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 shippingoperators 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.
Despite all the precautions taken for Irma, delays are bound to be disruptive. Not only the maritime industry, but the logisticsindustry 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.
In general, if all goes well, LCL shipping will not take longer than FCL shippingin 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 transportyour cargo from the main port.
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 transportcan lead to a higher risk of damage to your cargoas it passes through more hands. That said, be sure to pack your shipment properly to prevent damage from possible rough handling.
As a shipper, it is not uncommon for your container to be rolled. When seaborne cargo is referred to as "rolling," it means that it was not loaded onto the vessel it was intended to sail on. Containers roll for a variety of reasons, including but not limited to:
This tends to happen more with cargo that needs to be transshipped or has its final destination in lesser-known ports. This is because they need to be loaded onto different vessels multiple times, which increases the risk of them being rolled over and missing connecting vessels.
What happens when your cargo rolls
If your shipment is rolled due to carrier issues, the carrier will automatically reschedule your shipment and place it on its next departing vessel. Any additional costs involved will be borne by the carrier.
However, if your shipment is rolled over due to missing paperwork or customs issues or does not meet certain requirements, you will be charged a rolling fee. Note that the cost of the rollover is usually higher than the shipping price itself.
In the unfortunate case of your cargo being rolled over, the carrier will notify the booking party. If it is due to a carrier issue, the booker will also receive an updated booking confirmation with the new details. If you book through a freight forwarder, your forwarder will receive this information from the carrier and forward it to you.
What to do when your container scrolls
It's never fun to hear that your vessel didn't ship. Right now, you rush to notify your supply chain partners, update your accounts, edit spreadsheets, and basically try to clean up and correct as much of what you end up with (if any) as possible. Whether it's your fault or not, there's still a lot of accounting to do, not to mention the potential delays your supply chain is facing right now.
The first thing you should do when you hear that your container has rolled is to find out why. If it's an issue like overbooking or a missed ship, there's little you can do other than wait for the next voyage and sort out the supply chain. If this happens, you may want to always have a contingency plan in place.
If it's a paperwork issue or missed deadlines or customschecks, make sure to resolve the issue before your next sailing date to reduce further delays. Contact your freight forwarder, they can give you better advice.
The impact of the U.S. market on the global economy is undeniable. As the second largest exporter in the world (after China)
America's largest export partner
Its NAFTA neighbors Canada and Mexico continue to be the top U.S. export partners, with 30% of total U.S. exports going to these two countries. The bulk of these exports belong to the transport(vehicle parts, transportvehicles), minerals (refined petroleum) and machinery sectors (combustion engines, telephones, low voltage protection equipment).
U.S. state exports
Looking at U.S. state exports, airplanes, aircraft parts, and helicopters continue to dominate most state exports, with at least 17 of them being the main export.
The top 10 exporting states (excluding air exports) include Washington, California, Kentucky, South Carolina, Georgia, Florida, Louisiana, Texas, Nevada, and New York. Louisiana and Texas' top exports are oil, while Nevada and New York are gold and diamonds, respectively.
Converting Bills of Lading: The Complete Manual and Recommendations
In a world of increasingly globalized economic fragmentation, shipping forwarders find themselves dealing with more trading companies and their foreign-to-foreign transactions than old-fashioned factory-to-importer freight.
The success of such contracts often depends on the ability of the trade agent to conceal factory contact details from the end buyer by issuing a conversion bill of lading.
What is a forwarding bill of lading?
A converted bill of lading is a second set of bills of lading issued by the carrier (or its agent) to replace the original bill of lading issued at the time of shipment.
Although it technically handles the same cargo, the information on the converted bill of lading is intentionally redacted for a variety of reasons and is not meant to be the same as the original bill of lading it replaces.
Reasons for Issuing a Conversion Bill of Lading
Conversion bills of lading are only issued upon surrender of the original and may be requested by any of the three parties directly involved in the purchase/sale of the goods: the owner/seller (or authorised representative), the trade agent and the ultimate buyer.
Reasons for needing to convert bills of lading include:
The seller (probably a trade agent) wants to hide the name of the actual exporter from the consignee to prevent the consignee from entering into a deal directly with the exporter.
The seller does not want the buyer to know the actual country of origin of the goods.
The original bill of lading may be detained in the country of shipment, or the vessel may arrive at the port of discharge before the original bill of lading.
The trade agent prefers to receive payment from the final payee before paying the shipper, thus easing his cash flow.
The cargo may be resold en route as a high seas sale and the port of discharge must now be changed to another port.
The destination customs or consignee requests to edit the cargo description. E.g. "tool" instead of "garden tool".
The goods were originally shipped in small packages on separate bills of lading and the buyer wanted to have only one bill of lading covering all packages to facilitate his sale. The reverse is also true - a single
bill of lading is issued for bulk cargo, which the buyer prefers to split into multiple bills of lading covering smaller packages.
Tips on how to handle converting bills of lading
1. The freight forwarder shall verify the reliability of the consignor authorized to issue the second set. Obtain their written authorization and a signed bond (countersigned by the bank if the agent deems it necessary) indemnifying the freight forwarder for all consequences of issuing a second set of bills of lading.
2. Freight forwarders should also consider whether they also need to obtain written authorization from other parties who may be affected by their actions, such as shipowners or shippers or banks. If the carrier authorizes the freight forwarder to issue an exchange bill of lading on behalf of the carrier, the written authorization of the shipowner must be obtained. Otherwise, the shipowner will make a valid claim to the agent for the loss caused by the unauthorized issuance of the second set.
3. If the principal requires the agent to issue a conversion order based on the client's indemnity, the agent shall obtain proper wording from the principal before issuing and obtain the complete indemnity approved by the principal.
4. It is also advisable to ensure that the freight forwarderis insured with the insurance for which the transfer order is issued. They should provide their insurance company with the exact reason for issuing the converted bill of lading.
Now seems like a good time to dive into the history of Incoterms.
When were they first implemented? Why are they needed? What problem does each subsequent release aim to solve? More importantly, what can we expect to see in the future?
Below is the history of Incoterms - how they were born and how they have evolved over the years as commercial trade processes and practices have evolved.
A Brief History of Incoterms
FOB Incoterm was the first Incoterm created. Although its origins date back more than two centuries, the current Incoterms were not actually created by the International Chamber of Commerce (ICC) until 1936.
Since then, many changes have taken place in the international shippingworld. To accommodate this change, new and improved versions of Incoterms appeared, such as those introduced in 1953, 1967 and 1976.
But for the past 5 years, revisions have alternated every decade and tend to be valid for the entire decade, e.g. Incoterms 1980, 1990, 2000 and 2010.
The importance of Incoterms and how they facilitate world trade cannot be denied. When Incoterms were first introduced, they were only available in 13 countries. After eight revisions, they are now widely used in over 140 countries and can be found in 31 different languages.
Reflections on the Evolution of International Trade
The world of international trade has changed a lot over the past 80 years—some big, some relatively small. These changes include new modes of transport, modifications to the types of international sales contracts, modifications tocustoms clearance of goods, new ways of information transfer, and more.
As this behavior changes, so must the terms that govern them. The ICC's goal of revising Incoterms is to keep shippingterms up to date and adapt to changing international trade demands.
Top 5 Shipping Documents All Shippers Should Be Familiar With
The maritime industry is known for its paperwork. Knowing all of this is already tedious - getting them right is a task in itself. Any seemingly innocuous error can cause problems and delays that can seriously disrupt your supply chain.
In general, many of these documents contain the same information - buyer, seller, item details, etc. But each document plays a different role, and it is important to not only ensure that the information written on each document is accurate, but that it is consistent across all documents.
Below are the top 5 shippingdocuments that all shippers should be familiar with, and the differences between them.
1. Bill of Lading
A bill of lading, also known as a bill of lading, is a contract of carriage between a shippingcompany and a cargo owner. This is a document issued by the carrier to confirm receipt of your cargo for shipment on their vessel.
Importer and exporter information needs to be listed clearly as the bill of lading is proof of ownership of the goods being carried on board. The information on the bill of lading should also correctly reflect the conditions of the Incoterm in which the transaction was made.
Once the goods arrive at their destination, the bill of lading needs to be presented to the carrier to release the goods, which then serve as a shippingreceipt.
Type of bill of lading
If you have booked through a freight forwarder, you may encounter two different bills of lading: house B/L and master B/L. Read through our post on the difference between a house and a master bill of lading thoroughly to understand how they differ.
Depending on your working relationship with the importer, you may prefer to use Express Release or Telex Release, both of which are variants of the bill of lading.
2. Packing list
Just like a bill of lading, a packing list is a mandatory document for ocean shipments. It lists the tiniest details about the cargo. This includes not only the weight, volume and value of the overall shipment, but also the weight, volume and value of each individual box.
Packing slips inform yourfreight forwarders, importers, customs and carriers of the goods you are sending without actually verifying the contents. If Customsdecides to inspect your shipment, a packing list helps to identify the box or item that is raising the alarm, facilitating the inspection process. This saves time and reduces the risk of damage to the shipment by avoiding opening every box in the shipment.
It is important that the packing slip is filled out correctly and the information listed is as accurate as possible as this may be used to generate the bill of lading. That is, the information on the packing list (number of pieces, weight, etc.) must match the information on the bill of lading, as both documents are required for customs clearance in most countries.
3. Commercial Invoice
Any international transaction involving import/export of goods must be accompanied by a proof of sale called a commercial invoice. To a large extent, it is similar to a standard invoice. But unlike a standard invoice, it contains details about the purpose of customs clearance of the goods and is one of the most important documents in ocean shipping. Details of all parties involved, including importers, exporters, freight forwarders, banks, shipping lines, etc., must be listed correctly on the commercial invoice.
A commercial invoice is a legal document that lists the goods sold and their selling price—that is, what the importer agrees to pay for those goods, and is sent to the party paying for the goods. As mentioned earlier, the packing list details the items in the shipment and serves as evidence in the event of disputes and claims, and is sent to the consignee of the shipment.
4. Certificate of Origin
According to the International Chamber of Commerce, Certificates of Origin (COO) are "important international trade documents that certify that the goods in a particular export are obtained, produced, manufactured or processed entirely in a particular country. They also serve as an exporter's declaration.
A Certificate of Origin is required for customs clearance, which determines the amount of duties and taxes that need to be paid. It also helps determine whether there is a tax exemption in the case of special trade agreements between exporting and importing countries.
5. Letter of Credit
A letter of credit is a formal, binding payment agreement between a buyer and a seller. The international sourcing process is a lengthy one considering the length of time it takes from the time the seller ships the goods to the safe hands of the buyer. This makes it difficult to determine when payment is due, especially if the importer cannot verify the authenticity of the purchase.
This is when letters of credit come into play. It is considered one of the safest payment methods. The importer first develops a list of terms and conditions that must be agreed upon by both parties.
Once the buyer and seller have finalized the terms, the seller begins preparing the goods according to the conditions. After the goods are shipped, the seller then goes to his bank with the proper documents as evidence that the goods have been prepared and dispatched according to the agreed terms and conditions. His bank will then verify and pay for the reimbursement before claiming it from the buyer's bank.
A massive union strike in California a few years ago forced many BCOs to look for alternatives to reach the continental U.S. rather than via the West Coast.
In a way, some experts say, it was the perfect precursor to the expansion of the Panama Canal and the opportunity it now offers East Coast ports.
East Coast ports are undoubtedly taking advantage of changing tides with massive expansion and investment up and down the coast.
Here's a look at the largest ports on the U.S. East Coast and what they're doing to accommodate the growth in demand and opportunity.
1. Ports of New York and New Jersey
New York/New Jersey ports are estimated to account for more than one-third of North Atlantic trade.
In response to increased competition from other East Coast ports and to be able to handle larger ships from the newly expanded Panama Canal, the port has deepened its port to 50 feet.
It has completed the raising of the Bayonne Bridge connecting New Jersey and Staten Island, New York, and can now handle vessels up to 18,000TEU.
2. Port of Savannah
Its intermodal system is being improved to gain better access and increase its market share in the Midwest, making the port a more cost-effective and viable option.
When these projects are completed, port authorities estimate that U.S. businesses could save up to 40 percent in shippingcosts through the port.
3. Port of Virginia
The project became the deepest port on the East Coast.
Investments in intermodal transporthave also begun - particularly the expansion of port rail and motor transport.
4. Port of Charleston
Container traffic at the Port of Charleston has grown 8 percent annually since the recession ended in 2009. This is largely thanks to changes in trade flows in and out of Asia rather than Europe.
The port is also currently being deepened to accommodate 18,000TEU vessels - up from the 14,000TEU vessels currently capable of handling.
It's that time of year again to light up Christmas trees and decorate them.
Depending on where in the world you are, you may need to buy a Christmas tree -- or simply go and cut down a fir in your backyard.
Given that China is the world's largest exporter, it's no surprise that it is also the largest producer of artificial Christmas trees. It is estimated that about two-thirds of the world's Christmas decorations come from China - even though Christmas is not even a legal holiday in China.
Who knew Santa's logistics headquarters was in China?
More specifically, the production of Christmas goods takes place in the area around Yiwu in eastern Zhejiang province.
There are more than 600 factories and workshops there. Yiwu's market size is comparable to that of 26 large department stores, and it is the birthplace of most of the world's Christmas merchandise sales and listings.
Yiwu has direct freight trains to Madrid, London, Prague and Tehran. In fact, theLondon-Yiwu railway, which opened in 2017, has a total length of 12,000 kilometers and passes through France, Belgium, Germany, Poland, Belarus, Russia and Kazakhstan. The whole journey is less than 20 days.
Christmas year round
Production in Yiwu is almost year-round - their only time off is during the Lunar New Year period in January or February.
In addition to that, Christmas trees are being made every day. Even at Christmas itself.
However, most orders arrive in the summer to give workers enough time to complete their tasks by Christmas. Therefore, the busiest seasons for the production of Christmas decorations are June and July.
Spain has long been synonymous with efficient and vast maritime trade, an association that has historically brought prosperity to European nations. With well-maintained ports and continued growth in technology, equipment and expertise, Spanish ports will continue to be key to trade, partnerships and economic growth in the region.
Here are five top ports in the country that continue to make Spain a force to be reckoned with in the region:
1. Port of Algeciras
Algeciras is one of the largest ports in Spain. The port, like its sister port, sits on the 5,000 km coastline of the Spanish country. Although it is the largest port in Spain, it is the third largest port in the Mediterranean. Globally, it is the ninth largest.
Located in Andalusia, in the province of Cadiz, the port is a center for the tobacco, fishing, agriculture and oil trade. It is estimated that up to 70 million tons of freight are handled annually. As the largest city in the Gulf of Gilbrata, the city of Algeciras is strongly supported by the port trade. The three areas where the Port of Algeciras competes most with other large European ports are transshipment, cargo and containers.
From January 2019, general cargo throughput at the port increased by 6.4%, with the port handling 92 million tons of cargo. This number is up 3% from 2018. The port also houses ro-ro and unloading services, a fishing fleet, cruise ships and fuel handling facilities.
2. Port of Valencia
The fifth busiest port in Europe is also the second largest in Spain: the Port of Valencia. The size of the port is impressive, with an annual cargo volume of 57 million tons. Annual container volume was 4.2 million TEUs in 2010, and this number has grown over the past decade.
Operated by the Port of Valencia Authority, it can accommodate vessels up to 500 feet long and is a port of call for ship repairs. The port offers two berthing surfaces and facilities such as VIP lounges, duty-free shops, personal assistance for travelers in need, public transportconnections and a tourist information office.
The Port of Valencia also distributes cargo to North Africa and the European Union, with a radius of more than 2000 km.
3. Port of Barcelona
Barcelona is located on the northeastern coast of Spain, in the country's Catalonia province. The port has been around for over 2,000 years and is still going strong in terms of trade and port services. The port is an excellent partner for major European ports on the Mediterranean coast.
The Port of Barcelona experienced almost 3 million TEUs in 2017, with around 4 million passengers in the same period. Traffic flowing into the cruise portion of the port in 2019 added even more revenue following a €2 million renovation project to the port.
Compared to other ports, this port is closer to tourist areas, and they use these tourist attractions to build their portfolio in the cruise market. In terms of trade, the port's proximity to France makes it an important gateway for international trade.
The Port of Barcelona is divided into a commercial port, an old port and a logistics port. It also has a free trade zone.
4. Port of Bilbao
This port is located in Bilbao Abra Bay in the Basque Country, also known as the outer port. The port has been popular since the Middle Ages and is associated with the steel trade of the time.
Bilbao developed into a gateway to the Euro-Atlantic trade route. It has become the premier port for trade with Britain. As an important logistics player in trade along the Atlantic Corridor, the port has established infrastructure in dry ports and other logisticsareas.
The cruise ship footprint at the Port of Bilbao is smaller, as they are still developing this side of the port business. Still, they saw 80,000 passengers from 58 cruise ships in their ports.
The Port of Bilbao is closely related to the economic growth of the Vizcaya region. Locals rely on the port for transportation, tourism, engineering, ship repair, and other income-generating activities.
5. Port of Castellon
Located in the city of Castellon de la Plana, this port is the youngest compared to other major ports in Spain, but the number is impressive. It is a logisticsport with an average growth rate five times that of other ports of similar size in Spain. It is the leadinglogistics service provider for the local economy of Castellon, with a freightcapacity of more than 20 million tons in 2018.
Castellón is a well-known area, known for the production of ceramics by the city's tile factories. The Port of Castellón is responsible for shipping 95% of ceramic exports from Spain to the rest of the world. The area is also home to the only oil refinery in the Valencia region, so it also handles and transports large quantities of refined and unrefined petroleum products as well as chemicals.
