/ By tjchinafreight ivy / Shipping

Importing from China: What you need to know (Part 1)

Importing from China: What you need to know (Part 1)
Importing from China: What you need to know (Part 1)

The biggest challenge of importing from China

Imported from China? If you want to learn about the biggest challenges and opportunities when importing from China, you've come to the right place.

We sat down with Jorge Mora, an import expert consultant from China, the world's largest exporter, and author of the Import from China blog. In this article, he explains toTJ chinafreight what are the main challenges importers face when dealing with China, and tips on how to overcome them. We'll also provide advice, best practices, and common misconceptions to clarify your concerns about importing from China.

You have over 10 years of experience helping SMEs import products from China. When importing from China for the first time, what do you think are their main problems?

I think the main problem that all companies, big and small, face when importing from China for the first time is how overwhelmed it can become. Most of them don't know the difference between FOB and CIF Incoterms. Nor do they know the specific documents and/or licenses they need to import from China. They often encounter difficulties negotiating with Chinese suppliers and are overwhelmed with ensuring product quality. But these challenges are perfectly normal, especially when you're dealing with something so complex for the first time.

What advice do you have for SMEs to minimise risks and potential problems?

These will be basic common sense advice, such as requesting samples before placing an order. Or choose small items such as LCL from the beginning when everything is still unclear. If all goes well and you feel that you can trust your supplier, you can continue to use FCL.

Throughout the process, your interactions with Chinese suppliers should give you a clear idea of ​​whether you are dealing with an experienced and honest supplier. Watch for the following signs:

  • Slow and sluggish responses to emails/phone calls
  • Sudden price increase after reaching a certain price
  • Sample shipping costs are too high
  • Unconventional payment methods

If you encounter any of these situations, you should pay extra attention and be extra careful to avoid surprises during the import process.

Is it possible to import from China without meeting the supplier and seeing the product in person? How important is this visit to the success of the import process?

Yes, of course it is possible to import from China without going to China. Many of my clients have never set foot in China. No more traveling 10,000 kilometers to meet suppliers and validate their products. There are plenty of other quality control companies out there that can do a better job than you fly to China.

That said, when you import a product that requires a lot of investment and/or has to be customized, I recommend visiting China. These include, for example, specific types of machinery or new furniture collections. This is where the physical presence of a company designer or engineer comes in handy to make sure everything goes according to plan.

Would you say that there are a large number of importers who have been defrauded of importing from China?

No, I think scams are rare. There are many rumors about Chinese imports. These include containers that ship with empty boxes, footwear suppliers who send only one side of the shoe to force you to pay for the other side. But that's just hearsay. If you think about it, it doesn't make sense to change the line to make only one side of the shoe.

There have been cases where importers received merchandise that did not meet their expectations. But this is more the result of miscommunication between the supplier and buyer than an attempt to defraud.

/ By tjchinafreight ivy / Shipping

How hurricanes affect shipping and logistics

How hurricanes affect shipping and logistics
How hurricanes affect shipping and logistics

Be in awe of the fanatical of all storm chasers. The clean-up operation began shortly thereafter. But that's expected to last for a while -- if not longer. On land, the cleanup can be both physical and emotional for some. But on land, companies continue to struggle to restore some sort of logistical normalcy.

Hurricane Precautions

Hurricane Irma was one of the five strongest hurricanes on record in the Atlantic. Thanks to highly sophisticated weather forecasting technology, early warnings are issued. Given their seriousness, the recommended precautions are noted. Shipping operations ceased, with suspected operations all the way to the South Carolina port. Cruise ships such as Carnival Corp and Royal Caribbean Lines canceled various sailings. All this is to avoid the wrath of nature.

It is better to be safe than sorry, and shipping operators who have the ability to divert their ships away from danger should definitely do so. But this has considerable financial implications. An 8,000 container ship can consume up to 225 tons of fuel per day. For cruise ships, the number could be as high as 250. That said, even minimal diversions can be costly to operators.

Logistics disruption caused by hurricane

Despite all the precautions taken for Irma, delays are bound to be disruptive. Not only the maritime industry, but the logistics industry as a whole. it has. Irma After the past few days, intermodal shippers continue to face delays for cargoes that need to be transported by rail through the southeastern United States. Even industry giants like Amazon have struggled to deliver on the two-day delivery promises it promises customers.

Other inconveniences include passing less cargo through the port or finding yourself having to store additional cargo. Thanks to shippers, many ports have waived or reduced delay fees. Certain operators also stopped their demurrage and demurrage clocks as Irma approached and restarted them when ports began to reopen. But even so, shippers may still find themselves having to pay truckers additional freight, storage fees, or possibly make other plans to get their goods to other ports.

/ By tjchinafreight ivy / Shipping

Five Mistakes in Shipping

Five Mistakes in Shipping
Five Mistakes in Shipping

Shipping is a huge industry. Almost every trade or business has been exposed to ocean shipping at some point. If you're thinking about venturing into the business world and considering ocean shipping as your primary mode of transportation, there are certain misconceptions you need to be aware of.

Get familiar with the facts to avoid nasty surprises that can cost you unnecessary delays. In this article, we'll address major misconceptions about ocean shipping.

1. Shipping is expensive

Not exactly correct. Yes, there is a cost to shipping. But compared to other international shipping methods, sea freight is definitely the most cost-effective. If you didn't already know, shipping accounts for 90% of world trade. That said, it is clearly the best and most cost-effective option for global importers and exporters.

If you're moving overseas and want to ship your household items by sea, reducing the number of items you bring with you when you move may cut costs. If you're looking for a cheap outlet, maybe it's best to consider leaving these behind (depending on their value) and buying new furniture in your new destination country.

At the end of the day, your final shipping fee depends a lot on how many items you're shipping. This brings us to the next point.

2. I can ship anything I want

Incorrect. Everything you put in the container needs to be listed on the packing slip and then submitted to customs inspection. Each country has its own regulations for certain commodities and commodities. Some items may be prohibited, while others may require you to obtain a special permit to enter. For example, if you're shipping wood-related items or have wood packaging material, you must make sure they're pre-treated. When in doubt, always consult your freight forwarder.

3. Container freight is always the same

You can't get any further from the truth. Not only do container shipping rates fluctuate regularly, they are also affected by many factors - some beyond your control. These include seasonal, political, and economic (demand and supply) factors. You should also be familiar with the concept of general rate increases or GRIs announced by shipping companies from time to time.

4. The content I post is private and not accessible to anyone but me

Sound the alarm! Even if only a fraction of the world's containers are inspected, you should not assume that your cargo will not be marked (randomly or otherwise) for inspection. For shipments arriving in the United States, the number is higher. But not a lot - 5%. U.S. Customs has only gotten stricter over the years, which means you should always be prepared for inspections that may occur.

5. I can plan my supply chain based on the estimated arrival date of my shipments

The latest figures show that only 74.7% of ships arrive on time. In other words, one out of every four shipments is late. If you think you can plan your logistics based on the estimated arrival date indicated by the shipping line, think again. The reliability of the carrier program has declined compared to last year and is still returning to its previous on-time rate. Late arrivals are not uncommon and can be the result of a variety of factors, including natural phenomena such as hurricanes, large shipments, etc. Keep up with the latest shipping news and keep up to date with the latest industry developments.

/ By tjchinafreight ivy / Shipping

Transparency as the foundation of partnership

Transparency as the foundation of partnership
Transparency as the foundation of partnership

In any business where the two companies decide to work more closely together, the overall success will largely depend on the trust and reliability between them. Enterprise data protection should never be underestimated. But let's make a clear distinction between necessary and redundant. Secrecy about costs and opportunities protects our competitive advantage...or does it?

Rate transparency

On average, it takes 4 to 7 business days to negotiate and complete a reservation. This includes time spent sending back and forth emails and phone calls to reconfirm costs and possible discounts between direct customers and overseas quoting agents. With TJ chinafreight, freight forwarders can get the lowest NET NET rates directly online and negotiate with end customers without further delays and share in possible after-sales profits.

Transparency of methods and know-how

Complete and instant information on carriers, transit times and available routes to evaluate options for better decision-making, as well as clear instructions on customs requirements and related regulations, all of which create confidence in professionally managed shipments.

Transparency of Shipping Status

Instant access to timely updates on cargo status is a thorny topic in our industry. Repeating follow-up calls and reminder emails for long-awaited information is a daily routine for too many of us. Now, with our Track & Trace tool, you can get complete information on the status of the latest shipments online directly on your personal dashboard. You can also take advantage of our automatic notifications and receive proactive updates.

Transparency of business opportunities

Leads account for a large portion of customer growth, especially when they are fresh and supported with full details and direct contact information. Instead of dropping an inquiry that interests you, share it with your partner. Let them grow with you and bring more opportunities to everyone involved.

Far beyond the competition, agents can complement each other through service and opportunity. Thanks to TJ chinafreight's innovative online platform, we can now track inquiries and rate searches of all global web users and share these detailed opportunities with our overseas partner agents. Read our post on how agents can benefit from using TJ chinafreight.

Transparency in practice

Strategic thinking and long-term cooperation between freight forwarders assume mutual trust and reliability, as well as a certain degree of transparency. We now operate in a more integrated and fast-paced world, where timely access to complete information is critical for better decision-making and therefore increased productivity.

Working with Holistic Transparency will optimize shipping operations and save time for both parties:

  • Focus on further development and greater results
  • Get better solutions for mutual customers in the fastest and most efficient way
  • Maintain customer satisfaction, enhance corporate image, and win new customers
  • Global expansion of business scope and achievements

As a practical example, a recent study by Harvard Business School outlines the concept of transparency in restaurant settings, where kitchen staff and customers are effectively separated by clear glass, so both parties can see food being prepared and consumed. Results showed an unexpected 17% increase in customer satisfaction and a 13% increase in service speed when customers and employees could see each other. This is just one of many fascinating powers of transparency in practice.

/ By tjchinafreight ivy / Shipping

Transparency between agencies – let’s be real

Transparency between agencies - let's be real
Transparency between agencies - let's be real

Freight Forwarders in the Shipping Industry

As the cornerstone of international trade and development, the shipping industry basically maintains the operation of the world economy. Those who know it will tell you that it is an exciting industry and one that involves enormous responsibility. Deciding who you want to work with and how you want to collaborate in this business are two very important decisions that you have to think carefully from the start.

A professional relationship with a freight forwarder can be reduced to two basic forms:

Agent as client

Request your help, rates and services in a specific area and the agent will become your customer. They will receive the utmost professionalism and attention, complete bookings in a timely manner, and send invoices correctly until the next opportunity to meet their needs. From our point of view, we value good service the most and follow up with them for more business opportunities. But at the end of the day, being the client's agent is the one who decides who they prefer to work with.

Agents as partners

This is a more integrated and complex form of cooperation. In this case, we consider agents within our professional network not only as possible customers, but also as suppliers or sub-suppliers. Going further, a good overseas partner might be our eyes and hands (or better, sales and operations) in areas where we don't have a live presence.

Consider long term and short term

For the most part, the cooperation of agents is fairly intuitive and depends largely on external opportunities and personal relationships among company employees. In this way, we find ourselves working with many different agencies on just-in-time shipments and most short-term agreements.

Logically, people will always look for better conditions, prices and available services, which can mean inconsistent and limited business relationships. But by applying some strategic thinking and statistical analysis, we can achieve long-term cooperation, from which both parties can benefit and grow together:

Reliable connections and clear procedures for every shipment

Through direct contact with the relevant responsible persons, we have a better understanding of the standard processes and requirements of both parties.

Deep insight into foreign markets and regulations

Do you know the maximum authorized weight for U.S. inland haulage? Countries and goods for which the EUR1 certificate is applicable? Best Incoterms when shipping from China? All of these and more are useful tips that form part of the solid expertise and local knowledge that partners share with each other.

Better understand customer needs

Either way works. The longer you work with a client, the smoother and faster it will be to manage their bookings. Your customers will rely on tailor-made service and the most competitive prices in foreign destinations/origins, resulting in increased overall satisfaction and, of course, your company image.

Taking a long-term view, more integrated cooperation with overseas agents will provide diversified opportunities for win-win development.

/ By tjchinafreight ivy / Shipping

Differences between a traditional and online freight forwarder

Difference Between Traditional Freight Forwarding and Online Freight Forwarding
Difference Between Traditional Freight Forwarding and Online Freight Forwarding

Comparing traditional and online freight forwarders

As more of the freight forwarding industry demands technology adoption, more and more freight forwarding startups are springing up. Online freight forwarders also do a lot. But why is digitization urgently needed? How is an online freight forwarder different from a traditional freight forwarder? In this article, we will address this issue.

According to a survey conducted earlier this year by global logistics research and consulting partner LOGISTICS, while 68% of respondents believe that traditional freight forwarders are still important in today's environment, 92% of respondents said that digitalization will provide freight forwarders add value.

The need to go digital is obvious. But how many freight forwarders are doing this, and how does digitization affect workflows and processes?

Website features

While most traditional freight forwarders have websites, they mostly only talk about the services they offer. Only the more advanced online freight forwarders offer documentation and rate features on their website.

Quote request

Some traditional freight forwarders may have a "Request for Quote" feature, but you may not be able to get in touch with them right away. Sending a quote request may only get you a quote via email, sometimes a few days later - if that's the case. According to a survey by TJ chinafreight, 40% of freight forwarders take 4 to 7 days to provide customers with a quote.

Quote now

Perhaps only a few traditional freight forwarders offer instant quotes, often for their own LCL products. They also often come in the form of tariffs, and shippers have to look at ocean freight and surcharges separately. In short, the math is not done for them, and the final cost must be calculated by themselves.

For example, for online freight forwarders like TJ chinafreight, quotes are provided within 15 seconds and all fees are broken down and included for full transparency.

Track

Today, only a few traditional freight forwarders offer tracking tools and sailing schedules. Again, these may only apply to their own LCL shipments. Online freight forwarders tend to have tracking tools for various types of shipments.

At TJ chinafreight, we are constantly striving to improve tracking efficiency and transparency. This year, we launched our own Track & Trace feature and automated notification system for shippers. Not many online freight forwarders offer these tools, and those who understand the importance of transparency may be the ones leading the industry's digital revolution.

/ By tjchinafreight ivy / Shipping

Fulfillment by Amazon (FBA) vs. Dropshipping

Fulfillment by Amazon (FBA) vs. Dropshipping
Fulfillment by Amazon (FBA) vs. Dropshipping

If you've ever purchased anything on Amazon, you probably opted for same-day or one-day delivery at some point, even if the item wasn't sold by Amazon. After all, as the world's largest retailer, Amazon prides itself not only on the variety of products on its site, but also on its fast delivery.

But have you ever wondered what happens behind the scenes when shopping on Amazon? According to Statista, Amazon's main source of revenue is the online sales of its electronics and other products. The second is third-party seller revenue.

Third-party sellers on Amazon

The world's largest retailer has more than 2 million third-party sellers registered on its online platform. In fact, it is estimated that more than 47% of items shipped by Amazon are sold by third-party sellers.
More and more businesses are building and growing their wealth on Amazon. In trade and commerce, like it or not, there is always a very important aspect to deal with: logistics.

Fulfilled by Amazon or Dropshipped

Given these advantages, it's no surprise that most third-party sellers on Amazon use its Fulfillment by Amazon (FBA) service. With FBA, sellers' products are eligible for Amazon's Prime and Super Saver Shipping. They can also take advantage of Amazon's customer service experience, which all translates to more sales when competing with non-FBA sellers.

However, not everything that glows is gold. Amazon's FBA also has its disadvantages, and many sellers often choose to handle this part of the logistics themselves. In other words, direct fulfillment.

If you are a third-party seller who chooses direct fulfillment, you may need to hire an outside service to help you manage the logistics part. As the demand has increased over the past decade, direct or other implementations have become more popular and advanced. Technology is obviously a big help when it comes to managing the entire process, tracking individual shipments, and inventory in warehouses. For most people, the dream right now is to reach Amazon Prime levels, where, for example, when you preorder, you know the shipment will arrive at your door on a given date. And it actually delivered on that date.

/ By tjchinafreight ivy / Shipping

What does China export?

What does China export?
What does China export?

Made in China. Much has been done about this phrase, its origin simply indicates the origin of the production of a certain commodity. Today, it is no longer just about international trade. As a label, Made in China can sometimes subtly indicate the quality of goods or low labor costs. In popular culture, it's even been made into a song.

For many countries, this label is a legal requirement for all products imported by sea or air and sold within their borders. Given that China is the world's largest exporter, it's no surprise that many items you encounter in your lifetime carry this label.

What does China export?

Machines such as computers, broadcasting equipment and telephones make up the bulk of China's exports—more than 40 percent of its total. This is followed by textiles, metals and chemical products.

Below is a list of the most exported products from China:

1. Machines (43%)

Computers (6.6%)

Broadcast equipment (5.6%)

Telephone (4.1%)

2. Textiles (12%)

Women's sweaters, suits, etc.

3. Metals (7.3%)

Steel bars, iron structures, etc.

4. Chemical products (4.6%)

Pesticides, fertilizers, antibiotics, etc.

5. Transportation (4.5%)

Auto parts, passenger and cargo ships, motorcycles, etc.

6. Plastics and rubber (3.9%)

Rubber tires, plastic household items, etc.
Overall, China's top 10 exports accounted for more than two-thirds of its total global shipments. China's total exports accounted for 7.46% of the world's total - indicating the export advantage of the Asian giants.

Where does China export to?

About one-fifth of Chinese exports end up in the United States. China's top five export partners are:

  • United States (19%)
  • Hong Kong (14%)
  • Japan (6.3%)
  • South Korea (4.6%)
  • Germany (3.2%)

Nearly half (49%) of Chinese exports remain on the continent. Its top destination in Asia is Hong Kong (14%), followed by Japan (6.3%) and South Korea (4.6%).

/ By tjchinafreight ivy / Shipping

LCL Shipping Delays

LCL Shipping Delays
LCL Shipping Delays

In general, if all goes well, LCL shipping will not take longer than FCL shipping in terms of transit time. It might even be faster if you're lucky enough to make sure the remaining space is right for your cargo at the last minute.

Shared Containers, Shared Responsibility

However, you may experience delays while waiting for other shippers to group their shipments and have them ready. Also, in the event of any paperwork errors, delays are likely to occur as the entire container may be held by customs. While you don't want to be held back by someone else's mistakes, you should make sure your shipments are ready on time and that your documents are filled out correctly and accurately.

Auxiliary port

Another possible delay issue is if you're shipping to a lesser-known port. Most international trade routes offer frequent and fixed sailing dates. But sending your cargo to a secondary port means you may have to wait a few weeks for your next sailing date, and then have to wait even more for a local feeder to transport your cargo from the main port.

Transshipment and multimodal transport

Delays are not uncommon if your shipment is through transhipment and/or multimodal transport. As mentioned above, your cargo may need to be unloaded and transferred to another container or wait for other cargo to be loaded into your container. As for multimodal transport, more logistics are required as your cargo needs to be transferred from the deconsolidation port to the inland terminal and onwards.

Things to remember:

  • LCL pricing depends on the volume of the shipment, not the weight. It only becomes a problem when weight becomes a factor when it is too heavy and is being trucked to and/or out of port. Here is a video on how to calculate LCL shipment volume to guide you.
  • Motor vehicles cannot be transported by LCL.
  • Depending on your item, country of origin and destination, additional documents and certificates may be required.
  • Your shipment may be damaged in transit if other shipments are not properly packaged. Other factors including severe weather at sea can also cause damage to the cargo. Transshipment and intermodal transport can lead to a higher risk of damage to your cargo as it passes through more hands. That said, be sure to pack your shipment properly to prevent damage from possible rough handling.
/ By tjchinafreight ivy / Shipping

How does LCL shipping work?

How does LCL shipping work?
How does LCL shipping work?

What is LCL shipping?

In ocean shipping, there are two main forms of containerized cargo - Less than Container Load and Full Container Load. As their names suggest, LCL deals with goods that take up less than the entire space of a full container, meaning a container must be shared, whereas FCL simply means owning a full container on its own.

To learn more about these two different types of containers, read our pages on LCL Shipping and FCL Shipping.

LCL Shipping: How It Works

Also known as "LCL", LCL shipping essentially refers to combining various goods in a single container. Since this involves sharing a container, it's a bit more complicated logically and requires more and better coordination to make sure everything runs smoothly and according to plan.

Book LCL

When you decide to ship LCL, you need to provide the freight forwarder with the dimensions and weight of your shipment. Documents and forms such as bills of lading, commercial invoices, cargo packing lists, etc. must also be completed and submitted. Depending on your cargo type and destination port, additional documentation may be required.

Get your item ready

LCL shipments are usually shipped on a fixed schedule, weekly or bi-weekly, depending on the destination port, so timing is critical. The grouping of LCL goods is carried out in one warehouse, called the Consolidated Warehouse of Origin.

Your freight forwarder can arrange for your shipment to be picked up, which is more common practice. Alternatively, you can also ship the goods to the consolidator warehouse yourself. But remember, if you choose the latter, your shipment needs to arrive fully prepared, packed and ready to load. If you prepare the shipment yourself, be sure to read our guide on how to calculate the volume of a LCL shipment using Tetris.

Whichever method you choose, please note that your shipment must have enough time to reach the warehouse. If the warehouse is located/close to the port of departure, the deadline for your cargo to arrive at the consolidation warehouse is usually 7 days before the sailing date. It depends on the location of the warehouse. For inland warehouses, the deadline will be earlier given that it takes more time to get the container to port.

This is to allow sufficient time for all LCL loads in the container to be properly LCL. Please give us our article on how to properly prepare a LCL shipment to guide you.

Transshipment to port

Once the LCL container is packed and ready, it is shipped to the port of departure as specified in the contract/booking. Port deadlines for containers are usually around three days before the sailing date. After the combined cargo arrives at the port, it is transferred to the shipping company and then shipped to the port of destination.

Transport

If you're shipping to a secondary port, your LCL cargo may be unloaded at a transshipment point, where it's either shipped to another container or waits for more cargo to fill the container before continuing on to its final destination.

In layman's terms, this is similar to what happens with your luggage when you're in transit at the airport. It needs to be unloaded from the plane you landed on and transferred to your next flight.

Reach the destination

After the LCL container arrives at the destination port, it is taken over by the destination agent of the freight forwarder. He/she will collect the containers and deliver them to a warehouse called a destination de-packing warehouse. There, the cargo in the container is broken up into individual LCL loads.

Receive your item

At this time, the consignee can go to the warehouse to pick up the goods. Alternatively, you can have an agent handle the shipment to the consignee, in which case your item will be transferred from the destination unpacking warehouse to the final destination warehouse before it is delivered to you.