/ By tjchinafreight ivy / Shipping

Ownership-based container terminal types

What is a container terminal?

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.

/ By tjchinafreight ivy / Shipping

Summary of shipping precautions for exporting to India!

India is the largest country in the South Asian subcontinent, with many domestic ports, including 12 major ports, including Mumbai, Calcutta, Chennai (formerly Madras), Cochin, and Goa, which undertake 3/4 of the cargo volume. Among them, Mumbai Port is the largest port, and its shipping capacity ranks 18th in the world.
China Shipping to Kolkata Port in India needs to transit through other ports, including Colombo / Visakhapatnam / Krishnapatnam / Port Klang / Singapore and other ports.

01 Document requirements

The import and export of India by sea involves the following documents:

(1) Signed invoice
(2) packing list
(3) Ocean Bill of Lading or Bill of Lading / Air Waybill
(4) The completed GATT declaration form
(5) Declaration form of the importer or its customs broker
(6) Approval document (provided when required)
(7) Letter of credit/bank draft (provided when required)
(8) Insurance documents
(9) Import license
(10) Industry license (provided when required)
(11) Laboratory report (provided when the goods are chemicals)
(12) Temporary tax exemption order
(13) Original copy of Customs Exemption Right Certificate (DEEC) / Tax Rebate and Tax Deduction Right Certificate (DEPB)
(14) Catalogue, detailed technical specifications, and relevant documents (provided when the goods are machinery equipment, machinery equipment parts or chemicals)
(15) Single price of mechanical equipment parts
(16) Certificate of Origin (provided when preferential tariff rates apply)
(17) No Commission Statement

02 Supplementary requirements for documents

Indian Customs Service has issued Proclamation No. 33/2018 which stipulates that from April 1, 2018, importers must ensure that their exporters are informed of the following essential details abroad in order to incorporate these details into booking such shipments:
(1) Importer's Import and Export Code (IEC)
(2) GST Importer's Identification Number (GSTIN)
(3) Importer's official email ID (for shipping routes and customs communications)

This notification is issued due to consignment of hazardous waste, other waste or restricted items being imported in the name of certain importers and still not cleared. It is therefore essential to record the importer's basic information on the bill of lading so that these details can be used to determine DPD stacking and various other uses.

03Tariff Policy

From July 1, 2017, India will consolidate its various local service taxes into the Goods and Services Tax (GST), which will also replace the previously announced 15% Indian service tax. The GST charge will be 18% of the import and export Indian service charges, including local charges such as terminal handling charges, inland transportation charges, etc.

On September 26, 2018, the Indian government abruptly announced an increase in import duties on 19 "non-essential goods" to reduce the widening current account deficit. The tariff adjustment raises tariffs on imported goods such as air conditioners, refrigerators, washing machines, footwear, speakers, jewelry, some plastics, luggage and aviation turbine fuel.

The Ministry of Finance of India has notified that import duties on 17 commodities will be increased from October 12, 2018. The 17 items include smart watches, telecommunications equipment and more. The notice showed that tariffs on smartwatches and telecommunications equipment were raised to 20 percent from the current 10 percent.

04Customs regulations

First of all, all goods transferred to the inland freight station in India must be transported by the shipping company, and the final destination column of the bill of lading and manifest must be filled in as the inland point. Otherwise, it is necessary to dig out the box at the port or pay a high fee for changing the manifest before transshipment to the inland.
Secondly, after the goods arrive at the port, they can be stored in the customs warehouse for 30 days. After 30 days, the customs will issue a notice of delivery to the importer. If the importer cannot pick up the goods on time for some reason, he can apply to the customs for an extension as needed. If the Indian buyer does not apply for an extension, the exporter's goods will be auctioned after 30 days of storage in customs.

05Customs clearance

After unloading (usually within 3 days), the importer or its agent must first fill in the Bill of Entry in quadruplicate. The first and second pages are retained by the customs, the third page is retained by the importer, and the fourth page is retained by the bank where the importer pays the tax. Otherwise, high detention fees must be paid to the port authority or airport authority.
If the goods are declared through the Electronic Data Interchange (EDI) system, there is no need to fill in the paper "Import Declaration Form", but the detailed information required by the customs to process the goods clearance application needs to be entered in the computer system, and the EDI system will automatically generate the "Import Declaration Form". Customs Declaration.

06Return regulations

Indian Customs stipulates that the exporter needs to provide the original importer's certificate of abandonment of the goods, the relevant delivery certificate and the exporter's request for return letters and telegrams, and entrust the shipping agent to complete the return procedures after paying the port storage fees, agency fees and other reasonable fees.
If the importer is unwilling to issue the exporter with the certificate of rejection of the goods, the exporter can rely on the letter of the importer's refusal to pay or take delivery or the letter of the importer's non-payment redemption provided by the bank or the shipping agent, the relevant delivery certificate and the seller's request. The letter and telegram for the return of the goods shall be entrusted to the shipping agent to directly submit the return request to the relevant Indian port customs and go through the relevant procedures.

/ By tjchinafreight ivy / Shipping

How to avoid extra charges in shipping

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.

/ By tjchinafreight ivy / Shipping

Introduction to container freight terminology, freight forwarding and foreign trade notices

Container

A sea container (also known as a container, freight container, intermodal container, ISO container, hi-cube container, box, conex case, and sea tank) is a steel container that can be moved repeatedly within a product for safe and efficient movement Use an intermodal freight system.
Container shipping comes in many different sizes and options, including specialty options such as hanging garment containers, half-height containers, bulk shift containers and tanks. While these all have their uses, they are very niche.

Container leasing
The container leasing market has been fast-growing over the years. Today, around 55 % of the global container fleet is owned by leasing companies. Making container leasing a force to be reckoned with.
Are you considering leasing containers instead of buying? In that case, keep reading. We’ll tell you all you need to know about the different types of container leasing. As well as weigh the pros and cons of buying containers vs leasing them.

Container terminal
In container transportation, the specific handling department for the exchange and storage of boxes or cargoes. It authorizes the carrier or its agent to carry out the following business:
(1) Exchange and storage of FCL shipments.
(2) Those who have a container freight station shall handle the handover of LCL goods.
(3) Arranging the berthing of container ships, loading and unloading containers, and preparing stowage plans for each voyage.
(4) Handle the compilation and signature of relevant shipping documents.
(5) Prepare and sign the relevant documents for the entry, exit and circulation of the container using the means of transport.
(6) Handle the inspection and maintenance of containers, vehicles, loading and unloading tools, as well as cleaning and fumigation of empty containers.
(7) Send and receive, store and keep empty boxes.
(8) Arrange the stacking of empty boxes and heavy boxes in the yard, and prepare a site allocation plan.
(9) Other related business work. Container loading and unloading areas are generally composed of dedicated docks, frontiers, yards, freight stations, command towers, repair departments, gates and offices. Sometimes the storage yard or freight station can be extended to the transfer station of 5~15 kilometers in the urban area.

Container front yard (marshalling yard)
In front of the container terminal, in order to speed up the loading and unloading of ships, the container is temporarily stacked. Its function is: before the container ship arrives at the port, the export containers are neatly stacked in a planned and orderly manner according to the stowage requirements, and the imported containers are temporarily stacked in front of the wharf during unloading to speed up the loading and unloading operations of the ship.

sea freight

Container yard
A place where heavy or empty containers are handed over, kept and stacked. In some countries, container yards are not divided into front yards or rear yards, which are collectively referred to as yards. The container rear yard is an integral part of the container handling area. It is the place where the FCL of the container transportation "on-site" handover method is handed over (actually, the handover is carried out at the "gateway" of the container unloading area).

Empty container yard (van pool)
A site dedicated to the collection, storage, storage or handover of empty containers. It is specially set up when the container handling area or the transfer station yard is insufficient. This kind of yard does not handle heavy box or cargo handover. It can be operated independently, or it can be set up outside the area by the container handling area. Some capitalist countries, operating such empty container yards, must declare to the shipping association.

Container freight station
The place where the ship and cargo parties handle the handover for the packing and unpacking of the LCL cargo. The carrier can only entrust the operator of one container freight station in a port or inland city. It handles the following main business on behalf of the carrier:
(1) Tally and handover of LCL cargo.
(2) If there is any abnormality in the inspection of the appearance of the goods, an annotation shall be processed.
(3) The stowage and packing of the LCL cargo.
(4) Unpacking and storage of imported unpacked goods.
(5) Seal and issue a station receipt on behalf of the carrier.
(6) Handle various documents and preparations.

The maximum compensation amount that the carrier should bear in the event of cargo damage during container transportation. Limitation of liability for LCL shipments is the same as for conventional shipments. Compensation for FCL is based on some current international precedents. If the number of pieces of goods in the box is not listed on the bill of lading, each box is used as a claim calculation unit. If the number of pieces in the box is listed on the bill of lading, it is still calculated according to the number of pieces. If the damage and loss of the goods are not carried out by sea, but occurred during inland transportation, the maximum compensation amount for land transportation shall be handled. If the container is owned or provided by the shipper, in the event of loss or damage, the responsibility for the loss or damage is indeed the responsibility of the carrier, and it should also be regarded as a claim calculation unit.

/ By tjchinafreight ivy / Shipping

Container Rental Guide

Why rent a container?

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.

/ By tjchinafreight ivy / Shipping

Shanghai’s export business has the latest adjustment!

The Shanghai Epidemic Prevention and Control Office issued a notice deciding to carry out a new round of dicing and grid nucleic acid screening across the city. Starting from 5:00 on March 28, Shanghai will implement nucleic acid screening in batches with the Huangpu River as the boundary.

•The first batch, Pudong, Punan and adjacent areas (including the whole area of ​​Pudong New Area, the whole area of ​​Fengxian District, the whole area of ​​Jinshan District, the whole area of ​​Chongming District, Pujin Street, Pujiang Town of Minhang District, Xinbang Town and Shihu Lake of Songjiang District Dang Town, Maogang Town, Yexie Town) first implemented the lockdown and carried out nucleic acid screening, and the lockdown was lifted at 5:00 on April 1.

• For the second batch, starting from 3:00 on April 1st, according to the principle of stubble promotion, the Puxi area will be closed and controlled, and nucleic acid screening will be carried out, and the closure will be lifted at 3:00 on April 5th.
At present, some logistics companies in the first batch of closed and controlled areas have issued a notice to suspend the service of entering warehouses and receiving goods, and will resume at 5:00 on April 1, 2022.

Shanghai Port operates normally and maintains 24-hour operation
In terms of ports, SIPG issued a notice to customers, stating that at present, all production units in Hong Kong will maintain 24-hour operations except for the impact of extreme bad weather.

Shipping company operation adjustment notice

aerial view port at shanghai

From 5:00 on the 28th, Shanghai will implement nucleic acid screening in batches with the Huangpu River as the boundary. All enterprises in the closed area have implemented closed production or work from home. The first batch of logistics enterprises in the closed area have issued a notice to suspend the receipt and delivery of goods into the warehouse. Shipping companies: Maersk, COSCO, Hapag-Lloyd, Evergreen and Mason have issued business adjustment notices one after another.

1. Maersk

Maersk emphasizes:

Some warehouses in Shanghai have been closed since March 28 until further notice. A list of open warehouses is attached to this announcement. As the Pudong and Puxi areas of Shanghai are in full lockdown until April 5, trucking services in and out of Shanghai will be severely affected by 30%. All warehouses in Shanghai will remain closed from March 28 to April 1.
The air freight business of goods from existing warehouses in Shanghai remains normal. However, new cargo acceptance will be affected due to first mile deliveries and human resource constraints. The Shanghai counter will be closed from March 28 until further notice.

2. COSCO Shipping Lines

According to the needs of the new crown pneumonia epidemic prevention and control in Shanghai and surrounding areas, COSCO SHIPPING Lines Shanghai and surrounding service organizations (including: Shanghai area, Wuxi operation area, Jiangsu and Anhui operation area, Suzhou operation area, northern Jiangsu operation area and northern Zhejiang operation area) All of them have adopted remote office methods, and will continue to provide customers with stable and reliable services during the epidemic control period.

Other shipping companies have also released relevant adjustments. If you want to know more, you can check the adjustment notice on the corresponding shipping company platform.

/ By tjchinafreight ivy / Shipping

Japan sanctioned Russia: 19 shipping companies were blacklisted!

As the Russian-Ukrainian conflict continued, many countries imposed international sanctions on Russia and Crimea during the Russian-Ukrainian war. The Japanese government also decided to expand sanctions against Russia and included a number of Russian shipping companies on the list of prohibited exports. The purpose is to harmonize with Europe and the United States, and strike at Russia's shipbuilding and military fields.

According to the announcement of the Japanese Ministry of Foreign Affairs, the sanctioned Russian shipping companies include:

Amur Shipbuilding,
AO Center of Shipbuilding and Ship Repairing,
Dalzavod Ship-Repair Center,
JSC Shipyard Vympel,
Nerpa Shipyard,
Novorossiysk Shipyard,
Rybinsk Shipyard Engineering,
Severnaya Verf Shipbuilding Factory,
Ship Maintenance Center Zvezdochka;
And the 35th shipyard belonging to the Russian United Shipbuilding Group (USC),
Astrakhan Shipyard,
Aysberg Central Design Building,
Baltic Shipbuilding Factory,
Krasnoye Sormovo Plant OJSC,
Zvyozdochka,
Pribaltic Shipbuilding Factory,
Onega Scientific Research Design and Technology Bureau and Sredne-Nevsky Shipyard;
In addition there is the Yaroslavl Shipbuilding Factory.

On March 25, the Japanese Ministry of Foreign Affairs announced that, as additional sanctions against Russia, it would freeze the personal assets of 25 Russians and ban exports to 81 entities. If the previously announced 49 entities are added, the total export ban will increase to 130 entities. The new sanctions also include a ban on the export of luxury goods to Russia.

/ By TJ China Freight / Logistic

How To Choose A Good Freight Forwarder?

When you engage the services of a freight forwarder for your global shipping and business needs, what you expect to enjoy is the relationships they already have with various carriers such as ocean liners, truck companies, airline carriers. You should also benefit from their intricate knowledge of how export and import work in different countries. Moreover, they will be able to smoothly handle customs clearances for your goods, and track the status of the shipment as it makes its way from the supplier/manufacturer to you.

What is a Freight Forwarder?

A freight forwarder is an agent or business within the international trade industry that handles the shipping and transport of goods from one part of the world to another either by land, sea, or air. They are involved in the process of getting goods from suppliers and manufacturers, storing them, and facilitating the transportation logistics to end-users and consumers or some other distribution point. For instance, if you wish to ship freight from China, your best bet will be to hire a China freight forwarder to help you handle the daunting and complicated process of moving your freight either through ocean shipping,air freight, road or rail transport, or some other means.

Tips On How To Choose A Good Freight Forwarder

Nowadays, there are so many agents offering freight forwarding services. So, it may be difficult to find the best freight forwarder for your business. To that end, here are tips on how to choose a good freight forwarder that’s perfect for you.

1. Do Your Homework And Know What You Need

The very first thing that will help you secure the services of the best freight forwarder that will move your goods across international supply chains and trade routes is to do your homework. This means knowing what exactly you need. Ask yourself what kind of freight you want to ship in terms of volume and size. You should not expect exactly the same procedure when shipping goods like automobiles when you’re shipping commodities like foodstuffs.

You would also have a preferred mode of transport you wish to use, so it’s good for you to figure that out before contacting a freight forwarder. Moreover, some goods are fragile and require special handling procedures while others don’t. So, for such special shipments like dangerous or hazardous goods, you would expect the shipping process to be slightly more complicated.

When you clearly identify all your internal requirements, then you will be prepared for the hunt for the right freight forwarder to make the process smooth.

2. Consider The Freight Forwarder’s Experience And Network

This is non-negotiable!

The years of experience that the freight forwarder you’re looking to hire has is very crucial to the success of your business relationship. If they’re experienced, that means that they would have dealt with different situations that come up during the shipping process.

Examples of common situations are cases of port shutdowns, strike action by dockworkers, customs issues, cargo rerouting, warehouse problems, etc.  Here is where TJ China Freight comes in with more than a decade of handling and promptly and effectively resolving international shipping and logistics situations for customers all over the world.

With experience also comes an expansive global reach and sustainable business relationships. This manifests through good connections with various suppliers, local handlers and experts, trucking companies, and agents at numerous destinations. That’s how you can be sure your DDP shipments, FBA shipments, or any other freight will be handled well when they arrive at the destination country.

3. Find Out The Services They Offer

By now, you know your shipping needs. However, you don’t want just any freight forwarder with experience. Instead, you need the best freight forwarder that offers the services that will meet handle your shipping requirements. That’s why you have to confirm the services that the freight forwarder offers. These services can range from preparing import and export documents, booking shipping space from air and sea carriers, packing and storing shipments, customs clearance, freight consolidation, tracking shipments, insurance, and many more.

When you know the services that the freight forwarder provides, then you will know if they can make your international shipping process go smoothly.

4. Inquire About Their Permits, Credentials, And Certifications

Before shipments can be transported from one part of the world to another, the freight forwarder in charge of the logistics requires permits and documentation to show that they can handle the cargo. Your company may wish to ship sensitive products such as hazardous materials. To handle these shipments successfully, the freight forwarder will require special licenses. This is why you need to verify if the freight forwarder has these credentials. It will show that they have taken specialized and required training to do the job well.

Another important consideration is whether the freight forwarder is a member of reputable associations such as >WCA. To be a member of such bodies, freight forwarders are required to be financially stable, operationally efficient, have integrity, and pass many other strict vetting requirements. The best freight forwarder will always ensure they are part of such associations to stay in touch with the latest developments in the profession and remain relevant and valuable to customers.

5. What Risk Management Procedures Do They Have In Place?

It is not uncommon for problems to arise during the process of international shipping. There are lots of conditions that can destabilize the transportation of your cargo, whether at the origin, during transit, or at the destination country. So, it’s important for you to verify whether the freight forwarder has procedures in place to manage risks. Freight forwarders that are proactive are the best in handling any issues and proffering solutions to problems as they arise.

A common risk management procedure that you can ask about is cargo insurance. The insurance cover is valuable if anything happens to your shipment, whether it’s a case of loss, damage, or theft. Your mind will be more at ease during the entire shipping process if you know that you’re covered by insurance or any other valid risk management policy. Your freight forwarder should be your partner when there is a crisis.

6. What Is Their Customer Service Like?

Good customer service is the backbone of any business! All the credentials, experience, network and connections in the world amounts to nothing if a freight forwarder does not treat their customers well.

Imagine going through the process of securing your shipments from the supplier or manufacturer only for you to be unable to reach the freight forwarder handling the logistics and transport. If you have inquiries about freight rate or any other issues related to international shipping and the freight forwarder takes forever to respond to your inquiries, would you be willing to do business with them? This is why it’s important to verify what the freight forwarder’s customer service looks like.  You can ask about who the contact person is, who to talk to when a problem arises, how you will be contacted, and also check the reviews from previous customers.

Because international shipping can be tricky, these details are important, which is why clear communication between you and your freight forwarder is very crucial to the success of the endeavor. Great customer service even extends beyond when your shipment arrives. TJ China Freight is a tested and trusted China freight forwarder that offers unbeatable service to all its customers.

What About Pricing And Rates?

You may be wondering by now why there was no mention of pricing and rates in the tips on how to choose the best freight forwarder for your international shipping needs. Yes. It was deliberately left out. Why? Because deciding which freight forwarder to hire based on price alone is misleading and often has dire consequences.

For example, going with a freight forwarder because they offer the lowest rates on a shipment may lead to you having to pay more on subsequent shipments. This is because the freight forwarder would want to make up for the low price that they offered initially. Another possibility is that such freight forwarder that’s offering a low rate may have hidden some charges in the terms and conditions. All in all, low prices are often linked to dishonest dealings. You don’t want to fall victim, do you?

What your main focus should be while you are in search of the best freight forwarder for your business is whether your professional shipping needs will be precisely and promptly met. This is not to say that price is not important. Rather, it should not be your deciding factor on who to choose.

How To Ask For Shipping Rates From Your Freight Forwarder

Now that you know what you need to do to hire the best freight forwarder to handle your shipments, you should know the details you require to get the accurate quote and shipping rates for your products. This will help you prepare adequately and also help the freight forwarder serve you well.

To request for a quote from TJ China Freight, the information required include:

1. Product Name.

The name of the product is required. Also, is the product with or without battery? Is it magnetic? Is it liquid? Are they dangerous goods?

2. INCOTERMS Or Terms Of Sale.

Incoterms refer to your International Commercial Terms with the seller, supplier, manufacturer or factory. Are your incoterms EXW (Ex works), Free on Board (FOB), or Cost, Insurance and Freight (CIF)?

3. Weight And Volume Information.

If you have the goods packing lists, that’s the most preferred. Alternatively, you can send the gross weight and volume information of the shipment.

4. Address Of The Supplier Or Factory.

If your contract price term is EXW, then we have to arrange the pick up from your supplier or facotry, so the address of the supplier or factory will be needed for us to check the pick fee.

5. The Destination Address Or Port Of Destination.

For Express shipping or any type of door to door delivery, we will need your exact destination address and post code to check the exact cost, and for Air freight or any type of shipping to Port only, then your port information will be required.

6. Your Preferred Shipping Method (Air Freight, Express Freight, Sea Freight, or Train Delivery).

The shipping cost is very different for the air freight, express freight, sea freight or train delivery, so pls let us know which shipping method do you prefer.

7. Your Preferred Time of Delivery – How Quickly Do You Want The Shipment To Be Delivered.

If you don’t know what shipping way is more suitalbe for you, pls let us know your preferred time of delivery, we will try to recommend the best shipping method that can meet your demands.

TJ China Freight, Your Best Freight Forwarder In China

As a leading China freight forwarder that specializes in shipping goods from China to other parts of the world, TJ China Freight offers a broad range of freight services like express shipping, warehousing, drop shipping, FBA shipping, and many more. We partner with many reputable organizations such as DHL, UPS, Emirates, etc. to make sure your shipments arrive on time and in good condition. Contact us today for a quote and open the door to an amazing business relationship.

/ By TJ China Freight / Shipping

The freight rates dropped by more than 13%!

Although the new round of new crown pneumonia in Europe represented by the British mutant virus has generally eased, and the congestion of British ports is also showing signs of easing, it will take some time for the European transportation system to fully recover.

At the same time, the goods hoarded before the Chinese New Year have basically been shipped out, and the demand for transportation after the holiday is still recovering. The overall market volume is insufficient, and some voyages have surplus space. Liner companies cut prices to buy goods.

Under the combined influence of the above-mentioned market factors, the freight rates of Asia-Europe routes after the Spring Festival have been declining.

 

The freight rate dropped by more than 13%! Asia-Europe route after the holiday market declines for three consecutive weeks

 

 

According to the Shanghai Export Container Freight Index (SCFI) released by the Shanghai Aviation Exchange, on March 12, the freight rate (sea and ocean surcharges) for exports from Shanghai to the European basic port market was 3,712 US dollars/TEU, which was higher than that on March 5. Compared with 3966 USD/TEU, it is down 6.4%. Compared with the USD 4,047/TEU on February 26, it was down by 8.3%. Compared with the 4281 USD/TEU on February 19, the drop reached 13.3%.

This is also the rate of the Asia-Europe route, which has declined for three consecutive weeks.

The situation of the Mediterranean route is slightly better than that of the European route. On March 12, the freight rate (sea freight and ocean freight surcharges) for exports from Shanghai to the Mediterranean basic port market was 4,020 USD/TEU, a decrease of 5.4% compared with 4,252 USD/TEU on February 19.

The Ningbo Export Container Freight Index (NCFI) released by the Ningbo Shipping Exchange also showed a similar trend.

From March 5th to 12th, the NCFI European route freight index was 2871.1 points, a decrease of 6.2% from the previous week. Compared with the 3192.2 points on February 20-26, a drop of 10%; compared with the 3323.4 points on February 13-19, a drop of 13.6%.

 

The freight rate dropped by more than 13%! Asia-Europe route after the holiday market declines for three consecutive weeks
The trend of NCFI European route freight index

In the same period, the freight index of the NCFI East-West route was 2354.2 points, and the freight index of the NCFI West-South route was 3007.1 points, a decrease of 7.4% and 9.2% respectively from February 13-19.

Entering 2021, the freight rate of Asia-Europe route has experienced an astonishing price increase of 25.8% overnight, and then gradually dropped.

Previously, industry consulting agency Sea-Intelligence had predicted that in 2021, the uncertainty caused by the epidemic would still be very large, and the historically high freight rates would fall.

Lin Shulai, an analyst at Yihailan, analyzed that the market freight rate after the Spring Festival depends on two factors, the operating strategy of the shipping company and the development of the epidemic. It is expected that after the first quarter of 2021, the market is expected to return to normal.

/ By TJ China Freight / Shipping

Will the freight rate go up?

The prosperous situation of the container shipping market will continue for a longer period of time. The profit of the shipping company in the first quarter of this year is expected to increase to several times that of the fourth quarter of last year, and the profit in the second quarter will be equal to or higher than that of the first quarter.

 

After the Spring Festival, the congestion problem of European and American ports has not been relieved as expected. Instead, it has spread everywhere. Major international ports such as Los Angeles, Oakland, Rotterdam, Hamburg, Felice Du, Liverpool, and Le Havre continued to be congested. Singapore is not immune. Although the current shortage of containers has improved, it is estimated that as the volume begins to increase at the end of March, it will return to the original situation in April.

 

Jeremy Nixon, CEO of ONE, pointed out that Asian terminals currently operate 24 hours a day, while berths on the west coast of the United States work 112 hours a week, container terminals work 88-90 hours a week, and land operations are limited to daytime. Therefore, the current situation of the trans-Pacific route is unlikely to improve in the short term.

 

On the whole, the off-season of the shipping market after the Spring Festival this year is not weak. The number of days for seasonal correction of freight rates before and after New Year's Eve is between 50 and 64 days. The rate of freight rate decline is between 17% and 27%. After the festival, only 3.8% is revised, which is still obvious. Less than historical convention.

 

Looking forward to the market outlook, analysis institutions are optimistic about the market performance this year. Drewry predicts that the global container shipping demand growth rate will reach 10.9% in 2021, which is much higher than the 4.5% growth rate of supply.

 

The Danish shipping consulting agency Sea-Intelligence also estimates that the surge in freight rates may continue until the spring of 2022, and the freight rates for the US line may increase by another 25%.

 

Sea-Intelligence's research report pointed out that the current US retail industry inventory is still at a historical low, and the relative inventory level has been the lowest in 28 years. This is undoubtedly good news for the shipping company. As long as the sales situation is normal, the US retail industry needs to be in Continue to replenish inventory in the next few months.

 

Executives of CH Robinson, the world's leading third-party logistics service provider, pointed out that global road, sea and air cargo congestion is likely to continue into next year and continue to increase transportation costs.

 

Although there is still room for increase in freight rates, the various operating costs of container shipping companies are also increasing significantly. Port congestion has reduced ship turnover by 20% to 30%, and container ship rents have soared, which has doubled in the past year. In addition, the price of marine fuel oil has increased by 60% since November last year, and the difficulty in crew dispatch caused by the epidemic has also increased labor costs by about 20%.

 

Consolidation company believes that starting from May this year, the long-term freight rate of the western US route has started from US$3,000, which is several times higher than that of last year’s US$1,400. Therefore, as long as the freight rates of the European and Southeast Asian routes are stable, the company’s profit in the second quarter may be The first quarter is equivalent. If it is a consolidator that starts to substantially increase US flights in mid-March, there is still a chance that the second quarter will make more profits than the first quarter.