2023 | Things You Should Have Known Earlier About Air Freight

When importers and exporters around the world need to get their goods somewhere quickly and reliably, they use air freight. While 90% of everything is shipped by sea, airfreight can connect the world faster, reducing shipping times from 20-30 days by sea to just three days by air shipping from China to the US.

International air freight and express freight are not the same things.

Express air freight is usually handled by a single company (such as DHL, UPS or FedEx) that manages the entire shipping lifecycle and delivers from door to door within five days. Express air shipments are usually smaller than air shipments (less than one cubic metre and 200 kg). International air freight shipments can be much larger and may cross multiple carriers during transit. In fact, the largest cargo aircraft, the Anatol 225, can accommodate an entire train.

In a typical season, international air freight rates are around US$2.50 to US$5.00 per kilo, depending on the type of cargo you are transporting and the space available. However, since February 2020, costs have risen sharply due to severe disruptions in sea freight and high consumer demand.

What goods are typically shipped by air?

Due to the high cost of air freight rates, it is usually limited to smaller, high-value shipments or time-sensitive items such as

  1. documents and samples. DHL Global Forwarding actually started by air shipping documents by sea to expedite release along the new West Coast-Hawaii ocean route. Airfreight remains the most cost effective way to ship documents.
  2. Electronics. It is well known that Steve Jobs purchased all available airfreight capacity on major routes from Asia to the US in order to ship the first iMac before the holiday season.
  3. Medicine. Medical supplies are frequently flown in due to their small size and high value.
  4. Seasonal shipments. Whatever the product, if there’s high international demand for a product that needs to strengthen the supply chain, it’s often shipped by air. Apparel. Seasonal trends in apparel change quickly. As a result, companies often need to get garments from the factory to the shop as quickly as possible. The small size and high value of garments also make air freight a worthwhile expense.

Benefits of China air freight

Air freight has three main benefits.

  1. Reliability – airfreight offers better tracking and greater certainty that your goods will arrive at the right place at the right time.
  2. Speed – aircraft are approximately 30 times faster than ocean liners. Airliners cruise at 575 mph, while slow-moving ocean liners move at 16-18 mph. This means that air cargo can travel from a factory in China to a warehouse in the USA in just five days. Use this transit time calculator to estimate airfreight transit times based on recent actual shipments.
  3. Protection – goods are more easily damaged when transported by sea than by air. This makes it a good choice for fragile items

When should I not ship by air?

The following are some of the disadvantages of airfreight.

  1. Cost – air freight is expensive compared to sea freight. Comparing air freight to ocean freight, a medium-sized 2,000 lb box from Shenzhen, China to Los Angeles, USA costs US$1,500 by ocean freight, while air freight costs up to US$8,000 or more. However, with the current increase in ocean costs, this difference may be smaller.
  2. Heavy cargo – Since the 1960s, freight has revolved around shipping in containers, which are ideal for transporting large, heavy items. Air freight is priced according to size and weight and can scale prices very quickly.
  3. CO2 emissions – Air freight leads to more emissions. For example, according to a UK government study, transporting 2 tonnes of goods 5,000 kilometres by sea would result in 150 kg of CO2 emissions, compared to 6,605 kg of CO2 emissions by air. Definitely not the most environmentally friendly way to transport.

Air freight rates and charges

The total cost of air freight may currently include, in addition to air freight charges for weight and volume

  1. fuel surcharges
  2. security surcharges
  3. container freight terminal/terminal handling charges
  4. airport transfers

In addition, for door-to-door costs, the price will also include airfreight services, including

  1. customs clearance operations
  2. Pick-up and delivery
  3. Cargo insurance
  4. surcharges

 

If your business is not sure which shipping method is better from or to China, TJ China freight, a leading China freight forwarder will tailor a solution to suit the characteristics of your cargo and your business.

How the USPS Rate Increase Affects

The USPS (United States Postal Service) continues to roll out new policies that you’re not aware of yet? Here’s a look at the latest documents

The USPS has announced a General Rate Increase (GRI) for transportation services that will take effect on January 22, 2023.

This year’s change follows last year’s significant increase, as USPS enters its 3rd post-Covid holiday peak.

This announcement addresses USPS competitive rate changes (freight rates), which are heavily influenced by market conditions (UPS/FedEx, etc.). It should not be confused with the market-driven rate changes (mailing products) that are also under review in China (Postal Regulatory Commission).

Unlike the previous two years, this year’s peak carrier capacity is plentiful, shippers have no difficulty choosing the carrier that best meets their needs, and carriers are again negotiating in good faith. However, shippers should bear in mind how their carriers are treating them. Depending on volume, shippers and carriers are having very different discussions. The largest shippers have seen the most significant growth in the last two years. They are grateful that their carriers simply pick up and ship regardless of price. At the same time, smaller shippers can better compete as increased volumes and their smaller discounts lead to record carrier profits.

Meanwhile, the USPS has been called the “carrier of last resort” for the last two years and has done a great job of limiting price increases based on what the market will bear and has not taken advantage of the emergency to appease shareholders. (No – the USPS is owned by all of us and operates as a quasi-government agency.)

Overall, the increases were modest, especially when compared to the peak pricing now in effect. For example, Priority Mail announced a price change of +5.5%, but most shippers will see a -1.1% decrease in the most commonly used lanes (1-5 lbs) compared to current peak pricing and a 3.8% 22 rate increase from July. Retail PM up +6.8%.

It looks similar to last year’s GRI compared to last year’s peak pricing, the USPS seems to have just brought forward the next year’s price increase

 

Here are the highlights of the “shipper-centric” approach.

  1. The new rates for USPS Competitive (aka “Transport Services”) are proposed to take effect on 22 January 2023. This requires rubber stamp approval from China.
  2. New return solution: $1.25 outbound label creation option.
  3. Commercial Plus and Commercial rate charts are being combined and will be referred to as “Commercial”.
  4. Existing zones “L, 1 and 2” are being split into zones 1 and 2. in addition, Local is being transitioned to “Connect Local”.
  5. Priority Mail International: Canada is removing the originating zone as a simplified single zone, like another country group – possibly without additional rate pages.
  6. Non-Standard Fees (NSF): Fees for oversized parcels will be adjusted upwards for express service and downwards for ground service. Size policy remains unchanged, the first cubic foot is excluded with a size factor of 166.
  7. Priority and Express (PMI & PMEI) international rates +6% and First Class Package International Service (FCPIS) +6.5%.

Priority Mail Express (PME) 

  1. Retail + 6.7%
  2. 12.5% average savings over retail
  3. Business + 6.0%

Comment: This is a new game as we head into a busy 4th quarter holiday season. Since the massive growth in e-commerce triggered by the pandemic, carriers are overbuilding capacity and traffic volumes have fallen back. Carriers have all over-invested in facilities, technology, labour and equipment to prepare for the peak. However, experts expect volumes to be more subdued due to inflation.

First Class Package Service (FCPS) 

  1. Retail growth +6.9%.
  2. 4Q results show +5.8% revenue growth and -4.6% volume decline. These results show that USPS recognizes that they can increase prices without impacting usage. This was not the case for other services.
  3. Splitting the existing regions “L, 1 and 2” into Region 1 and Region 2, Local is transitioning to “Connect Local”.
  4. Later this year, FCPS and Parcel Select Ground will merge to offer a premium full network ground service with pricing options up to 70 pounds based on (16) ounces.
  5. Similar merger on the retail side later in 2023, with Retail Ground remaining on the competitive side of the house for now.
  6. Commercial +7.8%.

Priority Mail (PM)

  1. Retail +6.8%, 20.1% more expensive than commercial.

Parcel Select – This is the bulk category used by consolidators for USPS to complete deliveries. Pricing is based on the depth of parcel introduction and offers additional discounts for high-volume customers who meet the minimum requirements for the 3 and 5-digit ZIP Code program.

  1. Q4 results show a decrease in revenue and volume of -9.5% and -18.1% respectively, indicating that previous increases have had a negative impact on usage. This below-inflation adjustment is intended to correct this.
  2. Commercial +3.5%. (1-5 lbs.) = -1.1% reduction in these most used lanes compared to current peak (October) pricing and a 3.8% increase over the July ’22 rate.
  3. The regional flat option will be removed. PM Cubic would be the logical replacement.

Popular services such as UPS SurePost, Mail Innovations, DHL eCommerce, OSM and Pitney Bowes Newgistics use USPS for last-mile delivery. Amazon, on the other hand, originally built its DC network to take advantage of these deep entry discounts. Today, they deliver high-density shipments themselves and use USPS for remote and one-time fulfillment.

  1. DDU (local purchase orders) + 5.6%
  2. Supply Chain Finance + 4.7% (regional)
  3. NDC + 5.0% (National)

Despite the volatility of the market, third party China freight forwarder – TJ China freight can help you find the right combination and help you negotiate the best price. In addition, you should consider consolidators, regional carriers and emerging carrier solutions to achieve diversification.

Brief Introduction of Free Trade Zone

To understand the history of free trade zones, we must look at the general category: Special Economic Zones (SEZs).

There are many different variants of the term SEZ. But they were all created for the same purpose.

What is a Free Trade Zone

A free trade zone is a type of special economic zone (SEZ), a designated economic area that is exempt from trade-related fees such as customs duties and taxes.

In these zones, goods manufactured, stored and handled are subject to different customs preferences. They are often granted exemptions and incentives to encourage investment.

The following is the OECD definition of a free trade area.

“Countries where tariff and non-tariff barriers to trade between members are generally eliminated but where there is no common trade policy for non-members”

In the words of the UN itself.

“…… Within defined parameters, they provide a regulatory regime for businesses and investors that is different from that normally applied in the broader national or local economies in which they are established.”

– United Nations Conference on Trade and Development

The first special economic zones, known simply as ‘free zones’, were designated areas, usually adjacent to a seaport, airport or located between two or more countries. These began in the 1960s and began to grow exponentially in the 1980s.

Today, there are over 5,400 Special Economic Zones in the world. Of these, 1,000 have been established in the last five years. Experts expect more than 500 new SEZs to be established in the coming years.

-Organisation for Economic Co-operation and Development (OECD)

The benefits of an FTA include

  1. increase foreign exchange earnings
  2. Promote trade and business opportunities
  3. create jobs
  4. Keeping logistics costs low
  5. Attracting investment
  6. Reduce red tape and bureaucracy

North American Free Trade Agreement (NAFTA)

Countries involved: USA, Canada, Mexico

Established: 1 January 1994

Total trade: $1 trillion/year

Total GDP: $24.9 trillion

Population: 450 million

EU Single Market

Participating countries: 28 EU member states, Iceland, Liechtenstein, Norway, Switzerland.

Founded: 1993

Gross domestic product: $14 trillion

Population: 500 million

African Continental Free Trade Area (AfCFTA)

Countries involved: 52 of the 55 member states

Established: 2019

Gross domestic product: $2.5 trillion

Population: 1.2 billion (largest free trade agreement by population)

Association of Southeast Asian Nations Free Trade Area (AFTA)

Countries involved: Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, Laos, Myanmar and Cambodia.

Established: 1992

Gross Domestic Product: US$1.5 trillion

Population: 580 million

Total trade: US$1.7 trillion/year

If you have any of the above needs TJ China freight is willing to provide you with a tailor-made service, a China freight forwarder offering the most affordable shipping service including sea freight, air freight, rail freight, LCL & FCL,  DDP, DDU and more. If you want to ship containers from anywhere in China to your destination cities, free to contact us via email or phone, we will give you a better rate that is lower than the market standards with any comprising in service.

The Importance of Freight in Import Customs Declaration

In International trade, customs declarations is crucial in shipping. Here, you will learn some importance of freight in import customs declaration.

  1. Documents are the means and proof of contract performance

The three types of trade contracts commonly used in international trade (FOB contract, CFR contract and CIF contract) are explained in accordance with the International Chamber of Commerce’s “Incoterms 2000” (INCOTERMS 2000). Both are based on the seller’s submission of documents related to the goods as its fulfillment of the delivery obligation, while the buyer’s payment responsibility is based on the receipt of the documents submitted by the delivery party.

  1. Documents are the basic tool for international settlement

With the development of international trade, international trade goods are documented, so that the sale of goods is realized through the sale of documents. In today’s export settlement payment method, the most important payment method is the letter of credit. This method of payment has transformed the charity sale of actual commodities into the sale of documents; the seller’s presentation of the documents means that the goods have been delivered, and the buyer can redeem the documents after payment, which means that the goods have been bought. Naturally, the settlement between the two parties is no longer based on goods, but on documents. The principle of convection of documents and goods has become the general principle of commodity sales and payment in international trade. It can be seen that in the export business, correct, complete and timely preparation of documents can ensure safe and timely collection of foreign exchange, otherwise it will bring double losses in terms of economy and reputation to the enterprise and the country.

  1. The vast majority of modern international trade adopts the method of delivery against documents and payment against documents. Especially in the letter of credit business, some parties deal with the documents instead of the actual goods. If there is something in the document that does not meet the requirements of the letter of credit, the buyer can refuse to pay the payment. Therefore, more stringent requirements are imposed on the documents.

Declaration of freight in the import declaration form

The declaration of freight in the customs declaration is closely related to the transaction method. The common transaction method and the declaration of the freight column of the corresponding import declaration are as follows:

The total price in the CIF transaction price generally includes the value of goods + freight + insurance, and the columns of freight and insurance in the customs declaration form do not need to be filled in;

The total price in the FOB transaction price generally includes the value of the goods + the inland transportation, loading and unloading and other terminal fees from the factory to the shipment, and the freight and insurance columns need to be filled in the customs declaration form;

The total price in the EXW transaction price generally only includes the value of the goods, and the freight and insurance premium columns of the customs declaration form need to be filled in.

  1. Relevant regulations

According to the Announcement No. 20 of 2016 of the General Administration of Customs (announcement on revising the “Regulations for Completing Customs Declaration Forms for Imported and Exported Goods of the Customs of the People’s Republic of China”)

  1. Transaction method

This column should be based on the actual transaction price terms of the imported and exported goods, and the corresponding transaction method code should be selected and reported according to the “Transaction Method Code Table” stipulated by the customs. There is no actual customs declaration form for entry and exit, fill in CIF for import and FOB for export.

  1. Freight

Fill in this column to report the transportation cost of imported goods before they arrive at the import location in my country, and the transportation expenses of export goods after they are shipped to the export location in my country.

Freight can be reported in one of three ways: freight unit price, total price or freight rate, and the freight mark should be indicated (freight mark “1” indicates the freight rate, “2” indicates the unit price of freight per ton of goods, and “3” indicates the total price of freight ), and fill in the corresponding currency code according to the “Currency Code Table” stipulated by the customs.

The declaration source of the import customs declaration freight

The international transportation link is generally completed by the consignee and consignor entrusting the import customs declaration company to act as an agent. How to clarify the freight charges that should be declared through the documents, and are different types of documents helpful for the review of freight charges? Zoe details the source of the freight declaration:

  1. Confirm the transaction method

The different costs included in the total price in different transaction methods are very important for the declaration of freight charges. It can be obtained from the invoice that the transaction method is FOB. The column of the transaction method of the import declaration form needs to be filled with FOB, and at the same time, the freight and insurance premium of the imported goods need to be filled in the column of freight and insurance premium of the customs declaration form.

  1. Freight data source

Domestic shipping invoice. Taking import by sea as an example, in the case of EXW or FOB transactions, the sea freight is generally paid on delivery, and the shipowner or agency company chosen by the consignee is mainly a company with an office or agency in the country to ensure convenient communication. In this case, the ocean freight is paid directly by the consignee to the shipowner or agency. logistics agreement. The annual service agreement signed between the consignee and the shipowner or agent, in the price clause, the name of the fee, the standard of the fee, the currency system, the settlement period, etc. are all detailed. Shipping instructions. In special circumstances, if the shipowner or agency cannot provide the freight invoice in time, they can negotiate with them to provide an explanation of the freight amount.

The above is a small introduction to the importance of customs declaration documents how to reflect the relevant content. Through the above introduction, I think you understand the importance of customs declaration documents, if you are looking for freight forwarding needs in the import and export of goods from China, you can come to us TJ CHINA FREIGHT, where there will be experts to serve you.

 

Can The Import Declaration Form Be Modified After Declaration?

If you find a freight forwarder company in China to help you with all the procedures needed to export from China, and the process of filling out customs declarations due to the negligence of the personnel omitted some details, but at this time has been declared up, then whether it can still be withdrawn to amend?

The customs declaration form must be filled out in accordance with the standard text of the import and export goods declaration form announced by the customs. After the declaration, it is not allowed to modify it by itself. It must first apply for modification in accordance with the relevant provisions of the “Customs Law”.

Basis for modification

  1. After the export goods are released, if part or all of the originally declared goods are withdrawn from the customs, or the means of transport is changed due to shipping, stowage and other reasons, the certification materials for customs clearance and change of means of transport shall be submitted;
  2. If the imported or exported goods are overpacked or underpacked during loading, transportation, or storage, or are lost or short-changed due to force majeure, resulting in discrepancies between the original declared data and the actual goods, certification materials issued by the commodity inspection agency or relevant departments shall be submitted;
  3. If it is necessary to modify or revoke the data on the customs declaration form due to other customs procedures such as tax refund, customs affairs guarantee, etc., relevant materials with endorsement of customs opinions should be submitted;
  4. According to trade practice, the provisional price is first used for the transaction, and the actual settlement is based on the commodity inspection quality determination or the actual price payment method in the international market. If it is necessary to modify the declaration content, the invoice, contract, bill of lading, packing list, etc. that fully reflect the actual situation of the trade should be submitted. and truthfully provide payment vouchers related to the sale of goods and other commercial documents, written materials and electronic data that prove the truthfulness and accuracy of the declared price;
  5. The “Direct Return of Imported Goods Form” or the “Notice of Ordering Direct Return of Imported Goods” should be submitted;
  6. If the electronic data declaration is incorrect due to technical reasons such as computers and network systems, explanatory materials issued by the computer and network system operation management party shall be submitted.
  7. If the declared content needs to be amended or revoked due to errors in the operation or writing of the customs declaration personnel, the party concerned shall submit the “Import and Export Goods Declaration Form Amendment/Cancellation Form” and the following materials to the customs: (1) The contract that can prove the actual situation of the import and export goods , invoices, packing lists, bills of lading or manifests and other relevant documents and certification documents; (2) detailed descriptions; (3) other certification materials. If the customs does not find that the customs declaration personnel have evaded customs supervision, they may modify or cancel the customs declaration form. If no modification or cancellation is made, the Customs shall notify the party concerned in a timely manner and explain the reasons.

Documents to be submitted at the time of application

  1. “Import and Export Declaration Amendment / Revocation Application Form”;
  2. can prove the actual import of contracts, invoices, packing lists and other relevant documents, foreign exchange management, state tax, inspection and quarantine, banks and other relevant departments issued by the documents, taxable goods of the customs special payment, for the receipt and payment of foreign exchange and export tax rebates of import and export declarations issued by the Customs and other relevant documents.

Processing procedure

  1. The enterprise submits the above application materials to the Customs and Excise Department, the Customs and Excise Department will accept the application and conduct an audit;
  2. On-site customs audit agreed to ‘, the decision to grant the modification or revocation, the ability to make a review decision on the spot, should be issued accordingly to grant or not modify, revoke the decision, no longer issued a “declaration of imported goods to amend/revoke the application, acceptance decision” in the Customs clearance management system to complete the operation.

Processing time limit

In addition to the decision can be made on the spot, generally within one working day to make a decision on whether to accept the Customs, the decision is made within five days from the date of acceptance of the application. Import declarations filled out to comply with the declaration of normality, authenticity, and integrity principles, in line with the relevant provisions of the Customs Law, in accordance with the Customs formal process of revision, standardize the import and export trade declaration behavior, to maintain the order of customs entry and exit.

2023 Air Freight Guide | Do you know about Air Freight?

There is a special situation in china air freight – a blank voyage (also known as an invalid voyage)

This refers to a situation where a scheduled port or entire voyage is skipped or cancelled.

People are reluctant to break their original sailing opportunities, so the factors that make this happen are often out of their control.

Reasons why air voyages happen 

One of the most important things to know about air sailings is that they can be planned or unplanned. How much notice you receive depends on the reason the sailing was cancelled. Although the circumstances vary, stoppages are usually due to sailing schedule problems or market fluctuations.

Difficulties in meeting sailing schedules

Shipping companies have a fixed number of days to complete their voyages and each schedule has a specific ETA (Estimated Time of Arrival) and ETD (Estimated Time of Departure) for each destination port. Adherence to sailing schedules is essential to keep containers moving through the global supply chain, but it is not always possible to meet every deadline. Shippers may see empty sailings due to delays caused by

Supply chain issues

Congestion and labour shortages are two port issues that can lead to stoppages. In these cases it often makes more sense for the vessel to skip the port rather than risk a delay that will affect the rest of the sailing schedule. Port omissions may be known prior to booking if the event is ongoing (e.g. if the port is heavily congested or locked during Covid restrictions), but may occur throughout the voyage if unexpected challenges arise.

Adverse weather

Weather can also cause a stoppage if the vessel is unable to safely travel to or moor at a specific location. Some ports may even be closed if conditions make it unsafe to complete the required processes. For example, ports may cease operations if cranes are unable to operate due to high winds.

Market changes

Sometimes planned stoppages are required to help control demand. When demand for cargo space is low, shipping companies often use stoppages to help improve operational efficiency. By cancelling certain sailings, routes can consolidate cargo to use all the available space on board – a more cost effective method than sailing multiple ships with a lot of space left.

Due to low demand, stoppages often occur during holiday periods such as Lunar New Year, when factories shut down and outbound cargo volumes at Asian ports fall. Your carrier will be able to discuss historical patterns and current maritime market conditions to help you plan shipments accordingly.

Vessel complications

Although vessels are maintained to help maintain seaworthiness, mechanical problems may arise in the process. Some repairs can only be carried out in specific locations, which may mean re-routing or skipping ports where the problem cannot be resolved. Depending on how long repairs take, additional cancellations may be required to meet the remaining port arrival times.

air freight

The potential impact of a stoppage  

A stoppage can create multiple challenges for shippers, including

Additional costs

Significant delays due to air traffic can result in unexpected costs. Firstly, any cargo requiring access to the port will require additional service charges. Another possible cost is a demurrage and detention charge for filled containers that are held in port for more than a specified number of free days. In addition, cargoes containing perishable or temperature sensitive goods may result in a total loss.

Inventory issues

Not receiving items on time can lead to long term inventory problems. Initially, you may struggle to keep up with demand while waiting for your goods to arrive, but problems can arise even after delivery – especially if your shipment is seasonal. This can lead to a backlog of items you no longer need, thus limiting the amount of storage space available.

 

Reducing customer satisfaction

Delivering on your promises and maintaining adequate product stock is key to keeping your customers happy with your brand. Frequent shipping delays or constant out-of-stock inventory can lead to a loss of market share.

 

Leave your freight to the professionals – TJ China Freight minimises the risk for you.

 

4 Differences Between Freight Forwarding and Shipping Agency

The logistics industry is closely linked, and the knowledge of freight transportation is something that every logistics person needs to understand. If you can master the entire industry chain, it will be like a godsend for your future development. In the shipping business, we often hear about freight forwarding and shipping agency, and TJ CHINA FREIGHT will introduce them to you.

Shipping agency, that is, the unit that acts as an agent for business related to ships, and its scope of work includes handling water diversion, quarantine, tugboat, berthing, loading and unloading, materials, certificates, etc. The shipping agent is responsible for the ship business, handles the ship import and export procedures, coordinates the ship and port departments to ensure the smooth progress of loading and unloading, and completes the ship’s entrusted matters, such as replacement of crew, materials, food supplies, ship voyage repairs, etc. Sometimes the ship will also entrust the shipping agent to sign the bill of lading.

Freight forwarding is a freight forwarder, not the actual carrier of the shipping company. Freight forwarding, logistics (third party), and freight companies are essentially the same. A freight forwarder is different from a shipping agent. The shipping agent can handle booking, signing, changing the order, and releasing containers on behalf of the shipping company, which are functions that the freight forwarder does not have.

Here are some differences between freight forwarding and shipping agency in detail:

  1. Different definitions

Freight forwarding: The full name is freight forwarding. Refers to the entrustment of the owner to complete a certain link in the import and export logistics transportation of goods or a link related to this. Common freight forwarding work includes import and export by air, import customs clearance, import declaration and so on.

Shipping Agency: The full name is Shipping Agency. It refers to the formalities and coordination work related to the ship business, and ultimately ensures the smooth progress of cargo loading and unloading. Common shipping agency work includes: quarantine, towing, loading and unloading cargo, signing bills of lading, etc.

  1. Different responsibilities

The freight forwarder is essentially the same as the third-party logistics. It is not the actual carrier of the shipping company, but the consignor of the cargo owner, helping the cargo owner to handle the connection and communication of the cargo in the import and export logistics. The shipping agency mainly provides a series of specific services for ships and shipping companies.

  1. Different service objects

Freight Forwarder: Serving the vast number of foreign trade, factories and cargo owner friends, it is the link between the cargo owner and the carrier.

Shipping Agency: Serving the shipping company, it is a bridge between the shipping company or the carrier and the port.

  1. Others

Freight forwarding: generally divided into first-level freight forwarding and second-level freight forwarding. The first-level freight forwarder can directly book space with the shipping company, but it is not necessarily qualified to book space, and the second-level freight forwarder is not necessarily worse than the first-level freight forwarder. It depends on the qualification and ability of the freight forwarding company. Not all freight forwarders are omnipotent, and not all freight forwarders have the same scope of work.

Shipping agency: The LCL booking is made by the freight forwarding company, and the shipping company generally does not accept LCL, so the LCL bill of lading is generally not the shipping company’s bill of lading.

Generally speaking, the shipping agent is not the same as the freight forwarding agent. The freight forwarding agent may be the shipping agent, and the shipping agent must be the freight forwarding agent. The choice of the freight forwarding agent mainly depends on its service. After the service is the price, so the freight forwarder with good cost performance is the first choice! TJ China Freight hopes to provide you with satisfactory service and a more cost-effective choice!

2023 | A Guide to Common Shipping Documents in International Trade

International trade is a responsible affair and different countries correspond to different regulations and require different relevant documents. The choice of shipping method corresponds to different materials, so below is a list of a few of the most commonly used shipping documents that should give you an idea of what documents are required to ship your goods or personal effects.

Commercial invoices

A commercial invoice is a document presented by the seller containing the name, quantity and price of the goods. A commercial invoice is effectively a note or invoice from the seller to the buyer describing the agreement between the parties on the terms of sale and purchase of the goods.

The commercial invoice is mainly used for import and export of goods between countries. It is mandatory in international trade. The commercial form of the invoice is used for customs clearance and collection of duties, and some countries require the original invoice for customs purposes.

It also records the goods being transported, the place from or to which they are being shipped and the names of the parties or businesses involved in the transport of the goods.

Bill of Lading (B/L)

A BOL has a lot of information. The B/L must have the name of the consignor and consignee, the origin, the destination and the quantity of goods. It is one of the most important documents you will care about when shipping internationally.

There are two forms of bill of lading. A non-negotiable bill of lading is a registered bill of lading, also known as a non-negotiable bill of lading.

In this case, the goods recorded on the bill of lading can only be picked up by the specific consignee on the bill of lading, in other words, the carrier can only deliver the goods at the port to the consignee named on the bill of lading for unloading.

A bearer bill of lading is negotiable – the carrier delivers the goods to the person holding the bill of lading. As a shipper or customer, you should always have a copy of the bill of lading because you prove that you own or have the right to claim the consignment.

A bill of lading is a written document provided by the carrier, usually signed by the shipping company’s transport department, certifying the carrier’s acceptance of the particular goods received in the form of cargo and its responsibility to deliver the goods to their destination. destination or to the named consignee.

Insurance document

An insurance policy is a certificate of cover issued by an underwriter who has underwritten insurance. This is the insurance of the goods purchased at the port of export prior to shipment. This document will be the basis of your claim if these goods are lost, stolen or damaged in transit.

Packing List

A packing list is a document detailing the contents of a shipment. As a supplementary document, it sets out details of the packing matters agreed between the buyer and seller in the letter of credit (or contract) so that foreign buyers and customs can check the destination of the goods when they arrive in port.

Usually, the commercial invoice includes the relevant contents, but when explicitly required by the L/C, the packing list must be produced strictly in accordance with the L/C.

Certificate of Origin

A certificate of origin is a document issued by the relevant government agency of the exporting country to prove the origin or place of manufacture of the goods. It is mainly used by the customs of the importing country to implement differential tariffs, import duty rates, import quotas, etc. according to different national policies.

Importers require exporters to provide certificates of origin, which are available in various forms. The most widely used are Certificate of Origin and GSP Certificate of Origin, which are commonly used in countries or regions where customs invoices or consular invoices do not need to be provided.

If you are importing from China, the certificate of origin is issued by the Chinese government’s customs department.

Air Waybill

This shipping document is issued by the air carrier or its agent. It is the carrier’s receipt of the goods and is the contract of carriage between the shipper and the carrier, proving that the carrier has received the goods you have listed in the AWB and that the air waybill is also non-negotiable.

It is also your proof that the carrier is responsible for the removal of your goods to the named destination.

Import Licence

Some countries require importers to obtain a prior licence for the import of certain goods. Otherwise, they cannot engage in this business.

These countries limit the amount of imports for the sake of homeland protection. So foreign companies have to apply for an import licence in order to import some goods.

Relevant Dangerous Goods Certificates

For certain goods you must prepare a Dangerous Goods Certificate. If the goods you are transporting are dangerous goods, you will need to use a Dangerous Goods Note, also known as a DGN.

The DRG will give details of what dangerous goods are, what risks may be involved in transporting them and how to transport them efficiently and safely. For example, if you are transporting lithium batteries, you will need an MSDS.

Our advice

Knowing the correct way to prepare these documents is very specific and must be done properly, otherwise even minor errors in the documents will be enough to keep your goods in customs for a long time.

Worse still, you will have to pay fines or penalties. To avoid this, it is a good idea to have your international shipping provider or customs broker assist you with all documentation requirements.

In addition, you need to know which documents are relevant to the laws of the country you are importing or exporting to, the goods and the mode of transport. For example, sea freight and air freight have different documentation requirements.

When you need to import certain goods from China, you should choose a professional China freight forwarder to hedge all the risks for you, a professional doing a professional job to achieve twice the result with half the effort. TJ China freight is a good choice for you.

Shipping from China to USA: Everything You Should Know

Ways to ship from China to US

  1. International commercial express

International commercial express refers to the express and logistics business carried out between two or more countries (or regions). After the international express shipment arrives at the destination country, it needs to be delivered in the destination country before the express shipment can be delivered to the final destination. International express parcel delivery is fast and the service is excellent, but the price is relatively high. Common logistics carriers include UPS, DHL Express, FedEx, etc.

  1. Air freight

Air freight refers to a mode of transportation that uses aircraft as a means of transportation for cross-border transportation of goods.

  1. Sea transportation is a way of using ships to transport goods between ports in different countries and regions through sea lanes, including FCL and LCL.

How to choose FCL or LCL?

Depends on the volume of the consignment to be shipped. The minimum container type of a standard ocean freight container is 20 feet. If the volume of the consigned goods is less than 20cbm, it is recommended to use LCL transportation; if it is larger than 20cbm, use FCL transportation.

How much does it cost to ship from China to US?

Different goods, different routes, the corresponding international express freight is usually not the same. The price of sensitive goods (liquid, powder, liquid, food, medicine, F brand, etc.) will be higher than that of general goods, and sea freight will be cheaper than air freight.

International express charges

  1. The weight of an international express package is divided into actual weight and volume weight. The international express company will use the larger of the two weights as the billing weight.
  2. Calculation of the volume weight of DHL, TNT, UPS and FedEx (Federal) four major international express delivery (length*width*height/5000); calculation method of volume weight of air or ocean special line package: (length x width x height/6000), Relatively speaking, the price of the special line with double clearance and tax package will be more cost-effective, and it is a more cost-effective mode of transportation

At this point, you’re likely wondering how long packages from China take to arrive in the US. In general, shipping by air is much faster than shipping by sea. With all the supply chain blockages due to COVID-19, it’s become increasingly common to see delays in shipping.

When you import goods from China, you must prepare for the Chinese New Year shutdown. However, you should also be aware of other Chinese holidays, here is the full calendar of holidays and observances in China.

1. Express shipping

Express shipping usually takes 4 to 7 days. If your product has a high-profit margin, you might want to use this option to get your product on the shelves as quickly as possible. Here the average shipping times for express shipping to the US. depending on the carrier. EMS takes 3 to 16 days, DHL takes 1 to 4 days, FedEx takes 1 to 5 days, and UPS takes 1 to 5 days as well.

2. Air Freight

Air Freight is quite like express freight. However, your regular air freight shipment won’t be a priority because you did not pay the extra fees. There is a wide range in shipping times with air freight. Anywhere between 7 and 15 days.

3. Sea Freight

Lately, we’ve seen numerous port closures in China due to the coronavirus. This has had a domino effect on all aspects of shipping, but it has harmed sea freight the most. Nowadays, Sea freight to the west coast of US is 15+ days. Sea freight to the east coast is going to be about 30+ days. Get your business a professional China freight forwarder to book space for your goods to make sure it will not be affected by season, holiday or other events.

In case you want to ship sea freight to the east coast, you might be better off receiving your goods from a port on the west coast and sending them to your destination by truck or by rail.

How Can Find Professional Freight Forwarders in China?

How can overseas buyers find professional forwarding services in China? Based on China’s complete industrial chain, overseas buyers can quickly find the materials or goods they want in China, and they are well-equipped with high quality and low price. After the goods are purchased, they need to be shipped back by international logistics. At this time, we need to cooperate with the freight forwarding company.

In particular, professional freight forwarders can rely on professional industry experience and services to help us save time and effort to complete commodity procurement. But there are many freight forwarding companies in China, how can we cooperate with a professional company? If the overseas purchaser is in China, he can find a reliable freight forwarder through online search + door-to-door visit. If the overseas purchaser is in a foreign country, he can only learn about it through the Internet and choose a freight forwarder.

How can overseas buyers find professional freight forwarders in China?

  1. People in China

Overseas buyers in China can search for freight forwarders by entering keywords through the browser. I believe everyone is good at this. After finding several freight forwarders, we can use some methods to filter out some freight forwarders that we think are unreliable. For example, low-quality advertisements, poor official or no official website, etc., can basically be ruled out.

After finding several freight forwarders, you can visit them to learn about the company’s scale, facilities and equipment, and efficiency, and you can get lower transportation prices based on your own cargo volume advantages. In this way, we can kill two birds with one stone, not only can we find reliable freight forwarders, but we can also enjoy lower delivery prices.

  1. People are abroad

When people are abroad, it is more complicated, and the rate of misjudgment will be higher, but we can reduce the risk of selection in some ways. Similarly, we need to screen some companies that we think are more reliable on the Internet, and then we need to understand the reliability of the company through multiple aspects.

Including enterprise scale, industry experience, service team, facilities and equipment, service capabilities, Internet word-of-mouth, after-sales service, etc. Below, we will introduce how to judge these aspects and their functions.

Enterprise scale: Due to the inherent reasons of capital chain or immature operation, small enterprises have a high probability of bad freight forwarders and unscrupulous freight forwarders. Therefore, we need to choose freight forwarders with a certain scale. Too big is not good, too big freight forwarding companies mainly focus on big customers, and do not take care of small and medium-sized customers in place.

Service team: A perfect service team can provide all kinds of perfect and professional logistics services. From the perspective of the freight forwarding industry, the company has at least six basic teams: customer service, business, documentary, operation, warehouse management, and parcel collection. Some companies have other service teams, such as the operation team, IT team, bill making/posting team, etc. of Taijia Logistics.

Facilities and equipment: Facilities and equipment are closely related to logistics services. In terms of hardware, including trailers, sorting equipment, site facilities and office equipment, everyone needs to understand. In terms of software, it mainly depends on whether the enterprise has its own logistics management system. With a logistics management system, it can directly place orders online and handle the corresponding logistics business.

Service ability: Everyone needs to judge from the service ability of each logistics service team, such as the customer service team’s answering efficiency, service attitude, processing efficiency, logistics problem-solving ability, etc.

Internet word-of-mouth: In the Internet age, everyone can express their voice on the Internet, so we can find the recent evaluation of the company from the Internet, so as to provide a basis for our judgment in choosing a freight forwarding company.

After-sales service: Find out whether the company has perfect after-sales service and whether it can compensate according to industry standards. In addition, for more expensive goods, whether to sign another compensation agreement is also very critical.

How can overseas buyers find a professional freight forwarder in China? The above two situations you have encountered will introduce how to find a professional freight forwarder in China. TJ CHINA FREIGHT has been focusing on freight forwarding for eleven years. It is a well-known logistics service company headquartered in Shenzhen. It can provide comprehensive and high-quality transnational logistics services for domestic and foreign customers.