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

2023 | Freight Forwarding FAQ Ultimate Guide

International trade is a large and complex trade, it is different from domestic trade, more contact with a number of countries, and then have different import and export standards of different countries and related matters, in order to help trade parties, the introduction of freight forwarding services. The following will provide authoritative answers to common questions related to China freight forwarder.

See below for the main services that China freight forwarding can provide respectively.

  • Customs clearance.
  • Packaging.
  • Insurance.
  • Import and export paperwork.
  • Storage.
  • Inventory management.

This list is not exhaustive; other operations can be performed by freight forwarding entities.

As these services are grouped under freight forwarding, the whole process of importing and exporting products becomes less stressful.

TJ China freight forwarder

Why is it profitable to use freight forwarding services?

We can see 5 key factors that make freight forwarding services helpful.

Flexibility. With freight forwarding services, you can easily change your choice of transport company or mode of transport without any hassle.

Versatility. A good freight forwarder knows how to react quickly and solve problems as they arise (such as rerouting to sea or air delays).

Cost-effective. Freight forwarding services can help you save a lot of money. Shipping companies handle bulk cargo, which makes it possible to reduce freight costs.

No customs hassles. Customs rules and regulations can make your deliveries confusing and complicated. A freight forwarder will ensure that you can avoid all these hassles.

Additional services. Such options include purchase tracking, packaging and on-demand reporting. When choosing a freight forwarder, it is a good idea to choose a company that offers helpful additional services.

If you need to export a shipment from China, TJ china freight has the best service for you, get a free quote for your cargo shipping now!

What are the main duties and responsibilities of a freight forwarder?

The freight forwarder uses the best routes and methods to deliver large shipments to their destination.

The freight forwarder must ensure that the goods reach the buyer in the shortest possible time.

Therefore, freight forwarders must make the most efficient use of multiple modes of transport.

The freight forwarder must carry out research while planning the route.

 

He needs to take into account

  • The type of product to be transported.
  • The distance to the final destination.
  • Any specific customer requirements regarding the final delivery time?

The freight forwarder is also responsible for the

  • The packing process.
  • Insurance procedures.
  • Customs documentation and other regulatory requirements.

A good freight forwarder must have a high level of organization.

She/he keeps a close eye on controlled shipments using satellite technology and software applications.

Finally, such a person (company) must communicate with her/his clients and make payments on their behalf.

What is freight forwarding insurance?

The freight forwarding process assumes a cash flow of billions of dollars, so insurance is an obvious choice.

  • Good insurance coverage for freight forwarder liability includes
  • Bill of Lading Liability.
  • Errors and Omissions (E&O).
  • Bailiff’s liability for warehouse and trucking operations.
  • Packing and container filling liability.
  • Container and transport equipment cover.
  • Customs liability.
  • Third party liability (mainly for 3PL companies).
  • Rail cargo

How does the freight forwarder deal with lost cargo?

In this matter, it all depends on the contract you have with the freight forwarder.

Freight forwarders also have similar liability contracts with shipping companies and carriers.

Generally, such agreements set out the course of action in the event of loss or damage to the goods.

Once the freight forwarder has entered into a contract, he will endeavour to ensure that no such trouble arises.

If it still occurs, the freight forwarder will take care of such damage himself or with the help of an insurance company.

How much does freight forwarding cost? What are freight forwarding surcharges?

The freight forwarding process entails various costs and fees.

They can be divided into two groups: ordinary costs and non-standard costs.

In any case, there are 3 general charges that must be paid in practice.

Air/land/sea freight charges. This is the most obvious one. It depends on the size of your shipment, the country of origin and the distance of delivery.

Some freight forwarders may include additional charges here.

Cargo inspection fees.

Airline security fees.

Fuel surcharge.

Pick-up fees. These are the fees associated with picking up the goods from the warehouse.

Freight forwarding handling fees. These are fees associated with different paperwork, including copying documents and preparing bills of lading. This fee may range from US$35 to US$75.

 

Non-standard (additional) fees may refer to

Certificate of origin. In some countries, you may need this document to verify the manufacturer of the product.

Hazardous substances. There are always additional costs and fees for handling hazardous substances.

Legalization procedures. In most countries, the legalization process is linked to the verification of the document by the consulate or embassy.

Please bear in mind that each country/region charges additional fees.

For example, the US government assumes additional export fees, such as TSA security and AES fees.

 

What are the common problems with the freight forwarding process?

The freight forwarding process faces many challenges.

The following are the most common problems.

Unclear rules of the game

Freight forwarding depends on the economic conditions of each country, as well as international regulatory rules.

It makes the process quite complex and unbalanced due to different rates, fees and charges.

Customs clearance complications

Following on from the previous topic, here is another problem with the freight forwarding process: uneven global customs regulation.

This limits the scope for freight forwarders to operate. This means that most freight forwarders will take their chances in local markets.

/ By tjchinafreight ivy / Shipping

Why you should choose FOB over CIF when importing from China

Why you should choose FOB over CIF when importing from China
Why you should choose FOB over CIF when importing from China

Significance of choosing a CIF

Under CIF, the buyer takes ownership of the goods only at the port of destination. The seller is responsible for cost and shipping, and the transfer of title takes place at the port of destination. This is usually subject to a third person, usually a customs agent whose consignee is listed on the bill of lading.

This means that the agent, not the buyer, has the legal right to claim against the goods. The agent will then ask the buyer to pay for the destination, including customs clearance, taxes, etc.

Many novice buyers find this option particularly advantageous because they are relatively not responsible for the goods - logistically and financially. Also, Chinese suppliers often offer lower prices if buyers agree to CIF Incoterms.

Why are you so obsessed with CIF?

As you can imagine, there is a problem with choosing a CIF. This is a pretty bad practice for imports from China. Here are some features of CIF incoterm:

  • Prices for purchasing items under CIF are very low and competitive - often much lower than under FOB incoterms.
  • You usually don't know about item management as this is handled by the seller.
  • You are also often unaware that the consignee on the bill of lading is listed as the clearing agent (at destination), not yourself. (This applies to MBL or Carrier B/L)
  • After the goods arrive at the port of destination, certain decisions made by the agent may result in you having to pay five times the actual required fee. In addition to the arrival fee that every importer should pay above, you run the risk of ending up having to pay more. These include handling fees, exit fees, entry fees, etc. - basically the agent's concept of "own" to drive up prices, or unexpected surcharges on standard fees such as terminal fees.
  • Plus, having control over merchandise means they have better control over time. This means they may be in their favor - waiting for your item to arrive before notifying you. This will incur additional charges because you do not have enough time to schedule the delivery. This results in delays and additional charges that you must pay and settle before picking up your shipment.

FOB or CIF: Investigate Before Choosing

Common practices include an agreement between the destination agent and the seller to set a low price for the item being sold. This is to lure you before the destination inflates the cost, and then divide that profit among them. This has happened quite a bit with products imported from China, and such cases have been on the rise in recent years, especially in Latin America.

FOB works well for LCL as profit margins tend to be lower. As a result, this gives sellers and agents more power to drive up prices. If you're considering choosing a CIF Incoterm, you should ask yourself if it's really worth exposing yourself to such a risk at a low cost.

Advantages of choosing FOB over CIF

Unless you are dealing with a seller or agent you can trust, or have an agreement to list yourself as the consignee on the bill of lading, it is best to choose FOB Incoterm to avoid risk. FOB Incoterm provides features that CIF Incoterm does not. The responsibility for paying, contracting and managing the goods rests with you, the buyer.

Although it requires some extra effort on your part compared to a CIF, it is much less risky as you get immediate clarity on the costs involved. That said, problems like delays and unexpected extra costs can be avoided with good planning.

FOB also has the following advantages:

  • By controlling the agents involved, the buyer is able to exert pressure to lower the commercial price.
  • By minimising costs, it enables buyers to obtain tax benefits, such as a reduced VAT burden.
  • FOB also allows buyers to get better insurance prices, as you'll be looking for deals that cover most of your logistics. Unlike CIF, CIF only covers the movement of goods from the port of destination to the buyer's facility.

FOB or CIF: Considerations

One thing to keep in mind when choosing FOB is that complications can arise if the supplier refuses to work with the shipping company of your choice. Suppliers sometimes receive certain rebates for using specific freight forwarders and may therefore be reluctant to work with other consignees. This is a fairly common question. Therefore, the consignee should be prepared to put pressure on the shipper to help the freight forwarder smooth the process.

In short, new importers should not commit to CIF Incoterm unless you are familiar with seller practices. This is especially true when dealing with products imported from China. It is always recommended to use the services of a freight forwarder and choose FOB Incoterm when the situation allows. This is to avoid unpleasant surprises when the goods arrive. If you have any questions about choosing FOB or CIF, please feel free to contact our sales experts at TJ chinafreight!

/ By tjchinafreight ivy / Shipping

How working with a destination agent can help

How working with a destination agent can help
How working with a destination agent can help

Destination ship generation: your eyes and ears are there

The world of shipping is huge, complex, and definitely not lacking in regulations. Given the complex systems of this sprawling industry, hiccups are not uncommon. Whether you are an experienced shipper or not, it is always advisable to have an agent at the destination. This avoids unnecessary problems that can result in additional costs, delays, not to mention headaches.

The role of freight forwarders at the destination

Freight Forwarder: The designated party at the destination who handles your shipment and helps monitor it.

In case of unexpected problems, you can rely on your proxy. It is his/her responsibility to properly identify and resolve these issues. All this without any hassle for yourself - the client. Generally speaking, the responsibilities of an agent include document presentation, customs clearance, and delivery. It can even be a combination of these. But this is just an overview. What an agent is really responsible for varies from situation to situation and largely depends on the scope of the job.

What could be wrong

Shipping regulations and processes vary widely. Typically, they depend on the type of cargo, the country of destination, etc. Certain countries require very specific paperwork, not to mention the different logistics availability at each port. It is a risk not to pre-register an agent at the destination before the shipment leaves. This means having to deal with your own customs clearance, delivery services and any other unexpected issues.

All of this can lead to additional costs and logistical inefficiencies. The shipper/consignee will have a lot of extra work to do to determine what went wrong. This is just the first step. Then he may have to find a provider who can solve his problem. This all translates into unnecessary extra costs and delays.

Shipping without a shipping agent at the destination

At TJ chinafreight we are sometimes hired to deliver to port and told not to entrust to any agent. In this case, we only communicate all relevant information to the shipper. We send final warnings of estimated departure time and estimated arrival time to customers. But no one is responsible for notifying the consignee of the arrival of the goods.

If you use a vetted TJ chinafreight agent, we send alerts to shippers and agents at no extra cost. Our agents don't just check that all documents are correct. They also ensure destination charges meet expectations and adhere to industry and national practices. They can also meet any other requirements the consignee may have.

/ By tjchinafreight ivy / Shipping

Importing from China: What you need to know (Part 2)

Importing from China: What you need to know (Part 2)
Importing from China: What you need to know (Part 2)

What do you think of China's unclear regulation of imports? What is the best way to overcome this problem?

I don't think the lack of clarity in Chinese regulations actually affects importers directly. If you import shoes, you won't have any problems with Chinese regulations. Suppliers load goods into containers (for FOC Incoterm) and you won't have any problems.

Importing from China does have tax benefits. But this is already included in our supplier's FOB price. That said, we don't need to know about legislation. There are also regulations that control and monitor the products that suppliers can export. For example, shoe suppliers cannot export sofas. This is why so many manufacturing companies in China entrust their exports to other companies. All of this is done to avoid China's strict regulations. But as mentioned earlier, this has little impact on importers.

What are the main difficulties and challenges that importers face when importing from China?

For first-time importers, the lack of understanding of the entire process is undoubtedly the biggest hurdle. They don't know how to hire a shipping company or who they have to pay duties and taxes to when shipping containers.

For experienced importers, their biggest problem is often the volatility of container prices. You can agree to a price of $500, but it goes up to $2,500 on the day it ships. Right now, this is the most vexing problem.

What advice do you have for shippers importing from China?

I recommend working under FOB Incoterm. Always negotiate FOB prices to avoid surprises from CIF prices. Under FOB conditions, you can control the entire shipping process from the origin port to the warehouse. This way, you can avoid any unexpected charges and get everything organized before the import process begins.

Can China maintain its status as the world's largest producer for a long time? Are there any signs that this will change?

I have no doubt that China will continue to be the world's largest producer for quite some time. What is happening today is that the processes that took place in China ten years ago have moved to other countries where labor costs are low, just like China ten years ago.

But having said that, some processes are just moved. A large portion remains in China. I think the production of raw materials in China will continue for some time.

How can importers minimize the impact of the General Tax Rate Increase (GRI)?

Since most GRIs are in effect in the first week of the month, importers can avoid the impact of GRIs by billing in the last week. Another option is to negotiate with your forwarder to get a better price than another shipping company that is not affected by GRI.

In terms of technology, what are the main opportunities for imports from China? What are the main advantages of using technology to book ocean freight?

Find suppliers through the Alibaba platform, new payment methods with companies like Transfermate, container tracking, and door-to-door services with companies like TJ chinafreight. Technology has definitely made life easier for importers.

In your opinion, which markets in China currently offer the greatest potential and opportunities for exporters?

I am not an expert on exporting to China. But every time I travel to China, I always try to find out what the Chinese are looking for.

I talk to people in my China office and they always tell me the same thing. Health and quality of life are the top concerns for Chinese people. Being able to feed a family is one of them, especially after the tainted baby milk incident. Pollution is also a big problem in China. That said, anything that offers a solution or can improve the quality of life in China is always a huge business opportunity.

As always, luxury. international well-known brand. The Chinese middle class is willing to pay higher prices for quality European products than for local Chinese products.

/ By tjchinafreight ivy / Shipping

Transparency as the foundation of partnership

Transparency as the foundation of partnership
Transparency as the foundation of partnership

In any business where the two companies decide to work more closely together, the overall success will largely depend on the trust and reliability between them. Enterprise data protection should never be underestimated. But let's make a clear distinction between necessary and redundant. Secrecy about costs and opportunities protects our competitive advantage...or does it?

Rate transparency

On average, it takes 4 to 7 business days to negotiate and complete a reservation. This includes time spent sending back and forth emails and phone calls to reconfirm costs and possible discounts between direct customers and overseas quoting agents. With TJ chinafreight, freight forwarders can get the lowest NET NET rates directly online and negotiate with end customers without further delays and share in possible after-sales profits.

Transparency of methods and know-how

Complete and instant information on carriers, transit times and available routes to evaluate options for better decision-making, as well as clear instructions on customs requirements and related regulations, all of which create confidence in professionally managed shipments.

Transparency of Shipping Status

Instant access to timely updates on cargo status is a thorny topic in our industry. Repeating follow-up calls and reminder emails for long-awaited information is a daily routine for too many of us. Now, with our Track & Trace tool, you can get complete information on the status of the latest shipments online directly on your personal dashboard. You can also take advantage of our automatic notifications and receive proactive updates.

Transparency of business opportunities

Leads account for a large portion of customer growth, especially when they are fresh and supported with full details and direct contact information. Instead of dropping an inquiry that interests you, share it with your partner. Let them grow with you and bring more opportunities to everyone involved.

Far beyond the competition, agents can complement each other through service and opportunity. Thanks to TJ chinafreight's innovative online platform, we can now track inquiries and rate searches of all global web users and share these detailed opportunities with our overseas partner agents. Read our post on how agents can benefit from using TJ chinafreight.

Transparency in practice

Strategic thinking and long-term cooperation between freight forwarders assume mutual trust and reliability, as well as a certain degree of transparency. We now operate in a more integrated and fast-paced world, where timely access to complete information is critical for better decision-making and therefore increased productivity.

Working with Holistic Transparency will optimize shipping operations and save time for both parties:

  • Focus on further development and greater results
  • Get better solutions for mutual customers in the fastest and most efficient way
  • Maintain customer satisfaction, enhance corporate image, and win new customers
  • Global expansion of business scope and achievements

As a practical example, a recent study by Harvard Business School outlines the concept of transparency in restaurant settings, where kitchen staff and customers are effectively separated by clear glass, so both parties can see food being prepared and consumed. Results showed an unexpected 17% increase in customer satisfaction and a 13% increase in service speed when customers and employees could see each other. This is just one of many fascinating powers of transparency in practice.

/ By tjchinafreight ivy / Shipping

Differences between a traditional and online freight forwarder

Difference Between Traditional Freight Forwarding and Online Freight Forwarding
Difference Between Traditional Freight Forwarding and Online Freight Forwarding

Comparing traditional and online freight forwarders

As more of the freight forwarding industry demands technology adoption, more and more freight forwarding startups are springing up. Online freight forwarders also do a lot. But why is digitization urgently needed? How is an online freight forwarder different from a traditional freight forwarder? In this article, we will address this issue.

According to a survey conducted earlier this year by global logistics research and consulting partner LOGISTICS, while 68% of respondents believe that traditional freight forwarders are still important in today's environment, 92% of respondents said that digitalization will provide freight forwarders add value.

The need to go digital is obvious. But how many freight forwarders are doing this, and how does digitization affect workflows and processes?

Website features

While most traditional freight forwarders have websites, they mostly only talk about the services they offer. Only the more advanced online freight forwarders offer documentation and rate features on their website.

Quote request

Some traditional freight forwarders may have a "Request for Quote" feature, but you may not be able to get in touch with them right away. Sending a quote request may only get you a quote via email, sometimes a few days later - if that's the case. According to a survey by TJ chinafreight, 40% of freight forwarders take 4 to 7 days to provide customers with a quote.

Quote now

Perhaps only a few traditional freight forwarders offer instant quotes, often for their own LCL products. They also often come in the form of tariffs, and shippers have to look at ocean freight and surcharges separately. In short, the math is not done for them, and the final cost must be calculated by themselves.

For example, for online freight forwarders like TJ chinafreight, quotes are provided within 15 seconds and all fees are broken down and included for full transparency.

Track

Today, only a few traditional freight forwarders offer tracking tools and sailing schedules. Again, these may only apply to their own LCL shipments. Online freight forwarders tend to have tracking tools for various types of shipments.

At TJ chinafreight, we are constantly striving to improve tracking efficiency and transparency. This year, we launched our own Track & Trace feature and automated notification system for shippers. Not many online freight forwarders offer these tools, and those who understand the importance of transparency may be the ones leading the industry's digital revolution.

/ By tjchinafreight ivy / Shipping

Importance of cargo insurance

Importance of cargo insurance
Importance of cargo insurance

First, a fire in Maersk Honam in the Arabian Sea was a stark reminder of the dangers the crew faced in the ocean. The Singapore-flagged vessel was en route from Singapore to Suez with 12,416 TEUs on board when the fire broke out. At the time of writing, the blaze, which had been raging for five days, was under control, but four crew members were reported to have died in the blaze.

This first underscores the importance of crew safety at sea. But as a shipper, knowing that you have ocean freight on a burning ship is worrying. The Indian Coast Guard classified the blaze as a "chemical fire", which raised questions about the safekeeping of cargo and the declaration and documentation of all cargo, whether dangerous or not.

It really underscores the importance of having cargo insurance.

Why should you always buy cargo insurance?

By law, all carriers are obliged to provide a minimum amount of insurance. But as the word suggests, it offers limited coverage. As a shipper, you can and should purchase additional cargo insurance to further protect your merchandise. This will cover your shipment in storage and in transit until it reaches the buyer's safe hands.

The stowage list for each ship is prepared based on the data on the manifest provided by each shipper carrying the cargo. Accurate cargo declarations play a vital role here. Due to the large volume of shipments by sea, customs simply does not have time to physically inspect and verify each shipment.

As a shipper, you can only ensure that you play your part by filling out all documents and declarations as accurately as possible. This includes bills of lading and packing lists, etc. You may not have control over other cargo on the same ship, or LCL containers, but you should take the worst-case scenario of every shipment - cargo insurance.

What is a general average?

There is a concept in the maritime world that everyone in the industry should be familiar with - generally average.

Legal Definition of General Average

"A principle of admiralty law, in the event of an emergency, if the cargo is abandoned or costs are incurred, the loss is prorated among the parties who have a financial interest in the voyage."

Unless you have general average insurance, general average is separate from the ocean cargo insurance purchased for your cargo. But with insurance, you can at least insure against loss or damage to your cargo.

What your cargo insurance covers

Cargo insurance varies by cargo, and different insurance companies have different names. In general, however, all cargo insurance should cover physical damage to the cargo due to unforeseen circumstances beyond the owner's control. These apply to marine accidents, shipwrecks, pirates, etc. All this is provided that the goods are properly packaged according to their type of transport. Appropriate declaration forms must also be completed if necessary.

If your cargo suffers damage due to poor packaging, it is unlikely that your cargo insurance company will cover those losses. Please contact your freight forwarder (TJ chinafreight) or insurance company for more information on the policies available to you.

/ By tjchinafreight ivy / Shipping

The busiest seaport in the world

The busiest seaport in the world
The busiest seaport in the world

The busiest seaport in the world

A common question we see in the shipping world is "What is the busiest seaport in the world?" The size and scope of the shipping industry is difficult to understand, which is why working with experts can be so helpful for businesses. At TJ chinafreight, we work with various manufacturing and other companies to meet their transportation and logistics needs.

Currently, the busiest seaport in the world is Shanghai Port (according to Marine Insight). The name is based on the daily container flow through the port, meaning the biggest ports are not always the busiest. The port is located in the Yangtze River and the East China Sea with convenient transportation and consists of a deep sea port and an inland river port. The total area is 1,397.5 square miles! Shanghai beat Singapore to become the world's busiest port with 37.1 million TEUs of cargo in 2019 and is considered the world's fastest-growing economy. About 2,000 container ships depart from Shanghai Port every month.

Learn about the harbour

A seaport is the place of origin, transshipment or arrival of seaborne cargo. Simply put, maritime transport is the movement of goods, raw materials and commodities across the world's oceans and waterways. More than 90% of the world's goods are transported by sea. Without shipping, the world economy would come to a screeching halt—without electronics, manufacturers without raw materials, and store shelves half empty.

Ships are one of the oldest forms of transportation. Today, ships still sail through the former sea trade routes. Interested in learning more? TJ chinafreight would love to hear from you!

/ By tjchinafreight ivy / Shipping

What is the difference between Skid and Pallet?

What is the difference between Skid and Pallet?
What is the difference between Skid and Pallet?

Difference Between Skid and Pallet Compare the Difference Between Similar Terms

Wondering what's the difference between a skid and a pallet? Forklifts can access the skids from either side, but pallet jacks cannot. This is because the pallet jack arm is fixed at a certain height and width, and the forklift arm can be adjusted to the ground and left and right

Pallets can be accessed from any of the four sides by a forklift or pallet jack. This is because all four side and center rails are open to allow access to the pallet jack stationary arm.

Why does this matter?

Over the years, many in the shipping industry have used either label to refer to pallets and skids. But the use of pallet jacks is expected to continue to grow as more and more less-than-truckload shipping operations are shifting from all forklifts to a mix of forklifts and pallet jacks due to constraints such as labor shortages and insufficient training. Combine that with the high capacity utilization of LTL trucks on the market today, and suddenly it matters if you're transporting pallets that can be loaded on pallet jacks, or skids that can only be loaded in one direction. This ultimately translates into your shipping costs.

If you need help, please contact TJ chinafreight, if you want to make an inquiry, please go to click to Send  Inquiry.

/ By tjchinafreight ivy / Shipping

Are you paying too much for shipping?

Are you paying too much for shipping?
Are you paying too much for shipping?

Are you paying too much for shipping? Shipping costs are a major consideration when determining the cost of doing business. Some companies can make a living with parcel shipping, but most manufacturing companies and the larger industry rely on less-than-truckload shipping at some point. LTL ("less than truckload") shipping can be expensive - especially if approached. Fortunately, there are options that prevent you from overpaying for shipping, and TJ chinafrieght can help you with that.

The first step is to collect data about your current shipping situation.

Before you can determine if you are overpaying for shipping, you must determine what you are actually paying for. It is important to understand what these costs are so that we can predict future changes in shipping costs.

Shipping rates are unlikely to drop anytime soon.

Remember, shipping has operating costs for them, and as those costs rise, they need to increase the rates they charge us to maintain their profitability. 3PL Corporation is in the business of providing customized shipping solutions to its clients and clients. This can mean anything from a dedicated account manager acting as a liaison to your company's shipping department to a dedicated service offering you co-design. Depending on the specific nature of your shipping needs, the type of 3PL service you require will vary.

LTL shipping is an essential shipping service for businesses of all sizes and in all walks of life.

As the economic landscape of the freight industry changes, the cost of traditional LTL shipping can be more challenging to your business bottom line. Fortunately, there are many tools your business has at its disposal to try and better meet your shipping needs. Want to learn more ways to save on shipping? Contact TJ chinafreight today!