/ By TJ China Freight / Shipping

Air Cargo Trends in a Pandemic World

Dominic Hyde, Vice President Crēdo On Demand at Peli BioThermal, discusses the developing trends in freight that have come about as a result of the COVID-19 pandemic.

Previous predications in pharmaceutical transportation trends, highlighting declining air passenger numbers and increasing air freight demand, have all been propelled by the pandemic. Coronavirus continues to cause worldwide disruption and is anticipated to impact industry throughout 2021 and beyond.

Pandemic response - preighters take off

Pre-pandemic passenger numbers were already on the downturn. However, the crisis has significantly accelerated that trend and the crisis capacity crunch came as the number of passenger flights plummeted. The ensuing scramble to transport pandemic payloads saw the deployment of hundreds of passenger planes as freighters, known as ‘preighters’.

Pioneering Portuguese charter operator Hi Fly led this trend, being the first to convert an A380 for freight by removing the majority of seats to provide more cargo capacity. Despite the sector seeing the grounding of hundreds of passenger planes, earlier than had been initially forecast, which led to a reduction in the availability of cargo space, we’ve seen more planes undergo such conversions.

However, the ongoing drastic downturn in travel means the loss of a lot of capacity in passenger aircraft, and while freighter aircraft are still present and working hard, fleet growth takes time, so there will be a slower response to replacing some of the capacity lost from the passenger side of the industry.

Large widebody aircraft – grounded or retired

Before COVID-19, it was predicted that airlines would cut flights from schedules, mothball larger aircraft, decline production options, and look to utilise smaller, more efficient aircraft – whether for environmental or economic reasons. All those decisions have now been massively accelerated. The forecast to park some of the larger, widebody aircraft has been brought forward significantly due to the COVID-19 crisis, and its ongoing impact has meant the majority of all 747 freighter aircraft have or are being retired. The A380, which Airbus had previously announced it would stop deliveries of in 2021, has also been retired across the board by numerous airlines.

Increasingly, airlines are grounding their A380s in favour of more modern, smaller jets that can fly more efficiently than their four-engine aviation counterparts.

What we will continue to see is a lot more interest in leaner aircraft, such as the A220, the Canadian Bombardier aircraft produced by Airbus in North America.

Sea change in modes of transport

There will be ongoing developments in the sea freight sector too, which has an estimated 17 million TEUs (Twenty-foot Equivalent Unit) serviceable globally, of which six million containers are routinely turning and carrying freight.

Uncertainty in sea and air freight availability saw pharma companies initially ship everything they could, by any mode of transport available, to get it out to the markets. Following months of disruption, passenger airlines began loading aircraft with cargo in the lower decks and loose load cargo on the upper decks.

Whereas I was hoping things might be back to some kind of normality in March, I am now inclined to add another quarter to that. I now think there will be exacerbated sea freight and sea container availability issues throughout the first half of 2021.

Given the sea freight situation, we will continue to see the utilisation of air freight to transport pandemic payloads. When it comes to economics, without the passengers on the main deck is a much more expensive operational option. However, pharma customers are prepared to pay those premiums.

The volumetric efficiency on aircraft is critical at the moment because it is such a scarce resource. We need to ensure the best use is made of it. With air freight capacity a dwindling resource, it is even more important to have the efficient packing density of temperature-controlled products on such limited air freight resources.

Vaccines vs. virus - rapid response

In a rapid response to the logistical cold chain challenges involved, we have adapted our shippers to meet those requirements, as have other providers. There has been an impetus for innovation to support these temperatures in volume. Suppliers stepped up to meet the vaccine temperature challenges by adapting existing shipping solutions. The capacity is there, so I don’t anticipate it will be an issue going forward.

The focus is reverted back to the capacities in the transport modes and – given the nature of these drugs – people are paying whatever it costs to ship them, with rates rising sharply from $2.5 a kilo to $23 – although, that is starting to calm down.

Beyond the current vaccines being approved there will be the need to provide boosters. It is going to create a recurring step up in the volume of vaccines being shipped, alongside the flu vaccines being transported and other pharmaceutical payloads every year.

There will not be a continuous crisis. There will rather be a continuing trend for smaller aircraft with reduced air freight capacities moving pharmaceutical products at temperatures that sea freight cannot do. It really can only fly.

However, there’s not going to be a modal shift from air to sea because sea cannot meet the temperature requirements. You get a displacement, whereby COVID-19 shipments, whether vaccines, test kits and reagents, or some of the therapies which help with recuperation, are flying at almost any cost on a dwindling resource.

The pharmaceuticals, which have more normal temperature shipping requirements, get displaced. In that situation, when the air freight rates get so high, sea freight would normally be seen as a shipping solution.

However, with all of the sea freight challenges, coupled with the fact that their transportation rates have also doubled, there has been some displacement – although not as much as pharma companies would have liked, which is what has kept pushing the prices up in the region of the $23 a kilo figure for air freight we had seen previously in the market.

Sea freight will improve in the first six months of 2021, so some of that displacement can take place more efficiently. Aircraft, however, will still be loaded with COVID-19 related products.

2021 will see the industry learning to operate in ‘the new norm’. Next year, we might start to see some improvements and efficiencies, but I think this year is about adjusting our planning, our capacities and our operations around this spike in demand and the gradually improving capacity picture. Almost like wearing in a new pair of shoes.

/ 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

What do Customs Brokers charge for?

Customs brokers are the experts that help us to import or export products. Also referred to as the import brokers, they take care of smoothly facilitating the clearance of goods through the customs processes.

People often confuse customs brokers with freight forwarders. In reality, freight forwarders are experts in logistics, whereas customs brokers deal in clearing products from customs.

What Customs Brokers Do?

Customs brokers work with importers on the ports. They make sure that the country’s customs department safely clears the goods their customers have imported. Moreover, they also make sure that all duties and taxes are paid to reduce delays.

Different countries have different customs brokers. To efficiently understand what a customs broker can charge, you need to understand some of the common stages they go through.

Understanding How Customs Brokers Charge

What’s a better way to understand how customs brokers charge than actually looking at what they go through? Here are some of the common things in the job description of a customs broker.

Correct identification of goods

The first and foremost job of the customs broker is to identify the goods correctly. As each country’s customs have different duties and tariffs, a customs broker identifies the good and sketch out the customs duty.

For instance, in the United States of America, Harmonized Tariff Schedule is the primary resource for determining tariff classifications to import goods in the US. A customs broker importing in the United States will have to use the Harmonized Tariff Schedule for correctly identifying the goods.

Customs brokers keep themselves up to date with the ever-changing customs tariff and tax schedule of goods.

Handling complex regulatory requirements

Next up, once the customs broker has identified the goods, it’s time to handle the complex regulatory requirements.

Regardless of the countries, every customs department worldwide has some complicated regulatory requirements. We can’t keep up with the customs requirements and involve ourselves in it as it’s a time-taking process.

Here’s a detailed outline of the customs duty information for international visitors in the US - and that’s not it. It’s a section only for international visitors; there are a different set of rules and regulations for the United States’ legal residents.

Help avoid unnecessary costs

Rules and regulations of the customs are ever-changing, and for an average person, it’s nearly impossible to keep up. This means that without sufficient knowledge, a person can end up paying unnecessary costs to customs.

As an international trade expert, a customs broker is heavily up to date on all the rules and regulations about the customs. This means that by trusting a customs broker, you can expect that they can save you from paying any unnecessary cost on your import.

Convenient paperwork

Paperwork is necessary for anything you are looking forward to importing and clearing from your country’s customs depart.

However, many individuals make mistakes when filling in the paperwork and providing the required documents. This leads to many problems and delays in the clearance of the goods, but a customs broker can help you conveniently do all the paperwork.

A customs broker will take the burden of handling paperwork from your shoulders and handle it on your behalf. From paying tax to identifying port duty and handling other taxation, a customs broker will do it all for you.

Skills for facilitating customs clearance

Customs brokers work like a bridge between you and the good you are importing. Without the bridge, you’ll have to do all the things manually.

Even if you have successfully filled all the requirements, rules, and regulations of the customs clearance process, you don’t have the skills to facilitate the process in-person.

As customs brokers are licensed personals, they have the required skill set to facilitate the customs clearance process efficiently.

Even if something goes wrong during customs clearance, with the experience and skills, a customs broker can easily handle the situation.

What Do Customs Brokers Charge?

All that brings us to the only question we are interested in, and that’s what do customs brokers charge?

Customs brokerage fees vary from company to company and country to country. A customs brokerage house that only covers a few responsibilities that we mentioned will surely charge less. However, a customs broker that will cover everything can charge a good amount of fee. US customs department facilitates the customers by providing the list of verified customs brokers on their official website with respect to ports.

Lastly, a simple google search of the local customs brokerage houses will help you compare and contrast the charges of different customs brokers near you.

/ By TJ China Freight / Shipping

Congestion in West America worsens!

Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

Recently, a cold wave swept the United States and quickly plunged the southern state of Texas into disaster. In this unprecedented cold wave, more than 4 million people in the United States have suffered power outages, countless power plants have been destroyed, and electricity and natural gas prices have skyrocketed. ; At present, the price of electricity in Texas has increased by more than 100 times, up to 9,000 US dollars per megawatt, and the price of natural gas has skyrocketed by more than 160 times, reaching US$500, compared with only US$3 in the past; it is jaw-dropping.

Except for Texas, which is in a serious disaster, other states in the United States are not doing well. There are about 168 million people in the United States under the threat of this cold wave. Numerous airports have been suspended. According to data from the flight monitoring website "flightaware", Dallas and Houston , Austin area airports have cancelled more than 2,000 inbound and outbound flights on the 15th . Coupled with the new crown pneumonia crisis that is still raging across the United States, the United States is really miserable.

In terms of shipping, the Southern California anchorage is full of container ships, and the congestion continues to worsen ! The latest video released by the U.S. Coast Guard provides intuitive evidence of the congestion levels in Los Angeles and the Port of Long Beach. From the picture, a large number of container ships are moored at the anchorage in San Pedro Bay, California.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring
U.S. Coast Guard aerial scene

Data shows that the historic container ship congestion in California ports has not really eased. There are currently 63 container ships in Los Angeles and Long Beach, and 32 container ships are waiting for berths at anchorages. (On February 1st, the highest record of 40 container ships anchored at anchorage)

The Port of Los Angeles announced the number of berth days for a particular container ship through its Signal platform last week. Data shows that some ships stay at anchorage and wait for almost as long as they sail across the Pacific Ocean . For example, as of last Thursday, the 6332TEU container ship "Ever Envoy" has been parked for 11 days. As of Tuesday, the 9,400TEU "MSC Romane" has been parked for 12 days. And the three container ships of 11356TEU "CMA CGM Andromeda", 8452 TEU "Ever Liven" and 4888TEU "NYK Nebula" also berthed for 11 days as of last week.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

As of the end of 2020, the number of container ships at anchor has increased to 30; since then, it has remained between 20 and 40. At the same time, the number of vessels at berths in Los Angeles and Long Beach remained at around 20 and 30. Kip Louttit, executive director of the Southern California Shipping Exchange, said: "We seem to have adapted to the new normal of about 30 container ships waiting in line every day. I don't know if this situation will continue."

As of Tuesday, the average time for ships docking in Los Angeles was 8 days , up from 7.3 days at the beginning of last week. From the information on the waiting time of ships provided by the platform from January 27th, the waiting time for ships to berth has been maintained for about one week, and the data for the last two periods has been extended to 8 days.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

　　The latest data from the Signal platform: 20 ships at anchor, with an average anchoring time of 8.0 days. There are 14 ships waiting to be pre-anchored.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

What caused the blockage? The extended berthing time of ships forced some shipping companies to cancel multiple voyages this month. This is not due to lack of cargo demand, but due to lack of available vessels to handle these services. Delays on land have also caused congestion at sea: extremely high inbound volumes and complex logistics inside and outside the port have caused delays on land. One of the challenges facing the port is the new crown virus infection of dockers and a serious shortage of labor.

Despite productivity gains last month, terminal operators at the Ports of Los Angeles and Long Beach said the ports may have to wait until the end of spring to get rid of the ship backlog and congestion that have plagued them in the past six months . The near-record number of containers will continue into the spring of this year, but the backlog of ships at the port and the fully loaded inbound containers at the terminal should disappear sometime between April and June.

The managers of SSA Marine, Yusen Terminals and Fenix ​​Marine stated that in order to alleviate the congestion in the port, two projects to be developed are necessary. First, the COVID-19 vaccine must be widely distributed among dock workers to alleviate the recent labor shortage. During the Lunar New Year holiday this month, container traffic has declined moderately, which should also enable shipping terminals to remove the backlog of fully loaded imported containers from their facilities.

"The terminals are full and there is no place to put these containers. We deliver 35% less cargo (to truck drivers) than usual," said Ed Dannick, president of SSA Containers.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

According to data from the HarborTrucking Association, the average truck stay at the terminal in January improved from 93 minutes in December to 88 minutes, but it was still much higher than the record low of 58 minutes in June. Imports peaked during the recovery period after the first wave of COVID-19 lockdown.

The backlog of ships in Long Beach, Los Angeles, is increasing unabated. According to statistics from the Marine Exchange of Southern California, there are currently 63 container ships in the Port of Long Beach in Los Angeles, of which 32 are at anchor waiting for berths and 31 are at berths.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

The latest data released by the Pacific Merchant Shipping Association (PMSA) shows that in December last year, the average container stay time at the 12 terminals of the Port of Long Beach in Los Angeles was 4.99 days. This is twice the average length of stay (approximately 2.5 days) recorded by PMSA in the first half of 2020.

“The longer the container stays at the terminal, the more serious the congestion will be. When the container piles up like a mountain, the congestion creates additional and inefficient handling requirements,” said PMSA’s government affairs manager jessicaalvarenga.

The new crown epidemic hits labor in the port

According to the Pacific Maritime Association (PMA), the West Coast port employers' Association and the International Terminal and Warehouse Union (ILWU), the new crown epidemic has severely affected the labor force along the Los Angeles-Long Beach Port. As of January 17, The International Terminal and Warehouse Union (ILWU) reported that 694 of its members tested positive. By January 25, this number jumped to 803.

PMA stated that there is a particular shortage of skilled equipment operators, who need to remove containers from trucks, and then move them into and out of the container yard, which is critical to the operation of the terminal. As a result, the joint committee of PMA and ILWU, which is responsible for allocating workers to the docks on a daily basis, cut the allocation share.

"It boils down to the labor issue at the terminal," said Scott Weiss, vice president of business development at Port Logistics Group, which has a large number of truck and warehouse operations throughout Southern California. "Containers still have bottlenecks in and out of the terminal."

The latest information released by the Signal platform of the Port of Los Angeles shows that due to the new crown epidemic, the productivity of coastal labor has decreased, which has caused ship delays and the average delay of port facilities is 8.0 days .

These ports are working with trans-Pacific shipping companies to reduce Southern California's load until the volume returns to normal. Gene Seroka, executive director of the Port of Los Angeles, said that he is working with shipping companies and terminal operators to "measure" imports until the port catches up. Hapag-Lloyd (Hapag-Lloyd) has announced the opening of a structured route to Southern California in February, and CMA CGM will remove Los Angeles from the trans-Pacific route and use Oakland as the first port of call from Asia. , Followed by Seattle-Tacoma.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

The terminal operator said that when workers throughout the supply chain are vaccinated and imports drop, the congestion in Long Beach, Los Angeles, will disappear.

Spring recovery?

Alan McCorkle, President and Chief Executive Officer of Yusen Terminals in Los Angeles, said that in the past six months, the container throughput of these terminals was close to record levels, but there was no overall congestion. This fact shows that if the peak season does not last for six consecutive months, they will have Ability to handle peak season cargo volume. He expects to return to normal in May or June.

Scott Schoenfeld, general manager of Fenix ​​Marine Services in Los Angeles, said that Fenix ​​is ​​showing signs of improvement, so he is optimistic that congestion may be eased as early as April . The density of containers in the yard is not as high as late last year, and more truck drivers are able to transport containers every day.

However, container traffic is still rising, and as overloaded ships continue to arrive in Southern California, this trend will continue until at least next month. NVOCC consultant Jon Monroe said that the eastbound transpacific shipping company has deployed or will add 10 additional loading vessels in February, all deployed at the Port of Los Angeles-Long Beach. Judging from the latest data from the Los Angeles Signal platform, there was another peak in the surge in volume in the eighth week.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

Volume surged in the eighth week

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

Jon Monroe pointed out that although more Chinese factories will continue to maintain at least part of their business this month to clear the backlog of merchandise orders compared to previous years, the total volume of the East Pacific trans-Pacific region should be greater than the previous six months. Months are less.

Scott Weiss, vice president of business development at Port Logistics Group, said that the 1.8 billion square feet of industrial and distribution space throughout Southern California is not fully loaded, just like last fall before the holiday season merchandise was transferred to stores across the country. However, the availability of space in warehouses and distribution facilities has been mixed. "Some warehouses are in a mess now, others are working well. I think the ratio is about 50-50,"

Scott Weiss said that productivity has generally declined, and warehouses across the region are experiencing labor shortages due to the new crown epidemic, but at the same time, freight volumes are still exceptionally strong. "Everyone I contacted is experiencing record sales and growth, but everyone is working hard to cope."

Weston LaBar, CEO of the Port Transportation Association, said that the current truck capacity is tight, and the availability of workers at both ends of the truck driver's route, the terminal and the distribution warehouse, has been challenged . However, when workers feel safe, they return in large numbers. LaBar said: "The most effective thing we can do right now is to vaccinate."

/ By TJ China Freight / Shipping

Do you know all these 13 trade terms of freight forwarders? Responsibilities must be clearly delineated

The basic terms of freight forwarders are EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAF, DES, DEQ, DDU, DDP.

These 13 trade terms, from left to right, the seller’s obligations are getting bigger, while the buyer’s on the contrary. In other words, among the above-mentioned trade terms, the seller bears the least responsibility under the EXW term, and the seller bears the most responsibility under the DDP term.

EXW ex works

It means that when the seller delivers the goods to the buyer at its location or other designated locations (such as a workshop, factory or warehouse), the delivery is completed, and the seller does not go through export customs clearance procedures or load the goods on any means of transportation.

This term is the term with the least liability of the seller.

FCA Cargo Delivery Carrier

It means that the seller only needs to deliver the goods to the carrier designated by the buyer at the designated place and complete the export customs clearance procedures to complete the delivery.

It should be noted that the choice of delivery location will have an impact on the obligations of loading and unloading at that location. The term can be used for various modes of transportation, including multimodal transportation.

FAS Alongside Delivery

It means that the seller delivers the goods to the side of the ship at the designated port of shipment, that is, the delivery is completed. The buyer must bear all risks of loss or damage to the goods since then.

FOB term

It refers to the name of the goods + the quantity of the goods + the unit price + FOB + the port of shipment. The transfer of risk is when it crosses the ship's rail. As the goods did not cross the ship’s rail, the liability should be borne by the seller company.

If the boom breaks during the re-lifting process and the cement does not fall into the sea but onto the ship board, the risk is transferred to the buyer, and the buyer’s company should bear the responsibility.

CFR cost and freight

It means that the seller completes delivery when the goods pass the ship’s rail at the port of shipment, and the seller must pay the freight and expenses required to transport the goods to the designated port of destination.

However, the risk of loss or damage to the goods after delivery, as well as any additional costs caused by various events, is transferred from the seller to the buyer.

This term only applies to sea or inland water transportation. If the parties do not intend to deliver the goods across the ship’s rail, the CPT term should be used.

CIF cost, insurance and freight

It means that the seller completes the delivery when the goods pass the ship’s rail at the port of shipment. This term only applies to maritime and inland water transportation.

If the parties do not intend to deliver the goods across the ship’s rail, the CIP term should be used.

Do you know all these 13 trade terms of freight forwarders? Responsibilities must be clearly delineated

CPT freight paid to (designated destination)

It means that the seller delivers the goods to its designated carrier (the goods are delivered to the carrier), but the seller must also pay the freight to transport the goods to the destination. That is, the buyer bears all risks and other expenses after delivery.

CIP freight and insurance

It means that the seller delivers the goods to the designated international forwarder, but the seller must also pay the freight for the goods to the destination, that is, the buyer bears all risks and additional costs after the seller has delivered the goods.

The term can be applied to various modes of transportation, including multimodal transportation.

DAF Frontier Delivery

It means that when the seller is at the designated location and specific delivery point at the border, before the border of the country’s customs border, the goods that are still on the delivery vehicle and have not been unloaded are handed over to the buyer for disposal, and the export customs clearance procedures have been completed but not yet The delivery is completed when the import customs clearance procedures are handled.

DES Delivered on board the destination port

It means that at the designated port of destination, the goods are handed over to the buyer on the ship for disposal, but the seller will complete the delivery without going through the customs clearance procedures for the import of the goods.

This term can only be used when the goods are transported by sea or inland waterway or multimodal transport on the ship at the port of destination.

DEQ destination port terminal delivery

It means that the seller only needs to deliver the goods to the carrier designated by the buyer at the designated place and complete the export customs clearance procedures to complete the delivery.

It should be noted that the choice of delivery location will have an impact on the obligations of loading and unloading at that location. The term can be used for various modes of transportation, including multimodal transportation.

Do you know all these 13 trade terms of freight forwarders? Responsibilities must be clearly delineated

DDU Unpaid Delivery

It means that the seller delivers the goods to the buyer at the designated destination for disposal without going through import procedures or unloading the goods from the delivery means of transport, that is, the delivery is completed. 

This term applies to various modes of transportation, but when the goods are delivered on a ship or wharf at the port of destination, the term DES or DEQ should be used.

DDP delivery after duty

It means that the seller completes import customs clearance procedures at the designated destination, and delivers the goods that have not been unloaded on the delivery means of transport to the buyer to complete the delivery.

Because the seller bears the greatest responsibility under the DDP term, if the seller cannot obtain the import license directly or indirectly, this term should not be used; if the parties want the buyer to bear the import risks and costs, the DDU term should be used.

This term applies to various modes of transportation, but when the goods are delivered on a ship or wharf at the port of destination, the term DES or DEQ should be used.

/ By TJ China Freight / Shipping

Soaring container ship freight rates threaten the global economic outlook?

Entering 2021, the imbalance between supply and demand in the container shipping market has still not been resolved, and the persistently high container shipping rate is becoming a major threat to the global economic outlook this year.

 

The shortage of containers is difficult to alleviate, and the freight rates of various routes remain high

 

Affected by the epidemic and the peak shipments before the Spring Festival, the volume of goods on the European and North American routes remained high, the port congestion, and the lack of containers made container turnover difficult, and the imbalance of supply and demand in the container shipping market has not been effectively alleviated. The freight rates of all routes around the world have remained high.

 

Recently, due to the epidemic situation, the port congestion has caused the average space utilization rate of container ships from Shanghai Port to Europe to continue to be fully loaded. Most ships maintain the original freight rates, and only the spot market booking prices have dropped slightly. According to statistics from the Shanghai Shipping Exchange, the freight rate (sea freight and ocean freight surcharges) for exports from Shanghai to the European basic port market on January 15 was 4,413 USD/TEU, down 0.9% from the previous period; the freight rate for Shanghai exports to the Mediterranean basic port market (sea freight) And shipping surcharge) is 4296 US dollars/TEU, the same as the previous period.

 

The North American route also has bottlenecks in container transportation. The average space utilization rate of ships from Shanghai Port to the East and West US routes is nearly full. The freight rates of the routes are stable, and the spot market booking prices have increased slightly. On January 15th, the freight rates (sea freight and ocean freight surcharges) for Shanghai exports to the basic ports of the West and East US ports were 4,054 US dollars/FEU and 4,800 US dollars/FEU, respectively. The West US routes rose slightly by 0.9% and the US East routes rose 1.1%. .

 

The South American epidemic is severe, the import demand is large, and the transportation demand is high. Consolidation companies are increasing overtime shipping schedules to ease the shortage of capacity. The average space utilization of ships on the Shanghai Port to South America route is over 95%, and most of the flights are fully loaded. Some shipping companies have increased booking prices, and the spot market freight rates have risen slightly. On January 15th, the freight rate (sea freight and ocean freight surcharge) for exports from Shanghai to the basic port market in South America was 8907 US dollars/TEU, up 3.2% from the previous period.

Soaring container ship freight rates threaten the global economic outlook?

In Asia, the two major port congestion problems in Singapore and Malaysia, Port Klang are the most serious. Many European or Middle Eastern routes skipped these two ports and did not call. Therefore, freight forwarders had to ship customers to Singapore or Port Klang. The cargoes of South Korea will be imported and exported from the neighboring Johor Port. It is estimated that Singapore, Port Klang and Ho Chi Minh City may rise before the Spring Festival holiday on the Southeast Asian route.

 

At present, there is no news about the increase of freight rates on the routes of Europe and Southeast Asia. However, because of the obvious shortage of space, the purchase fee for the US route remains high. The purchase fee for the US Eastern route was increased to US$4,000/FEU in mid-January, but so far there has been a purchase fee of US$6000/FEU. The purchase fee has reached US$2500. In addition, the port of Los Angeles and the Port of Long Beach have recently reported that hundreds of dockers have been diagnosed. The multi-billion dollar logistics economy of the two ports may be severely slowed down. The situation is even more unoptimistic.

 

Consolidation costs have risen several times, and the global economy may be profoundly affected

 

Most people in the industry believe that the problem of imbalance between supply and demand in the container shipping market will continue at least until the first quarter of this year. Nerijus Poskus, deputy general manager of Flexport, a San Francisco freight and customs brokerage company, estimates that the current global container gap has reached 500,000, which is almost equivalent to the world’s 25 largest vessels. Compared with last year, the loading capacity of 20,000 boxes of ships may increase the pressure on shipping costs this year.

 

Experts pointed out that it is expected that a large number of empty containers in Europe and the United States will be shipped back one to three months after the Spring Festival in April and May. The shortage of containers is expected to be alleviated, but the specifics are still difficult to say. In the follow-up, the impact of the lack of containers can be judged by three major signals: retail inventory, global ship on-time rate, and the latest container ship supply and demand. If the retail inventory level remains at a low level, it indicates that demand is still strong; if the ship on-time rate starts to rise from a low point, it means that the port congestion has been eased.

 

According to Alphaliner’s latest estimates in December last year, the global container loading and unloading volume this year has increased by 3.5% higher than last year; the capacity supply has increased by 3.9% annually, and the gap between supply and demand has narrowed, which shows the oversupply of the container shipping market in the past decade The phenomenon has been reversed. Although this year seems to be a year of healthy supply and demand, if the epidemic breaks out again, the market will be full of uncertainties.

Soaring container ship freight rates threaten the global economic outlook?

Strange phenomena are frequent under the epidemic. Although the global economy is still severely hit by the epidemic, the container shipping industry has experienced the most severe price increase in history, and the shortage of supply has intensified the upward trend of container freight rates. Comprehensive data shows that the current freight rates of popular routes such as the European and American routes have increased by several times. The Australian routes have increased substantially by nearly 9 times, and the European routes have also soared by more than 5 times, even for Southeast Asian routes. Prices have also risen, and have increased more than four times since the end of last year.

 

Some manufacturers frankly said that they can no longer afford the current level of freight rates, and it is even more difficult to pass on the additional costs caused by the soaring freight rates to customers. The goods that were supposed to be delivered in the fourth quarter of last year have not yet been able to ship due to lack of containers and no flags. However, the warehouse can no longer accommodate the piles of goods. Some European countries even bid 8,000 euros (about 63,000 yuan). No usable container can be found. This is a situation that has not been seen in the past few decades.

 

Obviously, the soaring freight rate caused by the imbalance of supply and demand has affected the operation level from the supply chain level. The company is forced to reduce production or increase inventory pressure, which affects cash flow, and even affects the entire industrial chain because of the reduction in orders. The demand side. Consumers and companies have to bear the increased cost of shipping freight, which may have a longer impact on the economy than the problem of "missing containers".

/ 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

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.