/ By tjchinafreight ivy / Shipping

China Golden Week: How logistics came to a standstill

China Golden Week: How logistics came to a standstill
China Golden Week: How logistics came to a standstill

What is China Golden Week?

As one of the largest and most important markets in the world, China's logistics infrastructure is under enormous pressure to maintain a certain level of productivity and efficiency to keep global supply chains functioning and stable.

From factories and warehouses to ports, docks and more, Chinese workers in all logistics industries work long hours throughout the year to ensure the maintenance of global supply networks.

But twice a year, the world's largest exporter allows itself a break.

Known in China as Golden Week, the country has two such week-long respites - once every six months.

The first, known as the Lunar New Year Golden Week, is in January/February at the beginning of the year, giving people time to celebrate the Lunar New Year.

The second, National Day Golden Week, is part of the country’s National Day celebrations and takes place in October – right in the middle of the peak shipping season.

Given China's impact on global markets and world trade, the week-long - albeit expected - lull threatens to disrupt global supply chain operations, ripple effects and logistical delays.

In this article, we will focus on the National Day Golden Week in October. But to understand how China's National Day Golden Week affects logistics, we must first dive into some basic facts about the holiday.

When is China's National Golden Week?

China's National Golden Week is held every year in the first week of October to celebrate the founding of the People's Republic of China.

Golden Week 2022 will run from October 1st to October 7th.

How does China's Golden Week affect logistics?

Demand for Chinese exports soared in the weeks leading up to China's Golden Week as companies tried to get their exports out before operations in the country shut down completely.

In response to the lack of activity, shipping lines often announce service cuts.

At the time of writing, two major shipping alliances have announced cuts to 15 weekly sailings from Asia to North America:

  • Nine o'clock to the west coast
  • Four to the east coast
  • Two go to the gulf coast

Even after Golden Week, capacity and personnel tend to remain limited, and production may slowly pick up. Carriers may also continue to cancel sailings in the coming weeks.

That said, failing to get your goods in and out of China ahead of the festivities can have dire consequences, as Golden Week delays can sometimes stretch for months.

For businesses, this can translate into potential contract breaches, accumulated delay charges, low sales figures, and more.

High demand and low availability

Demand for Chinese exports surged in the weeks leading up to the start of Golden Week.

That's in anticipation of the shutdown, as businesses importing from China try to get a spot on outgoing ships to ensure their goods leave the world's largest exporter before production halts.

In response to this growing demand, shipping lines have increased spot rates. Spot freight rates from China to the North American West Coast were at their highest level in two months as of early September.

Amid this boom, the industry is also facing shortages of containers, slots, truckers and everything in between. Shippers should be prepared to go the extra mile to ensure not only a slot on a container ship, but also cover for the equipment they need for transportation.

In addition to the standard General Rate Increase (GRI), there are other surcharges to consider.

Given the higher demand for Chinese exports compared to Chinese imports, there is often an urgent need to return containers to terminals to manage demand in Chinese ports.

At this point, carriers began implementing surcharges such as equipment imbalance surcharge (EIS) to compensate for the cost of returning empty containers to Chinese ports to meet export demand.

/ By tjchinafreight ivy / Shipping

Top 5 major ports in Spain

Top 5 major ports in Spain
Top 5 major ports in Spain

Spain has long been synonymous with efficient and vast maritime trade, an association that has historically brought prosperity to European nations. With well-maintained ports and continued growth in technology, equipment and expertise, Spanish ports will continue to be key to trade, partnerships and economic growth in the region.

Here are five top ports in the country that continue to make Spain a force to be reckoned with in the region:

1. Port of Algeciras

Algeciras is one of the largest ports in Spain. The port, like its sister port, sits on the 5,000 km coastline of the Spanish country. Although it is the largest port in Spain, it is the third largest port in the Mediterranean. Globally, it is the ninth largest.

Located in Andalusia, in the province of Cadiz, the port is a center for the tobacco, fishing, agriculture and oil trade. It is estimated that up to 70 million tons of freight are handled annually. As the largest city in the Gulf of Gilbrata, the city of Algeciras is strongly supported by the port trade. The three areas where the Port of Algeciras competes most with other large European ports are transshipment, cargo and containers.

From January 2019, general cargo throughput at the port increased by 6.4%, with the port handling 92 million tons of cargo. This number is up 3% from 2018. The port also houses ro-ro and unloading services, a fishing fleet, cruise ships and fuel handling facilities.

2. Port of Valencia

The fifth busiest port in Europe is also the second largest in Spain: the Port of Valencia. The size of the port is impressive, with an annual cargo volume of 57 million tons. Annual container volume was 4.2 million TEUs in 2010, and this number has grown over the past decade.

Operated by the Port of Valencia Authority, it can accommodate vessels up to 500 feet long and is a port of call for ship repairs. The port offers two berthing surfaces and facilities such as VIP lounges, duty-free shops, personal assistance for travelers in need, public transport connections and a tourist information office.

The Port of Valencia also distributes cargo to North Africa and the European Union, with a radius of more than 2000 km.

3. Port of Barcelona

Barcelona is located on the northeastern coast of Spain, in the country's Catalonia province. The port has been around for over 2,000 years and is still going strong in terms of trade and port services. The port is an excellent partner for major European ports on the Mediterranean coast.

The Port of Barcelona experienced almost 3 million TEUs in 2017, with around 4 million passengers in the same period. Traffic flowing into the cruise portion of the port in 2019 added even more revenue following a €2 million renovation project to the port.

Compared to other ports, this port is closer to tourist areas, and they use these tourist attractions to build their portfolio in the cruise market. In terms of trade, the port's proximity to France makes it an important gateway for international trade.

The Port of Barcelona is divided into a commercial port, an old port and a logistics port. It also has a free trade zone.

4. Port of Bilbao

This port is located in Bilbao Abra Bay in the Basque Country, also known as the outer port. The port has been popular since the Middle Ages and is associated with the steel trade of the time.

Bilbao developed into a gateway to the Euro-Atlantic trade route. It has become the premier port for trade with Britain. As an important logistics player in trade along the Atlantic Corridor, the port has established infrastructure in dry ports and other logistics areas.

The cruise ship footprint at the Port of Bilbao is smaller, as they are still developing this side of the port business. Still, they saw 80,000 passengers from 58 cruise ships in their ports.

The Port of Bilbao is closely related to the economic growth of the Vizcaya region. Locals rely on the port for transportation, tourism, engineering, ship repair, and other income-generating activities.

5. Port of Castellon

Located in the city of Castellon de la Plana, this port is the youngest compared to other major ports in Spain, but the number is impressive. It is a logistics port with an average growth rate five times that of other ports of similar size in Spain. It is the leading logistics service provider for the local economy of Castellon, with a freight capacity of more than 20 million tons in 2018.

Castellón is a well-known area, known for the production of ceramics by the city's tile factories. The Port of Castellón is responsible for shipping 95% of ceramic exports from Spain to the rest of the world. The area is also home to the only oil refinery in the Valencia region, so it also handles and transports large quantities of refined and unrefined petroleum products as well as chemicals.

/ By tjchinafreight ivy / Shipping

5 major ports in Peru

5 major ports in Peru
5 major ports in Peru

The Peruvian port system has more than 100 port facilities. These are classified as river, sea and lake ports. Among the major coastal ports, Callao is the most important port for cargo transportation. This is because 70% of cargo handling in Peru takes place at this port.

91% of total exports and 65% of export FOB value are handled by Peruvian ports. Peru borders the Pacific Ocean and has a long west coast. It is not surprising that Peru has numerous ports, as 90% of Peru's exports are shipped by sea.

What are the main ports in Peru?

1. Port of Callao

The Port of Callao is the main port in terms of traffic and storage capacity. Located in Lima, the capital of the central coast, it is 16 meters deep and can carry heavy cargo.

This particular terminal is connected to the industrial area of ​​Lima as well as to the rest of the country. The connection also extends to Jorge Chavez International Airport across the Andes. It is reported that in 2017, container ships berthed at the South Wharf for about 19 hours on average, and at the North Wharf for nearly 23 hours.

2. Shirt port

The port of Paita is the second largest national port in Peru in terms of container traffic, after Callao. Paita, located in Piura in the north of the country, ranks third in terms of total cargo traffic.

Since October 2009, the port has been operated by a Peruvian-Portuguese consortium called Terminales Portuarios Euroandinos SA or TPE. According to reports, by the end of 2016, the operating volume in the port had exceeded 215,000 TEUs.

OSITRAN, Peru's regulator related to investments in public transport infrastructure, said Peru's business was mainly export-oriented. In 2016, nearly 95% of exports were shipped in containers. Among the many export products, there are mainly aquatic biological products such as fish, fish oil and squid, and agricultural and industrial products such as grapes, mangoes, coffee, and bananas.

3. Port of Matalani

The Port of Matarani is located approximately 452 miles south of Callao and serves the southern region of Peru as well as several major cities in Bolivia, namely Santa Cruz, Cochabamba and Oruro.

Back in 1999, the port was awarded to Romero's group company Terminal Internacional del Sur SA (TISUR) for a period of 3 years. This is what has led to the multiplication of cargo to and from Bolivia, as well as increased investment in port infrastructure.

4. Port Talara

The Port of Talara is not only state-owned, it is also operated by the national oil company Petróleos del Perú SA (PETROPERU). Refineries process different products such as motor gasoline, solvents, A-1 turbo, diesel 2, LPG, industrial oils and bitumen.

The Port of Talara serves the oil industry in the Piura and Tumbes regions. Most of the rest of the country sells to them. Shipping takes place through their own loading dock. The tankers were shipped to tankers at Chimbote, Supe, Callao, Eten, Salaverry, Pisco, Mollendo and Ilo terminals.

The Port of Talara entrance channel is in the SE-NW direction with a minimum width of 180 m and a water depth of 10 ⁄ 11 m. It can accommodate tankers up to 210 m long with a maximum draft of 10.36 m and a maximum draft of 10.70 m at the buoy.

The port contains a subsea pipeline for loading and unloading crude oil. There are six supporting mooring buoys as the boats always move towards the southern area.

5. Port of Salaverry

The port of Salaverry is actually an artificial port. It's basically a dock that's constantly exposed to surges and swells. The port contains a 700-meter long breakwater and extension. Although this has decreased, small surges and swells within the port operations area and terminals remain to be resolved.

The port serves Truillo and the neighboring states of Ancash, Lambayeque and Cajamarca. It is managed by Empresa Nacional de Puertos SA (ENAPU). The port contains two sturdy quays for handling general cargo and bulk cargo. This also includes the use of mobile shore loaders for copper concentrates.

/ By tjchinafreight ivy / Shipping

5 Main Reasons Your Cargo Is Delayed

 

5 Main Reasons Your Cargo Is Delayed
5 Main Reasons Your Cargo Is Delayed

This can be very frustrating when your shipment is late. Estimated shipping times should be as precise as possible so that the relevant part knows when delivery is expected and when to schedule pickup. However, things can go wrong and, unfortunately, shipping delays can occur.

The client may end up pushing you to meet the deadline, and you are ultimately responsible for the delay. Even in some cases they may have damaged, faulty or incorrect parts.

To help, we've compiled a checklist of five common reasons your shipment may be delayed.

1. Timetable and Transportation

Most cities have traffic. Between construction works, accidents, detours and roadblocks, people often experience transportation delays due to traffic. To improve this, courier drivers can use route optimization software.

Route optimization software tracks the fastest route, updating it in real time to avoid delays and disruptions.

2. Customs issues

For international shipments, as a freight carrier facing customs, all required documents must be prepared and filled to prevent any issues. Without proper documentation, delays are likely to occur. For example, required documents may have been submitted incorrectly or may be missing.

Also, if the authorities decide to inspect your shipment, the problem can quickly escalate into further problems.

Merchants should have a backup plan in the event of a shipment being held by customs. This may include partnering with a reliable courier service to ensure the security and accuracy of documents.

3. Lack of clarity

A simple but common problem that causes shipping delays is lack of clarity, such as poor handwriting. Using pen and paper in the courier industry is prone to mistakes and accidents.

Shipping labels also play a vital role in delays. If the labels are of poor quality, they can cause problems when couriers read or scan them, and items can get lost.

4. Insufficient technology

Outdated software or outdated hardware creates huge problems for courier companies. This is because legacy software limits opportunities to integrate new technologies and blocks access to features that can reduce shipping delays.

To better track your shipments, it's a smart idea for merchants to invest in the latest hardware and cloud-based software. This provides a more holistic approach across the supply chain, enabling couriers, 3PLs, logistics and transport businesses to stay connected and use real-time data.

5. Lack of equipment

Continuing on to the point, equipment shortages are another big problem that shippers often overlook. Moving goods from warehouses can be challenging and certainly not smooth sailing. This is especially true if you need multimodal transport, including road and rail.

There may also be cases where the container cannot be used. There may be insufficient supplies, or they may only be available in certain areas of town. Of course, such a situation may also lead to delays in delivery.

/ By tjchinafreight ivy / Shipping

Shipping Solutions for Countertop Manufacturers

 

Shipping Solutions for Countertop Manufacturers
Shipping Solutions for Countertop Manufacturers

With more than 1,500 countertop manufacturers in the U.S., the fragmented nature of the market leaves manufacturers without significant resources or leverage when it comes to shipping. Also, the nature of the product, especially the long size, makes shipping unattractive for many carriers, resulting in surcharges and penalty rates.

Countertop Manufacturer Industry Definition

Countertop manufacturing primarily cuts, shapes and finishes kitchen and bathroom countertops. Countertops are made from a variety of materials including: wood, plastic laminate, stone, faux marble, ceramic and concrete. The industry does not include countertops constructed on site by building contractors.

Key Industry Insights:

  • The market size was over $89 billion in 2019 and is expected to grow at an annual rate of approximately 2.8% to over $111 billion by 2027.
  • Material innovations, namely various artificial stone and artificial marble products, and the use of recycled materials such as glass are exploding. Unique, architecturally significant countertops are driving higher prices and profits for manufacturers.
  • Innovations in manufacturing technology, especially 3D printing, have simultaneously produced unique one-off products, reducing manufacturing labor, shortening manufacturing time and increasing profits.
  • Growing interest and investment in refurbishment and remodeling is driving the industry's growth above new construction. New construction is expected to remain strong due to the imbalance between U.S. housing starts and households over the past five years.
  • Durable laminate countertops make up the largest portion of installed countertops in the U.S., and demand will be strong even as engineered and natural stone grow in popularity.
  • Concerns about natural radiation (i.e. radon) from natural granite and its high purchase price will hinder the growth of engineered and farmed products.
  • Residential demand will continue to be the primary use market.

Logistics considerations for countertop manufacturing

Shipping costs are serious business for many countertop manufacturers. Smart, growing countertop manufacturers are using experts to help them gain a competitive advantage in shipping.

Shipping countertops presents some unique challenges:

  • Size - Most countertops are long and narrow. Small package shippers such as UPS and Fedex limit the total size of packages they will handle and charge exorbitant surcharges before rejecting package sizes. For the past few years, less-than-truckload (less-than-truckload) carriers have been using surcharges to block shipments over 8 feet.
  • Packaging - Packaging countertops to withstand shipping environments require proper design and judicious use of packaging materials
  • Weight/Density - Depending on the material, the countertop may or may not be heavy. But because of their size, countertops rarely fit in the cargo configuration most carriers need.
  • The destination-home delivery trend is driving the need for more and more countertop deliveries directly to the installation site. For trucking companies, these mostly "one-off" residential deliveries are less efficient than comprehensive deliveries to stores or warehouses.
  • Damaged - Countertops, especially when packaged improperly, are prone to damage, resulting in unhappy customers, delays and additional costs.
/ By tjchinafreight ivy / Shipping

Logistics Term

logistics term
logistics term

There are many industry terms in the logistics world! We've put together this short logistics glossary to help you familiarize yourself with some common terms and concepts you may encounter.

3PL: Sourcing and arranging many services on behalf of clients, from shipping to warehousing and everything in between. Learn more here.

Bullwhip Effect: Companies must constantly predict what customers want to buy. Without a crystal ball, they must make forecasts based on other factors such as industry trends, supply chain structure and inventory. The bullwhip effect is a term used to describe when this complex transport process is disrupted. Learn more here.

Digital Freight Brokers: Digital freight brokers connect shippers and freight companies through mobile apps or online marketplaces. Learn more here.

Double brokerage: Double brokerage occurs when a freight broker accepts cargo and then hands it to another freight broker without telling the client. Learn more here.

Expedited Shipping: Expedited shipping is a faster method than standard shipping. Typically, expedited shipments do not stop anywhere between the pickup location and the delivery location, resulting in shorter transit times. Learn more here.

Freight Broker: A person or company that oversees efficient shipping and handling logistics. Learn more here.

Cargo Insurance: Gives you extra protection in the event of loss or damage to your cargo. Learn more here.

HAZMAT Shipping: Shipping of hazardous materials. Transporting hazardous materials (HAZMAT) includes not only highly toxic chemicals and nuclear waste. Hazardous items include nail polish, perfume, batteries, and even hairspray. Learn more here.

Inbound Freight: Refers to raw materials and raw materials entering a business from suppliers or suppliers. Learn more here.

Incoterms: Colloquially, Incoterms are just a way of clarifying the roles and responsibilities of those involved in the shipping process. Learn more here.

Industry 4.0: Industry 4.0, also known as the Fourth Industrial Revolution, is the continuous automation of traditional manufacturing and industrial practices using modern smart technologies. Smart factories, 3D printing and smart sensors are just a few examples. Learn more here.

LTL Shipping: Less than full truckload, or "LTL" in industry slang, is a cost-effective alternative for smaller shipments that cannot be fully filled with trucks. Learn more here.

NMFC codes: In the shipping world, the National Motor Freight Classification or NMFC codes are used to help define and regulate products. In LTL shipping. NMFC codes are an industry-wide method of defining shipping rates. Learn more here.

Outbound Freight: Refers to the shipment of finished goods from a business to a customer or distribution channel. Learn more here.

Package Shipping: Package shipping is the shipment of boxed items weighing 100-150 pounds or less, depending on the carrier. These are smaller packages that can be easily moved by a person without assistance. Learn more here.

Transportation Management System (TMS): Global research and consulting firm Gartner defines a Transportation Management System or TMS as a solution "for planning shipments, grading shipments and shopping across all modes, selecting the right route and carrier, and Manage shipping orders and payments." Learn more here.

Full truckload: Full truckload is when the shipper pre-orders a full truck or tractor trailer. The idea is to load the tractor trailer to full capacity. Truck loads are usually picked up at one location and dropped off at another, usually without any stops along the way. Learn more here.

Supplier Verification: Supplier verification is the process of confirming that a supplier is a legitimate entity. Learn more here.

Customodal designs, executes and optimizes transportation logistics programs for businesses of all sizes to support client strategies and enhance client competitive advantage. Carrier negotiation, shipment execution, track and trace, waybill audits, performance scorecards and supply chain visibility are all part of Customodal's added value.

/ By tjchinafreight ivy / Shipping

Notice before exporting goods

Notice before exporting goods
Notice before exporting goods

Regardless of the size of your business, exporting offers you a great opportunity to expand internationally. However, several steps must be taken to ensure that your company is export-ready. Exporting is a complex process. If you are considering exporting for the first time, we recommend that you work with a logistics partner to ensure you are complying with all laws, properly managing costs and expectations, and taking advantage of opportunities. In this post, we share the knowledge before exporting.

Companies need to solve three challenges to grow into an export business:

Sales/Marketing Angle

Determine the target market for your product, including which country to start from and which sales channels in that country will sell and/or distribute it. It is wise to focus on one new export market at a time.

Manufacturing/Operations Perspective

Adapt your products to new market demands, systems and regulations. The most common example is the voltage difference between Europe and the US - appliances must meet a system inherent in the target market country. Check out our Manufacturers Resource page here.

Logistics point of view

Logistics providers that design and execute the movement of goods between countries using a variety of methods such as sea, air, and truck are known as freight forwarders. Logistics providers experienced in handling shipments to your target export country will save you time and money through their network of suppliers, experience handling country-specific paperwork, and knowledge of how it works behind the scenes .
Growing your manufacturing business by exporting doesn't have to be intimidating. With the right help from federal and state programs, you can successfully understand how exporting can grow your business, create a plan to effectively expand into export markets, and benefit from the experience of other manufacturers who have already done so.

A logistics partner can help you:

  • Arrange and manage your customs broker relationships. A customs broker is a required party for any cross-border shipment.
  • Arrange and manage any long-term import and export bonds. In some cases these are required. In other cases, they're just being financially smart, depending on the volume of shipments. In some cases, only 4 shipments per year can justify shipments with annual bonded and shipping surcharges.
  • Provides information and helps set expectations regarding international cargo transit times and in-transit cargo visibility. Hint: We are spoiled in America!
  • Strategies to help you determine how to ship your cargo from a variety of options, such as full vs. partial ocean containers or economy vs. priority air.
  • Help you determine your Incoterms strategy. Incoterms define who is responsible for transportation between buyers and sellers and where the ownership of goods actually changes hands. Novice exporters often learn very expensive lessons because they are negotiating with overseas buyers who understand the value of the correct incoterm.

TJ chinafreight provides international freight forwarding services to more than 100 countries around the world for export to the world by air or sea.

/ By tjchinafreight ivy / Shipping

Why is my shipment taking so long?

Why is my shipment taking so long?
Why is my shipment taking so long?

If you've ever found yourself wondering "Why is my shipment taking so long?" it might be time to rethink how you move your products. Working with a logistics partner like TJ chinafrieght means better control of your costs, less time contacting multiple carriers, access to an LTL network with nationwide discounts, and unified billing for your convenience. In an industry that is constantly changing and evolving, you don't have to be an expert - that's our goal. Now, back to your original question...

What are the factors that affect shipping time?

Weather

Mother Nature is always in charge, and everything from floods to tornadoes to snowstorms can affect travel and cause product shipping delays.

Current events

Remember when a container ship got stuck in the Suez Canal or a truck stopped near the Canadian border? The logistics world is vast, and there are always things that affect planning. The good news is that when you work with a logistics partner, you don't have to worry about current events. We will solve this problem for you.

Labor issues

Labor shortages can have a major impact on the flow of goods. It will take longer to get from point A to point B if there are not enough truckers or dock workers to deliver the goods.

Now, what if your shipments take so long?

Well, as you may have guessed, if you haven't already, you need to find a logistics partner you trust! Don't just focus on the bottom line, but find a company that takes time to understand your business and find the best solution for your needs.

If you have a logistics partner, the first thing you need to ask yourself is, "Do I need this product now, or do I want it now?" From there, your logistics partner (like TJ chinafreight) can work hard to meet the time and cost related expectations. When it's a "want" situation, there's no reason to pay a "need" cost.

/ By tjchinafreight ivy / Shipping

The role of blockchain technology in logistics

The role of blockchain technology in logistics
The role of blockchain technology in logistics

Blockchain technology: what it is and how it works

A blockchain is a linear chain of many interconnected blocks of information. In fact, it is a database that is securely protected by encryption and decentralization. This can be compared to a ledger that records transactions sequentially. Many people have only heard of blockchain in the context of cryptocurrencies, as it emerged as a technology that was used to launch Bitcoin (the foundation of the foundation, the first cryptocurrency). The concept was proposed by Satoshi Nakamoto (a pseudonym for a person or group of people) in 2008 and was first put into practice a year later. In the cryptocurrency market, blockchain has been used to ensure the privacy of transaction participants. The technology quickly caught on in other areas of activity as well.

The benefits of using blockchain in logistics

The logistics industry has huge potential: it was estimated at $8.1 trillion in 2017 and will nearly triple by 2023, according to Transparency Market Research. Despite the positive outlook for the event, logistics companies and retailers lost most of their profits due to poor organization. Complex and lengthy supply chains, cumbersome paperwork (often done manually), high probability of errors due to human factors, intermediary costs, cyber-attacks - these are all related to logistics issues.

The main difficulty is related to bureaucratic obstacles. This is especially true for international deliveries of containerized cargo involving a large number of countries, companies and government agencies, all of which have their own rules for document maintenance and accounting. For example, in the process of shipping refrigerated cargo from East Africa to the EU, around 30 participants were involved just to obtain a transport license and stamp it. Just imagine, the cost of processing documents can be 15% to 50% of the cost of physical shipping!

According to experts, blockchain is the only(!) technology that can remove these global trade barriers by creating a reliable and secure system for storing, processing, tracking and exchanging data between participants from all over the world. According to DHL, the use of blockchain in logistics has led to global success: it could help increase international trade by 15% and increase world GDP by 5%.

/ By tjchinafreight ivy / Shipping

Why Hiring a Freight Forwarder Is Good for You

Why Hiring a Freight Forwarder Is Good for You
Why Hiring a Freight Forwarder Is Good for You

What is a freight forwarder?

A freight forwarder is a service that most importers and exporters use to arrange shipments. Freight forwarders are licensed experts who understand how the end-to-end shipping process works and can do it on your behalf. Think of them as travel agencies for freight - just like travel agencies, they come in many shapes and sizes.

Some are freight companies or freight brokers in nature and are not involved in international shipping. Some specialize as ocean or air freight forwarders. Smaller freight forwarders often limit their reach to a few popular countries where they have working relationships with local logistics providers. At the other end of the scale, the larger freight forwarders offer global shipping services.

Choose the right freight forwarder

Choosing the right international freight forwarder can be a make-or-break choice for importers as international business is unpredictable. Poorly selected freight forwarders can result in government penalties, lost or damaged shipments, incorrect invoices, and inconsistent pricing.

The Importance of Hiring an International Freight Forwarder

International freight forwarders are an important part of the world economy and play a key role in every country as they are the only suppliers of goods and services to end consumers. Here are the dimensions in which they play an important role:

The internet

Freight forwarders help build and maintain friendly relationships between shippers, officials, carriers, and other freight forwarders, while facilitating fast shipments. Additionally, they limit friction between supply chain stages and add bottom-line value to it.

Negotiation

Some effective freight forwarders can easily find the balance between appeasing all trusted relationships and practicing all savvy trade deals, even if it needs to keep the business open to receive bids from other carriers.

Inventory management

It includes the most important parts of the supply chain, including the arrangement, maintenance and storage of inventory. It also includes business support in other areas, including procurement and production.

Schedule

The task of all freight forwarders is to book cargo hold in more than one mode of transport, which requires the coordination of all entities within the supply chain, including suppliers, manufacturers, carriers, etc.