/ 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

Best Freight Forwarding Services Providers in 2020

When goods are transferred around the world, they rarely go from departure to destination locations in one step. In fact, they may switch between air, ocean, land, and rail carriers before they reach their destination.

Freight forwarders do the work of organizing, planning, and optimizing global trade routes and logistics solutions to facilitate the movement and storage of those goods. They rely on an expansive network of transport vehicles, warehouses, and intermodal points to streamline the movement of goods and cargo across the whole world.

Freight forwarders and logistics companies gather information from shippers, warehousers, truckers, and more to plan the route cargo will take. When they need to incorporate a shipment, an optimized route is already available and ready to utilize.

International Freight Forwarding Services
International freight forwarding services helps ensure an uninterrupted supply chain for international shipping partners. International logistics include foreign customs, duties, regulations, and fees, that are constantly changing and being updated.

It is important for freight forwarders and logistics companies to carefully handle such processes and stay up to date on issues related to global transport. These things can change from day-to-day, and shippers should be aware of cost fluctuations, new regulations, or procedures at both destinations and departure points.

Cost
A shipping company handles transportation services for you, but an industry-leading freight forwarder can help you optimize your time and money. Freight forwarders incorporate your supply chain into an existing and strong network of shipments.

Asiana USA provides door-to-door transportation and logistics services that are meant to reduce overall costs. Our advanced and integrated shipping network allows us to optimize the movement of goods around the United States and the world.

Services
Freight forwarding services include tracking inland transportation, document preparation, warehousing, negotiating fees, insurance, cargo consolidation, and shipping. These services greatly improve shipping for the shipper, receiver, and freight forwarding company.

Ideally, you should seek a partner who can perform all of these services. If you use more than one or all of these services, this will optimize your supply chain and shipping experience overall.

Mode of Transport

The best freight forwarding service providers make use of all modes of travel. Optimizing shipping routes using land, rail ocean, and air freight allows for an extended network of travel to and from multiple intermodal drayage points.

Drayage shipping means that cargo is moved between major intermodal points using high-volume transport such as a ship or train. Then, smaller vehicles will move them to the cargo to its final destination.

Trucks are an efficient way to move cargo and single containers between drayage points. While long-haul trucking has often been used to transport containers long distances, this practice is being replaced by drayage trucking, and other modes of transport are used for longer transport.

This is a safer alternative and more efficient, as truckers can make multiple trips daily. Additionally, truck companies have been incorporating new technology to further optimize the trucking experience, such as automatic transmissions and multiple cameras.

Rail transport is a far more efficient way to move multiple containers long distances. Instead of one driver per truck per container, a train can move over 200 double-stacked containers, use far less energy, and require far less personnel to operate.

It’s a safer, more effective way to move large goods long distances. Using one train where 100 trucks would have been needed also creates less pollution.

Air freight is used for more time-sensitive shipments. As transporting cargo by air poses weight and size restrictions, it is better used for smaller cargo. Due to high demand and higher fuel costs, air travel may be less suitable for heavy supply chains.

However, when cargo needs to travel far overnight, air freight can usually be the best option. Other situations where air freight is preferable is if you are shipping perishable, sensitive or hazardous items where special handling is required.

The majority of shipping occurs via the ocean. Ships carry large container loads and optimize shipping routes between major global trade ports. Transporting large amounts of cargo between major ports all over the world by ship allows for the rest of the shipping industry to flourish.

Over 11 million containers arrive yearly at different ports in the United States, many of which continue their journey by land to different parts of the country.

Final Thoughts
Choose a freight forwarding service that helps your business perform better by optimizing your supply chain, reducing your shipping costs, and deals with complicated international paperwork for you.TJ China Freight provides the best solution and the timely feedback for all kinds of shipment from every city in China by sea, by air and by railway, and we can provide the competitive price based on the best service, meanwhile we can also provide the other best service, including customs clearance, pick up & delivery service, shipping to Amazon FBA, warehousing & Distribution, cargo insurance, container loading supervision and Express,In a Word, everything you want to ship from China, TJ China Freight can always help.

Contact Info

Tel: +86-755-25117540
Fax: +86-755-25117540
Phone:+86-18928445749
E-mail: info@tj-logistics.com.cn
Website: www.taijielogistics.com
Address: 7/F,Cunjin building,No.3005 Dongmen south road,Luohu district Shenzhen,Guangdong,China

/ By TJ China Freight / Logistic

Another freight forwarding company was acquired by global logistics giant Rhenus!

German logistics giant Rhenus continues to start crazy "acquisitions"! Following the acquisition of the LOXX Group last month, Rhenus, the harvester in the international freight forwarding market, has taken another move, bringing BLG Logistics Group, a well-known local freight forwarding company in Germany, under its umbrella.

Another freight forwarding company was acquired by global logistics giant Rhenus!

Rhenus Group is a leading logistics service provider in Germany, with operations all over the world, with an annual turnover of 5.5 billion euros. Rhenus has operations in 750 regions around the world and has 33,000 employees. The Rhenus Group provides solutions for different areas in the entire supply chain; including multimodal transportation, warehousing, customs clearance and innovative value-added services.

BLG hopes to focus on its contract, automobile and container businesses, and sell BLG International Forwarding's international freight business to Rhenus. Since 2018, Rhenus has acquired almost all regions of the world; Rhenus will provide its service network for the rest of BLG's business .

Another freight forwarding company was acquired by global logistics giant Rhenus!

Rhenus will take over BLG’s 9 air and sea freight stations in April and integrate these stations with approximately 100 employees into its network of 12 branches in Germany. This new business will enable the company to handle more traffic through its LCL hub in Hilden and the air cargo hub in Frankfurt.

Rhenus said the company also plans to expand its food business, trade fairs and event logistics operations. "In the past few years, we have paved the way for the continuous expansion of air and ocean freight," said Stefan Schwind, general manager of air and ocean freight at Rhenus Germany.

Another freight forwarding company was acquired by global logistics giant Rhenus!

"Due to the addition of business sites, employees and business activities, we are consolidating our network in the German aviation and maritime sectors. We also hope to develop new business areas, such as the use of refrigerated containers to transport food, and in trade fairs and event logistics. Activities."

BLG said it will retain its freight forwarding business in Bremen, focusing on land and sea transportation of heavy and project cargo. Board member Jens Wollesen said: "Even if we no longer have representatives throughout Germany in freight forwarding, we will continue to provide a wide range of international services in our contract, automotive and container sectors."

Last month, Rhenus stated that it would take over the LTL and FTL cross-border specialist LOXX Group and established five business sites in Germany and Poland to strengthen its business in Germany and Europe.

In the past two years, Rhenus has made frantic acquisitions. From Germany, Italy, the United Kingdom to Canada to South Africa and the United States, all freight forwarding companies that Rhenus favors have been acquired.

Recent "acquisition list":

In November 2018, it acquired German freight forwarding SBL;

Acquired the Italian logistics company Cesped in December 2018;

Acquired British freight forwarding Core Management logistics in January 2019;

Acquired Rodair, a Canadian freight forwarder, in early March 2019;

Acquired World Net Logistics, a well-known freight forwarder in South Africa at the end of March 2019;

Acquired LOXX Group in January 2021;

Acquired BLG Logistics Group's freight forwarding in January 2021.

/ By TJ China Freight / Shipping

Why and When Your Ocean Freight Shipment Would Require a Bonded Warehouse

Customs regulations are a necessary, but challenging part of international shipping. Clearing customs increases costs, paperwork, and time-delays. Customs-bonded warehouses help reduce this friction and are an integral part of the global supply chain.

What is a bonded warehouse?

A customs bonded warehouse is a secured building or area where merchandise can be imported and stored for a period of time, without any import taxes (duties) being charged. Duties are only paid when the goods are removed for domestic use.

No duties are charged If the merchandise is re-exported, destroyed by customs, or withdrawn for use on an international vehicle or aircraft. The United States permits eleven types of bonded warehouses, where imported goods can be kept for up to five years.

While in bonded storage, merchandise can be handled and manipulated as long as the processing doesn’t change its essential nature. All types of products can be kept in bonded storage, including animals and restricted materials.

CALCULATE OCEAN FREIGHT

Customs bonded storage is a smart option for long-term financial planning and resource control. Using bonded warehouses to defer taxes on imported items can improve cashflow management, reduce financial liabilities, lower expenditures, and protect against political risk.

Long Term Bonded Storage

Bonded warehouses can be used to manage the financial burden of import taxes. If imported dutiable merchandise will not be sold immediately, inventory can be kept in bonded storage to avoid a large upfront tax payment.

Importers can then retain control over those monies and have them available for other purposes. Since applicable duties are only paid when the goods are removed after being sold, cash-strapped importers can fund their duty payments from the sale of the goods.

Customs bonded warehouses can also be used to hold merchandise that has low or fluctuating demand. If demand increases the merchandise can then be withdrawn for domestic use. If it doesn’t, the products can be re-exported without duty charges.

Right now, the global supply chain is in disarray due to Covid-19. Shutdowns and demand disruptions created supply chain bottlenecks and inventory build-ups. Luxury items like perfume are experiencing much lower demand. Bonded storage is being used to store excess product and let enterprises avoid paying customs on those items.

Restricted Specialty Item Risk Management

Bonded storage can be a preferable choice for storing restricted goods. Since customs bonded warehouses can store imports for up to five years, shorter time regulations for the storage of restricted products do not apply to them.

Importers who need extended time for processing paperwork or legalities to clear customs can use bonded storage to bypass these regulations.

Political and Economic Risk Management

Bonded storage can be used to protect against political instability and policy fluctuations. If merchandise is imported during times of high tariffs, bonded storage gives the chance to wait for more favorable economic conditions. Customs bonded warehousing has proved a highly effective strategy in navigating the tariffs of the Trump administration.

Exporters, importers, and manufacturers sought approval to establish their own bonded warehouses and storage areas. While the nation experienced rapidly changing foreign policy, these facilities became stable domestic zones for production and trade. Manufacturers and retailers were able to continue engaging in commerce while mitigating potential fallout.

Handling and Prepping for Market

If merchandise needs to be immediately prepped for market, this can be done in special customs bonded warehouses. Taxes are then determined on the final product when it is withdrawn from storage. This can prevent extra duties from being charged on material that does not make it to market.

For example, if food is brought in which needs to be sorted or processed, importers can avoid paying tax on discarded product.

Logistical Streamlining

Goods are also imported into customs bonded warehouses, simply to help smooth out the logistical process of clearing customs. Having goods placed in secure, duty-free storage gives peace of mind and more time for paperwork to be done.

How does bonded storage work?

Customs bonded warehouses can be owned either directly by the government or by licensed private enterprises. Some privately run bonded warehouses are for the proprietor’s use only, while others are available for public use.

Merchandise kept in privately operated warehouses, is under the joint supervision and joint custody of Customs Border Patrol and the warehouse proprietor. Customs retains full authority over the goods in the warehouse, but generally maintains control through periodic audits.

Private operators will take out a warehouse bond under which they incur liability for stored merchandise. This liability is discharged when the goods are exported, destroyed by Customs, or withdrawn domestically after duties are paid.

Customs-bonded warehouses are generally located at or near ports. Shipments are received directly to them. Many privately owned, public use warehouses will offer complementing services such as freight forwarding, logistics, distribution, and deliveries.

Certain classes cater to niche needs, such as livestock management, food handling, or receiving regulated products.

Once goods are withdrawn, importers will need to pay merchandise-processing fees in addition to duties. These fees should be negotiated carefully by evaluating different freight-forwarding services to find the best deal.

Supply Chain Resilience

Customs bonded warehouses are a key asset for global economic stability and security. Businesses rely on customs bonded storage as a core resource for financial control and risk management. Beyond cash flow management, this also creates economic confidence for trade to continue in uncertain conditions.

The recent China-USA tariff wars and Covid-19 supply chain chaos have proven their continued relevance as a stabilizing measure for international trade. Bonded storage is well integrated into freight shipping logistics. Enterprises looking to streamline and optimize the process of ocean freight shipping should take advantage of these secure, managed facilities.

Customs bonded warehouses are proven ways of mitigating the costs of heavy tariffs and regulations.

/ 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

5 Tips on How To Choose a Freight Forwarder

Last week we looked at the question, “Can anyone be a freight forwarder?”

how to choose a freight forwarder Hariesh commented on our blog, as well as mentioning in his own, that “any Tom, Dick, or Harry can call themselves a Freight Forwarder.”

Of course, you don’t want any Tom, Dick, or Harry handling your imports and exports. It’s important your freight forwarder knows how to handle your international shipping.

With all the freight forwarders that are out there, and the surprising ease to call yourself a freight forwarder, how do you go about choosing a freight forwarder whom you can be confident in?

Well, today’s blog covers just that. Here are 5 tips on how to choose a freight forwarder.

1. MAKE SURE THE FREIGHT FORWARDER HAS EXPERIENCE.
This could almost be the whole list. Experience, experience, experience.

It might be fairly easy to start a freight forwarding company, but the international shipping industry is not the easiest business sector in the world and if you don’t know what you’re doing, you won’t last long.

During TJ China Freight’s 27+ years as a freight forwarder, we’ve seen many, many company’s come and go.

Years of experience means your freight forwarder has dealt with different situations like dockworker strikes and port shutdowns, needs for rerouting cargo, smoothing out customs or warehousing issues, and so on.

Experience usually means your freight forwarder will help you avoid customs, warehousing, and routing problems before they even start so your international shipping will go smoothly.

Experience also gives time for a company to form and cultivate business relations around the world from which you will benefit. Which brings us to…

2. ASK ABOUT THE FREIGHT FORWARDER’S NETWORK OF AGENTS AND BUSINESS PARTNERS IN THE COUNTRY YOU’RE EXPORTING TO OR IMPORTING FROM.
This is obviously important for the local handling of your international shipments.

Your freight forwarder should have a strong network around the world, but you need to know that they have the connections in the countries/cities of origin and destination for your imports and exports.

If you’re exporting and importing to and from Germany, it doesn’t matter how good the freight forwarder’s connections are in China.

TJ China Freight has a very large network and ships to and from almost anywhere in the world; however, you may have noticed a key word in there: almost. There are a few places in the world TJ China Freight does not ship to or from.

You may have found a freight forwarder who is great for shipping to the Philippines, but don’t have the connections or experience to do a great job handling your imports from China. So make sure you ask about your freight forwarder’s connections and experience in the specific locations you need.

Business partnerships around the world also allow your freight forwarder to offer additional services, which brings us to…

3. MAKE SURE THE FREIGHT FORWARDER OFFERS THE SERVICES YOU NEED FOR YOUR SHIPMENT.
Look at the services the freight forwarder offers.

A freight forwarder should be able to handle more than just the air shipping or ocean shipping part of your import or export. They should also be able to handle the rail and/or trucking portion of your international shipping.

I guess if you only need port to port services instead of door to door shipping, you wouldn’t find it a big deal whether or not the freight forwarder offers this service; however, if they do not have a trucking option, that says something about the freight forwarder’s network.

However, there are more services you may want from your freight forwarder. For example, TJ China Freight partnered with TOLL to offer Supply Chain Value Added Services. This means we can help you with things like warehousing, distribution, etc.

Of course, cargo insurance better be among their services and shipment tracking is nice to have if only for your peace of mind.

4. MAKE SURE THE FREIGHT FORWARDER HAS GOOD REFERENCES.
This is good advice when you’re looking for any kind of service, not just freight forwarding.

If there’s no one willing to say a freight forwarder did a great job taking care of their imports and exports, that’s a big red flag.

 

5. MAKE SURE THE FREIGHT FORWARDER HAS GOOD CUSTOMER SERVICE.
This is hugely important.

How fast does the freight forwarder get back to you on your freight rate request or on answering your questions?

If you’re new to international shipping, are they able and willing to walk you through what you need to know and do to make sure all goes well with your imports and exports?

Your sales person at a freight forwarding company may not have all the answers to your questions as they might be new to the company or even the industry, but they should be able to get the answers for you from the experienced team they’re working with.

How good your freight forwarder is at taking care of your individual needs speaks a great deal about their ability to give the needed attention to your shipments.

Notice, I didn’t even put freight rates in this list as much more important is your freight forwarder’s ability to take care of your shipping needs professionally and precisely.

One freight forwarder may offer shipping rates well below the rest of the competition, but you’ll usually find yourself paying for choosing them in additional costs, delays, and very poor customer service.

But if you follow the five tips above, you should find a freight forwarder who has the contracts and network which allow them to offer competitive rates.

/ By TJ China Freight / Shipping

China to Mozambique, Maputo by air

Mozambique is a country in southern Africa. At present, there is no direct flight between China and Mozambique, and Chinese citizens can transfer to Mozambique via South Africa, Ethiopia, Kenya and qatar. The Bole International Airport air traffic hub in Africa, many African countries went to other passengers in transit.
Ten city of Mozambique, Nampula, Maputo, Bella, Peng Ba Whelan, Kulusi Tete, Inhambane, Chris Mane, etc., Chimoio Lichinga airport. Which Maputo is the capital of Mozambique, located at the southern tip of Mozambique, near the India Yanmar Maputo Bay, is not political, economic and cultural center, the country's largest city. Maputo port is one of the major ports in East africa.
Maputo International Airport (IATA Code: MPM; ICAO Code: FQMA) is a civil airport 3 kilometers northwest of Mozambique, capital of the Republic of Maputo. Main international, regional and international demand of passenger and freight transport business, many waypoints to the main city of African countries and region, and the Portuguese airline to fly to Lisbon flights, Qatar Airlines operating flights to Doha.
Chinese cargo flights to Mozambique Maputo many, Qatar Airways, Ethiopia airlines, Turkey airlines, South African Airways have flights to Guangzhou, Hongkong, Shanghai, from the start, Beijing, aged 5-7 days. Hongkong to Maputo air freight about RMB40/1000KG+, the volume of goods is not recommended to go, suitable for the value of high, aging requirements of high goods.
Cargo price usually by air freight, fuel surcharge, war of three parts, logistics Baba cargo price is mainly composed of air freight charges, documentation fees, operating fees, manifest pre recorded fees, fuel surcharges. Customers can also add custom declaration, insurance and other value-added activities according to their requirements.
Air freight forwarding is the general freight forwarding to the airport, the customer needs to go to the airport, their own customs clearance and delivery, if the need for customs clearance, the cost is relatively high.
Exports to Mozambique ordinary no special requirements, but the foreign customs tax is serious. The raw material tariff is 2.5%, the fixed assets (class K), the tariff 5%, the tariff for the assembled goods is 7.5%, and the consumer goods is 20%. Customs clearance   requirements, packing list, invoice, bill of lading, PSI inspection, certificate of origin, etc.. The    government has stopped exporting pornographic and pornographic books and periodicals, film and television, posing as commodities, pirated goods and goods of false origin.
Search air network Maputo air transport, low-cost transit, can receive general cargo, bulk cargo, wooden boxes need to be hit. Airline one to one follow-up, cargo tracking, higher security. From China's air transport export to Mozambique, according to customer requirements, layout, door-to-door, and delivery of the destination.

/ By TJ China Freight / Shipping

Continued high freight rates and shortage of containers, DHL&Hapag-Lloyd: The container market is expected to be in the second half of 2021

If shippers and logistics companies hope that the ultra-high shipping container prices will fall in the New Year, then they may be disappointed.

 

Rolf Habben Jansen, CEO of shipping company Hapag-Lloyd, revealed at a press conference that global logistics giants and container liner companies expect that the chaotic market, lack of berths, and container shortages, etc., will still be available by 2021. Will last for a while.

 

In addition, Tim Scharwath, CEO of freight forwarding giant DHL Global Freight Forwarding, also attended the meeting. What the two CEOs have in common is that they agree that 2020 is characterized by great unpredictability, such as promising customers whether their goods will reach their destinations on time, which is very unpredictable.

 

 

 

As time goes by and the year is coming to an end, shippers have to pay more and more freight to ship the goods. This development is largely due to the sharp increase in demand month by month since July. For example, it is not uncommon to have to pay US$5,000 for shipping containers from Hong Kong to New York.

 

▍It will not stabilize until the second half of 2021

 

The two executives agreed that after the outbreak of the new crown pneumonia this spring, the very special environment has caused a historic imbalance between supply and demand. They also believe that the shipping market will not stabilize for the time being.

 

Scharwath said: "As for shipping, I think we must enter the second half of 2021 before we see the market stabilize again. The first quarter will definitely be affected, and so will the second quarter."

 

"We will have to wait and see what happens, because everything is difficult to predict. As a large company, we usually make plans for 3 to 5 years. Now, we are making plans for 3 months."

 

 

 

Inadequate ship capacity and insufficient containers have serious consequences for the industry’s supply chain. In addition to customer dishonesty and record high freight rates, a recent survey conducted by Sea-Intelligence shows that only half of the ships can reach their destinations on time .

 

▍Shipping companies strengthen management and control

 

Mainly affected by the new crown epidemic, container shipping companies’ performance in the second quarter was weak, but their profits have soared to record levels since the summer. However, the quality of service is lacking, and container shipping companies have been stating for months that these conditions are beyond the scope that they can change.

 

On the one hand, they do not have more ships to deploy, on the other hand, they cannot redistribute the containers to the required ports. In addition to other reasons, customers do not return the goods.

 

Currently, Asia in particular is suffering from a shortage of containers because many containers are in the United States. According to a Bloomberg report, it may also be because of port congestion that these containers cannot be unloaded at US ports. This is the case with 20 container ships currently near the Port of Long Beach.

Therefore, at the beginning of December, CMA CGM, Maersk and ONE had to refuse to leave the booking outside of Asia, the reason is very simple, because there is no extra space on board.

 

Hapag-Lloyd, led by Habben Jansen, also benefited from the increase in freight rates in recent months. Therefore, the shipping company has twice raised its full-year 2020 profit forecast, and the company currently expects its operating results to exceed US$2.7 billion.

 

However, the CEO said that it is usually because of an oversupply of ships, and 10 years after the industry has lost billions of dollars, it is time for container shipping companies to start making money.

 

 

 

▍Strong performance in the second quarter of next year

 

Until recently, shipping companies and container manufacturers also predicted that the current shortage of containers will be resolved after the Chinese New Year in February, which will restore the market to a more normal state. But Habben Jansen no longer believes this prediction is correct.

 

"This year’s development is beyond everyone’s expectations. Because of the introduction of economic stimulus measures, people still have money on hand, and most of the money has been spent on container cargo. Many signs indicate that the strong market we see after the Spring Festival has passed. It will appear and will continue into the second quarter."

 

Habben Jansen pointed out that the current market congestion will take some time to resolve.

/ By TJ China Freight / Shipping

How does the forwarding company calculate the international air freight? What constitutes air freight

Price is only an indicator in the process of purchasing a product or service . If you simply compare prices, it is not so thoughtful. Price, quality, service, word of mouth, suitability for your own situation, etc. all need to be considered together.

General cargo aircraft air valence is usually divided into M, N, Q stage, wherein the stage is divided into Q + 45, + 100, + 300, + 500, + 1000, such as different levels - greater the weight, the rate cheaper . M stands for MinimumCharge. The lowest freight is also called the minimum freight. It is the lowest freight that airlines can accept for handling a batch of goods. N means NormalRate, which generally refers to a price less than 45KGS. To apply this freight rate, two conditions must be met at the same time: 1) It must be under 45 kg; 2) It must be ordinary goods-if the specified commodity freight rate is applicable, or the applicable grade The freight rate is not applicable to this freight rate, so N will also be marked as -45KGS. Q means QuantityRate. Q freight rate is the most common in actual shipments. Generally, air freight is mostly higher than 45 kg. If it is lower than 45 kg, general express is fine. Customs clearance is quick to return to the door and the speed is also Not bad.
Freight ForwardingHow does the company count as international Air freight? What constitutes air freight
Air freight rate composition:

1. Airfreight freight (charged by airlines)

2. Fuel surcharge (according to the airport, the price of the destination point is different, Hong Kong now generally the first 4 yuan, before 3.6, last year the highest 4.8, the price is adjusted by the airport, generally 2 yuan to Asia)

3. Security inspection fee (Hong Kong charges 1 yuan/kg fixed fee)

4. Airport operation fee (HKD283/ticket for Hong Kong, the airport is responsible for transporting goods on the plane, etc.)

5. Terminal fee: 1.72/kg When the goods are handed over to the dealer, the dealer is responsible for the boarding and other things, which will eventually be collected by the airport)

6. Air master bill fee: HKD15/bl is the bill of lading fee-proof of title.

The above is the " How does a freight forwarding company calculate international air freight? " compiled by the editor of Taijie International Logistics . What is the air freight rate? The detailed content, I hope it can be helpful to everyone. Now it is during the peak season of National Day. If you want to ship by air, you need to make an appointment in advance, and your goods can be shipped by air if they are more than 45 kg. Delivery from different places will also affect the calculation of air freight costs, but generally there will not be too much difference. You can consult several freight forwarding companies in Shenzhen to find out.