipping companies to ensure a hassle-free process for our customers.

Here are some of the main charges that come with your shipment:

  • Origin delivery to POL (Port of Loading)
  • Customs Clearance (Export)
  • Freight rate
  • Insurance
  • Import customs clearance
  • Customs duties (if any)
  • Delivery to the agreed final location

Air freight

Air freight from China to America
Air freight from China to America

Air freight is the fastest way to import goods from China. It is used frequently by importers who are coordinating time-sensitive international shipments. Typically, ocean freight shipments take between 20 and 30 days to travel across continents from China to the US. Air freight is safe, reliable, and takes hours to reach its destination.

The major downside of air transport is that it is expensive. It is typically 5 times more expensive than trucking and 16 times more expensive than ocean freight. It is also limited when transporting large and bulky items.

Air freight rates are determined by weight and volume. Carriers charge by dimensional weight or actual weight, depending on which figure is more expensive.

Transit time

Express Options

When you air freight from China to the US using international express, you should consider the transit time of about three days. This delay accompanies the pickup and delivery of the cargo to the departure airport. If your shipment is really urgent, we can even set up priority express for faster delivery.

Standard Air Freight

Regular air freight between the two countries usually takes 8-10 days.

Express Freight

Express freight from China to America
Express freight from China to America

Express freight is generally used to transport goods at short notice. It is only cost-effective for shipping small items, so air or sea freight should be used for larger products.

The main reason it is so time-efficient is that it is a streamlined service, completed entirely by one company. Couriers such as UPS, FedEx, and DHL are regarded as express freight carriers.

If you want to choose the most suitable shipping method, the time requirement mainly determines the best shipping method
When time is a top priority, businesses will look for all possible options to ship the goods in the fastest way, and the speed of time determines the cost of shipping.
Of course, the weight and volume of your cargo will also affect your choice of shipping method.

What is the cheapest way to ship from China to the US?

No matter which shipping method you use, the cheapest way to ship from China to the US is to use a reputable China freight forwarder such as TJ-chinafreight.

TJ-chinafreight is not only able to pass our bulk shipping, but also offers the best shipping guarantee for all shipping methods. Get started today and get a shipping quote from China.

/ By tjchinafreight ivy / China Freight News • Shipping

Shipping from China to Brunei

Brunei, a small country. But it ranks second among Southeast Asian countries on the Human Development Index, after Singapore, and is classified as a developed country according to Wikipedia. Shipping goods from China to Brunei has shipping, air and other transportation methods. Choosing a good freight forwarding partner can make your goods reach the destination more efficiently. TJ-chinafreight is one of the most trusted forwarders in China, allowing your cargo to arrive safely.

There are 4 different shipping methods: FCL, LCL, Air and Courier

Each of them has its unique advantages, disadvantages and application conditions.

In general

  • FCL : Suitable for large volumes above 10 CBM.
  • LCL : Suitable for small volume cargo. Save on shipping.
  • Air Freight: A fast option but more expensive compared to ocean freight.
  • Express: The most convenient for small shipments.

Which is better, sea, air or express?

Sea freight

It will be dispatched after FCL is carried out at domestic ports, and some service providers will transit in Singapore, and then transport it to the 4 major ports in Brunei for customs clearance, sorting and delivery. For some bulky goods, it is more suitable to choose sea freight, and the cost is relatively low.

Air Freight 

In China, direct cargo flights to Brunei will be arranged for transportation. After arriving at the customs, customs clearance will be carried out. After sorting, it will be handed over to the local logistics for delivery. The safety level will be higher, and the timeliness will be faster, but the cost will be higher.

Express line

Brunei express line is divided into ordinary line and express line. The time limit of ordinary line is slower and it is also through express. The service provider will cooperate with the courier company for transportation and delivery.

When will the Brunei special line arrive at the fastest time?

  • By Air: It takes about 5-7 days.
  • By sea: about 10-15 days.
  • Express: It takes about 7-15 days for the normal line, and 3-7 days for the express line.

Needed file

For importers

Businesses importing into Brunei must provide the following documents:

• Bill of Lading;
• Ship orders;
• commercial invoice;
• Packing List;
• Import permit;
• Customs import declaration;
• Certificate of Origin.

For exporters

Businesses exporting from Brunei must provide the following documents:

• Bill of Lading;
• commercial invoice;
• Customs export declaration;
• Packing List;
• Certificate of Insurance;
• export license;
• Certificate of Origin.

Duties and Taxes

Brunei follows the Harmonized Tariff System (HTS) for imported and exported goods that are not from ASEAN member countries. For imports and exports between ASEAN member countries, Brunei follows the ASEAN Harmonized Tariff (AHTN).

Import duties and taxes

As of January 1, 2019, the vast majority of goods imported into Brunei are not subject to tariffs. A small number of goods subject to customs duties are taxed at five or ten percent.

  • Goods subject to the 5% tariff include: petroleum and bitumen oils, cleaning supplies, film equipment, lamps and wood.
  • Goods subject to a 10% tariff include: certain fabrics, blankets, curtains and musical instruments.

Brunei does not impose other additional taxes on imported products.

Export duties and taxes

No customs duties are levied on exports from Brunei.

At last

Due to Brunei's single-window customs clearance and low tariff rates, importing and exporting in this small sovereign country is much easier than in some of its Southeast Asian neighbors. Utilizing experts with local knowledge ensures that importers and exporters can import and export goods quickly.

/ By tjchinafreight ivy / Shipping

What are the ways of China’s logistics line to India?

China and India are geographically close, and the exchanges and trade between the two countries have been very good since ancient times. Their closeness is also the reason for multiple lawsuits between the two countries. In this day and age, management conflicts continue in Arunachal Pradesh and Aksai Chin regions in North India/East China. Arguably, they prefer to cooperate rather than feel concurrent with each other. Fortunately, through the annual BRICS Forum, they are easing relations and achieving better common development.

There are four ways to export from China to India: express, sea freight , land and air freight.

Express is a good way to export to India. It has various express methods such as DHL, FEDEX, TNT, etc. We will not introduce them one by one, and there will be a detailed introduction in the future. The cost of the special line in India is generally calculated as follows: RMB/KG times the weight plus the additional cost of delivery (usually sent to remote areas). It should be noted that if the Indian special line has tariffs paid by the recipient, the recipient refuses to pay the tariff and it will be automatically changed to be paid by the sender. The tariff will be reimbursed and an additional handling fee will be charged. Make a formal declaration. The packaging requirements for express delivery are similar to our usual express delivery, but one thing to note is that for extra small express goods (such as small samples), a certain volume of wooden boxes or carton packaging (with filler pads, etc.) must be added. Afterwards, the total volume length, width and height of the entire express shipment shall not be less than 40CM, and the smallest side shall not be less than 5CM. Note: India is not allowed to import beef milk and related dairy products because cows are protected animals in India! Haochuan Logistics also has a service that provides customers with fast packaging and inspection. The advantages of express delivery are fast timeliness, wide range, many goods that can be sent, full logistics tracking and control, and low packet loss rate.

In addition to express, sea and air transportation, these two lines have many customers and complete services, most of which include double clearing services.

First of all, we need to understand what is the double-clearing line. The Indian double-clearing line generally refers to the customs declaration when the goods are sent to India, and the customs clearance when they are imported after reaching India. Among them, shipping Shuangqing is an integrated transportation route that relies on ports and runs through the sea and land, including domestic and overseas customs clearance, export, import of destination countries, tax, and door-to-door one-stop logistics services. India special line is a special transportation route developed by logistics companies according to the situation of customers transporting goods to India. It has complete services and a high degree of integration, which can reduce a lot of trouble. Among them, sea and air transportation are the most perfect. The characteristics of sea transportation are that the transportation volume is large and the cost is low, but the time required is relatively long; the characteristics of air transportation are the transportation time period, the amount of goods is larger, but the price is higher than that of sea transportation, and there are more restrictions on commodities. The domestic Shuangqing line to India generally takes about a month to arrive.

The customs process in India is one of the most onerous in the world and applies to all types of goods and countries of origin. India's tariff barriers are also quite high. But for an emerging country, it's common.

India's land transportation is the cheapest, because China is not far from India, so many people choose land transportation. The amount of land transportation is large, but the timeliness is very slow. Generally, it takes more than 15 days. Some goods that require fast aging are not suitable for travel. For land transportation, merchants can choose different transportation methods according to different needs to reduce the cost of transportation. It is worth noting that the tariffs in India are very high, and merchants should prepare psychologically in advance.

/ By tjchinafreight ivy / Shipping

U.S. imposes sanctions on Russian state-owned shipbuilders

The "Bucha Massacre" has become an important turning point in the Russian-Ukrainian crisis. Recently, the United States launched a new round of sanctions against Russia, targeting large strategic state-owned enterprises. Russia's largest state-owned shipbuilding company, United Shipbuilding Corporation (USC), and its executives have become the latest "victims" on the sanctions list.

Washington, April 8. /TASS/. The U.S. government has imposed sanctions on eight board members and 28 subsidiaries of Russia's United Shipbuilding Corporation.

The U.S. Treasury Department describes USC as "the principal Russian state-owned enterprise (SOE) responsible for the development and construction of Russian Navy warships."

The USC officials who were blacklisted were USC Board of Regents Chair Georgy Poltavchenko and CEO Alexey Rakhmanov. Other blacklisted board members include Andrey Lavrishchev, head of the Federal Service for Maritime Affairs and River Transport, Vitaly Markelov, deputy chairman of the Gazprom Management Board, Vladimir Pospelov, board member of the Russian Federal Military-Industrial Council, and deputy minister of industry and trade, Russian Federation Fisheries Minister Oleg Ryazantsev, Federal Fisheries Director Ilya Shestakov and JSC Rosneft Vice President Andrey Shishkin.

According to the statement, the 28 subsidiaries included in the sanctions list include:

1. JSC 33 shipyard, specializing in warship maintenance;
2. JSC Admiralty Shipyards, which builds warships and submarines;
3. The Baltic Shipyard, which builds naval ships;
4. Vyborg Shipyard, participating in the construction of icebreakers;
5. Shipbuilding Plant Severnaya Verf, which builds guided missile cruisers, anti-submarine and torpedo boats, and destroyers;
6. Sredne-Nevsky Shipyard, specializing in the construction of warships;
7. Severnoe Design Bureau, involved in projects related to frigates and destroyers;
8. Nevskoe Design Bureau, which designs warships, including aircraft carriers;
9. Almaz Central Marine Design Bureau, which designs fast missiles and patrol ships;
10. Krasnoye Sormovo Shipyard, which produces military ships, including submarines;
11. Central Design Bureau for Marine Engineering Rubin, which designs submarines and conducts other Russian defense activities;
12. Research Design and Technological Bureau Onega, which provides engineering and design support for Russian Navy submarines;
13. St. Petersburg’s Sea Bureau of Mechanical Engineering Malachite, designed submarines;
14. 10 Ordena Trudovogo Krasnogo Znameni Dockyard, participating in ship repair activities;
15. Baltic Shipbuilding Plant Yantar, engaged in the construction of military ships;
16. Amursky Shipbuilding Plant, engaged in submarine construction and manufacture of weapons and defense products;
17. Ship Repair Center Zvezdochka, engaged in submarine repair and other military activities;
18. Proletarsky Zavod, participated in the completion of strategic orders of the Russian government and the production of submarine products;
19. Khabarovsk Shipbuilding Yard, involved in the construction of ships for the Russian Navy and the Federal Security Service (FSB) of the Russian Federation;
20. Aysberg Central Design Building, engaged in ship design;
21. Kaspiyskaya Energiya Administration Office, responsible for completing strategic work related to USC and the oil and gas industry;
22. Northern Production Association Arktika, engaged in production activities related to military ships;
23. Northern Machine-Building Enterprise, which builds submarines for the Russian Navy;
24. Svetlovsky Enterprise ERA, for activities related to ship automation;
25. Shipbuilding Plant Lotos, a Russian military-industrial complex shipyard;
26. Kronshtadtskyy Morskoy Factory Minoborony Rossii, for the Russian Ministry of Defense;
27. Sudoexport, representing USC to enter the world shipbuilding market;
28. Design Office for Shipbuilding Vympel, which designs special-purpose ships for the Russian Navy and other projects for the Russian Ministry of Defense.

Companies blacklisted by the United States face asset freezes in the United States. U.S. citizens and corporations are prohibited from conducting any business activities with these entities.

On February 24, Russian President Vladimir Putin said in an early morning televised speech that he had launched a special military operation in Ukraine in response to requests from the leaders of the Donbas republics for help. He stressed that Moscow has no intention of occupying Ukrainian territory, and the leader stressed that the sole purpose of the operation was to demilitarize and demilitarize Ukraine.

It is understood that the United Shipbuilding Corporation (USC) is the largest shipbuilding group in Russia. According to the Russian Presidential Decree on March 21, 2007 signed by Putin, the United Shipbuilding Corporation was officially established, and the registration was completed in mid-November 2007. , headquartered in St. Petersburg, the Russian government holds 100% of the company's shares, the group has 50 subsidiaries such as shipyards, ship repair yards and design bureaus.

The purpose of establishing the USC by the Russian government is to consolidate and develop the Russian defense industry and safeguard the national maritime security and defense system. While developing, producing, constructing, repairing and maintaining warship and submarine projects, vigorously develop the civilian shipbuilding industry and develop the world maritime market. The USC is completely controlled by the government, and its 11 members of the board of directors are elected by the Government of the Russian Federation to exercise power on behalf of the state for a 12-month term.

Western countries have imposed new sanctions on Russia due to the Russian-Ukrainian conflict. According to the Russian President's Press Secretary Peskov, the Western sanctions are very strong, but Russia is prepared for this in advance. He added that this requires analysis and coordination across ministries to develop a response that is in Russia's interests.

Russian President Vladimir Putin said the policy of containing and weakening Russia is a long-term strategy of the West, and sanctions have dealt a heavy blow to economies around the world. He pointed out that the main goal of the West is to make the lives of millions worse, and by freezing Russia's foreign exchange reserves, the United States and the European Union have effectively declared a default on Russian debt. He added that current events would end the West's global dominance of politics and economics.
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/ By tjchinafreight ivy / Shipping

Maersk announces formation of an air cargo company

On April 8, Maersk issued an announcement on its official website, announcing the establishment of an air cargo company, Maersk Air Cargo, as its main air cargo business, to meet the logistics needs of customers through integrated logistics.

The company, which owns the world's largest container shipping company, said its new Maersk Air Cargo business will be operational in the second half of the year, while Maersk has selected Billund Airport, Denmark's second largest airport, as the air cargo hub for Maersk Air Cargo, which operates daily Both flights create multiple jobs in the region. It will use Denmark's Billund Airport as its main hub and offer daily flights.

Jan Hessellund, CEO of Billund Airport, said: "We are very proud to have been selected as Maersk's European air cargo hub and we look forward to taking our collaboration to new heights."

The new air carrier is the result of existing in-house aircraft operator Star Air transferring its operations to Maersk Air Cargo.

Last year, the company announced it had purchased two new B777 freighters, due for delivery by Boeing in 2024, and leased three B767-300 freighters, which will enter service next year through ATSG's leasing arm, Cargo Aircraft Management. Send your goods from China to anywhere in the world

Maersk said that Maersk Air Cargo's air freight capacity, which is Maersk's controllable capacity, is designed to make the supply chain more flexible and intuitive. When combined with ocean freight, inland, warehousing and customs services, it provides another key link in Maersk's strategy to become a global integrated logistics provider.

"Maersk Air Cargo is an important step in Maersk Air Cargo's strategy as it will allow us to offer our customers a truly unique set of solutions combining air cargo with other modes of transport. We see, both now and in the future, the The demand for air cargo is growing, as is the need for end-to-end logistics, so it is important for us to strengthen our controllable capacity and further advance our air cargo strategy,” said Torben Bengtsson, Global Head of Maersk Air and LCL . Get Air Freight Services

/ By tjchinafreight ivy / Shipping

4 time limits for foreign trade export tax rebate

Export enterprises should pay special attention to the declaration procedures and the concept of time when handling export tax rebates to avoid losses. When exporting tax rebates, export enterprises should pay attention to the following four time limits:

One is "30 days"

After foreign trade enterprises purchase import and export goods, they should promptly obtain special VAT invoices or ordinary invoices from the supplying enterprises, which are VAT invoices for anti-counterfeiting tax and tax control, and must go through the certification procedures within 30 days from the date of invoicing.

The second is "90 days"

Foreign trade enterprises must go through the export tax rebate declaration procedures within 90 days from the date of export declaration of goods, and production enterprises must go through tax exemption and deduction declaration procedures within three months from the date of declaration of goods for export.

The third is "180 days"

Export enterprises must provide the local competent tax refund department with the verification form of export foreign exchange receipts (except for forward foreign exchange receipts) within 180 days from the date of export declaration.

The fourth is "3 months"

If the paper tax refund certificate for export goods of an export enterprise is missing or the contents are incorrectly filled in, and it can be reissued or changed according to relevant regulations, the export enterprise may apply to the tax refund department for an extension of the declaration of tax refund (exemption) for export goods within the declaration period. , the application can be extended for 3 months.

Tax classification and attached materials of tax refund (exemption) for export goods

According to the current tax system, the two types of tax refund (exemption) for export goods in my country are value-added tax and consumption tax within the scope of turnover tax (also known as indirect tax).
The tax refund (exemption) for export goods is the value-added tax and consumption tax that have been paid in all aspects of domestic production and circulation of export goods.

Keywords: turnover tax

It generally refers to the so-called tax on items characterized by commodities. As far as my country's current tax system is concerned, turnover tax includes value-added tax, business tax, consumption tax, land value-added tax, customs duties and some local industrial and commercial taxes.

Materials for export tax rebate:

1. Customs declaration. The customs declaration form is a document filled in by the import and export enterprise to go through the declaration procedures to the customs when the goods are imported or exported, so that the customs can check and release the goods based on this.
2. Export sales invoice. This is the document filled out by the export enterprise according to the sales contract signed with the export buyer. It is the main document for foreign purchases, and it is also the basis for the accounting department of the export enterprise to record the sales revenue of export products.
3. Purchase invoice. The main purpose of providing purchase invoices is to determine the supplier, product name, measurement unit, and quantity of export products, whether it is the sales price of the manufacturer, so as to divide and calculate the purchase cost.
4. Foreign exchange settlement bill or foreign exchange receipt notice.
5. For the self-made products directly exported or entrusted to export by the manufacturer, if the settlement is based on the CIF price, the export cargo waybill and export insurance policy should also be attached.
6. Contract Information. Enterprises that have the business of processing re-exported products with imported materials shall also submit the contract number, date, name and quantity of imported materials and parts, name of re-exported products, cost of imported materials and various taxes paid to the tax authorities. amount, etc.
7. Product tax certificate.
8. Proof that the export proceeds have been written off.
9. Other materials related to export tax rebates.

General trade export goods tax refund method

At present, the tax refund methods for foreign-invested enterprises export goods include "first levy and then refund" and "exemption, credit, and refund" tax.

"Tax first and then refund" means that the goods exported by production enterprises by themselves or by entrusted agents shall be taxed at the tax rate stipulated in the Interim Value-Added Tax Regulations, and then the tax authorities in charge of export tax rebates shall conduct tax rebates within the national export tax rebate plan. Approval of tax refund according to the specified tax refund rate.

Tax basis

The tax refund amount shall be calculated according to the FOB price of the current export goods multiplied by the exchange rate in RMB.

"FOB" (written as FOB price in English) is the FOB price at the port of shipment, but this FOB price is a symbolic price, that is, the seller will hand over the necessary shipping documents to the buyer to collect the payment according to the contract, and the risks of the buyer and the seller are divided. All are limited by the loading of goods on the ship. Therefore, the FOB price is for the buyer to be responsible for chartering and booking space, and to apply for insurance to pay the transportation and insurance premiums.

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/ By tjchinafreight ivy / Shipping

Russian ships under sanctions change flags in large numbers

In March, an unusually high number of ships abandoned their Russian flags and re-registered with countries such as the Marshall Islands and St. Kitts, according to data provided by maritime risk consultancy Windward AI.

Russian ships in trouble

A total of 18 ships were re-flagged last month, according to Windward, more than three times the normal rate of 5.8. Five of the ships were linked to Russian ownership. Among them are 11 ships from the same fleet, all of which have been changed to the Marshall Islands flag, and three tankers have been changed to the flag of St. Kitts and Nevis.

Five of the 18 ships that changed flags had direct links to Russian owners. The level of Russian re-flagging in March was more than three times the average, the first time since January 2020 that the monthly number of re-flagging reached double digits.

The U.S., U.K. and other allies have stepped up sanctions on Russia due to the Russian-Ukrainian war that began in late February. U.S. President Joe Biden issued an executive order on March 8 banning imports of Russian oil and gas, and Britain also said it would phase out oil imports by the end of the year. In addition, several countries have banned Russian ships from entering their ports.

From yachts as small as multi-million dollar yachts to oil tankers, Russian ships are already in trouble. The identification and position transmission system AIS, which was supposed to be on all the time at sea, has also been turned off because it avoids detection but poses a risk to maritime safety.

But not all flag changes are necessarily sanctions evasion. The trend could also include "honest businessmen trying to continue business as usual without the potential obstacles that the Russian flag could pose for them," the report said.

Gur Sender, product manager at Windward, said foreign companies have different motivations for changing the flag of Russia, some want their ships to be able to operate around the world without restrictions, and that sea freight is an important method of transporting goods, but others are for ethical reasons.

Changes to flags are not necessarily abnormal, and are sometimes due to changes in ownership or area of ​​operation, Sender said. Singapore will have an average of 17 flag changes per month in 2021, while Japan will have an average of 5 flag changes per month this year. But their levels are all stable without big fluctuations.

A large number of Russian flag switches have appeared in other unusual activities, such as Russian tankers shutting down their tracking systems. Both tactics were included in a May 2020 U.S. Treasury Department bulletin that listed seven categories of fraudulent shipping practices.

"Bad actors may forge the flags of their vessels to conceal illegal trade. They may also repeatedly register ('jump the flag') with a new flag state to avoid detection," the advisory warned.

/ By tjchinafreight ivy / Shipping

Seaspan plans to expand investment in container ships.

 

In the past two years, the container shipping market has been hot. Although Seaspan, as the world's largest independent container ship owner, could have sat down and reveled in the high income, sufficient customers and long-term leases, due to the rapid development of the shipping industry, the The company still plans to expand its investment in container ships.

The Vancouver-based, Hong Kong-registered, Atlas Corporation-owned company has been growing at a record pace over the past year and a half. Its latest financial statements for 2021 confirmed that the company's cash flow was very solid, with a profit of $400 million in 2021, double the previous year. The leasing business added 70 newbuildings, or about 0.9 million TEU, and new contracts generated total cash flow of up to $12.9 billion.

Like the big liner companies, Seaspan is building a very strong capital pool. There is no doubt that investing in new projects is very easy for Seaspan. If a bank needs it to guarantee a loan, Seaspan can easily find a recent lease with a major liner company, which can last up to 18 years.

That said, Seaspan will still have an exceptionally strong funding position until 2040, even if the hot container market cools one day.

Seaspan and its shareholders want uninterrupted returns through continuous investment like a shipping company. Many large liner companies use their profits to invest in logistics assets. For example, Maersk bought LF, MSC bought Bolloré's African business, and CMA CGM bought Ceva.

But considering that the customers of these profiteers are now helpless to pay sky-high freight costs and endure long delays, in this case, shipping companies rely on their special tax incentives and use their high profits to acquire Another industry has exacerbated the negative sentiment in some parts of the supply chain market to a certain extent. Seaspan needs to study how to play a long-term "ship owner and operator" in the container shipping industry. business to best serve customers.

The issue has been discussed within the company for some time, but according to COO Torsten Pedersen, there is no final conclusion yet. But in general, the company aims to further strengthen its position in global value chains, including beyond 2025.

Ensuring a role in decarbonisation may be an option, but it may also be other activities, and opportunities abound in the chaotic container market.

“The industry is currently undergoing major changes, and the competitive environment is very different from a few years ago. Some links may be squeezed in the new structure, and there will be many strategic moves and counter-attacks in the industry. Huge market changes can provide many creative opportunities, we Think it's an exciting challenge."

"It's a good thing that Seaspan has a strong financial position" amid the boom in the container market, Pedersen said. Seaspan is currently achieving its stated goals. The company has struck deals with operators to build around 70 new ships over the next two or three years.

Concluding comments on the shipping industry, he said: "We have strong partners and long-term contracts, and our partner yards have a long history of shipbuilding. This is an industry that will be heavily funded in the next few years and the landscape is changing."

/ By tjchinafreight ivy / Shipping

German retail giant Lidl sets up its own shipping company

Lidl, part of the Schwarz Group and one of the world's largest retailers, launched its own container shipping company to tackle supply chain challenges, reduce delays in product deliveries and avoid high shipping costs.
Wolf Tiedemann, CEO of Lidl Stiftung & Co. KG, confirmed the establishment of the new shipping line to German media outlet VerkehrsRundschau, commenting: "The goal is to be able to manage the increase in different production facilities more flexibly in the long term."

According to local media reports, Lidl has submitted an application to the European Trademark Office to register a shipping company named Tailwind Shipping Line, whose business scope is cargo transportation, including sea, air and import and export cargo handling.
If the plan goes well, Lidl said it would be able to operate its own supply chain and address high freight rates and congestion in port and landside transport.
However, Lidl has not disclosed which routes Tailwind Shipping Line plans to open and which types of ships it will use, which does not rule out the company buying ships to build its own fleet.

Notably, news of Lidl's foray into the shipping industry was first reported by German media on April 1. An industry insider said at the time that the report was an "April Fool's joke". However, the move has been confirmed by local shipbrokers - Lidl's plans are real.

In fact, as early as 2021, Lidl planned to invest in a container shipping business to better control the supply chain, but it has not been able to materialize.
A fast-growing German retailer, Lidl currently operates more than 11,000 stores worldwide and employs more than 310,000 people.

In fact, big shippers have been trying to build their own supply chains to move goods more quickly.
In the second half of 2021, due to the continued shortage of space and containers in the container shipping market, major European and American cargo owners, including IKEA, Wal-Mart, Home Depot, and Amazon, have begun to charter their own ships to transport goods, and more and more cargo owners have followed suit.

For this approach, some industry insiders have analyzed that for those large cargo owners who urgently need to transport goods, although chartering their own cargoes looks very attractive, they are also faced with uncertain risks in the market, and thus resulting losses.
However, these shippers often choose to work with freight forwarders. So far, no shipper has developed its own shipping brand.