The surge in demand for bulk carriers has driven the number of orders received by Japanese shipping companies in fiscal 2021 to a six-year high.
It is the scenery of the Gulf region of urban area of Japan.
April 12
The Japan Ship Exporters Association (JSEA) released the latest data on the number of orders received by Japanese shipbuilding companies in fiscal year 2021 (April 2021-March 2022). In the last fiscal year, the number of orders received by Japanese shipbuilding companies reached 313 ships of 14.2992 million GT, a year-on-year increase of 59.8%, and the year-on-year increase for the second consecutive year. This is also the year since the 2015 fiscal year (2018 million GT). The number of orders received exceeded 14 million GT for the first time.
According to JSEA data, orders received by Japanese shipbuilders in fiscal 2021 increased by 136 vessels to 313 vessels, an increase of 77% compared with 177 vessels in fiscal 2020. Among them, the order volume of bulk carriers increased by 123 to 218, a sharp increase of 129% from 95 in fiscal year 2020, and the proportion increased from about 50% to 70%. Orders for cargo ships such as container ships increased by 17 to 69, a 33% increase from the 52 in fiscal 2020, of which 43 were bulk container ship orders. The number of tanker orders decreased by 5 to 24, and the orders for VLCC, LPG and product oil tankers all declined.
March this year
The number of orders received by Japanese shipbuilding companies was 49 ships of 1,827,490 GT, a year-on-year increase of 75%, and a year-on-year increase of 21.2% in terms of tonnage, setting the highest monthly order record since June 2021, ending the three consecutive years since December last year. month's decline.
According to JSEA data, new ship orders received by Japanese shipbuilders in March included 13 general cargo ships and 36 bulk carriers. Among them, 13 cargo ships include 8 container ships, 3 general cargo ships and 2 ro-ro ships, with a total of 627,990 GT; 36 bulk carriers are 21 Handysize, 11 Handysize, 2 Panamax, 1 Cape of Good Hope and 1 ore carrier, totaling 1,199,500 GT.
The first 3 months of this year
Japanese shipbuilding companies received a total of 73 orders of 2,782,090 GT, down 24.6% year-on-year, including 16 general cargo ships (785,980 GT), 55 bulk carriers (1,963,410 GT), 1 oil tanker (30,600 GT) and 1 other ship (2100 GT).
By the end of March 2022
Japanese shipbuilding companies have a total of 411 orders of about 19.01 million GT, which is lower than the 18.5 million GT at the end of last month, an increase of 4.6% compared with the end of February, and the first monthly increase in three months. At present, the number of orders held by Japanese shipbuilding companies is approximately equivalent to 1.9 years of workload, and gradually recovers to a 2-year period close to the normal level.
Lidl, part of the Schwarz Group and one of the world's largest retailers, launched its own container shipping company to tackle supply chain challenges, reduce delays in product deliveries and avoid high shipping costs.
Wolf Tiedemann, CEO of Lidl Stiftung & Co. KG, confirmed the establishment of the new shipping line to German media outlet VerkehrsRundschau, commenting: "The goal is to be able to manage the increase in different production facilities more flexibly in the long term."
According to local media reports, Lidl has submitted an application to the European Trademark Office to register a shipping company named Tailwind Shipping Line, whose business scope is cargo transportation, including sea, air and import and export cargo handling.
If the plan goes well, Lidl said it would be able to operate its own supply chain and address high freight rates and congestion in port and landside transport.
However, Lidl has not disclosed which routes Tailwind Shipping Line plans to open and which types of ships it will use, which does not rule out the company buying ships to build its own fleet.
Notably, news of Lidl's foray into the shipping industry was first reported by German media on April 1. An industry insider said at the time that the report was an "April Fool's joke". However, the move has been confirmed by local shipbrokers - Lidl's plans are real.
In fact, as early as 2021, Lidl planned to invest in a container shipping business to better control the supply chain, but it has not been able to materialize.
A fast-growing German retailer, Lidl currently operates more than 11,000 stores worldwide and employs more than 310,000 people.
In fact, big shippers have been trying to build their own supply chains to move goods more quickly.
In the second half of 2021, due to the continued shortage of space and containers in the container shipping market, major European and American cargo owners, including IKEA, Wal-Mart, Home Depot, and Amazon, have begun to charter their own ships to transport goods, and more and more cargo owners have followed suit.
For this approach, some industry insiders have analyzed that for those large cargo owners who urgently need to transport goods, although chartering their own cargoes looks very attractive, they are also faced with uncertain risks in the market, and thus resulting losses.
However, these shippers often choose to work with freight forwarders. So far, no shipper has developed its own shipping brand.
The Maritime Safety Administration of the People's Republic of China recently issued an announcement that from March 30 to April 10, 2022, many sea areas such as the northern Yellow Sea, South China Sea, and Beibu Gulf of the Bohai Strait will be banned for military missions. It may have a certain impact on the shipping schedule of some ports, and the ships will open late and arrive late. Please be prepared for the cargo owner and forwarder.
1. Liaohang Police 34/22, performing military missions in the northern part of the Yellow Sea, Bohai Strait
According to the Dalian Maritime Safety Administration: The northern part of the Yellow Sea in the Bohai Strait will be held at 1600 on March 27 to 1600 on April 10
1) 38-51.7N 121-38.2E;
2) 38-34.2N 121-38.2E;
3) 38-33.9N 121-07.9E;
4) 38-48.2N 121-14.1E
Perform military tasks within the range of the points. No entry.
2. Guangdong Aviation Police 30/22, military exercise in the waters near Shanwei in the South China Sea
According to the Guangdong Maritime Safety Administration: In the South China Sea, from 0800 on March 30 to 1800 on March 31, military exercises will be held in the sea area connected by the following four points:
(1) 22-40-00N 115-17-18E,
(2) 22-40-00N 115-23-18E,
(3) 22-34.00N 115-23-18E,
(4) 22-34.00N 115-17-18E.
Vessels are prohibited from entering.
3. Qionghang Police 0038/22, South China Sea Military Exercise
According to Hainan Maritime Safety Administration: South China Sea, from 0700 on March 30, 2022 to 1900 on April 1, at 19-23.10N 110-52.40E, 19-23.10N 110-56.52E, 19-19.67N 110-52.40 Military training is carried out in the water area connecting the points of E and 19-19.67N 110-56.52E, and it is forbidden to enter.
4. Qionghang Police 0036/22, Beibu Gulf live ammunition training
According to Hainan Maritime Safety Administration: Beibu Gulf, from 0700 on March 30th to 1800 on April 1st, will be at 19-48.00N/108-40.00E, 19-48.00N/108-46.00E, 19-42.00N/108 - 46.00E and 19-42.00N/108-40.00E points to connect the water area for live fire training. No entry.
5. Qionghang Police 34/22, Military Training in the South China Sea
According to Hainan Maritime Safety Administration: South China Sea, from 0730 on March 25, 2022 to 1800 on April 7 at 18-15.0N 110-10.0E, 18-15.0N 110-30.0E, 18-05.0N 110-30.0E Military training is carried out within the water area connecting the points of 18-05.0N 110-10.0E, and it is forbidden to enter.
6. Qionghang Police 33/22, Military Training in the South China Sea
According to Hainan Maritime Safety Administration: South China Sea, from 0900 on March 19, 2022 to 1800 on April 9 at 17-32.0N 108-16.0E, 17-32.0N 109-22.0E, 17-02.0N 109-22.0E , 17-02.0N 108-30.0E and 17-22.0N 108-16.0E military training is carried out within the waters connecting the points, and it is forbidden to enter.
I would like to remind that ships have passed through the above sea areas recently, which may cause some port ships to arrive late and sail later, and the sailing schedule may be delayed. To keep abreast of relevant information, please each owner and forwarder understand each other.
A packing slip is a document that describes the contents of the shipment to the customer. A packing slip contains separate line items for each shipped item. Each line item describes the product number, product description, and quantity of units shipped. Weight can also be stated. This document is printed by the seller, who either includes it in the package or attaches it to the outside of the package in a sealed bag.
The consignee can use the packing slip to verify the contents of the delivery.
What is the difference between a packing list and an invoice?
While similar in nature (almost identical at first glance), packing slips and invoices serve different purposes for purchase orders. A packing slip is used to represent physical goods received, where an invoice is a financial document for an order that contains information such as the selling price of each product, payment terms, payment method, and date.
In some cases, packing lists and invoices are for different people. An invoice is a bill sent to the person responsible for payment, and a packing list is sent to the consignee. If you order something for yourself, both documents will appear in front of you. However, if you buy something for someone else, you get an invoice, but the recipient gets a packing slip.
While both documents start with an e-commerce store, invoices are triggered by payment platforms, while packing slips are triggered by shipping or fulfillment technology.
Also, all businesses use invoices, but not all businesses use packing lists.
Why is the packing list important?
1.Make sure the right item is shipped to the right customer
One of the most frustrating experiences for customers is missing items from their order or not receiving the product they purchased. This negative customer experience reduces the likelihood of a business getting repeat customers. After all, no one likes receiving parts or orders or the wrong product. The cost of shipping lost or correct items eats into profits. If left unchecked, these can hinder the company's growth.
There are some great ways to help improve accuracy when picking. However, implementing a technically superior picking solution is worthless if the items are still not packaged correctly. A printed packing slip can be used as a basic but effective check during the packing process to ensure that all the correct items have been placed in the pack.
2.Items put in the package
Often, warehouse pickers collect items from multiple orders at the same time. During the packaging process, products need to be packaged for each customer. The packer will use the product list to determine which items should be packed together.
3.Identify damaged items
Packing lists help identify and organize damaged items—whether a fragile item was damaged in transit or an entire package was damaged in transit. Delivery exceptions like this will happen, but having a packing slip as a backup can help expedite refunds or resending of packages
4.Confirm receipt of all items
Packing slips are used to identify lost items and ensure receipt of all items ordered. You can think of it as a written record or record that should be included with the shipment. If your order is delivered in multiple packages, you can more easily keep an eye out for any inaccuracies if the e-commerce order tracking shows that all packages were delivered.
5.Streamline returns and refunds
Returns and refunds are sometimes unavoidable in e-commerce. But a packing list can stop this little headache from turning into a migraine. Having a packing slip can help expedite the process of refunding a customer or sending a new package if an item is damaged in transit.
Likewise, having a packing list can help customers quickly identify if a product that should be in the package is not. While they're unlikely to be happy with a lost item, at least now it's faster to spot the problem and fix a refund or send the product again.
For companies that sell fashion items or other products with a high volume of returns or exchanges, it's even more important to try to reduce the number of customer inquiries about the return/exchange process. Having a large customer support team can be costly, so clear return/refund instructions on the packing slip can help reduce the number of touchpoints the customer support team needs to be involved in.
What information is usually included on a packing slip?
1.Detailed list of shipped and out-of-stock items
A key element of a packing list is to clearly state what is in the package. It's an easy way to help packers ensure accuracy before shipping a package and help your customers quickly determine if their order was received correctly.
While customers should have been informed that one of the items they ordered is out of stock, it is best to include it on the packing list.
2.Quantity per piece
To check every item with a packing slip, it's not enough to just look at the product name or SKU, as many sellers order more than one item. The Quantity column helps reduce the length of the list so that if many of the same items are ordered, the packing list won't be several pages long.
3.Other important information
While packing slips do vary from company to company, standard practice is to include information such as shipping address, company name, purchaser's name and address, order date, and relevant contact information on the packing slip.
What is the difference between a packing list, a bill of lading, and a shipping label?
A packing slip contains information for a single customer order, while a picking list contains multiple customer orders on a single document. Pick list items tend to be ordered in a way that is efficient for pickers to navigate the warehouse. Picking with a packing list is not as efficient as a pick list, because pickers may visit the same warehouse rack multiple times while picking turns.
The shipping label allows a package to move smoothly through the supply network because it contains important information about the shipping of your order, including: its source address, destination address, tracking barcode and its shipping category.
When you engage the services of a freight forwarder for your global shipping and business needs, what you expect to enjoy is the relationships they already have with various carriers such as ocean liners, truck companies, airline carriers. You should also benefit from their intricate knowledge of how export and import work in different countries. Moreover, they will be able to smoothly handle customs clearances for your goods, and track the status of the shipment as it makes its way from the supplier/manufacturer to you.
What is a Freight Forwarder?
A freight forwarder is an agent or business within the international trade industry that handles the shipping and transport of goods from one part of the world to another either by land, sea, or air. They are involved in the process of getting goods from suppliers and manufacturers, storing them, and facilitating the transportation logistics to end-users and consumers or some other distribution point. For instance, if you wish to ship freight from China, your best bet will be to hire a China freight forwarder to help you handle the daunting and complicated process of moving your freight either through ocean shipping,air freight, road or rail transport, or some other means.
Tips On How To Choose A Good Freight Forwarder
Nowadays, there are so many agents offering freight forwarding services. So, it may be difficult to find the best freight forwarder for your business. To that end, here are tips on how to choose a good freight forwarder that’s perfect for you.
1. Do Your Homework And Know What You Need
The very first thing that will help you secure the services of the best freight forwarder that will move your goods across international supply chains and trade routes is to do your homework. This means knowing what exactly you need. Ask yourself what kind of freight you want to ship in terms of volume and size. You should not expect exactly the same procedure when shipping goods like automobiles when you’re shipping commodities like foodstuffs.
You would also have a preferred mode of transport you wish to use, so it’s good for you to figure that out before contacting a freight forwarder. Moreover, some goods are fragile and require special handling procedures while others don’t. So, for such special shipments like dangerous or hazardous goods, you would expect the shipping process to be slightly more complicated.
When you clearly identify all your internal requirements, then you will be prepared for the hunt for the right freight forwarder to make the process smooth.
2. Consider The Freight Forwarder’s Experience And Network
This is non-negotiable!
The years of experience that the freight forwarder you’re looking to hire has is very crucial to the success of your business relationship. If they’re experienced, that means that they would have dealt with different situations that come up during the shipping process.
Examples of common situations are cases of port shutdowns, strike action by dockworkers, customs issues, cargo rerouting, warehouse problems, etc. Here is where TJ China Freight comes in with more than a decade of handling and promptly and effectively resolving international shipping and logistics situations for customers all over the world.
With experience also comes an expansive global reach and sustainable business relationships. This manifests through good connections with various suppliers, local handlers and experts, trucking companies, and agents at numerous destinations. That’s how you can be sure your DDP shipments, FBA shipments, or any other freight will be handled well when they arrive at the destination country.
3. Find Out The Services They Offer
By now, you know your shipping needs. However, you don’t want just any freight forwarder with experience. Instead, you need the best freight forwarder that offers the services that will meet handle your shipping requirements. That’s why you have to confirm the services that the freight forwarder offers. These services can range from preparing import and export documents, booking shipping space from air and sea carriers, packing and storing shipments, customs clearance, freight consolidation, tracking shipments, insurance, and many more.
When you know the services that the freight forwarder provides, then you will know if they can make your international shipping process go smoothly.
4. Inquire About Their Permits, Credentials, And Certifications
Before shipments can be transported from one part of the world to another, the freight forwarder in charge of the logistics requires permits and documentation to show that they can handle the cargo. Your company may wish to ship sensitive products such as hazardous materials. To handle these shipments successfully, the freight forwarder will require special licenses. This is why you need to verify if the freight forwarder has these credentials. It will show that they have taken specialized and required training to do the job well.
Another important consideration is whether the freight forwarder is a member of reputable associations such as >WCA. To be a member of such bodies, freight forwarders are required to be financially stable, operationally efficient, have integrity, and pass many other strict vetting requirements. The best freight forwarder will always ensure they are part of such associations to stay in touch with the latest developments in the profession and remain relevant and valuable to customers.
5. What Risk Management Procedures Do They Have In Place?
It is not uncommon for problems to arise during the process of international shipping. There are lots of conditions that can destabilize the transportation of your cargo, whether at the origin, during transit, or at the destination country. So, it’s important for you to verify whether the freight forwarder has procedures in place to manage risks. Freight forwarders that are proactive are the best in handling any issues and proffering solutions to problems as they arise.
A common risk management procedure that you can ask about is cargo insurance. The insurance cover is valuable if anything happens to your shipment, whether it’s a case of loss, damage, or theft. Your mind will be more at ease during the entire shipping process if you know that you’re covered by insurance or any other valid risk management policy. Your freight forwarder should be your partner when there is a crisis.
6. What Is Their Customer Service Like?
Good customer service is the backbone of any business! All the credentials, experience, network and connections in the world amounts to nothing if a freight forwarder does not treat their customers well.
Imagine going through the process of securing your shipments from the supplier or manufacturer only for you to be unable to reach the freight forwarder handling the logistics and transport. If you have inquiries about freight rate or any other issues related to international shipping and the freight forwarder takes forever to respond to your inquiries, would you be willing to do business with them? This is why it’s important to verify what the freight forwarder’s customer service looks like. You can ask about who the contact person is, who to talk to when a problem arises, how you will be contacted, and also check the reviews from previous customers.
Because international shipping can be tricky, these details are important, which is why clear communication between you and your freight forwarder is very crucial to the success of the endeavor. Great customer service even extends beyond when your shipment arrives. TJ China Freight is a tested and trusted China freight forwarder that offers unbeatable service to all its customers.
What About Pricing And Rates?
You may be wondering by now why there was no mention of pricing and rates in the tips on how to choose the best freight forwarder for your international shipping needs. Yes. It was deliberately left out. Why? Because deciding which freight forwarder to hire based on price alone is misleading and often has dire consequences.
For example, going with a freight forwarder because they offer the lowest rates on a shipment may lead to you having to pay more on subsequent shipments. This is because the freight forwarder would want to make up for the low price that they offered initially. Another possibility is that such freight forwarder that’s offering a low rate may have hidden some charges in the terms and conditions. All in all, low prices are often linked to dishonest dealings. You don’t want to fall victim, do you?
What your main focus should be while you are in search of the best freight forwarder for your business is whether your professional shipping needs will be precisely and promptly met. This is not to say that price is not important. Rather, it should not be your deciding factor on who to choose.
How To Ask For Shipping Rates From Your Freight Forwarder
Now that you know what you need to do to hire the best freight forwarder to handle your shipments, you should know the details you require to get the accurate quote and shipping rates for your products. This will help you prepare adequately and also help the freight forwarder serve you well.
To request for a quote from TJ China Freight, the information required include:
1. Product Name.
The name of the product is required. Also, is the product with or without battery? Is it magnetic? Is it liquid? Are they dangerous goods?
2. INCOTERMS Or Terms Of Sale.
Incoterms refer to your International Commercial Terms with the seller, supplier, manufacturer or factory. Are your incoterms EXW (Ex works), Free on Board (FOB), or Cost, Insurance and Freight (CIF)?
3. Weight And Volume Information.
If you have the goods packing lists, that’s the most preferred. Alternatively, you can send the gross weight and volume information of the shipment.
4. Address Of The Supplier Or Factory.
If your contract price term is EXW, then we have to arrange the pick up from your supplier or facotry, so the address of the supplier or factory will be needed for us to check the pick fee.
5. The Destination Address Or Port Of Destination.
For Express shipping or any type of door to door delivery, we will need your exact destination address and post code to check the exact cost, and for Air freight or any type of shipping to Port only, then your port information will be required.
6. Your Preferred Shipping Method (Air Freight, Express Freight, Sea Freight, or Train Delivery).
The shipping cost is very different for the air freight, express freight, sea freight or train delivery, so pls let us know which shipping method do you prefer.
7. Your Preferred Time of Delivery – How Quickly Do You Want The Shipment To Be Delivered.
If you don’t know what shipping way is more suitalbe for you, pls let us know your preferred time of delivery, we will try to recommend the best shipping method that can meet your demands.
TJ China Freight,Your Best Freight Forwarder In China
As a leading China freight forwarder that specializes in shipping goods from China to other parts of the world, TJ China Freight offers a broad range of freight services like express shipping, warehousing, drop shipping, FBA shipping, and many more. We partner with many reputable organizations such as DHL, UPS, Emirates, etc. to make sure your shipments arrive on time and in good condition. Contact us today for a quote and open the door to an amazing business relationship.
Due to the prevalence of port congestion and box shortages in Europe and the United States, freight volumes on the European and American routes will remain high.
Industry insiders predict that shipments from Asia to Europe will continue into the third quarter, and delays in US and European ports will continue to be the main bottleneck in the supply chain.
The National Retail Federation (hereinafter referred to as NRF, The National Retail Federation) predicts that this year's retail spending and consumer demand may further soar, the increase may be as high as 8.2%. According to NRF data, due to the substantial increase in demand, container throughput will increase by 23% in the first half of the year.
Consultant Jon Monroe pointed out, “Given that many importers are struggling with low inventories, replenishing inventory in order to meet their volume may be the key driving force for this year’s growth. Therefore, the question that everyone needs to face is how to deal with another possible occurrence. A turbulent year?"
Monroe said that most cargo owners (BCO) now intend to end contract negotiations and try to plan for expected market fluctuations, which may mean that contract requirements have not been met, soaring freight rates and shipping schedule reliability have been put on hold again.
Monroe made some suggestions for companies facing supply chain disruptions this year, including finding alternative delivery ports for imported goods other than Los Angeles and Long Beach, while optimizing warehouse efficiency while free time is reduced.
According to the table below, it is currently estimated that the "new normal" delivery time for goods arriving on the West Coast of the United States is currently expected plus 4 to 5 weeks.
The estimated delivery time (cargo is delivered via DC) is an additional 4 weeks for LA-LB port (an additional week this year)
The current situation of European cargo owners is similar to that of the United States. Port congestion is still the main problem, and the shortage of containers has exacerbated these difficulties. Especially in the United Kingdom, due to the problem of the space for storing empty containers, there has been a significant increase in delays in container delivery. Brexit has also had a certain impact.
According to data from Container xChange, “the trade interruption and continued congestion after Brexit are causing serious container accumulation in British ports.” said Dr. Johannes Schlingmeier, CEO of xChange, when the CAx index exceeds 0.5, it indicates that more containers are imported than exported. The index "increased significantly last year, with 40-foot containers rising from 0.71 to 0.86, and 20-foot containers rising from an average of 0.72 to 0.85."
Schlingmeier said, “The British ports are full of empty containers. If this problem becomes too serious, you may see additional charges for new (arriving) containers next.”
Container xChange stated that the link between Brexit and CAx is that as the United Kingdom leaves the European Union, British ports (mainly the Port of Felixstowe, but also the ports of Liverpool and Southampton) are facing severe congestion. British companies have become a problem, and some shipping companies have increased surcharges.
"To make matters worse, some shipping companies are currently unloading at EU ports such as Hamburg, Rotterdam and Antwerp to avoid congestion at British ports. As a result, the CAx values of these ports have increased in the past few weeks," Schlingmeier explained. And added a reminder that CAx will further monitor the number of containers entering and leaving the port. Four or five months ago, shipping companies waited for return goods at European ports for two months, and now they are "carrying back to Asia with empty containers full."
Clarkson predicts that the volume of seaborne trade this year will exceed the level of 2019
Clarkson Research Services acknowledged that major uncertainties still exist, but it is expected that the global seaborne trade for the whole year of 2021 is not only expected to return to the level of 2019, but also expected to be this level.
Clarkson predicts that this year's seaborne trade volume will increase by 4.2% to 12 billion tons, which is 0.5% higher than the level in 2019. Clarkson estimated in a recent weekly report that in 2020, global seaborne trade will fall -3.6% for the whole year to 11.5 billion tons. In the first few weeks of 2021, most non-tank shipping industries will show high utilization rates and high rates.
The International Monetary Fund (IMF) predicts that the global economy will grow by 5.5% this year. Following a 3.5% drop last year, the economy in 2021 will grow by 1.8% over 2019. Looking at emerging economies and developed economies separately, only emerging economies will return to the level of 2019 this year. The IMF expects that emerging economies will grow by 6.3% and will fall by 2.4% in 2020. On the other hand, advanced economies are expected to grow by 4.3%, which is lower than the 4.9% decline in 2020.
A report from the Baltic International Chamber of Shipping (BIMCO) at the end of last month pointed out that the recovery in 2021 will not bring good news to everyone. The exact speed of the recovery will depend on the development of the epidemic and changes in travel restrictions and other containment measures.
When goods are transferred around the world, they rarely go from departure to destination locations in one step. In fact, they may switch between air, ocean, land, and rail carriers before they reach their destination.
Freight forwarders do the work of organizing, planning, and optimizing global trade routes and logistics solutions to facilitate the movement and storage of those goods. They rely on an expansive network of transport vehicles, warehouses, and intermodal points to streamline the movement of goods and cargo across the whole world.
Freight forwarders and logistics companies gather information from shippers, warehousers, truckers, and more to plan the route cargo will take. When they need to incorporate a shipment, an optimized route is already available and ready to utilize.
International Freight Forwarding Services
International freight forwarding services helps ensure an uninterrupted supply chain for international shipping partners. International logistics include foreign customs, duties, regulations, and fees, that are constantly changing and being updated.
It is important for freight forwarders and logistics companies to carefully handle such processes and stay up to date on issues related to global transport. These things can change from day-to-day, and shippers should be aware of cost fluctuations, new regulations, or procedures at both destinations and departure points.
Cost
A shipping company handles transportation services for you, but an industry-leading freight forwarder can help you optimize your time and money. Freight forwarders incorporate your supply chain into an existing and strong network of shipments.
Asiana USA provides door-to-door transportation and logistics services that are meant to reduce overall costs. Our advanced and integrated shipping network allows us to optimize the movement of goods around the United States and the world.
Services
Freight forwarding services include tracking inland transportation, document preparation, warehousing, negotiating fees, insurance, cargo consolidation, and shipping. These services greatly improve shipping for the shipper, receiver, and freight forwarding company.
Ideally, you should seek a partner who can perform all of these services. If you use more than one or all of these services, this will optimize your supply chain and shipping experience overall.
Mode of Transport
The best freight forwarding service providers make use of all modes of travel. Optimizing shipping routes using land, rail ocean, and air freight allows for an extended network of travel to and from multiple intermodal drayage points.
Drayage shipping means that cargo is moved between major intermodal points using high-volume transport such as a ship or train. Then, smaller vehicles will move them to the cargo to its final destination.
Trucks are an efficient way to move cargo and single containers between drayage points. While long-haul trucking has often been used to transport containers long distances, this practice is being replaced by drayage trucking, and other modes of transport are used for longer transport.
This is a safer alternative and more efficient, as truckers can make multiple trips daily. Additionally, truck companies have been incorporating new technology to further optimize the trucking experience, such as automatic transmissions and multiple cameras.
Rail transport is a far more efficient way to move multiple containers long distances. Instead of one driver per truck per container, a train can move over 200 double-stacked containers, use far less energy, and require far less personnel to operate.
It’s a safer, more effective way to move large goods long distances. Using one train where 100 trucks would have been needed also creates less pollution.
Air freight is used for more time-sensitive shipments. As transporting cargo by air poses weight and size restrictions, it is better used for smaller cargo. Due to high demand and higher fuel costs, air travel may be less suitable for heavy supply chains.
However, when cargo needs to travel far overnight, air freight can usually be the best option. Other situations where air freight is preferable is if you are shipping perishable, sensitive or hazardous items where special handling is required.
The majority of shipping occurs via the ocean. Ships carry large container loads and optimize shipping routes between major global trade ports. Transporting large amounts of cargo between major ports all over the world by ship allows for the rest of the shipping industry to flourish.
Over 11 million containers arrive yearly at different ports in the United States, many of which continue their journey by land to different parts of the country.
Final Thoughts
Choose a freight forwarding service that helps your business perform better by optimizing your supply chain, reducing your shipping costs, and deals with complicated international paperwork for you.TJ China Freight provides the best solution and the timely feedback for all kinds of shipment from every city in China by sea, by air and by railway, and we can provide the competitive price based on the best service, meanwhile we can also provide the other best service, including customs clearance, pick up & delivery service, shipping to Amazon FBA, warehousing & Distribution, cargo insurance, container loading supervision and Express,In a Word, everything you want to ship from China, TJ China Freight can always help.
Contact Info
Tel: +86-755-25117540
Fax: +86-755-25117540
Phone:+86-18928445749
E-mail: info@tj-logistics.com.cn
Website: www.tj-chinafreight.com
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German logistics giant Rhenus continues to start crazy "acquisitions"! Following the acquisition of the LOXX Group last month, Rhenus, the harvester in the international freight forwarding market, has taken another move, bringing BLG Logistics Group, a well-known local freight forwarding company in Germany, under its umbrella.
Rhenus Group is a leading logistics service provider in Germany, with operations all over the world, with an annual turnover of 5.5 billion euros. Rhenus has operations in 750 regions around the world and has 33,000 employees. The Rhenus Group provides solutions for different areas in the entire supply chain; including multimodal transportation, warehousing, customs clearance and innovative value-added services.
BLG hopes to focus on its contract, automobile and container businesses, and sell BLG International Forwarding's international freight business to Rhenus. Since 2018, Rhenus has acquired almost all regions of the world; Rhenus will provide its service network for the rest of BLG's business .
Rhenus will take over BLG’s 9 air and sea freight stations in April and integrate these stations with approximately 100 employees into its network of 12 branches in Germany. This new business will enable the company to handle more traffic through its LCL hub in Hilden and the air cargo hub in Frankfurt.
Rhenus said the company also plans to expand its food business, trade fairs and event logistics operations. "In the past few years, we have paved the way for the continuous expansion of air and ocean freight," said Stefan Schwind, general manager of air and ocean freight at Rhenus Germany.
"Due to the addition of business sites, employees and business activities, we are consolidating our network in the German aviation and maritime sectors. We also hope to develop new business areas, such as the use of refrigerated containers to transport food, and in trade fairs and event logistics. Activities."
BLG said it will retain its freight forwarding business in Bremen, focusing on land and sea transportation of heavy and project cargo. Board member Jens Wollesen said: "Even if we no longer have representatives throughout Germany in freight forwarding, we will continue to provide a wide range of international services in our contract, automotive and container sectors."
Last month, Rhenus stated that it would take over the LTL and FTL cross-border specialist LOXX Group and established five business sites in Germany and Poland to strengthen its business in Germany and Europe.
In the past two years, Rhenus has made frantic acquisitions. From Germany, Italy, the United Kingdom to Canada to South Africa and the United States, all freight forwarding companies that Rhenus favors have been acquired.
Recent "acquisition list":
In November 2018, it acquired German freight forwarding SBL;
Acquired the Italian logistics company Cesped in December 2018;
Acquired British freight forwarding Core Management logistics in January 2019;
Acquired Rodair, a Canadian freight forwarder, in early March 2019;
Acquired World Net Logistics, a well-known freight forwarder in South Africa at the end of March 2019;
Acquired LOXX Group in January 2021;
Acquired BLG Logistics Group's freight forwarding in January 2021.
Customs regulations are a necessary, but challenging part of international shipping. Clearing customs increases costs, paperwork, and time-delays. Customs-bonded warehouses help reduce this friction and are an integral part of the global supply chain.
What is a bonded warehouse?
A customs bonded warehouse is a secured building or area where merchandise can be imported and stored for a period of time, without any import taxes (duties) being charged. Duties are only paid when the goods are removed for domestic use.
No duties are charged If the merchandise is re-exported, destroyed by customs, or withdrawn for use on an international vehicle or aircraft. The United States permits eleven types of bonded warehouses, where imported goods can be kept for up to five years.
While in bonded storage, merchandise can be handled and manipulated as long as the processing doesn’t change its essential nature. All types of products can be kept in bonded storage, including animals and restricted materials.
Customs bonded storage is a smart option for long-term financial planning and resource control. Using bonded warehouses to defer taxes on imported items can improve cashflow management, reduce financial liabilities, lower expenditures, and protect against political risk.
Long Term Bonded Storage
Bonded warehouses can be used to manage the financial burden of import taxes. If imported dutiable merchandise will not be sold immediately, inventory can be kept in bonded storage to avoid a large upfront tax payment.
Importers can then retain control over those monies and have them available for other purposes. Since applicable duties are only paid when the goods are removed after being sold, cash-strapped importers can fund their duty payments from the sale of the goods.
Customs bonded warehouses can also be used to hold merchandise that has low or fluctuating demand. If demand increases the merchandise can then be withdrawn for domestic use. If it doesn’t, the products can be re-exported without duty charges.
Right now, the global supply chain is in disarray due to Covid-19. Shutdowns and demand disruptions created supply chain bottlenecks and inventory build-ups. Luxury items like perfume are experiencing much lower demand. Bonded storage is being used to store excess product and let enterprises avoid paying customs on those items.
Restricted Specialty Item Risk Management
Bonded storage can be a preferable choice for storing restricted goods. Since customs bonded warehouses can store imports for up to five years, shorter time regulations for the storage of restricted products do not apply to them.
Importers who need extended time for processing paperwork or legalities to clear customs can use bonded storage to bypass these regulations.
Political and Economic Risk Management
Bonded storage can be used to protect against political instability and policy fluctuations. If merchandise is imported during times of high tariffs, bonded storage gives the chance to wait for more favorable economic conditions. Customs bonded warehousing has proved a highly effective strategy in navigating the tariffs of the Trump administration.
Exporters, importers, and manufacturers sought approval to establish their own bonded warehouses and storage areas. While the nation experienced rapidly changing foreign policy, these facilities became stable domestic zones for production and trade. Manufacturers and retailers were able to continue engaging in commerce while mitigating potential fallout.
Handling and Prepping for Market
If merchandise needs to be immediately prepped for market, this can be done in special customs bonded warehouses. Taxes are then determined on the final product when it is withdrawn from storage. This can prevent extra duties from being charged on material that does not make it to market.
For example, if food is brought in which needs to be sorted or processed, importers can avoid paying tax on discarded product.
Logistical Streamlining
Goods are also imported into customs bonded warehouses, simply to help smooth out the logistical process of clearing customs. Having goods placed in secure, duty-free storage gives peace of mind and more time for paperwork to be done.
How does bonded storage work?
Customs bonded warehouses can be owned either directly by the government or by licensed private enterprises. Some privately run bonded warehouses are for the proprietor’s use only, while others are available for public use.
Merchandise kept in privately operated warehouses, is under the joint supervision and joint custody of Customs Border Patrol and the warehouse proprietor. Customs retains full authority over the goods in the warehouse, but generally maintains control through periodic audits.
Private operators will take out a warehouse bond under which they incur liability for stored merchandise. This liability is discharged when the goods are exported, destroyed by Customs, or withdrawn domestically after duties are paid.
Customs-bonded warehouses are generally located at or near ports. Shipments are received directly to them. Many privately owned, public use warehouses will offer complementing services such as freight forwarding, logistics, distribution, and deliveries.
Certain classes cater to niche needs, such as livestock management, food handling, or receiving regulated products.
Once goods are withdrawn, importers will need to pay merchandise-processing fees in addition to duties. These fees should be negotiated carefully by evaluating different freight-forwarding services to find the best deal.
Supply Chain Resilience
Customs bonded warehouses are a key asset for global economic stability and security. Businesses rely on customs bonded storage as a core resource for financial control and risk management. Beyond cash flow management, this also creates economic confidence for trade to continue in uncertain conditions.
The recent China-USA tariff wars and Covid-19 supply chain chaos have proven their continued relevance as a stabilizing measure for international trade. Bonded storage is well integrated into freight shipping logistics. Enterprises looking to streamline and optimize the process of ocean freight shipping should take advantage of these secure, managed facilities.
Customs bonded warehouses are proven ways of mitigating the costs of heavy tariffs and regulations.
Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring
Recently, a cold wave swept the United States and quickly plunged the southern state of Texas into disaster. In this unprecedented cold wave, more than 4 million people in the United States have suffered power outages, countless power plants have been destroyed, and electricity and natural gas prices have skyrocketed. ; At present, the price of electricity in Texas has increased by more than 100 times, up to 9,000 US dollars per megawatt, and the price of natural gas has skyrocketed by more than 160 times, reaching US$500, compared with only US$3 in the past; it is jaw-dropping.
Except for Texas, which is in a serious disaster, other states in the United States are not doing well. There are about 168 million people in the United States under the threat of this cold wave. Numerous airports have been suspended. According to data from the flight monitoring website "flightaware", Dallas and Houston , Austin area airports have cancelled more than 2,000 inbound and outbound flights on the 15th . Coupled with the new crown pneumonia crisis that is still raging across the United States, the United States is really miserable.
In terms of shipping, the Southern California anchorage is full of container ships, and the congestion continues to worsen ! The latest video released by the U.S. Coast Guard provides intuitive evidence of the congestion levels in Los Angeles and the Port of Long Beach. From the picture, a large number of container ships are moored at the anchorage in San Pedro Bay, California.
U.S. Coast Guard aerial scene
Data shows that the historic container ship congestion in California ports has not really eased. There are currently 63 container ships in Los Angeles and Long Beach, and 32 container ships are waiting for berths at anchorages. (On February 1st, the highest record of 40 container ships anchored at anchorage)
The Port of Los Angeles announced the number of berth days for a particular container ship through its Signal platform last week. Data shows that some ships stay at anchorage and wait for almost as long as they sail across the Pacific Ocean . For example, as of last Thursday, the 6332TEU container ship "Ever Envoy" has been parked for 11 days. As of Tuesday, the 9,400TEU "MSC Romane" has been parked for 12 days. And the three container ships of 11356TEU "CMA CGM Andromeda", 8452 TEU "Ever Liven" and 4888TEU "NYK Nebula" also berthed for 11 days as of last week.
As of the end of 2020, the number of container ships at anchor has increased to 30; since then, it has remained between 20 and 40. At the same time, the number of vessels at berths in Los Angeles and Long Beach remained at around 20 and 30. Kip Louttit, executive director of the Southern California Shipping Exchange, said: "We seem to have adapted to the new normal of about 30 container ships waiting in line every day. I don't know if this situation will continue."
As of Tuesday, the average time for ships docking in Los Angeles was 8 days , up from 7.3 days at the beginning of last week. From the information on the waiting time of ships provided by the platform from January 27th, the waiting time for ships to berth has been maintained for about one week, and the data for the last two periods has been extended to 8 days.
The latest data from the Signal platform: 20 ships at anchor, with an average anchoring time of 8.0 days. There are 14 ships waiting to be pre-anchored.
What caused the blockage? The extended berthing time of ships forced some shipping companies to cancel multiple voyages this month. This is not due to lack of cargo demand, but due to lack of available vessels to handle these services. Delays on land have also caused congestion at sea: extremely high inbound volumes and complex logistics inside and outside the port have caused delays on land. One of the challenges facing the port is the new crown virus infection of dockers and a serious shortage of labor.
Despite productivity gains last month, terminal operators at the Ports of Los Angeles and Long Beach said the ports may have to wait until the end of spring to get rid of the ship backlog and congestion that have plagued them in the past six months . The near-record number of containers will continue into the spring of this year, but the backlog of ships at the port and the fully loaded inbound containers at the terminal should disappear sometime between April and June.
The managers of SSA Marine, Yusen Terminals and Fenix Marine stated that in order to alleviate the congestion in the port, two projects to be developed are necessary. First, the COVID-19 vaccine must be widely distributed among dock workers to alleviate the recent labor shortage. During the Lunar New Year holiday this month, container traffic has declined moderately, which should also enable shipping terminals to remove the backlog of fully loaded imported containers from their facilities.
"The terminals are full and there is no place to put these containers. We deliver 35% less cargo (to truck drivers) than usual," said Ed Dannick, president of SSA Containers.
According to data from the HarborTrucking Association, the average truck stay at the terminal in January improved from 93 minutes in December to 88 minutes, but it was still much higher than the record low of 58 minutes in June. Imports peaked during the recovery period after the first wave of COVID-19 lockdown.
The backlog of ships in Long Beach, Los Angeles, is increasing unabated. According to statistics from the Marine Exchange of Southern California, there are currently 63 container ships in the Port of Long Beach in Los Angeles, of which 32 are at anchor waiting for berths and 31 are at berths.
The latest data released by the Pacific Merchant Shipping Association (PMSA) shows that in December last year, the average container stay time at the 12 terminals of the Port of Long Beach in Los Angeles was 4.99 days. This is twice the average length of stay (approximately 2.5 days) recorded by PMSA in the first half of 2020.
“The longer the container stays at the terminal, the more serious the congestion will be. When the container piles up like a mountain, the congestion creates additional and inefficient handling requirements,” said PMSA’s government affairs manager jessicaalvarenga.
The new crown epidemic hits labor in the port
According to the Pacific Maritime Association (PMA), the West Coast port employers' Association and the International Terminal and Warehouse Union (ILWU), the new crown epidemic has severely affected the labor force along the Los Angeles-Long Beach Port. As of January 17, The International Terminal and Warehouse Union (ILWU) reported that 694 of its members tested positive. By January 25, this number jumped to 803.
PMA stated that there is a particular shortage of skilled equipment operators, who need to remove containers from trucks, and then move them into and out of the container yard, which is critical to the operation of the terminal. As a result, the joint committee of PMA and ILWU, which is responsible for allocating workers to the docks on a daily basis, cut the allocation share.
"It boils down to the labor issue at the terminal," said Scott Weiss, vice president of business development at Port Logistics Group, which has a large number of truck and warehouse operations throughout Southern California. "Containers still have bottlenecks in and out of the terminal."
The latest information released by the Signal platform of the Port of Los Angeles shows that due to the new crown epidemic, the productivity of coastal labor has decreased, which has caused ship delays and the average delay of port facilities is 8.0 days .
These ports are working with trans-Pacific shipping companies to reduce Southern California's load until the volume returns to normal. Gene Seroka, executive director of the Port of Los Angeles, said that he is working with shipping companies and terminal operators to "measure" imports until the port catches up. Hapag-Lloyd (Hapag-Lloyd) has announced the opening of a structured route to Southern California in February, and CMA CGM will remove Los Angeles from the trans-Pacific route and use Oakland as the first port of call from Asia. , Followed by Seattle-Tacoma.
The terminal operator said that when workers throughout the supply chain are vaccinated and imports drop, the congestion in Long Beach, Los Angeles, will disappear.
Spring recovery?
Alan McCorkle, President and Chief Executive Officer of Yusen Terminals in Los Angeles, said that in the past six months, the container throughput of these terminals was close to record levels, but there was no overall congestion. This fact shows that if the peak season does not last for six consecutive months, they will have Ability to handle peak season cargo volume. He expects to return to normal in May or June.
Scott Schoenfeld, general manager of Fenix Marine Services in Los Angeles, said that Fenix is showing signs of improvement, so he is optimistic that congestion may be eased as early as April . The density of containers in the yard is not as high as late last year, and more truck drivers are able to transport containers every day.
However, container traffic is still rising, and as overloaded ships continue to arrive in Southern California, this trend will continue until at least next month. NVOCC consultant Jon Monroe said that the eastbound transpacific shipping company has deployed or will add 10 additional loading vessels in February, all deployed at the Port of Los Angeles-Long Beach. Judging from the latest data from the Los Angeles Signal platform, there was another peak in the surge in volume in the eighth week.
Volume surged in the eighth week
Jon Monroe pointed out that although more Chinese factories will continue to maintain at least part of their business this month to clear the backlog of merchandise orders compared to previous years, the total volume of the East Pacific trans-Pacific region should be greater than the previous six months. Months are less.
Scott Weiss, vice president of business development at Port Logistics Group, said that the 1.8 billion square feet of industrial and distribution space throughout Southern California is not fully loaded, just like last fall before the holiday season merchandise was transferred to stores across the country. However, the availability of space in warehouses and distribution facilities has been mixed. "Some warehouses are in a mess now, others are working well. I think the ratio is about 50-50,"
Scott Weiss said that productivity has generally declined, and warehouses across the region are experiencing labor shortages due to the new crown epidemic, but at the same time, freight volumes are still exceptionally strong. "Everyone I contacted is experiencing record sales and growth, but everyone is working hard to cope."
Weston LaBar, CEO of the Port Transportation Association, said that the current truck capacity is tight, and the availability of workers at both ends of the truck driver's route, the terminal and the distribution warehouse, has been challenged . However, when workers feel safe, they return in large numbers. LaBar said: "The most effective thing we can do right now is to vaccinate."
