/ By TJ China Freight / Shipping

Can you split the order? Summary of requirements for splitting orders

Splitting the bill of lading is a relatively common behavior in the foreign trade industry. For example, when there are multiple consignees for a single shipment, many foreign trade companies will use the method of splitting the bill of lading. However, is it allowed in every country? What about the bill of lading? This is not necessarily true. The following will bring you a summary of the requirements of various countries.

Countries that allow splitting

• Pakistan: Goods imported into Pakistan allow the same box to be split in multiple bills of lading.

• China: Goods imported into Xingang are allowed to be split in the same box on multiple bills of lading.

Countries that conditionally allow order splitting

• Ukraine: The same box is allowed to be split in multiple bills of lading for goods imported into Ukraine, but the consignee of each bill of lading must be the same.

• Russia: The goods imported into Russia are allowed to be split in the same box in a multi-ticket bill of lading, but the consignee must be a local company in Russia.

• Australia: Goods imported into Australia allow the same box to be split in multiple bills of lading, but the consignee of each bill of lading must be the same or belong to the same group.

• Saudi Arabia: The goods imported into Dammam; Jeddah; Riyadh are allowed to be split in the same box in a multi-ticket bill of lading, but the consignee must be the same and cannot be combined with other boxes in a bill of lading.

• Indonesia: The goods imported into Jakarta are allowed to be split in the same box in a multi-ticket bill of lading, but the consignee must be the same.

• Malaysia:

1. The goods imported into Pasir Gudang allow the same box to be split in multiple bills of lading, but the consignee of each bill of lading must be the same and cannot be handled as bulk. If the customer insists on releasing the goods to different consignees, it is recommended that the consignor contact his own customs clearance agent to inquire whether he can go through customs clearance according to the freight forwarding form issued by himself.

2. The goods imported into Port Klang allow the same box to be split in multiple bills of lading, but the consignee of each bill of lading must be the same (except for bulk cargo).

• Singapore: Goods imported into Singapore allow the same box to be split in multiple bills of lading, but the consignee must be the same.

• Iran: General cargo imported into Iran allows the same box to be split in multiple bills of lading, but if it is dangerous goods, the consignee and notifier of each bill of lading must be the same. The goods in the freezer are not allowed to be split in the same box on a multiple bill of lading.

• Philippines: Goods imported into the Philippines allow the same box to be split in a multi-ticket bill of lading, but if there are multiple consignees, the consignor needs to inform the consignee to designate an agent to arrange customs clearance and cargo release.

• Thailand: Bulk cargo imported into Thailand allows the same box to be split in a multi-ticket bill of lading.

Countries that do not allow splitting

• Bangladesh: Goods imported into Bangladesh are not allowed to be split in the same box on multiple bills of lading.

• Israel: Goods imported into Israel are not allowed to be split in the same box on multiple bills of lading.

/ By TJ China Freight / Shipping

What is “LCL” and “Loss Freight”?

In international trade, companies often fail to ship goods due to various reasons, so they have to bear the corresponding LCL costs. The most important thing is that many shippers are not very aware of these costs, so they are hard to guard against. Today, the editor and everyone will learn about some relevant knowledge about the loss of shipping LCL during cargo transportation.

What is "LCL" and "Loss Freight"?

What is LCL?

CL CARGO= LESS CONTAINER LOAD, LCL cargo refers specifically to small-ticket cargo that is less than a full container (20'/40/45). Usually, the bulk cargo consolidator (consolidator) collects the cargo separately and collects it at the container freight station or inland site, and then consolidates the cargo with two or more votes into one container, also at the destination container freight station Or the inland station unpacks and delivers separately.

For this kind of goods, the carrier has to bear the packing and unpacking operations, and the packing and unpacking fees are still charged to the cargo party. The carrier’s responsibility for LCL cargo is basically the same as that of traditional grocery transportation.

What is the LCL shipping fee?

In the process of LCL export by sea, after 11:00 noon on the working day before the order cut-off date, the cargo cannot be shipped in time due to the reason of the booking person, resulting in the vacant space of the LCL company, and the LCL company will order The fee charged by the cabin crew to make up for the loss.

How to calculate the loss fee?

The calculation of the loss fee is based on the cost of the vacant space. The specific calculation formula is the loss fee = booking billing cubic x (full container shipping fee + full container shipping port fee)/standard cubic number.

Note: Standard cubic number: 25/20' 50/40' 60/40'HQ

Common reasons and preventive measures for loss of cabin charges:

(1) The owner of the cargo is too late to enter the warehouse or the person who temporarily cancels the shipment and the booking person fails to cancel the booking timely. Precautions: Please keep the freight forwarder regularly in communication with the owner before the customs cut-off date, and provide timely feedback. And inform the owner that he has the responsibility to notify, otherwise it will incur damages.

(2) A larger proportion of super square/reduced square/overweight. Precaution: Please ask the freight forwarder to ask the owner of the consignment to be consistent with the actual cargo as much as possible, and notify in time if there is any change.

(3) After the goods have entered the warehouse, it is found that the characteristics or specifications of the goods cannot be carried, such as "liquid/dangerous goods/oversized and overweight items". Precautions: Please inform the freight forwarder that liquid/dangerous goods/semi-dangerous goods will not be accepted. Oversized and heavy items must be confirmed in advance.　　

(4) The customs inspection resulted in the inability to ship in time. Precaution: Please ask the freight forwarder to require the owner of the declaration to be consistent with the bill, the documents, and the goods. If the customs has any questions, please cooperate with the customs broker of the forwarding company to reply to the customs in a timely and clear manner. What are the requirements of the customs to cooperate as much as possible to ensure timely shipment of goods.　

In short, the most important thing for the prevention of LCL loss costs is to maintain close and good communication between the owner and the freight forwarder. At the same time, the freight forwarder is dedicated to solving the problem for the shipper in time, and the shipper must also trust the forwarder and meet frankly.

/ By TJ China Freight / Shipping

Container shortage or turning point

Container xChange said that the shortage of container equipment that has lasted for several months is expected to end because the container availability index (CAx) is undergoing positive changes.

Container shortage or turning point

According to Container xChange analysis, the Chinese New Year may become a turning point , with the 20-foot and 40-foot dry cargo index increasing to 0.34 and 0.37 respectively, indicating that the availability of empty containers is much higher than last month. CAx data comes from millions of containers tracked by Container xChange. Container xChange CEO Johannes Schlingmeier said: “An index of 0.5 indicates market balance, and a value below 0.5 indicates a shortage of containers.” Container xChange pointed out that although the latest data in January was well below 0.5, indicating that there is still a shortage of container equipment, but 20 feet and The 40-foot container data has begun to approach the normal container shortage level in China's main export markets.

David Amezquita, the company's director of data, said:

Compared with December 2020, the availability of 20-foot containers in January 2021 has increased by 37.5%, and the availability of 40-foot containers has increased by 200%, which is a positive trend.

Data from xChange shows that in the past few months, there has been an extreme shortage of containers across China. In Shanghai, which has always been in short supply, the index reached a record low in December 2020, of which the 40-foot container availability index was only 0.13. The company said that as China's container manufacturing plants are running at full capacity to expand production capacity, coupled with the shipping company's efforts to transport empty containers back to China, the Chinese New Year may become an important turning point.

With the substantial increase in container supply, Shanghai Port's container availability index is returning to normal levels. Other ports in China are also undergoing positive changes. Taking Qingdao Port as an example, the availability index of a 20-foot container even reached 0.5. The container availability index of other major Asian hub ports such as Singapore Port, Navassiwa Port and Port Klang also showed the same trend. Compared with December 2020, the availability index of standard containers at the Port of Singapore in January 2021 has increased by 58%, Port Nawahiwa has increased by 35%, and Port Klang has increased by 54%.

There are signs that the container availability index will remain stable in the coming weeks. Until mid-February, the availability of 20-foot boxes will stabilize at around 0.35, and the availability of 40-foot boxes will stabilize at around 0.38.

/ By TJ China Freight / Shipping

“When the pressure on the maritime supply chain can be eased, no one can say”

In the past two months, the cost of transporting goods from China to Europe has more than quadrupled, hitting a record high, due to the pandemic disrupting global trade and the shortage of empty containers.

 

Data from shippers and importers show that the freight for transporting a 40-foot container from Asia to Northern Europe has risen from approximately US$2,000 in November last year to more than US$9,000.

Lars Jensen, CEO of maritime consulting company SeaIntelligence, said that the reason for the increase in freight rates is the market's competition for limited resources-containers.

 

In the first half of 2020, due to a sudden slowdown in global trade due to the epidemic blockade, shipping companies have suspended large-scale shipping and thousands of empty containers are stranded in Europe and the United States. In the second half of the year, when Western countries' demand for Asian-made goods rebounded, competition among shippers for available containers pushed up freight rates.

 

John Butler, Chairman of the World Shipping Council, said, "The freight volume has dropped from a sharp decline to soaring to the highest level in history, and the effective handling capacity of the terminal has exceeded the upper limit."

 

He added that the congestion in the port has caused freight rates to rise, and shipping companies charge additional fees to compensate for the longer waiting time.

 

 

"When the pressure on the maritime supply chain can be eased, no one can say"

 

 

British freight forwarding company Edge Worldwide CEO Philip Edge said that some shipping companies charge US$12,000 per container, much higher than the US$2,000 in October last year.

 

The British Household Electrical Appliance Manufacturers Association stated in a statement, “According to member companies’ disclosures, shipping costs have increased by more than 300% since 2020. Especially for some commodities, the increase in shipping costs has exceeded the net increase Profit. Therefore, these costs will have to be passed on to the end user."

 

The owner of a leisure goods importer in Manchester said that the shortage of containers is having a “huge impact” on his business, and some orders placed in November are still waiting to be shipped. "The question is, is it to pay $12,000 now and pass the cost on to the customer, or to wait at the risk of exhausting inventory?"

 

Economists say that such interruptions and delays are beginning to affect global supply chains. Neil Shearing, chief economist at Capital Economics, said that "transportation pressure is accumulating and may increase further."

 

A recent survey by IHS Markit found that in December last year, the delivery time of manufacturing suppliers in the Eurozone reached the worst level since the peak of the pandemic lockdown in April. Shipping delays and general commodity shortages were "widely mentioned" by suppliers. .

 

 

"When the pressure on the maritime supply chain can be eased, no one can say"

 

 

The companies surveyed stated that they are consuming inventory of raw materials and semi-finished products, resulting in a decline in inventory.

 

Bert Colijn, senior economist at ING, said that "supply shortages and rising freight rates may slightly curb trade growth."

 

On the occasion of the Chinese New Year in February, the Asian manufacturing industry slowed down. Shipping companies hope to use this time to solve the problem of increasing backlog orders, which will temporarily cool freight rates.

 

However, BIMCO chief shipping analyst Peter Sand said that the shortage of containers may continue for a long time in 2021. Although the shipping company has ordered new containers, in his opinion, such a move is "too small and too late."

 

Lars Jensen also believes that although freight rates may drop slightly, "there are still a lot of goods waiting to be transported."

 

John Butler pointed out that only when epidemic-related restrictions are reduced and people have more diverse service choices, the pressure on the maritime supply chain can be alleviated, but no one can say when it can be improved.

/ By TJ China Freight / Shipping

The imbalance between supply and demand of air cargo continues, and the shortage of freighter capacity causes price increases and delays

The air cargo market has ushered in a new year, but there is no sign of cooling. International transportation activities usually weaken after the holiday season, but due to the unusual air transportation mode and the severe shortage of air transportation caused by the new coronavirus pandemic, demand and freight rates remain high.

The logistics company expects that the air cargo volume will not decline before the Spring Festival, because the manufacturer plans to continue operations during the traditional holidays.

The imbalance between supply and demand of air cargo continues, and the shortage of freighter capacity causes price increases and delays

The latest comprehensive statistics of World ACD and CLIVE Data Services in December show that compared with 2019, air cargo volume has fallen by only 3.7% to 5% respectively. These data show that the air cargo industry has recovered a lot since it bottomed out in May last year, when demand dropped by nearly 40%.

The demand for air transportation is largely driven by continuous inventory replenishment, the inventory-to-sales ratio of consumer goods is close to the lowest level in history, and a saturated marine container market. Analysts and logistics providers said that the congestion of ports and railways and the shortage of empty containers continue to push up shipping prices and cause serious delays, especially for main routes from Asia, which promotes a further increase in aviation demand.

The goods sought for air transportation include automotive equipment, consumer goods purchased online, and medical supplies related to COVID-19. Airplanes are also used to transport the new crown vaccine, because a large number of vaccines are transported by land, and sometimes only a few containers are needed for each flight, so it is not clear how many ordinary goods they replace. Nevertheless, when the capacity is tight, the vaccine will be given priority to board the plane.

The imbalance between supply and demand of air cargo continues, and the shortage of freighter capacity causes price increases and delays

San Francisco-based freight forwarding company Flexport said in a customer advisory update report that the remaining demand for game consoles and smartphone product releases in the fourth quarter will increase capacity constraints by mid-February.

Bruce Chan, vice president of global logistics at investment bank Stifel, said in a monthly comment that shippers are also more inclined to use air operations as an inventory buffer because their forecasting models have been completely overturned by the epidemic. He wrote: “Predicting consumption patterns and when they will stabilize is a huge fear, and the path forward is hardly linear, especially when the new coronavirus reignites and the government further implements blockades and border closures.”

In addition, many Chinese manufacturers announced that they will continue production during the Lunar New Year period from February 12 to 26. Factories are usually closed for 10 days or longer so that workers can celebrate with their families, but because the Chinese government encourages workers to celebrate the New Year on the spot, many factories will continue to operate this year. Flexport said this could create a backlog, as many freighter flights were cancelled a few weeks ago due to the expected full transport. Any backlog will depend on whether the factory continues to produce or take vacations at home.

The demand for air freight is so strong that experts predict that by the end of March the market will return to the level before the epidemic. This trend is in sharp contrast to the passenger traffic of the aviation industry, which is expected to remain sluggish until vaccination becomes more common in the second half of the year. Even then, the recovery of international travel may be slower, which means fewer aircraft for long-distance trade. Aviation industry officials said they don’t expect a full recovery until 2024.

Globally, freight rates are more than twice what they were a year ago, and freight rates from China to Europe and the United States are 2.5 times what they were a year ago. According to data from digital sales platforms, market information services and freight forwarders, the aircraft on these routes are full.

According to World ACD data, the average freight rate soared by 80% in December last year, from US$1.80 per kilogram to US$3.27 per kilogram, the highest year-on-year increase since May last year, but it fell by 10% since January this year.

Freight rates are under tremendous pressure, because although more all-cargo operators have added freighters and flights, global capacity is still about 20% lower than 2019 levels. The main culprit is the insufficient supply of wide-body passenger aircraft on international routes, most of which are still grounded due to the poor travel market. In fact, with the strict implementation of travel restrictions, airlines will reduce flights in the first quarter. For example, Air Canada and WestJet suspended 25% and 30% of their system capacity in the first quarter.

The imbalance between supply and demand of air cargo continues, and the shortage of freighter capacity causes price increases and delays

According to data from the International Civil Aviation Organization, the global all-cargo fleet increased by 22.4% to 673 aircraft in 2020. Airlines continue to increase capacity, including improved aircraft from passenger airlines, but this is not enough, because the space shortage is three to four times the decline in demand, and the gap may be even greater in the short term.

In the past month, Qatar Airways has added three Boeing 777 freighters to its fleet, and China Airlines and AirBridgeCargo have each added a factory-built aircraft. Swiss International Air Lines has added Seoul, South Korea and Lima, Peru to its cargo network. The flight from Zurich will be operated by a 777-300 extended-range passenger aircraft dedicated to cargo. The flight from Zurich will be operated by a 777-300 extended-range passenger aircraft dedicated to cargo.

In the past year, many freight forwarders have greatly increased the use of dedicated charter flights to ensure that they can provide transport capacity to their customers. German logistics giant DB Schenker significantly expanded its private aviation network last week. Now it has two routes, connecting Europe, Asia and North America for the first time. The cargo management company controls a total of 43 Boeing 747 or 777 freighter flights every week-equivalent to the space of a 135 wide-body airliner. Munich Airport is the hub for DB Schenker's intercontinental cargo between the United States and Asia. 

/ By TJ China Freight / Shipping

There are almost no ships available in the world, and the rent of container ships has skyrocketed!

The global container cargo volume has soared, and the existing container ships have almost all been used up, which has led to a sharp increase in container freight rates and container ship rentals.

Faced with the reality of shortage of ships, shortage of containers and high freight, what should we do?

rare! There are almost no ships available in the world, and the rent of container ships has skyrocketed!

There is no limit to rising container ship rents

As of 2020, the rental level of container ships has reached the highest level in 12 years, and this trend showed no signs of slowing down in the next few weeks.

The rising rent of container ships presents a sense of unlimited.

Clarkson Research introduced in the latest market report that with rising freight rates and continued optimistic forecasts, the demand for large ships in the chartering market, in particular, has not decreased. (Maersk: The congestion in the container supply chain will not improve in the near future)

In the past week, the income of all the container ship sectors has improved.

The charter rate for a 6800 TEU container ship with a charter period of 6-12 months rose further by 1% from the previous week to 34,500 USD per day.

In the ship type below 3000 TEU, the Atlantic and Pacific markets continued to be active, which led to the continued increase in charter rates. The charter rate for the 1000 TEU ship type under the 6-12 month charter period rose 3% year-on-year to 9,500. USD/day.

rare! There are almost no ships available in the world, and the rent of container ships has skyrocketed!

As shown in the above chart, in general, this year's container ship rental levels of various ship types have increased significantly compared with last year, not to mention the relatively flat or even sluggish market in 2017 and 2018.

Fearnley Securities, the Norwegian investment bank, said in a briefing on Monday that there are few signs that the container shipping market will stop its strong upward trend because demand continues to exceed the supply of capacity.

Fearnley's data also shows that the current container rent of traditional Panamax container ships under the current 12-month charter period has exceeded US$25,000 per day. In addition, the rent of larger container ships of 6000-9000TEU type has also been rising.

Fearnley added that the "activeness" of feeder-type container ships continues to increase, and the one-year rental level of a standard 1,700 teu container ship has also approached $18,000.

The highly influential New ConTex Index (New ConTex Index) provided by the Hamburg Shipbrokers' Association, which reflects the situation in the container ship chartering market, also continued to rise to 737 points from 726 points last week.

rare! There are almost no ships available in the world, and the rent of container ships has skyrocketed!

In fact, according to the index report of this institution, the rent levels of ships of all lengths of almost all ship types recorded in the report are continuously rising. As shown in the chart above.

rare! There are almost no ships available in the world, and the rent of container ships has skyrocketed!

There are almost no ships available in the world, causing freight rates and rents to skyrocket!

Clarkson said that in terms of freight rates, the Shanghai Container Freight Index (SCFI) reached a record high of 2783 at the end of 2020, an average of 56% higher than last year in the past 12 months.

Fearnley said that although the increase in the SCFI index for the week that ended on January 15 slowed down from previous weeks, the index rose by 0.5%.

rare! There are almost no ships available in the world, and the rent of container ships has skyrocketed!

The rapid rise in unbalanced demand in phases is the main reason for the sharp rise in container freight rates and container ship rentals.

For example, Xinde Maritime.com reported in "Container freight rates have risen sharply, should container shipping companies take the blame? "Introduced in "After experiencing the sluggish demand in the first half of 2020, the demand for container cargo has experienced an astonishing rebound in the second half of last year.

According to data compiled by BIMCO, the global container traffic dropped by about 7.3% (about 5 million TEU) in the first five months of this year, but then by November this year, the global container traffic dropped by only 1.7% compared with the same period last year ( About 2.6 million TEU). This means that in the second half of this year, container shipping companies have to meet the nearly 30% increase in cargo volume with the capacity to meet normal demand.

rare! There are almost no ships available in the world, and the rent of container ships has skyrocketed!

Trevor Crowe, an analyst at Clarksons Research, also said that the recovery in freight volumes is the main reason for the dramatic market volatility.

Clarkson said that in 2020, the global volume of container trade in teu is estimated to have fallen by 1.9%, which is better than initially worried about. But this number does not fully reflect the changes in the turbulent 12 months. In the second quarter of last year, the volume of seaborne container trade dropped by 10% compared to 2019. However, in the second half of the year, due to the backlog of transport demand released by the economy, the volume of container transport increased significantly.

At the same time, Clarksons Research stated that the growth of the global container fleet's capacity has remained at 2.9%, which was "under control" as expected last year.

The agency also added that the number of new ship orders in October (relative to the existing ship capacity) once dropped to a new low of 8%, but with the increase in orders, it had fallen to 10% by the end of this year.

The distant water cannot quench the thirst of the nearby, and it takes a certain amount of time to build a new container ship. With soaring demand and limited increase in container ship capacity, the global market's utilization of existing container ships has reached its limit.

According to data provided by the shipping consulting company Alphaliner for Xinde Maritime Network, the current global "inactive" container ships account for only 1%, which is approximately 600,000 TEU in total capacity.

rare! There are almost no ships available in the world, and the rent of container ships has skyrocketed!

It is worth noting that Alphaliner analyst Jan Tiedemann further explained to Xinde Maritime Network that the meaning of whether it is "idle" or "inactive" in the table does not mean that the ship is "in idle". layout' state.

Jan Tiedemann further explained that there may be several reasons for ship inactivity, including waiting, damage to be repaired, or being in the contract handover period. In addition, some ships in the shipyard’s docking repairs, special inspections, conversion of desulfurization towers or ballast water treatment systems are also classified as inactive ships. For example, out of the current inactive capacity of 600,000 TEUs, 370,000 TEUs are in In the shipyard.

According to the above data, this means that there are almost no ships that can be re-entered into the transportation market in the world.

No ships are available, so the rise in container ship rentals is of course a matter of course. In addition, because there are not enough containers in the world, there is a logical basis for the skyrocketing container freight.

/ By TJ China Freight / Shipping

From USD 13-1.6 million/FEU, freight rates on Asia-Europe routes continue to rise! The tight capacity has not yet eased and will continue into the second quarter

Equipment shortages, strong demand, and soaring freight rates in Asia and Europe have almost run through the entire Christmas-New Year holiday. Freight forwarders and carriers are almost unlikely to see market conditions ease before the Chinese New Year in February.

According to data from the Baltic Daily Freight Index (FBX), spot prices from China to Northern Europe reached an incredible $7,701 per TEU on January 15 , a year-on-year increase of 268%.

From USD 13-1.6 million/FEU, freight rates on Asia-Europe routes continue to rise! The tight capacity has not yet eased and will continue into the second quarter

From USD 13-1.6 million/FEU, freight rates on Asia-Europe routes continue to rise! The tight capacity has not yet eased and will continue into the second quarter

The freight rate from China to the Mediterranean region also drew the same curve, and the rate per FEU7496 USD increased by 203% over the same period last year.

From USD 13-1.6 million/FEU, freight rates on Asia-Europe routes continue to rise! The tight capacity has not yet eased and will continue into the second quarter

From USD 13-1.6 million/FEU, freight rates on Asia-Europe routes continue to rise! The tight capacity has not yet eased and will continue into the second quarter

Data from Xeneta, an internationally renowned freight benchmark and market analysis platform, shows that since the end of October 2020, spot freight rates in Asia and Europe have risen almost vertically, from US$1,164 per TEU to US$4,191 on January 2, 2021.

These indexes reflect the total rate of trade payments, and shippers are also reporting that freight forwarders have given them eye-popping prices for Asia-Europe freight. A shipper told reporters that, last week, a freight company reported a one-week Asia-Northern Europe freight rate, which reached US$13,000 to US$16,000 per FEU.

The shipper said: "I know the capacity of this route may be more tight than other routes, but such prices are still too crazy."

From USD 13-1.6 million/FEU, freight rates on Asia-Europe routes continue to rise! The tight capacity has not yet eased and will continue into the second quarter

From February 12th, China will begin to celebrate the Lunar New Year, and factories are usually closed for three weeks around the Spring Festival. However, since the beginning of this year, there have been various mixed reports from Chinese manufacturers. Some factories will cancel holidays in order to cope with the backlog of orders, and some factories will take longer holidays.

This uncertainty makes the capacity management of carriers more difficult. The sea intelligence agency (sea intelligence) recently stated in a newsletter that during the three-week Spring Festival beginning at the end of January, the carrier has so far announced only seven cancellations of the Asia-Europe route. The shipowners have announced that they will cut their total capacity by 6% to 13%, compared with 40% in January last year.

The newsletter pointed out that shipowners usually announce cancelled flights six to eight weeks before the Spring Festival, putting people under pressure of "time pressing". However, there may be other reasons behind the silence of the shipowner.

A Maersk spokesperson said that although the demand outlook for this year is still limited, the current freight purchase model and the supply of container equipment and ships are only temporary. Maersk expects that demand will "normalize" in the first half of the year, and plans to reduce voyages around the Spring Festival to rebalance the flow of containers. The spokesperson said that stocks in the US and European markets have basically been replenished, and the introduction of vaccines "will also ease this situation."

For the time being, we still see no signs of weakening demand

But obviously not everyone agrees with Maersk's view. Dominique von Orelli, Executive Vice President and Global Head of Ocean Freight at DHL Global Forwarding, said that continued strong demand will keep container freight rates high in the first quarter of this year run. He said that " this extremely strong demand momentum" showed no signs of abating .

From USD 13-1.6 million/FEU, freight rates on Asia-Europe routes continue to rise! The tight capacity has not yet eased and will continue into the second quarter

Von Aurely said, "During the Spring Festival, freight rates may drop slightly, but the overall upward momentum should continue until March or even the second quarter." He added that any shipment exceeding the agreed minimum quantity commitment (MQC) The volume will increase the price.

"Now if you go to a retail store in Germany and want to buy a sports jacket, or go to IKEA to buy a bed, or go to a furniture dealer to buy a chair, they will give you a lead time of 12 weeks or more because the inventory has been It’s emptied.” The source added, “Most companies are trying to replenish inventory, but at the same time, the strong demand has not been reduced. Therefore, it is still difficult to increase the inventory to the customer’s demand. It will take some time to achieve The state of supply and demand balance, so we predict that demand will not stabilize until March or April."

From USD 13-1.6 million/FEU, freight rates on Asia-Europe routes continue to rise! The tight capacity has not yet eased and will continue into the second quarter

Rolf Habben Jansen, CEO of Hapag-Lloyd, also holds the same view. He said in the latest market report in late December last year, "Two months ago, I said that (high) demand will continue until the Chinese New Year. The traffic will drop."

He added: "Today, I have to honestly say that we may still have to deal with very high transportation volumes in the future. After all, the bottleneck that cannot ease the current capacity shortage is not only in the logistics link, but also in the production link. There is still a lot of work to be done. I’m afraid it will take some time to solve the bottleneck. China Spring Energy allows us to breathe in two to three weeks. But not everything will be resolved within this time."

Since the peak of the third quarter of 2020, with the high demand in Asia and Europe, China has faced a serious shortage of empty containers. The executive of the European logistics industry said that the problem of tight container supply will continue into the second quarter. He said: "The second quarter is expected to see the relief of the new crown epidemic. By then, there will be more labor supply in warehouses and terminals in Europe and other destinations, which will accelerate the flow of containers."

/ By TJ China Freight / Shipping

A Guide to Sea Freight Shipping from China

Sea freight is the largest method of shipping for international import and export business. Competitive prices and multiple options make sea freight the first choice for global trade. When it comes to shipping from China, businesses need experienced freight forwarders like our team at Supreme Freight who are familiar with transporting for companies of differing sizes as well as to a wealth of countries. As a China freight agent, we hope that you are able to gain something from the knowledge and experience shared in this article.

Trade Terms

Get accustomed to all the codes and terminology with our simple breakdown:

Incoterms – A term given to one of the common terms of trade. When applied to buying goods from China, there are four incoterms. Each of the incoterms are assigned a code relating to how far the suppliers transport the shipment to. The codes of these incoterms are as follows:

EXW – Transport as far as the factory/manufacturer

FOB – Transport as far as a nearby port in China

CIF – Transport to a nearby port in your country

DAP/DDU – Transfer to your place of business

The codes can be split into two further categories:

  • EXW/FOB Category – The buyer can utilise your own freight agent and liaise with them directly regarding payment.
  • The Other Category – The buyer uses their own freight company and your company subsidises that.

When looking for a freight forwarder, it is important that you understand these terms and codes to enable them to know your requirements when shipping your goods to China.

Container Types

It is important to know the following commonly used container types:

  • 20’GP – Allows for 20ft of storage. 20’GP is designed to carry more weight than voluminous cargo. E.g. Minerals, metal and machinery
  • 40’GP – Allows for 40ft of storage. 40’GP is designed to carry more voluminous cargo than heavy cargo. E.g. Furniture, tyres, and toys
  • 40’HC – Allows for 40ft of storage for shipments of a great height.

Although the volume of the 40’ containers are double the volume of the 20’, they are still bound to the same weight restriction that China applies to its exports which is no more than 27-28 tons. The ocean rates for a 40’ container shipped from China are less than two 20’ containers and it is no extra cost from a 40’ container for a 40’HC.

Freight forwarders are also knowledgeable of these commonly used container types. Knowing this information upfront will allow the freight forwarder to help and advise you with the right service.

Shipment Type

Shipment types come in the following two categories:

  • Full Container Load (FCL) – In which a company fills a whole container with their own goods. Containers can be from 20 – 45 feet long.
  • Less than Container Load (LCL) – Where different companies share the same container and load their shipments into it. This would then get split once it reaches port.

In order to ascertain what shipment type is best for your business you need to consider the packaging that your shipment requires whilst being transported, if you select an LCL, would it be better for your shipment to use a courier or decide whether it is possible to use an FCL.

Major Ports

Each port has a different charge for FCL and LCL containers. The breakdown of the Chinese ports are as follows:

  • Shanghai – This major city enjoys the most economically developed of everything. From where it is located, it serves interior provinces via river ports along the waterway that extends from it.
  • Shenzen – This port is accessible to Hong Kong and the Pearl River Delta making it another key port for the South of China.
  • Ningbo-Zhousan – This port serves both Ningbo, which has good connections with Central and Western China and Zhejiang, a wealthy region with a manufacturing industry.
  • Hong Kong – Fastly expanding into the ‘international shipping service hub of the Far East,’ Hong Kong provides 340 container liner services per week, connecting to around 470 destinations worldwide.
  • Guangzhou – Historically, a key centre of trade in China, the port is striving to be the international shipment hub for the Maritime Silk Road component. It is a port that provides options for importers, exporters, third party logistic companies and ocean carriers with its reduced port and berthing fees.
  • Qingdao – The most important port of Northern China. It is located next to the Bohai Bay region of which it serves.
  • Tianjin – This port is second only to Qingdao port in capacity in Northern China. The port’s container handling business are developing additional domestic and international routes.
  • Xiamen – The port is located at the mouth of the Jiulongjiang River and has over 68 shipping routes to over 50 countries including Kaohsiung in Taiwan.
  • Dalian – This port is located at the most northern ice-free port of China and is the largest port in North East China serving seaports in East Asia, North Asia, and the Pacific Rim.

Researching into the port that best serves where your shipment will be transported to, will enable your freight forwarder to connect you with our most suitable partners.

For a consultation and advice on your shipment, get in touch with us and we will do our best to help.

/ By TJ China Freight / Shipping

What is FMC? How to limit the weight of inland cargo in the United States? How to apply for reissuance of anti-terrorism manifest? American Line Knowledge Popularization

What is FMC?

 

 

FMC, the full name Federal Maritime Commission, is the United States Federal Maritime Commission, the official organization that controls all international maritime affairs within and between the United States.

 

 

What is CBP?

 

 

CBP, the full name of US Customs and Border Protection, is responsible for collecting tariffs and enforcing US trade, customs and immigration laws. It belongs to the federal law enforcement agency of the US Department of Homeland Security.

 

 

What's the difference between Demurrage and Detention, often stupidly unclear?

 

 

Demurrage refers to the overdue fee for stockpiling, which is the overdue fee charged for the containers that are stranded in the docks and yards and exceed the free stocking period.

 

 

Detention refers to the overdue demurrage fee. In the United States, it is also called Per Diem. If the container has been picked up but cannot be returned within the free container period specified by the shipping company, the shipowner will charge the corresponding demurrage fee.

 

 

What if my inland cargo needs to be cleared at the US port of discharge in advance?

 

 

For cargo in the US inland, customers can choose to clear customs at the US unloading port and complete customs clearance procedures in advance. Customers can apply to our company after the ship is opened, and clear customs at the port of unloading after being confirmed by the agent at the port of destination.

 

 

How to limit the weight of inland cargo in the United States?

 

 

Both roads and railways in the United States have strict cargo weight restrictions, and high overweight surcharges are charged for overweight cargo. Because in the actual transportation process in the United States, there are usually road and rail combined transportation, so the weight limit requirements are based on the road weight limit.

 

 

How do I apply for reissuance of the anti-terrorism manifest?
The counter-terrorism space supplementary report refers to the single ticket supplement after the anti-terrorism manifest is declared for the entire ship and the receipt of the entire ship’s acceptance is received. We will meet the customer’s application for reissuance of counter-terrorism space based on the shipping schedule, and require that we receive the approval receipt 24 hours before the ship docks.

 

 

What if my anti-terrorism declaration is rejected?
After the anti-terrorism declaration, such as product name problems, over-declaration or failure of the HOUSE bill, etc., the US Customs will not allow shipment instructions. After the customer re-provides accurate information, it can be re-released and shipped after being approved by the US Customs.
/ By TJ China Freight / Shipping

Years ago, the peak of shipments came to an emergency, and the lack of cabins, containers and trailers made export and forwarding companies breathless!

There are still two or three weeks to go before the Spring Festival holiday. The peak of shipments a year ago has been urgently reached, but the lack of compartments and containers and trailers that continued from last year to this year continues, which makes export and forwarding companies miserable.

Due to the special market situation this year, the epidemic began to rebound in December and entered the new year. Major exporters and freight forwarders have already geared up to plan ahead. Affected by the epidemic, this year is different from the past, but the same is still lack of space. Lack of cabinets and trailers!

It can be described as:

Grabbed a space and lacked boxes;

The box was grabbed and there was no space;

The compartments are all grabbed, and there is no trailer...

Small containers are becoming a key factor affecting the global trade industry chain. At present, in the field of foreign trade, containers, spaces and trailers are the hurdles that cannot be crossed in the international logistics chain, and it has become a consensus that "the one who wins the container wins the world".

Since July last year, my country’s exports have continued to pick up. With the increase in replenishment demand from overseas customers, the export volume has risen sharply. Both the shipping market and the China-Europe freight train market have seen shortages of containers, soaring freight rates, and delayed turnover.

Statistics from the China Container Association show that China's export containers are mainly satisfied in two ways: unloading old containers after unloading at ports, and new containers made by Chinese container manufacturers.

Years ago, the peak of shipments came to an emergency, and the lack of cabins, containers and trailers made export and forwarding companies breathless!

my country can only return one for every 3.5 containers exported. A large number of empty containers are backlogged in the United States, Europe, Australia and other places, and there is a shortage of containers in Asia.

At present, there are dead congestion and slow operations in ports around the world. Containers that can usually be returned within 60 days are now delayed to 100 days, and the cost of renting containers has also increased by about 150%.

Zhang Jun, deputy general manager of Qingdao Port QQCT, once said: Under normal circumstances, if 1,000 containers are needed in the current period, there will usually be 1,200 to 1,300 containers waiting at the port. However, in the current situation where containers are in short supply, there may be only 800 to 900 containers at the terminal. .

According to a survey on China's shipping industry , over 90% of container companies said that the lack of containers will continue for 3 months or more . Therefore, the shortage of containers still exists in the short term, and the freight rate in the container transportation market will continue to be affected by the shortage of empty containers. Container companies need to take effective measures to deal with the shortage of containers.

▍In addition to the hard to find a box, there is also "a cabin hard to find"

Major freight forwarders have launched fierce bidding wars to secure containers and space. According to reports, several shipping companies have already started the first and second rounds of bidding, and the bidder with the highest bid can obtain the right to ensure the cargo loading and transportation this month.

According to foreign media reports, according to the news with the Chinese freight forwarding company, the shipping company is quoting the available space for flights departing from Shanghai, Ningbo, Qingdao and Yantian at the end of January, and the price per 40-foot high container to the UK is less than 16,000 US dollars. , The quotations of Rotterdam, Antwerp and Le Havre are less than $10,500 per 40-foot high cabinet, which is unlikely to succeed.

Most freight forwarders said that after the Chinese New Year holiday starting on February 12, the freight rates from Asia to Europe will fall but will not collapse, especially when shipping companies have rarely cancelled only a few voyages so far this year. under.

Years ago, the peak of shipments came to an emergency, and the lack of cabins, containers and trailers made export and forwarding companies breathless!

In addition to high freight rates, freight forwarders are facing the real challenge of "bursting cabins". The freight forwarder who can't pay the high price can't book the space at all, and the long-term customer's cargo cannot enter the port and board the ship on time.

Due to insufficient space, shipping companies will detain many of the space booked by freight forwarders until the next flight in order to maximize their benefits. For large forwarders, the loss caused by dumping containers may still be within the tolerable range. For those small and medium freight forwarders who rely on a few large customers themselves, the disadvantage of insufficient competitiveness in this case may directly lead to difficulties.

As the "middleman" between the customer and the shipping company, the flood of cabins at the end of the year was enough to make the freight forwarding "messy in the cold wind" gradually.

▍Finally , one thing to mention is to be wary of drivers without tow trucks.

Seeing that the Spring Festival is approaching, the domestic epidemic has become more serious during this period. Many regions across the country have issued the "non-essential non-return home" initiative. So far, 31 provinces and cities have strengthened their prevention efforts.

But for tow truck drivers, they travel at the port all year round, and it is rare to reunite with their families throughout the year, so most drivers will choose to go home! This again makes shipping face a huge problem, and drivers will soon be insufficient!

Although there will be a shortage of drivers during the Spring Festival in the past, this year due to the impact of the epidemic, the shortage of drivers may not only become more serious, but it may also come earlier!

Years ago, the peak of shipments came to an emergency, and the lack of cabins, containers and trailers made export and forwarding companies breathless!

At present, there are a total of 72 medium- and high-risk areas in China, and almost all returnees from medium- and high-risk areas need nucleic acid testing + home isolation.

Take Henan Province, a large populous province, for example. During the Spring Festival, the policy is: for personnel entering Zheng from high-risk areas, their personal health codes are marked as red codes, and the measures of "centralized isolation for 14 days + 2 nucleic acid tests + 1 serum test" will be implemented. Take care of yourself. If the quarantine period expires and there is no abnormality in the test results, a release form will be issued, and the personal health code will be adjusted to a green code for normal and orderly flow. If the detection result is abnormal, the control measures shall be implemented in accordance with relevant regulations.

With such strict control measures, if drivers choose to return to their hometown to reunite with their families, they must start preparations in advance, and they must be quarantined back and forth to extend the time for drivers to return home.

If there are not enough drivers, the efficiency of export trailers will be seriously affected, and the price of land transportation will rise accordingly. During the Spring Festival in previous years, the price of land transportation will probably increase by 20%-50%. This year, it is likely to double or even several times like ocean freight!