International express (parcel), parcels sent by international express, and parcels delivered from China to the United States, Japan, South Korea, Canada, the United Kingdom, New Zealand and other countries can be called international parcels. International parcels need to be transported across borders, and any All cross-border transportation requires customs clearance, including export customs clearance and import customs clearance.
For example, if you send a package from China to the United States, you need to clear customs when you leave the country, and you need to be inspected, checked, and inspected by customs staff before the goods can be loaded onto an airplane or a ship at the dock. After the goods are loaded on the means of transportation, international transportation begins, and they are delivered to ports or airports in the United States. After arriving at a U.S. port or airport, it needs to be unloaded for customs clearance, and only after customs clearance can the terminal be transported.
That is to say, when we send international parcels, we must go through customs clearance, and we have to go through two customs clearances, one for the exporting country’s export clearance and the other for the destination country’s import clearance.
Does it have to be officially reported?
First of all, if the inbound and outbound goods of individuals exceed the prescribed limit, they should go through the return procedures or go through the customs clearance procedures in accordance with the regulations of the goods. However, if there is only one item in the parcel and it is inseparable, although it exceeds the specified limit, if it is indeed for personal use after the customs review, it can go through the customs clearance procedures according to the regulations on personal items. That is to say, express declaration can be made, and the express company can declare directly and quickly clear customs.
However, if the import and export of commercial mail, or the amount/quantity of products exceeding the reasonable range for self-use, should go through customs clearance procedures in accordance with the provisions of the goods.
1. International express customs clearance process
The normal international express customs clearance process is: customs declaration - goods inspection - customs duties - release. Under normal circumstances, imported goods are basically subject to customs duties and value-added tax. According to the customs code HS CODE, the tax point is How many.
2. What documents are required for customs clearance?
Customs clearance mainly requires three documents, one is the declaration document, which needs to provide various information of the item, including weight, quantity, value, material, use, etc. A commercial invoice is also required to prove the value of the goods. In addition, there are some special certification documents, live products, liquids, pure batteries, brand items, etc., all require certification documents.
3. What are the customs clearance methods?
The customs clearance methods include general trade customs clearance, express customs clearance, etc. Express delivery generally takes the express channel, unless the value or quantity is exceeded, it will be transferred to general trade.
General trade customs clearance is a traditional customs clearance mode with low customs clearance efficiency, but it is suitable for customs clearance of large-volume, high-value goods, and can enjoy export tax rebates.
Express customs clearance is also known as express customs declaration, express customs declaration. Express customs declaration refers to the way of submitting express quotations (KJ1, KJ2, KJ3 declarations, etc.) to the customs in the name of express companies, and customs clearance of goods in the form of express. The express customs clearance efficiency is relatively high, and the express company can directly help the shipper to solve various matters such as customs clearance and storage, but it is not suitable for the customs clearance operation of large quantities of goods.
In which case, what kind of goods are most suitable for import by express customs declaration (express customs declaration)?
1). Small bulk cargo, a small amount of samples and advertising materials, etc.;
2). Lack of various products from certain units (such as no 3C certification);
3). Urgent goods that are too late to go through the customs clearance procedures for trade;
4) Various products that want to save costs and do not need VAT tickets;
5). Items for personal use.
On January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) came into effect, marking the official launch of a free trade zone with the largest population, largest economic and trade scale, and great development potential in the world. It is worth noting that RCEP brings the two major economies of China and Japan into the same free trade framework for the first time, which will greatly promote the development of trade in goods between the two countries and affect the layout of industries and supply chains.
For cross-border e-commerce going overseas, the official entry into force of RCEP has further opened up the Japanese e-commerce market and pushed it into a new stage of development. However, the Japanese e-commerce market has limitations, and under the background of RCEP, my country's cross-border e-commerce will face a series of challenges such as customs, taxation, and personal information protection. solved problem.
Potential compliance risks of cross-border e-commerce going to Japan
Tax risk
The target markets of cross-border e-commerce companies going overseas include mature markets such as Europe, America, Japan and South Korea, as well as developing markets such as Southeast Asia. The tax systems of different countries are different, and they are constantly being updated and improved, which is different from the clear tax policy in China. Enterprises may lack understanding of the tax policy of the export destination, or there may be deviations in their understanding, which poses tax compliance challenges for cross-border e-commerce enterprises going overseas. In the process of cross-border e-commerce enterprises going overseas, tax compliance optimization is one of the things that cannot be avoided and need to be solved urgently.
From April 2020, the Japanese Customs announced that it will start to implement the reverse calculation method to levy tariffs on goods exported to Japan, which is usually called the "inverse algorithm". , not according to the amount declared by the importer, but the selling price through the seller's sales link, minus the various costs of the platform, and the import declaration price is verified by the Japanese customs. When the judgment is correct, the customer has the right to request the customer to revise the declared amount according to the reverse algorithm to pay tax. The original intention of adopting the inverse algorithm is to repair the existing tax loopholes, and its essence is to adjust the time node and verification method of tax collection.
In order to evade the inverse algorithm, some companies have adopted some illegal means, such as increasing the link price after customs clearance, and using other people's links to ship products on their behalf. However, the Japanese customs has a very high level of inspection of goods. If a false declaration is found by the customs, in addition to the conventional tax payment and delay in customs clearance, it will also increase the storage fee for the backlog of goods at the customs, resulting in longer logistics time for goods transportation. , bringing a burden to logistics costs, which in turn affects sales and reputation. Tax compliance is the general trend. Enterprises should abide by relevant overseas laws and regulations, abide by platform policies, and operate in compliance.
Customs clearance risk
Cross-border e-commerce has the advantages of online marketing, online transactions, and contactless delivery. Transaction information can cross the border through the Internet, but the physical goods that need to be delivered need to be inspected and supervised by the customs during transportation. If the goods are in violation of regulations, they cannot be Passed customs inspection smoothly. The customs clearance risks faced by cross-border e-commerce companies in export trade mainly come from the customs regulations of the buyer's location. On the other hand, it may be out of the seller's luck that they take risks in order to obtain profits, make false reports, and fail to report the information of export commodities truthfully, resulting in a series of complex customs clearance risks.\
Information Protection Risk
The protection of online personal information in the RCEP e-commerce rules mainly relies on the domestic legal framework of the contracting parties. In fact, there are differences in the personal information protection policies of RCEP parties, as well as differences in the handling of personal sensitive information and non-personal sensitive information. Cross-border e-commerce companies may collect excessive information without understanding local regulations or Improper handling of information, thereby causing cross-border e-commerce companies to have the risk of violations when collecting and using data containing personal information. Japan attaches great importance to the protection of personal information. As early as 2003, the Japanese National Assembly passed the "Personal Information Protection Law". Regardless of whether the personal information processor is a domestic company or a foreign company, as long as the personal information is obtained when providing goods or services, it will be Subject to Japan's "Personal Information Protection Law", those who violate the law will face severe penalties.
RCEP has a wide range of content and detailed terms, and at the same time pays great attention to consumer rights, data security and personal information security. In addition, Japan's strict supervision of customs, taxation and personal information poses challenges to the compliant operation of cross-border e-commerce enterprises in my country. my country and Japan are very different in terms of economy, cultural customs, etc., and the compliance risk of overseas enterprises has suddenly increased. It is suggested that cross-border e-commerce enterprises should speed up their transformation, explore localized business models, speed up the layout of overseas warehouses, improve their awareness of risk prevention, and formulate targeted compliance business strategies, so as to seize the opportunities brought by RCEP and promote the health of cross-border e-commerce. developing.
The marine sector has grown by leaps and bounds over the past few decades, and ports and port facilities are needed to meet these growing demands.
This is why each country's shipping authority is focused on ensuring that its shipping ports are adequate for the needs of industry operators and drivers.
However, even as each country focuses on improving its port infrastructure, there are some global leaders with seaports - bigger and busier than all others.
Interestingly, the busiest port facilities are located in Asia due to the continent's geographic location on important maritime trade routes linking ports in Europe and the Middle East.
Details of the 10 busiest ports in the world are listed below, each with their own uniqueness.
NO.1 Ningbo Zhoushan Port
port of ningbo zhoushan, China
Ningbo Zhoushan Port is the port of Ningbo City and Zhoushan City in Zhejiang Province, China. It is located in the middle of the coastline of mainland China and the south wing of the "Yangtze River Economic Belt". It is an important iron ore transfer base, crude oil transfer base, liquid chemical storage and transportation base in China and an important coal and grain storage and transportation base in East China.
NO.2 Shanghai Port
Yang shan harbor of shanghai, China
Shanghai Port is a port in Shanghai, China. It is located in the middle of the coastline of mainland China and at the mouth of the Yangtze River. It connects the north and south coasts of China and the world's oceans, and then runs through the Yangtze River Basin, Jiangsu, Zhejiang, Anhui, and Taihu Lake Basins. Shanghai Port has established container cargo trade with more than 500 ports in 214 countries and regions around the world, and has more than 80 international routes.
In 2020, the port's annual cargo throughput exceeded 43.5 million TEUs, making it the busiest container facility in the world.
It mainly handles bulk cargo transportation of coal, metal ores, petroleum and its derivatives, steel, machinery and construction equipment.
The port consists of 125 terminals and 19 terminal facilities capable of accommodating the world's largest ships and carriers. In addition to the 5 main port areas, the port also has a cruise ship terminal with an annual throughput of more than 1 million passengers. More than a quarter of China's trade is handled at the port of Shanghai.
NO.3 Tangshan Port
Tangshan Port is located on the southeast coast of Tangshan City, Hebei Province. It is an important regional port along the coast of my country and an important part of the specialized transportation system for bulk materials such as energy and raw materials. Tangshan Port is adjacent to the Beijing-Tianjin-Hebei urban agglomeration. Caofeidian is 400 nautical miles from Incheon, South Korea, 680 nautical miles from Nagasaki, Japan, and 935 nautical miles from Kobe. The shipping routes to ore exporting countries such as Australia, Brazil, Peru, South Africa, and India are also very smooth.
In the past ten years, the planned coastline of Tangshan Port has increased from 32.5 kilometers to 65.5 kilometers, the planned dock coastline has increased from 90.1 kilometers to 190.3 kilometers, and the number of berths that can be planned and arranged has increased from 344 to 602, forming the "one port, three" in the whole port. District” and the planning and layout of dislocation development.
NO.4 Port of Qingdao
Like many famous seaports in China, Qingdao Port has a long history - since 1892, it has connected the Bohai Rim and Yangtze River Delta regions with the rest of the world. Qingdao offers direct flights to more than 180 countries and 700 ports.
Qingdao Port includes Qingdao Old Port, Huangdao Oil Port and Qianwan New Port
In 1984, three U.S. Navy ships docked in Qingdao, the first time the U.S. docked at a Chinese port in 37 years.
NO.5 Guangzhou Port
Known as the "Maritime Silk Road", Guangzhou Port has a coastline of nearly 250 miles and is an important shipping hub in South China. Located in the Pearl River Delta, Guangzhou is connected to more than 100 ports in China and more than 350 ports around the world.
In recent years, Guangzhou Port has benchmarked against world-class container hub ports, and has taken various measures to promote the development of containers to a new level, consolidating and improving the energy level of Guangzhou Port as an international container hub. In 2021, Guangzhou Port will complete a total cargo throughput of 623.67 million tons, an increase of 1.8%.
NO.6 Port of Singapore
The Port of Singapore is located on the southern coast of Singapore, with the southeastern side of the Malacca Strait in the west and the northern side of the Singapore Strait in the south. It is one of the largest container ports in the world. The port is the main shipping route between the Pacific Ocean and the Indian Ocean, and its strategic position is very important. It has been an international trade port since the 13th century and has developed into an internationally renowned entrepot. The Port of Singapore is also the country's political, economic, cultural and transportation center.
The Port of Singapore has superior natural conditions, spacious waters, and little impact from storms. The administrative area is 5.38 million square meters. The water depth is suitable. Ships with a draft of about 13m can smoothly enter the port and berth. The port equipment is advanced and complete, and computerized information is used. The system also seeks to simplify and facilitate user procedures.
NO.7 Suzhou Port
Suzhou Port, located in Suzhou City, Jiangsu Province, China, is located in the throat area of the mouth of the Yangtze River, starting from Changshan Mountain in the west (the junction of Zhangjiagang and Jiangyin), and east to the south of Liuhekou (the junction of Taicang and Shanghai). The southeast is close to Shanghai, and the southwest is the economically developed Jiangsu, Xi and Chang areas. It is an emerging port built by the combination of Zhangjiagang Port, Changshu Port and Taicang Port, the former national first-class open ports in China. The original three ports correspondingly become Suzhou Port Zhangjiagang Port Area, Changshu Port Area and Taicang Port Area.
In 1968, Zhangjiagang Port Area was established; in 1992, Taicang Port Area was developed and constructed; in August of the same year, Changshu Port Area started construction; in 2002, the original Zhangjiagang Port, Changshu Port and Taicang Port were combined to form Suzhou Port.
NO.8 Port Hedland
Port Hedland, a port on the Indian Ocean coast in the northwest of Western Australia, Australia. Australian iron ore export port. Located on the northwest coast of Western Australia, east of the port town, facing the southern Indian Ocean to the north, 133 nautical miles from Dampier to the west, 258 nautical miles from Broome Port in the northeast, 812 nautical miles from Wyndham Port, 917 nautical miles from Darwin Port, and north of Lombok The strait is 706 nautical miles and has a population of 15,000.
Just this February, Australia's Western Australian state government approved a development plan to allow Port Hedland, the operator, to export 660 million tonnes of iron ore a year, enabling port backers to invest in onshore infrastructure upgrades and advance their investment and development. growth strategy.
NO.9 Rizhao Port
Rizhao Port is located in Rizhao City, Shandong Province, China. It faces the Yellow Sea in the east, Qingdao Port in the north, Lianyungang Port in the south, and faces Japan, South Korea and North Korea across the sea. It is one of the 20 major coastal hub ports developed by China. In 1978, the Shandong Provincial People's Government planned and surveyed the port selection of Rizhao Port. In 1982, the Rizhao Port officially started construction; in 1986, the Rizhao Port opened for operation.
There are 58 productive berths in Rizhao Port, with an annual throughput of over 300 million. There are two major port areas, Shijiu and Lanshan. As of 2010, Rizhao Port has 38 40-ton, 25-ton, 16-ton and 10-ton gantry cranes, 7 high-horsepower diesel locomotives, 2 imported alumina special ship unloaders, tire cranes, excavators and other Heavy, transport and other equipment
NO.10 Tianjin Port
Shot in Tianjin, China.
Tianjin Port is an important port facility and an important logistics and shipping center in North China. It is located on the west coast of Bohai Bay and is also the maritime gateway to Beijing. It is the largest artificial port facility in China and the ninth busiest port in the world. It handled more than 18.35 million TEUs in 2020 and has trade links with more than 600 ports in 190 countries, with more than 120 container routes.
Tianjin Port covers an area of more than 120 square kilometers, with a wharf of 34 kilometers long and has more than 170 berths for cargo ships. It has 2 passenger terminals and 9 port areas, among which the 3 port areas of Beijiang, Nanjiang and Dongjiang undertake most of the trade business. It also has six main and two temporary anchor areas.
As China is an important central node of the global industrial chain, with a large economy and developed industrial manufacturing, and thanks to the effective prevention and control of the epidemic, manufacturing and residents' lives are generally running smoothly. Compared with foreign ports, major ports generally have better performance. High cargo throughput levels.
Homeland Security Presidential Directive 7 (HSPD-7) directs federal homeland security activities to focus on terrorist attacks that could result in "catastrophic health effects or mass casualties compared to the use of weapons of mass destruction." (22) For the purposes of this report, a hazardous chemical cargo is a chemical carried on board a commercial vessel that, if accidentally released or burned, could in certain circumstances cause a catastrophic hazard to the public. Typically, such hazards may include poisoning, suffocation, chemical burns, or thermal burns. In some cases, a single chemical may present these hazards simultaneously. A number of federal standards identify potentially hazardous chemicals. In terms of public safety, standards are issued by the Department of Transportation (DOT), the Coast Guard, and the Environmental Protection Agency (EPA).
Comply with dangerous goods transportation regulations and follow the procedures.
In the process of chemical transportation, special attention should be paid to the relevant procedures and regulations. For example, some dangerous goods must be operated in accordance with the relevant regulations for the transportation of dangerous goods. The packaging must be secure and the label must be attached. During the packing process, try to avoid open flame and high temperature, which can effectively prevent the explosion and volatilization of chemicals and ensure the safety and health of personnel. When choosing a container, a special inspection of the container is also required. For example, whether there are cracks, or whether the door of the box can be closed tightly, etc. When carrying out international shipping of chemicals, special attention should be paid to the fact that all the goods must be put into the container, and there should be no situation where the door of the container cannot be closed or sealed.
Frequently Asked Questions about Chemical Shipping
What supporting documents are required for the export of chemicals by sea?
Generally, it is necessary to provide MSDS, shipping power of attorney, and if it is dangerous goods, it is also necessary to provide the dangerous goods packaging performance certificate, the identification report of the Chemical Research Institute, and the normal customs declaration information.
Information required for the export of chemicals (not classified as dangerous goods):
1. Before exporting, a chemical inspection report (certificate of cargo transportation conditions) should be made to prove that the goods are not dangerous goods.
2. FCL - some ships need an appraisal certificate, and some ships do not. In addition, a non-dangerous letter of guarantee and MSDS must be issued, both of which are essential.
3. LCL - non-dangerous letter of guarantee and cargo description (Chinese and English product name, molecular structure, appearance and use) are required.
Information required for export of chemicals as dangerous goods:
1. Before exporting, it is necessary to make a copy of the identification result sheet (dangerous package certificate) for the transportation and packaging of outbound dangerous goods. Of course, MSDS is also required.
2. FCL - before booking, you need to provide the above two documents to apply, and wait for the owner to review. In general, it takes 3-5 days to know whether the ship owner accepts it or not.
this product. Dangerous goods booking should be applied for 10 to 14 days in advance, giving sufficient time to both the consignor and the forwarder.
3. LCL - Dangerous package certificate and MSDS, weight and volume of goods are also required before booking.
The bill of lading is one of the most important documents in the shipping and freight process. It is a legal document that provides a record of the transport of goods from one place to another and ensures a convenient and safe logistics process. Bills of lading can be issued by
Shipping agent
Carrier or
Logistics company to shipper
The bill of lading also has three main functions:
1. Proof of the contract of carriage
A bill of lading is evidence of a contract of carriage between the "carrier" and the "shipper or owner" for the purpose of carrying the goods (not to be confused with a contract of sale between the buyer and the seller).
2. It acts as a receipt
When the carrier issues the bill of lading to the shipper, it confirms that the goods have been loaded onto the transport vessel. The shipper usually issues several original bills of lading which can be passed on to different parties along the way, essentially taking control of the cargo.
3. Ownership as a commodity (representing ownership)
The bill of lading usually includes details of the consignee (buyer/consignee) to which the carrier ships the goods. However, title does not pass until the bill of lading is passed on to the receiver. The shipper may forward a copy of the bill of lading to the consignee as proof of transport, but the person holding the original bill of lading retains title to the goods. Bills of lading are usually delivered to the consignee only after full payment.
The information listed on the bill of lading can include:
Shipper Details
Recipient (Consignee) Details
Carrier details and signature to confirm receipt
Loading date
Port of loading
Destination port
Details of the shipment
Shipping terms and conditions
Any special shipping requirements (for example, if the cargo is dangerous)
Shipping terms and conditions are especially important because they detail who is responsible for the goods at what stage, and who is responsible for paying the freight (Incoterm for the goods). Note that the bill of lading may not detail all the terms and conditions of carriage, but at least they should be mentioned.
So among these three functions, which is the most important function of the bill of lading..??
In the container business, the following are the most common types/methods of issuing bills of lading:
Direct bill of lading
Order bill of lading
Bill of Lading
All of the above types of bills of lading satisfy Functions 1 and 2 – Evidence of Contract of Carriage and Goods Receipt, but only the Order Bill of Lading satisfies Function 3 – Document of Title..
Why the other two types do not satisfy function 3..?? Let me explain..
1) When a bill of lading is issued in original form to the "appointed" consignee, it is called a "direct bill of lading", and a direct bill of lading is a non-negotiable and non-negotiable document. The bill of lading stationery will not have the words Straight Bill of Lading, but may have Ocean Bill of Lading or Port to Port Bill of Lading written at the top.
Release of goods at destination can only be made to the named consignee and only after surrender of at least one original issued bill of lading. This release condition is governed by the COGSA (Carriage of Goods by Sea Act) of the relevant country and jurisdiction. .
A direct bill of lading does not satisfy function 3 (document of title) because the document is neither transferable nor transferable.
2) When the bill of lading is issued to the "designated" consignee but without any original and using sea waybill or waybill stationery, it may be regarded as a "sea waybill".. this bill of lading is also a non-negotiable & non-negotiable document..
Since the sea waybill is not issued the original, it does not need to be returned.
The ocean bill of lading does not satisfy function 3 (document of title) because the document is neither negotiable nor negotiable.
Given below are ready-made estimators as to which type of bill of lading fulfills which role (in the context of container shipping).
So what is the most important function of the bill of lading? ?
The answer is: no one feature is more important than the other, because each feature has its own purpose and needs.
In foreign trade, the bill of lading is a document issued to the consignor by the transportation department when carrying the goods. The consignee picks up the goods with the bill of lading to the transportation department at the destination of the freight. The bill of lading must be signed by the carrier or the ship to take effect. It is one of the valid documents for the declaration of goods by sea to the customs.
1. Different types of bills of lading based on negotiable and non-negotiable documents
The main difference between the two types is that the title (ownership) of one can be transferred to another party, while the other is consigned to a named party, so he/she must be the ultimate receiver of the goods, as this type of title bill of lading cannot. transfer.
Readers should not confuse negotiable and non-negotiable bills of lading with "negotiable" and "non-negotiable" copies of a signed bill of lading.
① Direct bill of lading
A direct bill of lading is designated to a specific party, and the designated party cannot reassign it to anyone else. One party only needs to pick up the goods and cannot sell the goods by transferring the bill of lading to the other party's name. ② Order bill of lading
This is the bill of lading that most people encounter on board. The bill of lading is for the consignee, or for him. That is, the named consignee will be the owner of the goods or he can order the delivery of the goods to the other party by means of a bill of lading endorsed to the other party.
An order bill of lading is a negotiable document as the title (ownership) of the bill of lading is transferable. ③Bearer bill of lading
A bearer bill of lading is a bill of lading that states that the goods should be delivered to anyone who holds the bill of lading. These documents are issued exclusively or are purchase orders that do not specify the consignee by original or blank endorsement. Bearer notes can be negotiated by physical delivery.
2. According to whether the goods have been shipped
①Shipped B/L, or On Board B/L
Refers to the bill of lading issued to the shipper by the carrier or its authorized agent on the basis of the chief mate's receipt after the goods are loaded on board. If the carrier issues an on-board bill of lading, it confirms that he has the goods on board. ②Received for Shipment B/L
It is a bill of lading issued by the carrier at the request of the shipper when it has received the goods from the shipper but has not yet been loaded on board.
3. According to whether there are comments on the order or not
①Clean B/L
Refers to the bill of lading that the goods are in good condition when loaded on the ship, and the carrier has not added any damage to the goods, poor packaging or other obstacles to the settlement of foreign exchange. ②Unclean B/L or Foul B/L
Unclean B/L or foul B/L refers to the bill of lading marked on the bill of lading by the carrier that the goods and packaging are in poor condition or defective, such as wet, oily, stained, rusted, etc.
4. According to the different modes of transportation
①Direct B/L
Refers to the bill of lading issued after the goods are loaded from the port of loading and sailed directly to the port of unloading without changing ships in the middle. ②Transhipment B/L
It refers to the full bill of lading issued by the carrier at the port of shipment for the goods to be transshipped to reach the port of destination. ③Multimodal transport document/multimodal transport document
A multimodal transport document or combined transport document is an intermodal bill of lading involving at least two different modes of transport, land or sea. However, the mode of transportation can be anything from cargo ships to air.
5. Special Bill of Lading
①Container Bill of Lading
A container bill of lading is a document that provides information about the shipment of goods in secure containers or containers from one port to another. ②Combined B/L
Refers to two or more batches of liquid bulk cargo of the same variety, quality, port of loading and unloading, but belonging to different consignees and packed in the same liquid cargo tank, and are respectively the consignee of each batch of goods Issuing a bill of lading with the seal of 'Consolidation Clause' stamped on it. ③Parcel Receipt B/L
Refers to the bill of lading issued for goods consigned in the form of parcels. This is a bill of lading set by the carrier according to the special needs of the trade, and the weight must not exceed 45kg.
Container terminal or container port (used interchangeably) is a term designated for an intermediate destination facility that enables containers to switch modes of transport on their way to their final destination.
Many times, cargo arrives at a container terminal on a single vessel and is distributed to inland customers by multiple modes of transport. The terminal is also an area dedicated to maintenance and temporary storage of containers. Occasionally, the unloading, loading and storage of the cargo in these containers is also carried out here.
Container Terminal Type
Container terminals around the world are divided into five categories based on their ownership:
Public terminals, operator leased terminals, joint ventures between operators and terminal operators, terminal built and operated by operators, and finally terminals built and operated by operators. Below is a brief overview of the five terminals -
1. Public Pier
All facilities of the public terminal, such as loading and unloading processes, tariff rates and allocated entry and exit locations are shared by all shipping lines and operate on a first-come, first-served basis. Regular duty rates apply to container handling and other related charges, or are otherwise discounted or at agreed rates.
2. The carrier leases a dedicated terminal
These are the result of major carriers working with port authorities, culminating in the signing of long-term leases that are exclusively used by these carriers. The carrier is responsible for paying the costs incurred as carrier preference. For example, Maersk has a number of terminals that have signed long-term use contracts. In addition, some shipping companies have formed partnerships to share terminal usage using multi-user long-term contracts.
3. Terminal construction and operation of terminals
Terminal operators invest directly in the construction, operation and handling of terminals. The operator enters into a lease contract with the port authority by depositing a sum into the gross handling charge of the container business.
4. Operators – build and operate terminals
The method is similar to that used for terminal construction and operation of terminals. In this type of licence, one or more carriers jointly lease a container terminal through deposits with port authorities or direct investment in construction, operation and handling services
5. Joint venture between carrier and terminal operator
In this type of contract, an agreement is reached between the shipping company and the terminal operator, thus forming a company. Direct investment, combined terminal operations for safe, prioritized and efficient container handling.
For SMEs, warehouses, manufacturers, distributors and importers, controlling freight costs is critical to maintaining the profitability of product lines, and even the success of the business itself. Here are some basic steps to avoid incurring additional unexpected costs in shipping.
1. Make sure you receive a fixed cost quote
This is where it becomes important that you correctly report the weight and dimensions of your load. When you're ready to ship, make sure the carrier provides terms that outline all potential costs associated with the shipment and that the items you'll be shipping are properly documented. If you fail to receive these fixed cost quotes, or receive inaccurate records, you may end up paying much more than you expected.
2. Has the correct size and weight
The key to an effective fixed cost quote is accurate length, width, height and weight measurements. If the carrier shows up and your load is bigger or heavier than expected, you will pay more immediately.
3. Record specific delivery and pickup dates
Just as you want accurate fixed cost quotes, you want accurate delivery and pickup dates. It is critical that these times are recorded in writing in case the carrier misses an appointment for either party.
When you pay for shipping, the payment is more than your guaranteed space on the truck. You're paying for timeliness, and if you're a business owner, you know how important it is to deliver goods as promised.
If you fail to record specific dates for pickup and delivery and provide them in writing, the carrier may miss those dates and you will be charged for services not provided.
Often, delays occur without the carrier's intention. Severe weather can strike at any time, and road collisions can shut down entire highways. Still, it's important to have official documentation proving delivery and pickup dates.
4. Know your pickup and delivery locations and their limitations
Make sure the type of truck you order can reach the pickup and delivery location. Can a 53-foot truck turn in front of your facility? Can they pick up from your dock? Check yourself to make sure the carrier cannot classify the pickup or delivery as residential. Don't misrepresent a residential location as a business and hope the carrier won't notice. Residential pickup or delivery will always cost more. You want to include this information in your original quote request so that you can find a carrier that offers the best price for this particular service as part of your original quote.
5. Don’t overlook special services
If you are ordering goods, please consider whether any special handling is required. In almost all cases, if you fail to report something of this nature, the carrier will charge significantly more than the agreed rate. However, following this advice will not only save you additional shipping costs, it will also keep your shipments safe from unnecessary damage.
The most common special services include heating, tailgate, scheduled pick-up and special handling of dangerous goods. Consider what you'll be shipping, and if you think you'll need any of these services, be sure to alert the carrier before your shipment is loaded onto the truck.
You won't have to worry about having to pay later, but if your shipment does require these services and you don't receive them, you could lose important shipments in transit.
6. Pack your package properly
If you fail to pack your cargo in the correct way, you may damage not only your cargo, but other cargo being transported within the truck, especially if it is shipped in LTL. This can lead to a costly and avoidable claims process.
7. Make sure all taxes and fuel surcharges are included in the quote
When you get your fixed cost quote, is it "all"? Make sure that taxes and fuel surcharges are clearly stated, otherwise when the carrier adds these charges, the final bill can easily be 20-40% higher. At Freightera, all quotes are all-inclusive, as long as you quote exactly what you're shipping!
8. Please have all customs documents ready and forwarded to the carrier at the time of booking
Before contacting the carrier or broker to arrange a pickup, make sure you have a customs broker that can clear the shipment into the country of delivery and complete all paperwork. If you do not already have a customs broker, seek advice from your carrier or broker in advance. You don't want to leave it until the day it ships, as the shipment could hang up at customs, causing you extra costs, delays and a lot of stress.
9. Make sure you have the coverage you need
Carriers and brokers typically offer little or no insurance ($2.00/lb). If you're shipping valuable goods, be sure to purchase additional insurance, and make sure all quotes clearly state this coverage and its costs. Also check with a third party ahead of time to ensure the carrier or broker has a history of paying claims. Too many carriers and brokers have policies that automatically deny any insurance claims, forcing shippers to sue in the event of damage. Make sure you are properly covered by the insurance company, carrier or broker that covered your claim.
10. Make sure quotes are in your currency
Many carriers operating in the US are actually based in nearby countries. Therefore, the quotes you receive may not be in your most frequently used currency. Due to different exchange rates, the difference between the price you see on the quotation and the price you have to pay can be very large.
When you receive a quote before shipment, make sure the quote is in your currency. If you fail to spot that small but crucial difference when confirming shipping costs, the final bill could be significantly higher than you expected.
Are you looking for a specific period container? Do you have items or items that you want to store in containers to protect them from damage? Do you want the flexibility to rent containers at different points in time? If the answer is yes, then renting a container is ideal for you. Container leasing gives you flexibility in how you use your containers and how you plan your budget. Buying one, on the other hand, increases your liability and costs.
Here are the different types of container rentals that we will be covering in this blog:
1.Master lease
They are also commonly referred to as short to medium term leases. They fall into the full-service rental category with no cap on the minimum or maximum number of containers. The lease term is variable and the lessor is responsible for the maintenance, repair and relocation of the container. The agreement also involves an accounting system that includes debits and credits between the parties based on the condition of the containers at the time of their return. The lessor must undertake the allocation of the containers to meet the needs of the lessee. Therefore, it is important to ensure a stable supply of empty containers at the pick-up point. The master lease agreement sets out the main conditions such as the rental cost per day, the types of containers that can be disposed of, the number of containers to be used in each warehouse, the collection and delivery centers, payment terms, etc. The lessee has no obligation to use the container before picking up the container from the yard, and the contract takes effect when the lessee picks up the container from the yard. A separate individual contract is signed for each container collected under the Master Lease Agreement.
2.Long-term lease
Far less flexible than a master lease, long-term leases are a favorite of many rental companies. The duration of the contract is fixed. As well as a certain number of containers and delivery schedule. This leaves the leasing company with nothing to do once the container is signed for.
The lessee bears the cost of repairs, maintenance and relocation. Although definitions of terms vary, most leasing companies define long-term leases as 5 to 8 years. For long-term leases, the containers are usually brand new. This is why many long-term rental agreements come with negotiable terms. The clause allows rental rates to be negotiated after a few years based on depreciation and market fluctuations.
3.One way rental
They are also known as one-way rental agreements, and containers can be picked up at one location and dropped off at another. Both parties benefit from such one-way leasing arrangements due to operational rationalization and cost reduction. It is suitable for different regional requirements of customers and has the added benefit of saving on relocation costs.
4.Short-term rental
Also known as spot market leases, they are subject to market conditions dictated by supply and demand dynamics. Such leasing arrangements typically occur during temporary demand surges, which may be cyclical or sudden. Because of this market volatility, leasing companies prefer not to keep large inventories of such containers to meet short-term rental demand, to avoid the possibility of them being underutilized for an extended period of time. But careful planning and forecasting can handle unforeseen surges in demand. Maintenance, repair and relocation tasks are undertaken by the lessee. Aside from the higher cost, the one setback here is that you have to adhere to the minimum time to use the container. Usually leasing companies do not want to rent out containers for less than 6 months.
Transaction speed is another important issue for businesses to consider. Rental companies are also on the platform. Given the unbalanced nature of the world economy and trade, the number of containers is unbalanced.
Due to various reasons of the ship, cargo, port and other aspects, the ship party increases expenses or suffers economic losses when transporting goods. In order to compensate for these expenses or losses, the ship party stipulates additional charges in addition to the basic rate. Call Surcharge or Additional.
There are many types of surcharges, and as some circumstances change, new surcharges may be removed or established. This article is to sort out the more commonly used shipping surcharges at present, hoping to help you better understand the shipping surcharges (so as not to be pitted).
emergency fuel surcharge
The last bunker-related line in this list of ocean surcharges is the emergency bunker surcharge. This fee is imposed by the carrier when fuel prices rise sharply. Because it makes it more expensive to run ships and move containers around the world.
This is another surcharge that you can't stop.
Comprehensive rate increase surcharge GRI
The full name of GRI is General Rate Increase. It is generally used on South American routes and American routes. Due to various reasons such as ports, ships, fuel oil, cargo or other aspects, the shipping company's transportation costs have increased significantly. In order to compensate for these increased expenses, the shipowners add a comprehensive rate increase surcharge.
Peak Season Surcharge PSS
The full name of PSS is Peak Season Surcharge. This fee is generally charged by many shipping companies for excuses when the freight is busy in the peak season, which is somewhat similar to the price increase in my country's "Spring Festival". April to November each year is generally the peak season for world freight.
Terminal handling fee THC
The full name of THC is Terminal Handling Charge. It can be further divided into OTHC-Origin Terminal Handling Charge, which is the terminal operation fee at the port of departure and DTHC-Destination Terminal Handling Charge, which is the terminal operation fee at the destination port.
Out of spec
If the cargo is oversized, it means that the cargo cannot fit into the hexagonal container due to its size. In this case, you'll have to pay an oversize fee because the cargo will take up more space, require extra material to secure, and mean less space to stack the containers.
Origin Receipt Charge ORC
The full name is Original Receiving Charge local receiving fee/origin receiving fee/origin receiving fee. This fee is more complicated, and it is both different and related to the terminal operating fee THC. ORC is only available in southern China, mainly in Guangdong ports, while THC is available in all ports (including those in Guangdong). There is only one charge for ORC and THC - if you charge ORC, you don't charge for THC. If you receive THC, you will not receive ORC again.
ORC is specially designed for shipping from various ports in southern China, and the destination ports are these ocean routes such as North America, Central and South America, Europe and North Africa. Ports in southern China to other destination ports, such as Southeast Asia, are the same as ports in other regions, and only collect THC.
Overload surcharge
There is no way to bypass the heavy load surcharge if you are shipping unusually heavy shipments. This is a charge because heavy cargo is more difficult to load and unload than light cargo. However, these types of cargo also require specialized equipment such as cranes. A surcharge helps make up for this.
Port Congestion Surcharge PCS
The full name is Port Congestion Surcharge. When the port is crowded or particularly busy, the waiting time and schedule of the ship will be extended, and the port berthing fees such as tugboat fees may also increase, which will cause a substantial increase in transportation costs. In order to make up for this cost loss, the shipping company will charge the shipper. Port congestion surcharge.
Container Imbalance Surcharge CIC
The full name of CIC is Container Imbalance Charge, sometimes called Container Imbalance Surcharge. This fee is a surcharge imposed by the shipping company in order to make up for the cost of shipping empty containers due to the imbalance of trade volume or seasonal changes resulting in the imbalance of cargo flow and containers.
