/ By TJ China Freight / China Freight News • International • Logistic • sea freight forwarder

Analysis of Factors Influencing the Maritime Market to 2023

Compared to previous years, the second half of the year is the peak season for the freight market, as the end of the year is the peak season for sales and many retailers stock up well in advance for the big day.

Earlier this year, many expected this period to put additional pressure on ships and container space due to the typical surge in freight volumes. However, this surge did not happen in June as expected and July got off to a weaker start than many in the industry had thought. This means that – as of the date of publication – there is available container space and sea freight rates on some trade routes have even started to fall.

While the past few years have made it very clear that the market can change at any time, there are several potential reasons for lower-than-expected freight volumes. However, there are other factors to be aware of when planning upcoming shipments. Importers should work with their logistics providers to discuss the current situation and plan accordingly.

What is affecting China sea shipping market?

Although shipping space is currently not as tight as it has been in recent months, importers need to understand why this is the case and how the market is likely to be affected in the coming months.

Russia-Ukraine war  

The ongoing conflict in Ukraine could lead to delays for vessels in the future. Changes in consumer demand may also lead to changes in European freight volumes as the situation develops.

Port backlogs

As the global pandemic begins, the Port of Long Beach is making headlines with a record number of ships waiting to unload containers. This backlog has led many importers and their logistics partners to ship their cargo through other US ports, primarily on the East Coast. Those East Coast ports are now experiencing delays while ships are moving more smoothly through West Coast ports (although volumes are still high).

Rebalancing the normal flow of containers may take some time and could lead to other problems if the volume of cargo increases further.

China’s blockade

Blockades may occur with little warning as China has taken strict measures to prevent Covid levels from rising. When these measures come into effect, temporary factory closures, reduced shipments from factories to ports and lower factory productivity due to worker sickness could all lead to lower export volumes. Such reductions may make it easier to find space, but as we saw last year, prolonged or frequent blockades can lead to containers being stalled at ports and shipping companies may issue significant stoppages to help offset costs.

Reduced demand for household goods

Cargo on the TBED (Trans-Pacific Eastbound) trade lane consists mainly of household goods such as furniture and decorative items. With inflation on the rise, many shops dealing with backlogs and people spending less on goods, there does not seem to be as much demand for these goods as in recent years. This may be one reason why there is currently more available ship space than experts are predicting for this time of year. However, if demand picks up, capacity could be tight again.

There are many factors affecting the transport industry, but these are the main ones, so let’s hope that these next problems are alleviated.

/ By TJ China Freight / Logistic • Moving • sea freight forwarder • Shipping

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.

/ By TJ China Freight / Logistic • Moving • sea freight forwarder • Shipping • Warehouse

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.

/ By TJ China Freight / China Freight News • Logistic • News Center • Shipping • Transport

What is the Current Situation and Future of the China Shipping Industry?

With more than 18,000 kilometres of coastline and 123,000 kilometres of inland waterways, China’s unique natural conditions have laid a good foundation for the development of the shipping industry. The booming economy, especially the continuous, rapid and stable development of the national economy over the past 20 years since the implementation of reform and opening up, has provided a rare opportunity and impetus for the rise and development of China’s shipping industry.

Marine transportation, also known as “international marine cargo transportation”, is the most important mode of transportation in international logistics. As international trade becomes more and more prosperous, the process of globalization is further accelerated, and in the current global integration, all industries such as bulk commodities, consumer electronics, garments, etc. are deeply dependent on marine transportation, and marine transportation has also become the mainstream way of trade between various countries/regions, 19% of the world’s bulk sea cargo is currently shipped to China, and 20% of container transportation comes from China; and the new Of the new volume of maritime cargo transported, 60-70% is destined for China. China is the world’s largest port in terms of cargo and container throughput, with three of the top five ports in the world in terms of container throughput. As China’s economic influence continues to expand, the world’s shipping centre is gradually shifting from the West to the East, and China sea freight industry has entered the forefront of the world’s maritime competition. It is reported that China’s ocean shipping fleet has now entered the top ocean freight forwarders in the world.

The shipping industry has always been regarded as an important pillar industry for a country, and governments attach great importance to the nationalisation attributes of shipping enterprises. Cargo volume growth is slowing down and the overcapacity situation has not been fundamentally improved while cargo volume growth is being tested.

Market concentration is increasing, with mergers and acquisitions and alliances continuing and dominating market share. Changes in the internal and external environment have also led to changes in the liner industry, while a number of new trends have emerged. In recent years, the pace of consolidation in the global container shipping industry has accelerated, with mergers and acquisitions of liner companies and several restructuring of shipping alliances. At present, three alliances dominate the container shipping market and occupy the majority share on the three major east-west trunk routes. The outlook for China sea shipping industry is good and it is expected that by 2030 China will continue to secure its position as the world’s number one cargo trading nation and will dominate the global container maritime trade.

/ By TJ China Freight / China Freight News • Logistic • sea freight forwarder • Shipping • Transport

The Concept of Freight Forwarding and Its Main Responsibilities

Freight forwarding company is called freight forwarding company, which is mainly responsible for the business of cargo transportation, both domestic and foreign trade. The duty is to transport the goods entrusted by the client from one place to another through the established transport routes. They serve the whole society and are a bridge and a link between the cargo owner and the supplier of transportation capacity. The main business of freight forwarders is to provide freight intermediaries. Freight forwarders are responsible for working with customs, shipping companies agents are responsible for working with customs, shipping companies and airlines and transporting the client’s goods to overseas trade customers according to the terms of trade. Its responsibility is to transport the goods entrusted by the customer from one place to another by using sea, air and land transport methods through the determined transport routes. The service is intended for the entire community and is a bridge and link between cargo owners and transport capacity providers.

Local forwarder agents in china are generally engaged in the domestic transportation business, usually using zero-load and collector truck transportation; international freight companies are generally engaged in ship and air freight. Both companies are companies that own their own cars or ships, i.e., the owners. Domestic freight forwarders are generally freight forwarders, and international freight forwarders are generally ocean or freight forwarders.

Freight forwarding companies are divided into a level of international freight forwarding company limited, there are two, three, etc., a level of agents can be directly in the air or sea companies or railroad companies booked, two must only be booked at a level, and so on the formation of the international freight forwarding industry, is the inevitable product of the international commodity circulation process, is an indispensable component of international trade, because of this, the industry is recognized by countries around the world for international trade freight forwarding for businesses. Very proud to say that TJ China Freight is a first-class freight forwarding company approved by the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China, with first-class freight forwarding qualifications and a freight forwarding company engaged in international maritime and air freight forwarding services as an NVOCC. If you are looking for a  top ocean freight forwarders in China, TJ China Freight is a good choice.

/ By TJ China Freight / China Freight News • International • Logistic • News Center • sea freight forwarder

What Will Be the Trend of China’s Freight Forwarding Industry

Since the reform and opening up, China freight forwarding industry has developed rapidly and played an important role in expanding foreign trade, attracting foreign investment, expanding employment, and promoting the development of third-party logistics. At present, with the implementation of the “One Belt, One Road” strategy and the vigorous development of cross-border e-commerce, the development of international freight forwarding is expected to enter a new chapter.

Before the reform and opening up, cargo agent in China was strictly controlled and lagged behind in development. After the reform and opening up, the Chinese government gradually liberalized the management of international freight forwarding, international freight forwarding industry has ushered in rapid development. China’s international freight forwarding industry employs about 2.5 million people, the development momentum is strong. At the same time, the “Belt and Road” strategy and the continuous development of cross-border e-commerce provide sufficient growth momentum for the international freight forwarding industry, with a bright future. However, the international freight forwarding industry itself also has certain limitations. On the one hand, the international freight forwarding industry is a pure service industry, closely related to the quality of service, geographical location, interpersonal relationships, past history, etc., resulting in a small number of small and medium-sized freight forwarding companies and large freight forwarding companies, which is not conducive to the further development of the industry.

On the other hand, international freight forwarding is an industry where competition and cooperation coexist. For international freight forwarding enterprises, to achieve complementary business between different countries, regions and enterprises, information sharing and freight network sharing to enhance their own strength. In the above context, China’s international freight forwarding industry will show the following four major trends.

First, large-scale application of Internet information technology to improve the scope and efficiency of sharing and cooperation. Through the use of modern information technology, the integration of physical logistics networks and invisible information networks can be achieved.

Second, continue to extend the industry chain. A strong freight forwarder will certainly expand its business to logistics and supply chain management consulting services to improve its competitiveness.

Third, specialization, refinement and specialization continue to strengthen. With the increasingly fierce competition in the market, how to stand out has become the primary consideration of many small and medium-sized international freight forwarding enterprises. Therefore, strengthening specialization, refinement and specialization is inevitable. Finally, the speed of integration is accelerating. Since the development of the international freight industry, the trend of integration has gradually unfolded, especially for enterprises with similar geographical ties, regional concepts and social relations. With accelerated integration, the international freight industry can develop better.

/ By TJ China Freight / China Freight News • International • Logistic • sea freight forwarder

Guides for Shipping to China From USA

Shipping from China to the USA is expensive and consuming for most importing companies. In this blog, we will briefly introduce the main methods of shipping from China, how long will shipping take from China, and the shipping pricing information.

Shipping from China to the USA: Air freight and sea freight. You can choose the most suitable methods according to our sea freight for air freight guide.

Air freight from china can be categorized by 2 types: general cargo and special cargo. The former type refers to physical products like electronics, clothing, furniture, households, and pharmaceuticals alike. The latter means anything that requires special attention or care, like live animals, dangerous chemicals, and things that needs need freezing or maintaining freshness. Shipping by air requires an air waybill (AWB) which is a contract that outlines the conditions of the sale between the seller and buyer. The main advantage of air freight is fast transit time despite a higher rate than sea freight.

Sea freight from China is a more common option of international shipping for importing from China. It is the cheapest shipping method. To calculate the cost of your sea freight delivery, you’ll need the following:

  • Certificate of origin
  • 10-digit tariff classification number
  • Incoterms

You will need to request a freight quote from a shipping logistics company once you are comfortable with the price. This quote will determine the shipping cost from China. You then provide the freight company with your supplier’s contact information, and they’ll handle the shipping container’s journey from China to the USA.

Hire a Freight forwarder from China to the USA

For most enterprises, using a freight forwarder in China will be the most effective method, for a professional forwarder can handle all of the shipping logistic stuff easier and faster. Freight forwarders will use sea or air freight, and have expertise in preparing the necessary documents to carry out the shipment. They may also have access to shipping networks, and knowledge of the best shipping routes from China to the USA. This can speed up the process and make it convenient for small businesses to receive shipments from China.

Besides, it is possible now for freight forwarders to complete door-to-door shipping from China to the USA. It is much more convenient.

How long does shipping from China take?

It depends on the methods you choose. Usually, air freight will short transit time, and ocean freight will take longer up to 40 days. Of course, the quicker you need, and the more you will have to pay. Meantime, the shipping time also is affected by the cargo type, weight, volume, quantity and more. Generally, sea freight is the slowest but most cost-effective shipping method than any other methods.

Cost of shipping from China to USA

How much does shipping from China to USA take? It depends on many factors, too, like weight, shipping methods, cargo insurance, and types, for the details, you can send an inquiry to our expert team to get a better rate.

/ By TJ China Freight / China Freight News • Logistic • sea freight forwarder • Shipping

Air Freight or Sea Freight, Which One Would You Choose?

When it comes to choosing freight methods when you are doing import or export business, you will take a lot of elements into consideration, such as cargo weight, your budget, time, distance and type of commodity, and service like door-to-door or port-to-port. Air freight and sea freight are 2 of the main logistic ways for oversea sipping. For beginners who will ship large-scale or bulk cargo, it is essential to get to know the difference between these 2 ways. Here TJ China Freight will offer you some guidelines for how to choose your freight way, air freight or sea freight.

Air Freight vs. Sea Freight

Before you decide whether to use air freight or sea freight, you need to think about 3 questions first.

  1. Want to Save Money? As with parcels, freight cost is weight-based. If your shipment is small (up to about 50 kg) you’re better off with express freight shipping. Heavier than that, it gets more economic to go with air freight shipping. Then around the 500-kilogram mark (1100 lbs), ocean freight becomes cheaper. The differences can be staggering. For instance, a $195 ocean shipment can cost $1,000 by air. These weight cut-offs are approximate because costs don’t stay static. But you can get accurate estimates by get an inquiry from TJ  team, the best China freight forwarder offering you best shipping solutions.
  2. In a rush? Taking China to US door-to-door as a guide, express freight shipping takes about 3 days, compared to 8-10 days for air freight and 30 days or more on ocean freight. Each of these has a quicker premium option. Expedited ocean freight, for instance, can often shave 10 days or more off the transit time. Of course, there are always small ways to reduce the size, like skimping on packing or only palletizing after import, which may reduce the costs to make the air freight costs.
  3. Want your cargo reached as the appointed time? Ocean freight shipping is more likely to get caught up with long delays like bad weather and port congestion. That’s risky if it’s critical your shipment arrives by a certain date – even if that date is well after the estimated transit time for ocean freight shipping. Ocean freight moves around much more on a container ship than in the hold of a plane, so it is more likely to get damaged.

If you are facing an issue with choosing a freight forwarder for your importing or exporting to China, you can contact us for sea freight forwarding service or air freight forwarding servie. Excellent service and cost-effective solutions for your business project.

/ By TJ China Freight / China Freight News • International • Logistic

Incoterms Guide for China Export & Import Logistic

INCOTERMS (International Commercial Terms), also known as shipping terms, freight terms, or trade terms, are the global standard terminology and definitions used in international trade to determine which parties are responsible for the shipment at varying times during transit.

The terms can be used in 2 groups.  one group of incoterms is considered only suitable for sea freight and inland freight: FAS, FOB, CFR, and CIF.  Another group for any mode of transportation includes EXW, FCA, CPT, CIP, DAP, and DDP.

5 Common Incoterms

EXW – Ex Works

The delivery is accomplished when the buyer picks up the goods from the seller at the named place (warehouse, storage or factory etc.), the seller doesn’t clear the customs for export. Buyer controls freight from door to door. The contractual shipper on the waybill should be the buyer.

The buyer will designate one freight forwarder to arrange to pick up the shipment from the named place and undertake booking, customs declaration, inspection, and delivery to the destination. And the relevant expenses should be at the buyer’s cost.

FOB – Free on Board

The seller’s delivery is completed when the goods are across the ship’s rail. The buyer controls ocean freight routing. Fob terms require that the seller also clears the goods for export. Generally, this is the term most often used in importing from China.

The buyer will designate one freight forwarder to arrange the transportation after the shipment is loaded on board the ship and undertake booking, customs clearance, inspection, and delivery to the destination. And the relevant expenses should be at the buyer’s cost.

CFR – Cost and Freight (named port of destination)

The seller’s delivery is completed when the goods are at the port of destination across the ship’s rail. The seller has to pay for the shipment’s delivery to the destination port and declaration the customs for export.

The seller will designate one freight forwarder to arrange a trailer for transportation and undertake booking, customs declaration, inspection, and delivery to the destination. And the seller burdens the relevant expenses.

CIF – Cost, Insurance and Freight (named port of destination)

This term is the same as CFR terms, except the seller agrees to purchase marine insurance in the buyer’s interest.

DDP – Delivered Duty Paid

The seller takes responsibility for carriage, delivery of the goods at the named place, and customs clearance. And the seller should pay for the tariff and other fees.

Another group

Group E (EXW) – This is the minimum obligation for the seller. The buyer picks up the cargo from the seller at the named place.

F Group (FAS, FCA, FOB) – The seller delivers to the carrier assigned by the buyer.

C Group(CFR, CIF, CPT, CIP) – The seller arranges the shipping method but doesn’t bear the risk of being damaged after loading.

D Group(DAT, DAP, DDP) – The seller is responsible for the maximum obligation, including the risk and cost during the transportation.

When you are choosing a China freight forwarder, make sure you know these incoterms well, which is essential for cost saving.

 

/ By TJ China Freight / Cargo • China Freight News • International • Shipping

What is the Main Difference Between NVOCC and Freight Forwarder?

There is nothing more important than choosing a proper shipping agent whether you are importing or exporting.  In order to help you to choose the right partner, we are here to give you the difference between NVOCC and freight forwarder. Continue to read.

What Is NVOCC?

An NVOCC may be defined as an entity that provides ocean freight services as a “carrier,” albeit with or without own or operated vessels.

The NVOCC accomplishes this by buying slots or space from a VOCC (Vessel Operating Common Carrier) and reselling the same to their customers, who can be exporters or forwarders.

NVOCC issues its own House Bill of Lading as a “carrier” and, in doing so, undertakes the responsibilities of a carrier subject to, of course, the terms, conditions, and liabilities of their bill of lading.

Apart from obtaining a license from the FMC, NVOCC operators also have to file a tariff before operation in the USA.

A tariff contains actual freight rates, charges, surcharges, freight classifications, rules, regulations, and practices of a common carrier (VOCC or NVOCC).

Who is a freight forwarder?

A freight forwarder is a supply chain expert who arranges for the seamless movement of cargo. And they do that by arranging and facilitating the transportation of your goods via different modes: ocean, rail, air, or road. The only golden rule about freight forwarders is that they are not the ones moving your cargo, only arranging for it.

Exporting goods is not easy with way too many steps, documents, and certificates to clear. It’s almost impossible for novice exporters to know all about these. So when you’re hiring a freight forwarder, you’re basically paying them to get all of these in order. As a result, in many instances, freight forwarders are referred to as ‘shippers’ in relation to ocean carriers.

What is the difference between NVOCC and Freight Forwarder? Check the following chart

Looking for China freight forwarder, TJ China freight is always the most trusted partner who will handle everything for your cargo. We offer sea freight, air freight, and rail freight and more. Better service and competitive price.