How to Calculate Freight Rate for Your Sea Shipping

Sea freight is always considered to be the lowest in cost. For shipping high volume and heavy cargo, sea freight is the most cost-effective and safe logistics solution. Today, we are going to introduce you to how to calculate the sea freight rate. For instance, if you need to import some furniture sets from China to your country, your freight forwarder in China will offer the rates. What aspects should you consider before your confirming a shipment? The answer should be type of service chosen, the time of shipping, the equipment used, etc.

how to calculate the sea freight rate

Calculate the volumetric weight of your shipment

The base of cost calculation in sea freight depends on the type of movement. In general, it is either CBM/Ton or container. For Bulk and Break-Bulk freight, it is in CBM or Ton, the same applies to LCL ( Less than Container Load) shipments. But when the cargo is containerized, it will depend on the shipping containers used.

For shipments calculated by Weight and Volume, in sea freight transport, the ratio is “ 1:1” which means every Ton equals one CBM (Cubic Meter). In formula to calculate the volume:

If the volume of a shipment is 10 CBMs and the weight is 5,000 Kgs (5 Tons) then the 10 CBMs are considered for cost calculations (the chargeable weight is the higher between volume and weight).

How sea freight rate is determined

There are different points to consider when requesting a sea freight quotation. These are the most important ones:

POL (Port of Loading): Where will the sea shipment be originated from. Choosing the right “POL” is going to help in reducing the sea freight rates and pre-carriage (origin country trucking) costs.

POD (Port of Discharge): The seaport where the shipment will be released is a major game-changer for the sea freight cost. Freight rates will vary between carriers for the same destination port.

Commodity: The nature of the cargo itself is important. If the items require climate control we will have to use a reefer container, or dimensions are more than normal shipping containers height. It may need an open-top container which may double the price on certain occasions.

Shipping Container Type: There are many kinds of shipping containers. The most commonly used ones in sea freight are ( 20 ft, 40 ft, 40 HC, 20 RF, 40 RH, and 40 OT). Picking the right container for your cargo will save on the shipping costs big time.

Time of shipping: There are certain parts of the year where sea freight rates spike either because the basic ocean freight rates go up or when sea carriers apply extra charges like GRI (General Rate Increase) or some PSS ( Peak Season Surcharge) and congestion fees, … etc. Therefore, when planning your shipping, it is good to consider this thing to save on the shipping costs.

In sea freight, shipping costs can be either per CBM/Ton, per container (or TEU: Twenty-foot Equivalent Unit), or per shipment. Therefore it is important to calculate the volume and measure the weight properly. For example to move shipment by LCL (Less than Container Load): you will need to pay the freight, CFS charges, Bill of Lading fees, and documentation.

If you are puzzled about how to calculate the sea freight, feel free to contact our professional forwarder team to get an instant quote for shipping from China to your destination cities.

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.

 

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!

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.

Guide to the Rules for Importing Dangerous Goods From China to the USA | 2023

The transportation of dangerous goods always requires high requirements, after all, its chemical nature is more specific and those who do not understand it can easily fall into danger, therefore the United States has specifically enacted the Hazardous Materials Transportation Act.

  1. The Hazardous Materials Transportation Act (HMTA) has been implemented in order to counteract the risks to survival, property and the surrounding environment.

The US Department of Transportation regulates the entry of dangerous goods. According to the U.S. Department of Transportation, hazardous materials destined for the United States or in transit within the United States must be checked for follow-up policies.

– The name of the hazardous material on the consignment note, bill of lading or manifest must be a detailed chemical and technical name, not a generic name.

– Shippers should provide full information on emergency handling of destructive cargo to the US Port Authority in advance through the service, i.e. Dangerous Goods Safety Data Card, or provide emergency handling instructions to the US Department of Transportation.

– The shipper’s emergency telephone number must be stated on the consignment note, bill of lading and manifest. And there must be a person on duty 24 hours a day, regardless of holidays, available to answer enquiries from the US side.

– There are a number of factors that apply to shipping from China to the USA using containers: the maximum weight of a container shipment is 38,000 pounds for 20 feet; the maximum weight for 40 feet is 42,000 pounds. The contents must be well padded and strapped; damaged goods inside need to be marked with visible symptoms and markings. The same applies to the outer surface of the carton.

New York and Los Angeles are ports that export more dangerous goods to the USA. Other towns to visit more often are Chicago and Boston. This is a complex and specialist technique and guidelines or guidance must be followed at every step.

  1. Dangerous goods considerations in road transport

Road transport is inevitable in the whole technique of transporting goods. We all know that it is usually the trucks that carry the goods to their final destination. On this road, there are several key points if you want to ensure the protection of dangerous goods.

  • Loading and unloading. It is important that handlers take care to protect themselves and follow strict handling practices. As I said above, most dangerous goods must be protected from any impact or influence to avoid explosion.
  • Parking. Cars or vehicles carrying dangerous goods are prohibited from being parked in general public places, including colleges and scenic areas.
  • Cleaning. Cars or vans that have been used to transport dangerous goods must be well wiped down and disinfected after unloading.
  • Packaging. Prior to shipment, packaging should be carried out in a safe manner, taking into account the nature of the risk item, the distance to be transported, street conditions, etc. Packaging should be strong and rigid, with clean, standardized, problem-free identifiable markings on the packaging.

It is important to understand the regulations related to the transportation of dangerous goods and to strictly follow the relevant regulations. At the same time, if you hire a good Chinese freight forwarder – tj china freight will get twice the result with half the effort

A Guide to Knowledge Standard Container Sizes in 2023

90% of global trade is carried out by sea, so as an important component of shipping, do you know about containers?

The standard ISO dry cargo container is 7.8 feet (2.3 metres) wide and 7.9 feet (2.3 metres) high and comes in two lengths: 20 feet (5.9 metres) and 40 feet (12.03 metres). These are the most popular type of container and are used to transport dry goods including machinery, grain, paper and electronics.

This popular shipping container type is available in three standard sizes: 20ft, 40ft and 40ft high cubes.

Standard versus special shipping containers. What’s the difference?

Perhaps you are wondering what the difference is between a standard container and a special container. Standard containers, or dry containers, are only used for transporting dry goods. These are boxes made of aluminium or steel with a set of doors at one end.

A special container, on the other hand, is a box that has been modified to meet specific transport needs. This category includes refrigerated containers, flat rack boxes and tank containers, to name just a few. Special containers are used to transport temperature-sensitive items, liquids and gases, or oversized/bulky-shaped cargo.

Let’s take a look at the dimensions of the China freight  Dry Cargo Container below.

20ft Dry Cargo Container Dimensions

The 20ft dry cargo container is a favourite for transporting a wide range of dry goods.

This container size is often in demand due to its convenient smaller size. It is easy to load and unload from a ship and can be used in ports where advanced lifting equipment is not available. It is also ideal for intermodal transport (by road, train and ship).

The 40ft standard container is another popular choice for transporting dry goods. This type of box is a sibling of 20ft and is twice as long.

Got extra cargo that won’t fit in a 20ft? Don’t stress, we’ll let you in on a little secret. 40ft is usually only about 20-30% more expensive than 20ft, but twice as much space.

A 40ft cube is exactly the same as a 40ft dry cargo container, only with the added height. This size of the container is perfect for transporting taller or oversized items that don’t fit in a standard box. Or if you just want to fit more cargo in your box.

Dimensions of reefer shipping containers

The term ‘reefer’ is short for ‘refrigerated container’. These boxes are used to transport temperature-sensitive goods such as fruit, meat, flowers, seafood, dairy products and pharmaceuticals.

Reefer containers use sophisticated cooling equipment to cool or freeze the goods. You can also section containers for cooling and freezing at the same time. Reefer containers can maintain any temperature between -30°C and +30°C.

Let’s take a look at the following sizes of 20ft, 40ft and 40ft HC reefer containers

freight container sizes

Double door container sizes 20ft 40ft

Double door containers have doors at both ends for quick and easy loading and unloading of goods. These boxes are perfect for transporting cars, bicycles, boats and other vehicles.

Tank Standard Container Dimensions

If you need to transport liquids, gases, powders or hazardous materials, a tank container is your answer. Tank containers are cylindrical in shape and are housed in a rectangular frame. They are made of stainless steel.

Tank containers are lined with insulation, as well as a protective layer of aluminium or polyurethane. This makes them a safe and reliable option for transporting a wide range of materials.

Insulated container specifications

Insulated containers have double walls to keep the goods inside cool. The interior is completely sealed to avoid condensation, as well as any moisture build-up.

Insulated containers are used to transport wine, fresh goods and beverages for short journeys.

Pallet width container sizes

These containers are designed for the transport of goods on wooden Euro pallets. Two pallets can be placed side by side and stacked to the ceiling. These containers are manufactured to exact dimensions so that the Euro pallets fit snugly together with no room to move or slide.

Flat rack container dimensions

Flat rack containers have no roof and no long side walls. This container type makes it easy to load awkwardly shaped goods. You can load goods from either side or the top with great ease.

Once the goods have been successfully loaded, they can be secured and fastened using lashing rings. The newer flat racks can carry between 40,000 and 50,000 kg of cargo!

Hard Top Shipping Container Dimensions

Perhaps you are wondering: what is the difference between an open top and a hard top container? The answer is simple.

An open-top container is covered by a tarpaulin sheet, whereas a hard top container has a removable steel roof. The purpose of both types of container is the same – the removable roof provides space for oversized cargo. It also makes it possible to load from the top.

Side door container dimensions

Side door containers have an extra door that opens on the long side of the container.

The extra space created by the side door allows for quick and easy loading and unloading of awkwardly shaped or bulky goods. The extra door also makes it possible for more workers to load the cargo at the same time.

Learn Some Basic Tips About Shipping Cargo

Different goods often use different shipment matters are also different freight way, together with learning all of those!

Bulk and project cargo freight terminals

In contrast to the specific requirements of container and intermodal terminals, bulk cargo is characterised by non-standard nature and size variations, requiring high levels of resources at the terminal and transport end, open or closed storage, vessel services and terminal transfers, as well as specialized handling equipment requiring heavy lift capacity where necessary.

These can include temporary or permanent ship offloading facilities (MOLF) for nuclear power stations, temporary heavy lift terminals for offloading turbines for new conventional power stations in remote areas, fabrication, assembly, foundation loading, turbine and offshore substation fabrication, and offshore substations for offshore wind.

Using a full container is often the most cost-effective way if you have the volume of cargo to accommodate a full container. We support FCL ocean freight and help you save a lot of cost.

Container terminals

In the international container shipping industry it is vital to remain competitive and regularly upgrade facilities to maximize storage capacity and reduce container handling costs.  Multimodal transport is the new way of moving freight in recent years.

Intermodal Cargo Terminals

Intermodal freight transport involves multiple modes of transport, including rail, ship and truck, in the course of container transport, without the need to unpack containers. By reducing the volume of cargo handled, we reduce the potential risk of damage and loss of cargo, while also increasing safety and speeding up the movement of cargo. More and more shippers are accepting this mode of transport for their goods.

Increasingly, however, the challenge is that port facility developers need efficient and scalable terminal layouts, while intermodal transport developers need sophisticated logistics and operational improvements to accommodate the seamless and rapid transfer of cargo between different modes of transport. The logistics of liquids often involve further considerations see.

Dry and liquid bulk terminals

Dry and liquid bulk materials have specific handling requirements and pre-determining the transport and storage of potential cargoes is part of the scope of the solution. These types of transport remain important as fuels, petrochemicals, aggregates, grains and other commodities require terminal pipelines or conveyors to and from ships.

At the same time, land-based transport and storage equipment for ship handling varies considerably and may even require highly customised solutions for specific cargoes. This includes the customized electromechanical services often required for individual types of bulk berth configuration, as well as handling incoming bulk cargo from trains and trucks, port storage, reclamation and conveying systems for ship loading, port berths, quays, ship handling, and navigation.

If you have no idea about your shipping type, feel free to send an inquiry about details. The most professional China freight forwarder team of TJ  team will arrange your cargo better at a lower price.

2022 Latest Freight Forwarding Guide

What is a freight forwarder?

Freight forwarder, literally short for freight forwarder, is an international freight forwarder. In terms of job content, it is the acceptance of a client’s commitment to complete a particular aspect of the transport of goods or a link related to it, and any work involved in this area can be done directly or indirectly by finding a freight forwarder to save capital. Depending on the goods there are also overseas agents. A freight forwarder is a general term for the business of providing various transport services in the field of circulation specifically for those who demand and supply capacity for the transport of goods. They serve the whole society and act as a bridge and link between cargo owners and capacity providers, China is one of the biggest importing and exporting markets, and a professional China freight forwarder will build a strong relationship between suppliers and clients.

Mode of transport

  1. Ocean Freight Forwarding

Refers to the international freight forwarding agent that provides waterborne cargo transportation services and related services. It can be specifically divided into two types of ocean freight forwarding and river freight forwarding.

2、Air freight forwarding

Refers to the international freight forwarder who provides air cargo transportation and related services.

3、Land transport agency

Refers to the provision of road, rail, pipeline transport and other cargo transportation services and related services of freight forwarding.

4、Intermodal Transport Agency

Refers to the international freight forwarder who provides cargo transportation services such as road, rail, and pipeline transportation and related services. This kind of agent can be further divided into sea-air intermodal transport agent, sea-rail intermodal transport agent, air-rail intermodal transport agent and other types.

As with any logistics service, there are many factors that play into the end-to-end process. Freight forwarding may seem like a win-win situation for customers. Despite this, there are also some caveats to be aware of before diving in with a forwarder service. Below are a few of the advantages and disadvantages of freight forwarding.

Advantages of Freight Forwarders

  1. Freight forwarder services offer competitive pricing based on services needed by a customer. They can also lower prices through the consolidation of cargo from other customers. This allows for a single full container load with multiple customers’ cargo. Also, this serves to reduce final freight charges for less than container shipments.
  2. Freight forwarders usually specialize in a specific service, mode of transportation or market. This allows the company to choose the services the forwarder should handle. In turn, this gives the company greater control over the handling of its shipment.
  3. Knowledge and expertise are crucial when importing or exporting products. This work is performed via the customs clearance process. Freight forwarders have the most up-to-date information on customs regulations. Additionally, they can handle documentation, pay tariffs and handle taxes.
  4. One of the main advantages of a freight forwarder is their ability to offer services relating to trade. Some services include documentation, bank paperwork, cargo insurance, and inventory management.

Potential Disadvantages of Freight Forwarders

  1.  Often, freight forwarding services aren’t the operators of the transportation moving the cargo. For this reason, their influence on what happens on board the ship, rail car, truck or airplane is minimal. Additionally, their participation in the transportation steps is typically completely hands-off.
  2. If you perform all documentation and forwarding, your costs are controllable. But, with a freight forwarder, there is no way to know what kind of service markup the forwarder is adding. A company might charge $2,500 for land transportation to a destination. Conversely, a freight forwarder can state the price as $5,500 and skim the $3,000 markup off the top.
  3. Product loss is a hard reality of some shipping processes. Putting trust in a freight forwarder to handle all shipping can lead to a loss of supply chain control. If the freight forwarder is detail-oriented, things are fine. But ineptitude can wreak havoc on shipments and lead to losses.

Do You Need Freight Forwarding?

Freight forwarding is an easy way to take your business and cargo to the next level. But, there are times when it is more effective to ship directly with the shipping company. Especially when they provide the same end-to-end supply chain services as forwarders, without the markup.If you happen to be in need of one, TJ China freight is highly recommended, offering sea freight, air freight, rail freight, FCL, LCL, DDP, DDU and more. One of the top-ranked companies in China in terms of freight rating.