/ By TJ China Freight / Shipping

Global container ship freight rates soared by 80%

In the second half of last year, the rapid recovery of the shipping market caused the “hard to find one container” situation to continue after the beginning of this year-empty containers are still in demand, and some people can't order containers with 10,000 US dollars. On January 8th, at the Hudong Wharf of Waigaoqiao, Shanghai Port, the terminal production has been operating at full capacity recently. In the yard, there are a large number of containers stacked, and the number of heavy containers for storing goods is much larger than the number of empty containers. The industry believes that the shortage of empty containers and the hard-to-find situation of one container will continue for some time.

Where are the empty boxes that you can't get?

 

"A box is hard to find" continues to be staged, how can the market relieve the "box worries"?

 

 

Chinese shippers and freight forwarders all over the world "seeking" empty containers, but where did the empty containers go? The answer is simple, it is blocked in other ports.

While the Asian port and shipping industry is desperately desperate for empty containers, although there is a shortage of shipping capacity, price increases can be used to push shipping companies to cancel suspending, refilling, and increase shipping capacity; however, a large number of containers full of cargo are seriously stranded in European and American ports and warehouses. , Unable to move.

A British freight forwarder said, "Our customers are willing to pay such a high freight, but due to port congestion, we are still working hard to move the boxes. Some boxes have been on the dock for more than four weeks and still don’t know what Time to ship."

At the same time, urgently needed empty containers in Asia are scattered in warehouses across Europe, especially in the United Kingdom, where troubled ports have to restrict container delivery to already overcrowded terminals.

The current shortage of containers is a once-in-a-hundred-year problem in the history of global supply chains, and there is basically no solution in the short term. In recent weeks, some container ships sailed from Asia to Europe, but did not return in time, resulting in a serious shortage of empty containers.

A carrier source said: “Due to the insufficient number of containers in the warehouses in China, we have had to reduce the number of recent voyages.” All carriers report that their warehouses are severely lacking the most popular 40-foot tall containers and 40 Foot standard containers, most of the time, even 20 foot containers are in short supply.

The latest container availability index report from Container xChange shows that the availability of the entire China is "still at the lowest level in history." The report added: “Due to the rapid growth in demand after a few months of blank sailing, the current availability rate of 40-foot high cabinets in China is only 0.05 points, compared with 0.63 in the same period last year.” Data above 0.5 indicates surplus, and below 0.5 indicates deficit.

A British freight forwarder revealed that many ocean carriers (shipping companies) now refuse to accept their export bookings until mid-January. "Our customers are ready to pay for these crazy prices, but the ports are blocked. We are still trying to pull the boxes away. He said: “We have some boxes on the dock for more than four weeks, but we still don’t know when they can be unloaded. "

At the same time, urgently needed containers in Asia are scattered in warehouses across Europe, especially in the UK. In the UK, congested ports began to order to restrict containers from being shipped back to already overcrowded terminals.

“The epidemic situation in Europe and the United States still exists, and the labor force in the ports is definitely relatively short, and the speed of customs clearance will slow down. This will prevent the timely unloading of incoming goods and allow the containers that could be turned around to stay abroad for a long time." Yang Li, a retired freight forwarder, analyzed. In addition, since the third quarter, China's export business has increased in volume, which has also intensified the pressure on container demand.

Global container ship freight rates soared by 80%

 

"A box is hard to find" continues to be staged, how can the market relieve the "box worries"?

 

 

The lack of containers in the market has led to soaring shipping rates, and the price increase of popular routes is even more exaggerated. Guo Shaohai, head of the International Freight Forwarding Company, said that the freight rate on the same route has doubled in the past six months. For foreign trade companies, production cannot be stopped. It is difficult to ship a large amount of goods with orders, and there is great financial pressure. The industry expects that the shortage of containers and space will continue.

Guo Shaohai said that on May 18, 2020, the sea freight from Shanghai to Long Beach on the West Coast of the United States was US$1,550 for a 40-foot container at that time. It was US$4,500 on January 7 this year.

Yan Xianjie, the sales manager of an international cargo company in Shanghai, said that the price of small cabinets will rise to more than US$4,000 per cabinet in the US West, and the US East small cabinets may have to rise to US$6,000 or 7,000, and there may be no space before the new year. . Prices in Europe continue to increase, and large cabinets may rise to US$9,800, and many customers do not have a cabinet for US$10,000.

The comprehensive index of China's export container freight rate is a "barometer" of price changes in the container transportation market. The latest data from the Shanghai Shipping Exchange show that on January 8, the comprehensive index of China's export container freight rate reported 1,753.85 points, a record high again. The average in May 2020 is only 837.74 points.

"Lianhe Zaobao" reported on January 8 that the COVID-19 pandemic has caused global port congestion and “unavailable containers”, which in turn pushed up ship freight rates soaring by about 80% within two months. The current increase has not faded.

According to the global container freight rate of Drewry, a shipping consulting company, the freight rate per TEU at the end of last year was US$4,359 (approximately S$5752), which is an increase of 75% from the level of approximately US$2500 in October last year. %.

Prior to this, a container shipping company pointed out that the current European route and Mediterranean route freight rates have reached a record high. Although the European route rises later than the US route, the rise is much faster than the US route. On December 11, the freight rate of the western US route was flat at 3948 US dollars/FEU, and the US eastern route was 4804 US dollars/FEU, which increased slightly by 2.2%, which was also approaching a historical high.

Since the fourth quarter of last year, the freight rate of the Far East to Europe route has soared rapidly. In the past two and a half months, it has risen by 152.39%, which is almost three times the difference from the low of US$725 in late April this year. Since September, the freight rate of the Far East to Europe route has exceeded 1,000 US dollars. Due to the difficulty of finding a container in the container shipping market, the rapid increase in the volume of Asian exports to Europe, and the congestion of British ports, the European line freight rate has begun to surge and is expected to exceed 3,000 US dollars this week. .

How to solve the problem of missing boxes

 

"A box is hard to find" continues to be staged, how can the market relieve the "box worries"?

 

 

The shortage of containers and the sharp increase in freight rates have attracted the attention of market management departments. China's container production and sales account for 96% of the global market, and it has formed an industrial cluster with full product lines, full supply chains, and full technical capabilities. In this regard, Gao Feng, spokesperson of the Ministry of Commerce, stated at a press conference on December 3, 2020 that he will work with relevant departments to promote increased capacity allocation, support accelerated container return transportation, improve operational efficiency, and support container manufacturers to expand production capacity. . At the same time, it will increase the intensity of market supervision, strive to stabilize market prices, and provide logistics support for the steady development of foreign trade.

After experiencing industry losses in 2019 and a shortage of orders in the first half of 2020, container manufacturers have finally ushered in their own busy moments. According to a source from a large domestic container manufacturer, factory employees now have to trot to go to the toilet and eat lunch for only ten minutes, just to speed up the production progress. "We haven't encountered such a good market in many years. The whole industry is stepping up the production of new boxes, and orders have been scheduled until March next year." He said.

Qingdao CIMC Reefer Container Manufacturing Co., Ltd., located in the Shanghe Demonstration Zone in Jiaozhou, is rushing to make container orders in the workshop. "Starting from the third quarter of 2020, we have been running at full capacity to ensure growth and stable production." The relevant person in charge said that the company will gradually resume orders from the third quarter and make every effort to increase production and ensure supply. This trend is expected to continue until 2021 The first quarter.

However, people in the shipping industry predicted that the shortage of containers will continue until the first quarter of 2021. Therefore, there are already large domestic container companies that dare not rush to take orders for the second quarter of 2021.

Now that the market is in short supply, it is completely possible to launch capacity projects, purchase equipment, and let workers work overtime to produce, but in the long run, this will break the balance of supply and demand in the global container market.

At present, the service life of containers is 10 to 15 years. After the rapid one-time release of production capacity, what about next year or the next year? The development of the industrial chain still requires a long stream of water. Therefore, while moderately increasing production capacity, it is also necessary to work hard on container inventory.

For example, major shipping companies are currently stepping up to empty containers from Europe and the United States. In order to ship European and American empty containers back to Asia as soon as possible, some shipping companies in the European and American markets have tried not to take back the cargo, especially the goods exported from the US inland to Asia. If the US grain is exported in the peak season, the container will cost about in and out of the inland. Two weeks, and the grain is heavy cargo, which affects the loading of ships. In October 2020, the German Hapag-Lloyd shipping company (Hapag-Lloyd) publicly announced that it would suspend the shipping of US soybeans and other US agricultural products in containers.

Industry insiders also pointed out that alleviating the pain of the shortage of shipping containers must tap the potential and expand the capacity of the entire industry chain.

On the one hand, the inventory capacity encourages and supports domestic shipping companies to restore their capacity to the pre-epidemic level as quickly as possible. At the same time, they increase the supply of containers by opening overtime ships, deploying ships from other routes, and seeking charters from the market. Domestic shipping and logistics companies should actively coordinate overseas partners and overseas companies to improve the efficiency of international container turnover. Freight forwarders and shipping companies should actively communicate with them, and do a good job in peak-shift transportation planning and scientific management of space.

Not only that, it is necessary to seek a close connection between railway containers and shipping, allowing containers to circulate between continents, thereby reducing the cost of container use. At the policy level, it is possible to increase subsidies for shipping and land transportation companies for container return, and to issue port exchange coupons and merchant special coupons to export companies to help them reduce their freight burden.

In addition, commerce departments and customs should strengthen the supervision and supervision of shipping companies' freight rates, and conduct timely interviews and financial penalties for improper behaviors such as sudden price increases and arbitrarily asking prices.

/ By TJ China Freight / Shipping

In the spring of 2021, will the shipping companies charge wildly?

The 2020 epidemic has brought tremendous changes to the shipping market. In the first quarter of 2021, this change is expected to continue; both shipowners and shippers may strive to convert long-term leases into short-term leases.

The beginning of each year is the peak period for annual lease negotiations. Many market participants believe that in 2021, many trade routes will maintain high freight rates. Therefore, the negotiated price in early 2021 may hit a record high.

David Bennett, the head of Globe Express Services in the United States, said in his December cargo outlook report: “Don’t tell the other party that 2021 is an ordinary year.”

 

In the spring of 2021, will the shipping companies charge wildly?

 

 

Negotiation time

Most of the annual charter prices for major routes are negotiated in March and April. The source said that if the spot market returns to normal, ship operators will negotiate ahead of time. However, it is clear that shippers/forwarders prefer to wait until the spot market freight rate drops before negotiating.

Las Jenson, CEO of SeaIntelligence, said: "I don't think any shipper is willing to negotiate on the Lunar New Year. At least it is absolutely impossible on trans-Pacific routes."

Generally speaking, the price of the annual lease is negotiated according to the current spot market conditions. Therefore, due to the current good market situation in the consolidation market and the high freight rate, if the contract is signed now, it is likely to appear in the next few months. Because the spot price drops to a level lower than the contract price, the shipper/forwarder bears greater losses.

Market observers predict that due to the surge in freight rates in the second half of 2020 and the confidence of shipping alliances in their own capacity management capabilities, the freight rates proposed by carriers on major trade routes may be higher.

A North American counterpart said: “The freight rates on all major routes will increase in 2020. The days when the freight rate on the west coast of North America was US$1,500/FEU are gone. The carrier will increase the freight rate on the Trans-Pacific route in 2021. The starting price may be as high as US$2500/FEU."

An annual lease can sometimes be replaced by rolling contracts of three to six months, but this is mainly to protect the shipowner and allow the carrier to modify the contract terms when the rent/freight rises, so the shipper/forwarder It is best not to hope with this.

Bennett said: "I think the contract period of a short-term lease and a long-term lease will be different."

The spot market has a growing trend

Currently, the spot market only accounts for less than half of the main routes. However, because some shippers hope to take advantage of the possible downward trend in spot market prices after the Lunar New Year to obtain contracts with lower prices, it is expected that the proportion of the spot market will increase in 2021, showing a mid-to-long term relative to the contracted freight volume. The momentum of growth.

However, some shippers may strive to sign long-term leases (multi-year) to hedge against further increases in freight rates and prevent such situations from happening again in 2020. In the third and fourth quarters of 2020, the spot market aroused strong condemnation from some customers with long-term leases. Some shippers stated that their cargo was abandoned by shipowners who prefer spot cargo and stranded in the docks of North Asian ports. on.

Bennett said: "We expect greater volatility in 2021, so we remind everyone to ensure sufficient cash."

A colleague said: "If the carrier can make a lot of money through long-term leases, then the spot market may not be favored by them. In short, if the long-term leases have already given the carrier huge profits, then they There is no need to attack the spot market."

When a lower-priced lease is signed, the shipper/forwarder will make a profit, but if the spot market freight rate soars, then this shipper’s cargo may also be the first to be abandoned by the shipowner at the port. Therefore, for It can not only guarantee the safe transportation of goods, but also have the opportunity to obtain lower freight rates in the spot market, so some shippers may choose to enter the spot market in 2021.

/ By TJ China Freight / Shipping

The container freight rate from North Asia to the UK hits a record high

On January 4, the freight rate from North Asia to the United Kingdom hit a record high. The reason was that demand continued to rise and the continued shortage of equipment plagued the market. Carriers had no choice but to increase freight rates to maintain profit margins.

 

The Platts Class 11 container rate from North Asia to the UK reached USD 10,000/FEU, an increase of 285% from November 30. These strong rates are expected to continue until the end of the quarter.

 

"This is the result of a combination of surge in demand and endless congestion. It will continue until February of the Chinese New Year." said a British freight forwarder.

 

Market participants are eager to avoid repeating the mistakes of the 2020 Lunar New Year holiday, because the 2020 coronavirus-related lockdown has caused a very slow recovery in China’s export demand, and for most of the past year, the container market has faced a huge Challenges.

 

Demand during the Chinese holiday period has recovered, which has inspired people to quickly resume work to deal with the backlog of orders, but although the situation is improving, there are some opinions in the market that worry that these optimism may be short-lived.

 

Nonetheless, the freight forwarder said that containers booked at lower prices have not yet been loaded onto the ship.

 

"I just cancelled 60 containers; they are destined to go to Europe." said a freight forwarder.

 

 

The container freight rate from North Asia to the UK hits a record high

 

 

By the end of 2020, the increase in freight rates in the UK is greater than that in Northern Europe, because companies seek to stock up on goods before the UK leaves the EU Customs Union without reaching an agreement.

 

Uncertainty in future trade relations and concerns about border delays due to customs inspections have led to increased demand for goods. Coupled with the change in consumer spending habits, shifting from services to consumer goods, seasonal demand before Christmas, and replenishment of enterprises after the closure of the country due to national blockades, it is difficult for ports to cope with the increase in quantity. This sentiment has continued into a new year full of congestion, and these situations are still the concerns of many operators.

 

Felixstowe is the largest container port in the UK. The first problem facing the port is the increase in traffic and subsequent delays. With the increase in demand, the storage capacity of the port has been reduced in recent months because the government has stored PPE (Personal Protective Equipment) in the port. However, according to a statement issued by the Port of Felixstowe on December 13, the volume of PPE containers "has been greatly reduced since reaching the peak."

 

Flight delays in Felixstowe caused some carriers to modify their schedules outside the port. Maersk and MSC now come to Liverpool through their transatlantic services TA2 and NEUATL2 respectively. Those carriers still calling at Felixstowe have been charged a congestion charge; Hapag-Lloyd currently charges $175/TEU for all cargo passing through the port from Asia.

 

A freight forwarder said that this may just be the beginning of the British disaster. They said: "Large carriers may no longer provide services to the UK, but only feeder vessels can provide services to British ports."

 

Carriers need to relocate empty containers, which also results in some containers no longer accepting export bookings for containers loaded from Europe in the foreseeable future, which puts pressure on exporters in the UK and Europe.

 

On January 4, PCR2—from the North Continent to North Asia—increased from US$1,250/FEU a month ago to US$2,450/FEU.

 

An airline source said: "These are theoretical figures, no one is taking reservations."

/ By TJ China Freight / Shipping

Liner companies give up freight revenue and do their best to reduce the accumulation of empty containers

Shipping Australia stated that in order to reduce the backlog of empty containers at the port, liner companies directly incurred expenses and abandoned cargo operations , indicating that liner companies have provided great support for maintaining the normal operation of the Australian supply chain.

Liner companies give up freight revenue and do their best to reduce the accumulation of empty containers

The accumulation of empty containers has always been a problem faced by major ports in the world. In Sydney, weather and other factors have exacerbated this problem, affecting the exchange of import and export containers by liner companies. In order to alleviate this problem, liner companies are increasing the number of ships at the port and paying additional ship operations and port fees for this.

New South Wales Minister of Transport and Roads Andrew Constance noted that the number of empty containers exported recently reached a record level . More than 78,000 empty containers were exported in October 2020, and more than 75,000 empty containers were exported in November. The average export volume of empty containers in the first 12 months was about 64,000.

In order to reduce the accumulation of empty containers at the port, the liner company was forced to reduce the export of heavy containers:

●At present, a liner company has successfully reduced its empty container inventory from 13,000 TEU to 5,000 TEU;

● Another liner company reduced its empty container inventory from 25,000 TEU to 16,000 TEU;

●Some companies have completely emptied the empty container inventory in New South Wales;

●A ship on the route from Northeast Asia to New Zealand has been transferred to Sydney Harbour to deliver empty containers;

●The two ships will cross Melbourne and stop at Sydney and Brisbane only to transport empty containers;

●A ship normally deployed on the Singapore-Fremantle route will stop service and transfer to the Singapore-Sydney-Singapore route to load empty containers. The ship has already picked up empty containers twice before;

●A liner company deploys two ships specifically for transporting empty containers during the peak season-one with a capacity of about 2200TEU and the other with a capacity of about 2800TEU;

● Another liner company has transported more than 12,000 FEU and more than 9,000 TEU. This company also temporarily deployed a ship to load 2,114 empty containers;

●In November last year, a liner company dispatched an empty ship to transport 1,384 empty containers, and it took 7 days to wait for the berth. Public data shows that in late November, the rent of a 2500TEU container ship was $15,500/day, and the rental price of 8,500TEU was $36,000/day, in addition to other costs such as crew wages and fuel.

In order to alleviate Australia's logistics supply chain difficulties, liner companies have undertaken a heavy financial burden . For example, the round-trip journey from Singapore to Sydney exceeds 9,500 nautical miles, and it takes at least 16 days to travel at a speed of 24 knots per hour (not including port time). Including crew wages, fuel costs, insurance fees, lubricating oil fees, storage fees, crew replenishment, chartering fees, tugboat fees, pilotage fees, mooring fees, port fees, etc., a 4250TEU ship needs 150 per voyage. Ten thousand Australian dollars. And this voyage loaded all empty containers, without any freight income.

According to the Shanghai Export Container Freight Index, the current freight rate of the Singapore-Fremantle route is US$2,431/TEU. It is roughly estimated that the opportunity cost of this voyage exceeds US$10 million.

There is no doubt that in order to reduce the accumulation of empty containers, these liner companies are paying a lot of money and giving up a lot of freight revenue. Faced with unprecedented demand growth, liner companies are doing their best to relieve the backlog of empty containers to ensure the normal flow of international shipping containers in the supply chain. At present, the accumulation of empty containers at the port is improving.

/ By TJ China Freight / Shipping

Poor packaging of containerized goods causes more than $6 billion in losses to the supply chain each year

Poorly packaged containers, coupled with the shipper’s misunderstanding of the dangers of certain non-dangerous goods, may cause more than $6 billion in losses to the supply chain each year.

The well-known freight and transportation insurance company TT Club stated that “analysis consistently shows that two-thirds of accidents related to cargo damage are caused or exacerbated by bad practices when packing cargo into containers.”

And explained: "This misconduct in the supply chain has caused millions of dollars in losses, including the death of seafarers and major delays caused by container ship fires. Based on known data, all such incidents are estimated to cause economic losses of more than 6 billion US dollars each year. ."

Poor packaging of containerized goods causes more than $6 billion in losses to the supply chain each year

TT Club Loss Prevention Manager Michael Yarwood added: “The danger is not limited to chemical cargoes such as paints, cosmetics, cleaning products, fertilizers, herbicides and aerosols.

"A wide variety of consumer products and parts used in the manufacture of industrial products, household white goods and automobiles, if handled improperly during transportation, could cause major disasters."

"The list is long, and often surprising-barbecue charcoal, battery-powered electronics, fireworks, hand sanitizer, wool, cotton, plant fibers, marble, granite and other building materials, fish meal, seed cakes, etc."

He said: "Enterprises involved in purchasing, importing, storing, supplying or selling such goods should ensure that their procurement and logistics standards reach the highest level."

Poor packaging of containerized goods causes more than $6 billion in losses to the supply chain each year

He urged shippers to refer to the "Code of Practice for Cargo Transport Unit Packaging" ("CTU Code") jointly published by the International Maritime Organization, the International Labour Organization and the United Nations Economic Commission, which is the industry's closest regulation on container packaging.

Mr. Yarwood said: “It provides comprehensive information on all aspects of packaging and securing goods in freight containers and other modes of transportation under sea and land transportation. It can not only guide the personnel responsible for packaging and securing the goods, but also guide the collection Cargo and unpacking personnel."

He added: "This also solves the crucial issue of correctly describing and declaring goods, including any specific information about the handling of dangerous goods."

He said: "In addition to the serious health and safety risks already described above, poorly packaged containers may also cause damage to adjacent cargo in the event of an accident and cause significant consequences to the shipper."

/ 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

Brazil Shuangqing, Brazil shipping line

As we all know, the tariffs of South American countries are very high, and customs clearance is difficult. Brazil is a country of South America, and one of the hardest to do so. Today, I'll follow the search network for the Brazil customs clearance.
Brazil is a developing country. In order to protect its industrial production, it has adopted a tax protection policy on foreign imports in terms of imports. Brazil customs is a few countries to check the strict international parcel inspection, for they rate as high as one hundred percent, does not meet the requirements for shipment of goods or the customs will return the goods will be shipped, and shipped back to have a cost.
The main reason for the goods being imported by the Brazil customs is that the correct document information can not be provided during the customs clearance, and the timely homework can greatly reduce the possibility that the goods will be detained by the Brazil customs office so as to smooth customs clearance.
What are the requirements for customs clearance in Brazil?
The common customs clearance documents used in Brazil are bills of lading, invoices, boxes, fumigation certificates, power of attorney (both in Portuguese and English versions). NCM encoding and imported party bill of lading must be marked on the goods CNPJ number, NCM encoding HS encoding similar to the international general, to classify and tax on the product, CNPJ, is similar to the registration number, to determine the importer's identity and qualification. In addition to the invoice indicating the consignor, name, weight, volume, value, contract number, departure, destination and other basic information, but also need to indicate the product price, and address of the manufacturer. The International Plant Protection Convention as "" (International Plant Protection Convention, referred to as IPPC) signatory, Brazil in June 1, 2005 since the implementation of "international trade in wood packing material management standards" (ISPM15), for wood packing material requirements after fumigation / disinfection treatment and affix the IPPC logo.
Brazil customs special bill of lading requirements:
At the customs of the Brazil, all non - individual goods (missing or incorrect documents) will be deemed to be smuggled immediately after unloading and will be seized by the customs and fined. At the same time, the customs of the Brazil has the following special requirements for the original bill of lading:
1) the consignee shall not be "TO ORDER"".
If the bill of lading the consignee (Consignee) as "TO ORDER", the goods will be detained by customs, submit to the Brazil customs system until the consignee details (including complete address, telephone, fax number CPNJ enterprises, etc. and contact etc.), the customs will allow the delivery.
2) the Brazil customs does not accept the description of the general cargo. Such as: Department, good, merchandise, Chemical, Dry, cargo and so on.
3) must be labeled with the consignee (Consignee) enterprise tariff CPNJ goods, Brazil commercial customs NCM code encoding. If Notify and Consignee are different, also must identify its corporate tax CNPJ. In addition, the bill of lading must indicate the volume of the goods (per cubic meter).
4) the freight must be marked in figures and words at the same time on the bill of lading.
Brazil customs - Documentation / equipment inspection
For different channels of goods, the customs will take different means of inspection, in accordance with past experience, most Chinese products will be classified as yellow or red channel, rarely included in the green channel. For the goods of the Yellow channel, the customs will focus on the inspection of customs documents, evaluate the information of the value of the goods, the quantity of goods and the classification of the goods, and release them in the case of the audit. For the red channel of the goods, the situation is more complicated, first by the customs officer of customs documents for review, and then assigned to the port customs inspection personnel on-site inspection, if still unable to obtain the accurate judgment, should be combined with the third party inspection engineer jointly issued by the official inspection and report. From the beginning of the inspection to the issue of a report often takes weeks, this link is the entire customs clearance process in a longer period of time, but also the most difficult to grasp the link.
Brazil customs clearance procedures cumbersome
According to the world economic forum released the "2014-2015" in the global competitiveness report, ranked 144 countries (or regions), in the Brazil customs efficiency ranked 138, so the export of goods to Brazil for a long time, need to have patience.
There are three main tariff rates for imported goods in Brazil:
1 federal taxes
A. import duties. According to different commodities, the import tax rate is different. The average tax rate is now 17%. General raw material tax rate is very low or zero; consumer goods in general is about 20-30%.
B. industrial product tax. The average tax rate is 10%, which is a progressive tax, and is calculated at the price of CIF plus the total value of the import duty.
2. State taxes
C. commodity circulation service tax, which is equivalent to VAT, is a progressive tax, and is calculated at the CIF price plus the import duty, the processing industry, and the total value of the product tax. There are two tax rates, 17% and 18%, 18% in St Paul and 17% in all other states (both of which refer to transactions within the state) Depends on the state of the importer.
Brazil customs is not generally high, in addition to import tariffs and other mixed taxes, customs clearance to pay tips. Moreover, many products in Brazil have anti-dumping duties, and if Chinese goods are exported to Brazil at a high tariff, entrepot trade may be considered.
What products does China levy against the tax on Brazil?
Brazil Chinese of automotive glass, safety glass refrigeration appliances, agricultural tires, truck tires, bicycle tires, motorcycle tires frameless glass mirror, ball pen, coil, ring magnet, plastic vacuum tubes, seamless steel pipe, PVC resin, ceramic filter, two oxygen

/ 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

New high! The freight rate of the US West route rose to 4189 US dollars, three times that of the same period last year. Many shipping companies continue to charge surcharges

After the freight rate in the trans-Pacific market has remained stable for a period of time, it has recently started a rising mode.

According to the Freightos Baltic Daily Index (Freightos Baltic Daily Index), on December 28, 2020, the freight rate of the Asia-US West Coast route reached US$4,189/FEU, a record high, an increase of 8% from December 25, which is the year of 2019. 3 times over the same period.

New high! The freight rate of the US West route rose to 4189 US dollars, three times that of the same period last year. Many shipping companies continue to charge surcharges

At the same time, the freight rate of the Asia-US East Coast route also reached an astonishing US$5397/FEU, a 9% increase from December 25 and twice the rate of the same period in 2019.

New high! The freight rate of the US West route rose to 4189 US dollars, three times that of the same period last year. Many shipping companies continue to charge surcharges

According to data from the Shanghai Shipping Exchange, on December 25, 2020, the freight rates (sea freight and ocean freight surcharges) for exports from Shanghai to the basic port markets of the West and the East of the United States were 4,080 USD/FEU and 4,876 USD/FEU, respectively. The US West route rose 4.6% from the previous week.

Analysts of the Shanghai Shipping Exchange said that the average space utilization rate of ships on the Shanghai Port to the West and East U.S. routes maintained at a level close to full load. However, the U.S. epidemic has blocked the turnover of containers, and a large number of containers are stranded at the local terminal. The congestion of the port is increasing, and the shortage of containers has not been alleviated.

In addition, a number of shipping companies including CMA CGM, Hapag-Lloyd, Evergreen Shipping, HMM, ONE, Yangming Shipping, and Star Shipping have announced that they will start on the trans-Pacific route from January 1, 2021. , Charge a comprehensive rate increase surcharge (GRI) ranging from US$1,000 to US$1,200/FEU.

The market predicts that the upward trend of freight rates will continue until January 2021.

New high! The freight rate of the US West route rose to 4189 US dollars, three times that of the same period last year. Many shipping companies continue to charge surcharges

In contrast to the fast-growing transportation demand, after a fully loaded ship arrived at the US West Port, it faced the dilemma of nowhere to stop.

According to a report released by the Marine Exchange of Southern California on December 28, 2020, a total of 24 container ships are anchored in San Pedro Bay, and another 5 ships are about to arrive.

According to the report, the local conventional anchorages are full of ships, and some emergency anchorages have also been occupied.

Marine Traffic uses an automatic identification system to draw a map that shows the extent of the accumulation of container ships in San Pedro Bay, which has deteriorated in recent weeks.

New high! The freight rate of the US West route rose to 4189 US dollars, three times that of the same period last year. Many shipping companies continue to charge surcharges

According to statistics, 26 additional ships called at the Port of Los Angeles in November and 31 ships in December. A port manager said that it is expected that in January 2021, more additional ships will call.

The loading and unloading capacity of the Port of Los Angeles and Long Beach has already faced serious shortages. The Port of Los Angeles will import 116,500 TEU containers this week, and it is expected to increase significantly to 150,000 TEU per week by January 2021.

The continuous increase in freight rates and the severe congestion at the US West Port have caused shippers’ costs to hit unprecedented highs, and shippers have to reassess their transportation cost budgets for 2021.

/ By TJ China Freight / Shipping

U.S. Express delivery rate drops on time, many express companies plan to increase prices

According to the news on December 29, it is reported that due to bad weather, coupled with the epidemic and holiday packages, there has been a surge in packages. According to statistics, about 6 million packages are piled up in warehouses in the United States every day . Data in the third week of December showed that UPS's on-time delivery rate has dropped from 93% to around 86% .

Pei Jiahua, president of FedEx Asia Pacific, Middle East and Africa, said in a statement that the epidemic has disrupted the supply chain and production lines, and has had an impact on reliability delivery, but this peak freight season will be one of the busiest seasons in history.

U.S. Express delivery rate drops on time, many express companies plan to increase prices

It is reported that recently, many express companies such as Amazon and UPS in the United States have announced the suspension of aging guarantees and price increases.

Foreign media reported that retailers said that due to the squeeze of demand, FedEx FedEx is restricting the number of retailers' delivery, and retailers are now restricted from sending 75 packages a day .

According to the CEP-Research website, FedEx will increase most of the U.S. express and ground freight charges by 4.9% from January 4, 2021 ; in addition, from December 27 this year, United Parcel will charge for the use of its ground in the United States. Non-contractual customers for aviation and international services charge an average of 4.9% more.

It is understood that the U.S. Postal Service is also considering increasing the price of transportation services after obtaining approval from relevant price management agencies. According to the plan, the U.S. Postal Service will increase the prices of various transportation services by 1.2%-20% from January 24, 2021 . Among them, priority mail will increase prices by 3.5%, and priority mail express will increase prices by 1.2%.