Shipping Freight in Port

Yantian Port Congestion

The recent Covid-19 outbreak in Guangdong Providence in Southern China has meant that the region’s main port, Yantian is acutely congested, and this blockage could be worse than the Suez Canal blockage in March earlier this year.

Shipments have been delayed, and the fallout could take months to recover from, which means that there may be delays for Christmas. Another setback this soon after the Suez Canal blockage means that the shipping industry is in for a tough year. These affects are not just limited to the UK, the effects of the port congestion in China could have rippling effects around the world for months to come.

Yantian Port Congestion

Due the Covid-19 situation in China, many ports, including the Yantian International Container Terminal in the Shenzhen region, have been operating at a fraction of their overall capacity. Dozens of ships have already been waiting outside the terminal waiting for a berth to become available due to congestion. According to Ditlev Blicher from Maersk, the port is currently only running on a 40% capacity and that “We’re expecting that to continue for the next month with significant delays for vessels to be able to berth.”

The Yantian Port has an importance on a global scale, as the port handles 13.5m teu a year or about 36,400 teu a day. This means that any blockages in this port can have detrimental impacts on the shipping industry. The Suez Canal blockage only lasted for six days, while the delays at Yantian International Container Terminal have already lasted for several weeks, with no end in sight in the near future, meaning that this situation is significantly worse than the Suez Canal blockage.

Changing Destination Ports

Shipping line ONE (Ocean Network Express) has said that it is beginning to encourage customers to use a different destination port. “This may result in extended period of storage of inbound reefers at transhipment port or the discharge of reefer containers at an alternative port without prior notice,”

Delays

The delays in Yantian International Container Terminal can be 16 days or more now, compared to 15 days or more a day earlier. 121 sailings have omitted calls to the port or diverted to a different destination port. Project44 has said that over 32% of vessels that have been approaching Yantian have been delayed, with the situation expected to worsen over the coming weeks.

Disruption

The delays in Yantian mean that there will be an unprecedented amount of disruption to many industries, including many materials, and countries will struggle to top up on much-needed PPE. Part of the Yantian port has reopened by the Yantian port authority, but it is now only running at 45%, which is far from sufficient. Scheduling for calls to the port is going to suffer majorly for at least the next 16 days and counting. European and US ports are facing a huge challenge when the ports finally do fully reopen, as the wave of cargo hitting them, will challenge their already stretched landside operations.

Mr Hersham from The Loadstar has said that “Congestion will rise significantly, meaning that ports, and especially those already suffering such as Felixstowe, will be heavily impacted,” he said. “The scale of the issue in South China is already bigger than Suez.
“Two accurate metrics to measure disruption by are days of delay and teu; in both cases, Yantian far surpasses what happened with the Ever Given.”

If you have any questions about how these delays could affect your shipments, please do not hesitate to get in touch with us here at Supreme Freight for a discussion.

online buying

Pick and Ship: Dropshipping

Online shopping sales have increased dramatically in the last year. The January sales in 2021 on the internet alone made up over a third of retail sales in the UK. This was an increase of 81% from the year before. With the eCommerce industry at peak demand how can pick and ship and drop shipping businesses keep up with the pace?

Director of the Cigar Club, Paul Futcher, saw a 32% increase in his revenue between 2019 and 2020. Here he provides his guidance on how others can withstand growing customer demand and the higher standards that are now expected of pick and ship businesses.

The market growth in online sales in the last 12 months has risen significantly. The Increased demand has lead to Supreme Freight seeing a growing number of customers looking to import goods for resale, many of which are new to the eCommerce world.

We have seen a lot of new customers with enquiries around handling the import from drop ship and pick and ship warehouses from across the globe. Many new customers are either using services like alibababa.com or alternative drop ship and pick and ship warehouse. Initially this looks like a straightforward business model but it can be a minefield when you first enter into the import and export industry especially since leaving the EU. Supreme Freight is on hand to make sure that your air, sea & road freight are handled quickly professionally and effectively.

Below we have outlined a few pointers to look out for when you start selling products from pick and ship warehouses and drop shippers alike.

Refine your Delivery Process

With many advances in technology across the delivery process and so many eCommerce businesses needing to stay competitive, customers are coming to expect a top-notch retail experience. They expect to be kept updated from the moment they make their purchase to the product arriving on their doorstep. The quicker the company can make this process the better.

The Cigar Club considered each stage of a customer’s experience to improve how they could organise their orders and refine their pack and ship process.

Paul says: “It is important to us that our customers receive the product exactly as it is described on our website, in perfect condition and in protective packaging. We’ve tested out a variety of boxes over the years and have come to a size and shape that keeps shipping costs as low as possible without sacrificing quality or protection. We keep the line of communication between us and our customers strong, by being quick to respond to queries, and using delivery technology that updates the customers on the status of their package as well as exact delivery times.

Show Off Customer Feedback

Customer reviews are extremely important! According to Podium, 93% of consumer purchases were influenced by online reviews. There is a lot of choice when it comes to online shopping and people are looking for reassurance that they’re making the right decision before committing to the purchase.

The Cigar Club collected over 730 company reviews and 166 product reviews through using the platform ‘REVIEWS.io.’ Their efforts to ensure efficient delivery and the quality of products are up to a high standard have led to an impressive overall review rating with some of the most common phrases including ‘excellent service’, ‘efficient service’ and ‘prompt delivery.’
Once these positive reviews were collected, The Cigar Club created a widget displaying the reviews on their homepage of their website building trust with customers browsing their site. Actions like this really drive home the quality of service that customers can come to expect from your company.

Paul says: “These customer reviews have really helped us grow as a business, as with so many options for products to choose online, our positive reviews help communicate to new customers that we really do care about providing a high-quality product with efficient service. Also, by putting these reviews on our homepage we have been able to create a personal feel for those browsing our products. We’ve also tried to keep this personal touch there in all our transactions, as this is what makes our cigars unique. Particularly when online shopping is a wholly solo task, adding in real-life perspectives on our products really makes a difference.

Final Points

Implementing changes and refinements to business operations can be an intimidating task; however, by paying close attention to logistics processes and boosting online visibility, businesses can place themselves into a better position to stay competitive and successful.

sea freight

Shipping Construction Goods Worldwide

Shipping goods via sea freight internationally happens on a daily basis and enables us to obtain products from anywhere in the world with ease. You could say that shipping keeps world trade turning particularly for the construction industry.

The recent incident of the sea freight ship getting stuck in the Suez Canal may have prompted you to consider what goes into transporting construction products all over the world.

If you have ever considered setting up a shipping business of your own or extending your current business to offer this service, read on for a few things to consider.

1. What Products will you be Shipping

When creating a freight business, it is important to consider the items you will be shipping and the current demand for these them around the world. Identifying gaps in the market and establishing how your business can fill these gaps is an ideal way of establishing yourself in the shipping industry. New construction projects are started each day. The question is how is your business going to find them?

2. How will Products be Stored and Accessed

Businesses in the freight industry mostly own warehouses situated in various locations. Warehouse provide companies with storage solutions particularly when packing orders for shipping. It is important to consider the locations of your warehouses particularly when dealing with products significant in size like those of the construction industry.

3. The Legal Side to Opening a Freight Business

Once products and warehouse locations have been sorted, it’s time to focus of the legalities of your business. It is imperative that the relevant permits and licenses are acquired not to mention implementing insurance polices that will protect from potential issues and ensure that your business can trade effectively. One of the first policies to consider is contents insurance. The last thing that businesses want to consider are damage to stock resulting major losses.

4. Building a Customer Base

One of the hardest things in starting a business is increasing your retention and ensuring your customers are talking about you. Initially this can be challenging. Offering discounts and rewarding loyal customers will incentivise customers to return increasing your chances of achieving maximum profits!

How Sea Freight Works

Companies use freight companies for their extensive knowledge of importing and customs processes. Processes can be complex and mistakes are costly to fix. Having a shipping company taking the reins ensures that shipments get to their intended location as smoothly as possible.

Companies arranging a shipment to be transported usually go through the following process:

  • Find a shipping company and negotiate the price of the shipment
  • Collection of the goods from the supplier to the shipping company
  • Transferring the shipment from the port and into Customs
  • Goods are loaded into either FCL or LCL containers and loaded onto a cargo ship
  • On arrival in to the UK, the shipment is met by customs and released on receipt of duty paid
  • Delivery of the goods to their final destination.

Sea freight shipments are not hard to arrange assuming the shipping company is reputable and cost-effective. When ensuring shipments reach their final destination in good time, planning and organisation are required. Despite all of this sea freight is still the most cost-effective way of shipping goods all around the world.

What are the Advantages of Sea Freight?

There are many advantages to using sea freight to import your shipments. These include:

  • Cost – Businesses looking to import shipments significant in size and in large quantities find sea freight one of the most cost-effective ways to transport it. Sea freight has been known to be 4- 6 times cheaper than air freight. Additionally, taxes are calculated in a different way to air freight keeping the costs down in other ways.
  • The different options available with sea freight could suit a number of businesses. Sharing containers spreads the cost between companies.
  • Sea freight importing does not have as many restrictions of what companies can import, in terms of size and amount as other methods do. Bigger items such as furniture or vehicles isn’t going to be so much of a problem by sea as it would by air.
  • Sea freight is pretty much accessible from anywhere in the world.
  • Sea freight importing is much better for the environment than other methods.
Brexit logistics

How will Brexit Impact Logistics Companies?

With Britain’s exit from the EU single market and customs union a matter of days away and no trade agreement still in place, there are a number of steps that logistics companies should be taking to prepare.

Brexit is set to make a high impact on the sector, due to the amount of cross-border travel involved. The most troublesome Brexit issues relevant to the industry are delays at ports, mandatory border checks and ability to process the required paperwork. These issues are being tackled alongside increased costs to keep up with technical innovation and increased customer satisfaction demands. The only way for logistics companies to stay ahead are to prepare for changes and the ability to adapt quickly to changing legislation.

 

What Does Brexit mean for Business?

As the 31st December approaches, UK businesses are increasingly anxious about their prospects with many losing faith about their future. Many businesses have taken to stock piling essential goods to ensure they are not reliant on orders arriving within a certain time period. In light of this, freight forwarders are bracing themselves for a negative impact on trade between the UK and the EU that will undoubtedly affect them from a customs, bureaucratic and economic standpoint, providing the UK goes ahead with a no-deal withdrawal. Without a deal, Brexit will severely impact the movement of freight in and out of the UK whether it be via road, sea, air or rail. Here’s how it is likely to impact each mode of transport:

 

Road

Once the UK exits from the freedom of movement agreement with the EU; UK registered vehicles will be required to apply for international driving permits. The European Conference of Ministers for Transport (ECMT) permits are required for laden and unladen journeys through EU and EEA countries. If the UK cannot negotiate a deal with the EU, an ECMT permit will be required for every journey made. These permits are issued on a limited basis which will severely impact the frequency that UK hauliers are able to cross the border. EU drivers will continue to be allowed to drive in the UK on their licences; however, this is only for a temporary period.

 

Air

UK carriers will see their cargo services between EU and third countries capped at 2018 flight frequency levels which will restrict a company’s ability to opt for air travel to transport their shipments to avoid delays at sea ports. As well as this, UK carriers will also be unable to transport goods between two third countries and stop in an EU country or fly between two EU states severely restricting routes and the efficiency of their operation.

 

Sea

UK companies that are dependent on shipping routes between the UK and EU are likely to face issues with cabotage if no deal is struck between the two unions. For the UK to transport goods to a port within the EU, that individual state will need to extend their cabotage rights to the UK. So far, this is possible in Ireland, Belgium, The Netherlands and Denmark. Without a deal an individual agreement with each EU member state will need to be struck before routes can be resumed causing significant restrictions for UK sea freight companies and imposing on their efficiency.

 

Shipping companies carrying passengers and trucks, from the UK to the EU will be required to submit additional security information to the port before entering. This additional information will likely be required to be submitted before travel and by the people using the services so that the shipping company are able to comply with procedures. This requirement can be waived between EU countries but not for non-EU countries attempting to enter an EU country. Ensuring that shipping companies adhere to this new procedure will require extra training and a requirement to notify their clients that additional information will be required. All of this will require time and money at the shipping company’s expense and could potentially lead to reduced loads.

 

Delays at the Border

The UK government have estimated a 6-month disruption period at the UK border, with the worse period being the first 3 months. This has been put down to: additional time needed to conduct extra checks and not having the required space at present to do this, the prediction that drivers will not have the required licences and permits and the assumption that inexperienced traders will not have the correct paperwork.  The government have announced a transitional period where the new procedures will be simplified to mitigate delays; however, this has not been reciprocated by the EU and drivers could face delays when entering an EU member state.

In order to minimise their delay at the UK, it is being recommended that logistics companies familiarise themselves with the documents that they will be required to complete and the paperwork that will need to accompany the shipment. Recipients of goods shipped across a border should expect a duty payment to be made. Failure to do this before the shipment crosses the border could incur fines and the goods being seized until the necessary fees are paid. Customs fees and paperwork should be prepared in advance will save businesses extra money and time; both of which will be critical moving forward.

low tariffs after brexit

Cabinet Minister Sparks Backlash Over Brexit Transition

A cabinet office minister, has prompted a furious backlash among business associations, after accusing them of, “having their heads in the sand,” in preparing for the transition that will happen when the UK leaves the single market and customs union on 31st December.
Theodore Agnew, the cabinet minister working on preparations for Brexit within the Treasury and Cabinet office, believes that firms have been too slow in preparing due to the impact of the coronavirus and the recession that has accompanied it. He has urged bosses to become, more “energetic,” in their approach of getting ready for the final stage of Brexit.

Lord Agnew’s Comments

In an address to the Treasury Committee, Lord Agnew said, “There has been a head in the sand approach by traders which has been compounded by what I would call the quadruple whammy of two false alarms, so two extensions at the very last minute, then followed by Covid, and now followed by the recession. The traders are not as ready as they should be.
“And if there’s one headline I hope that comes out of this appearance today it’s to send another shot over traders’ bows to warn them that it’s their businesses that are at stake from January 1 and they really must engage in a more energetic way…… Ultimately the government can only do so much. If businesses haven’t engaged in the process and understood the processes from 1st January that has to be their responsibility.”
Business Backlash
The minister’s stark warning has drawn a disgruntled response from businesses that have repeatedly called for clarity and urgency from the government on what the new border processes and IT systems will look like, many of which are still not in place. Among those to speak out over the minister’s comments were Tim Rycroft, Chief Operating Officer of the Food and Drink Federation. “A ‘head in the sand approach by traders’? That’ll go down well!” This was also backed by Stewart Wood, a Labour representative of the Lords EU committee who described Lord Agnew’s comments as a, “spectacularly unfair characterisation.”

As well as the comments that he has made on business readiness for the Brexit transition, Lord Agnew also came under fire from the Road Haulage Association (RHA) by announcing that he was more interested in talking to groups that were more, “integrally involved” in cross-border trading rather than the haulage group, who have been key in highlighting the government’s shortcomings in preparing for the transition.

Richard Burnett, RHA’s chief executive, responded, “It’s clear that Lord Agnew doesn’t understand how the logistics industry works and that hauliers will have to provide the full service of customs declarations as well due to the shortage of agents. Of course he can leave us out and ignore us, but at his peril.”

Logistic UK’s Response

The response of Elizabeth de Jong, policy director for Logistics UK, made little comment to Lord Agnew’s direct comments and instead took this as an opportunity to detail Logistic UK’s approach to the transition.

“Rather than ignoring the UK’s upcoming departure from the EU, Logistics UK has been proactively urging its members to make sure that they and their customers prepare as much as possible for the new trading conditions we will face. Like the government we are also calling on the wider business community – the importers and exporters across the UK – to engage with the detail and get ready for January 1st.”

“Instead of spending the ne next 11 weeks before the end of the transition period debating who and what is or isn’t ready, Logistics UK is proactively working with government on a series of metrics to assess readiness, so that government and industry can be as confident as possible that all is on track for a smooth transition to a new trading agreement with the EU. Despite the challenges our members are facing to cope with the COVID-19 pandemic and the festive season, traditionally our busiest time of year, we stand ready to help keep Britain trading as we always do.”

HMRC has predicted that 260 million new customs declarations will be completed per year which would require an extra 50,000 new customs agents.

Advice on Exporting your Car from the UK

For some, exporting their car from the UK can seem like a daunting task that can potentially put people off the process. Deciding on how long your car will remain outside of the UK will determine the documentation that you use as well as the declarations you make to the UK and overseas customs officials. The following information covers the most common eventualities of exporting your car from the UK and advice on completing this process.

Permanent Export

If you are planning on exporting your vehicle from the UK permanently you must inform the DVLA. If you are the registered keeper of the vehicle, this can be done by completing section C of the V5 Registration Document that accompanies your car. Once this is received, the DVLA will send you the Certificate of Intended Export (V561) as a confirmation of your car’s registration. Alternatively, if you have a Registration Certificate (V5C) this can be done by completing and sending the purple section of the document (V5C/4). It is important that you have your Registration Certificate with you when you arrive at your final destination so that you can present it to the relevant authority when the vehicle is eventually registered abroad. If you require any further information, this can be found by contacting us or by logging onto the GOV.UK website.

Temporary Export

If you plan on taking your car out of the UK for less than 12 months you must ensure that you take either your V5 registration document or V5C registration certificate with you. If you have lost your copy, you must inform the DVLA by completing a V62 form. It is important that you apply for this document well in advance of your departure, as your replacement Registration Certificate may take up to 14 working days to arrive and even longer if you are not the registered keeper. Please ensure that you have sent the correct fee for this service and have met domestic and international requirements relating to licensing and taxation of the vehicle.

If you are taking your car out of the UK for a limited time only, you may wish to apply for a Carnet de Passage to avoid paying a deposit to customs officials at your final destination. If you intend to obtain one of these you are advised to apply for it in advance of travelling as it can take well over a month for the process to be finalised.

If you are using a freight forwarder or logistics company, you can normally ship your vehicle without the need of a certificate; however, having this in your possession will significantly reduce your chance of delays at the UK border.

Essential Tips

Besides notifying the DVLA, there are some additional tasks that will be beneficial to complete prior to your departure. These are listed below:

• Documentation – Besides the V5/V5C document mentioned previously, you are advised to carry your valid driving licence, a form of photo ID and the vehicle identification number.

• Keys – Ensure that you carry your extra set of keys for the vehicle.

• Fuel Tank – Fill the fuel tank to at least a quarter full.

• Antifreeze – Due to the potential harsh conditions that your vehicle may be exposed to during transit, it is advised to apply antifreeze and, in some situations, rust protection.

• Vehicle Condition – Thoroughly clean the vehicle inside and out in preparation for checks that will be made on the car. Ensure that the car is in good working order unless otherwise specified.

• Personal Items – Make a list of all personal items left in the car to check off when you reach your final destination.

• Additional Preparation – Disable security systems, remove GPS, stereos or any other portable equipment, remove antennae and fold wing mirrors back.

Vehicle History

If you are not in possession of a valid export certificate, customs officials may check if your car has any outstanding finance payments left on it. This is particularly common with new or high value cars. If they discover that it does, they may not grant you permission to cross the UK border without written permission from the finance company. Checking this information before you travel will significantly reduce delays at the port.

International Duty and Tax Requirements

A good freight forwarder will be able to ship your vehicle to anywhere in the world; however, you may be liable to pay import taxes and fees when it arrives. Whilst most freight forwarders can assist you with this, it is your responsibility as the owner to adhere to any import requirements and regulations that the country you’re travelling to requires. Failure to do so may result in expensive fees, delays and potentially the confiscation of your vehicle so it is important to check this before you depart.

export

Top Five Tips for First Time Exporting

Thousands of businesses are avoiding international expansion despite the enticing overseas markets that exist for their products. Take the first step to global success, by following our top tips for first time exporting for small businesses.

The Success of the Small Business on an International Level

An increasing number of start-ups and small businesses are including international sales as part of their business strategy. With the surge in popularity, more and more first-time exporters are entering the markets. Around 10 percent of all UK SMEs are exporters and are currently capitalising on a share of the £287,000 in additional revenue that these orders can deliver. In fact, according to UK Export Finance, firms that traded internationally in the last 2 years have grown at a rate of 15% compared to just 8.4% for those focusing solely on domestic markets.

For those businesses looking to take the plunge, get ahead of your competitors today and read on for our top five tips for first time exporting.

1. Identify Profitable Markets

If your company is yet to receive their first international order, conducting market research is imperative. If done effectively, your research will set you up with a foundation in market demand, growth opportunities and an understanding of your competition which could save you millions in the long run. If companies do not invest the time in market research, important cultural, competitor and pricing factors can be missed and the opportunity for profit can be seriously impacted.

2. Market Regulations

Regulations relating to safety, production and quality control differ within markets, particularly in the pharmaceutical and food production industries. The slightest variation could require large, expensive changes in production. Understanding the regulations from the outset will give businesses a good idea of their target audience without making costly mistakes in the process. This level of detail extends to companies who deal with consumer’s personal data. The introduction of privacy laws in Europe and US states like California hold companies to strict guidelines with hefty fines for non-compliance.

3. The Logistics

Facilitating orders on an international scale is vastly different to operating at a domestic level. Whilst globalisation has made this significantly easier in recent years, small firms are still required to go through certain changes when operating internationally for the first time. Fluctuating shipping costs, delays and lost cargo all need to be taken into consideration. It was only a few months ago that COVID-19 single handedly brought markets to its knees with some not expected to bounce back for years.

Once logistics such as potential warehousing is arranged, there’s the small matter of customs paperwork to complete which, as the Brexit process has shown, can be complex and costly, particularly when dealing with large shipments. With this in mind, it is vital that companies instruct the assistance of reputable shipping comp

4. Navigating the Shift in Currency Value

Managing a vast number of currencies whilst selling internationally can be an issue for first time and novice exporters; however, all is not lost! Unlike multi-national organisations who hire currency traders, small businesses can follow simple steps to stay on top of the shift in currency values and protect price and profit margins.

Trading in your local currency, can prevent big headaches for companies and transfers the risk of shifting currency values over to the buyer. If this is not possible and the buyer insists on their own currency, it may be wise to lock in exchange rates in advance. It is highly unlikely that as a small firm, you are going to have the cash reserves to account for negative movements in foreign exchange but this option can mitigate daily fluctuations in currency values.

For a beginner, it is important not to try and play the market. Focusing on your product, your customers, adhering to international regulations and securing those first international orders are going to put you in a much better position.

5. Understanding Tariffs

Another issue that has been highlighted by the Brexit negotiations is the potential for new tariffs and regulations to be imposed on goods after the new trade deal is agreed. The introduction of these could seriously impact the importation of certain goods in favour of supporting local business as well as decreasing your profit margins and limiting long term sales volumes. Researching where free trade agreements exist can create a competitive edge to your business. If you really want to get ahead, sourcing where new free trade agreements are likely to be introduced and investing in those locations will ensure that you are one of the first to break into new markets when they arise. This requires a certain amount of discretion on the company’s part as potential trade disputes such as the one we are currently seeing between the United States and China can create serious losses if overlooked.

Is your Company Ready to Export?

One of the primary reasons that small businesses do not venture into international markets is down to a lack of resources and expertise. According to the Department of International Trade, companies with a turnover under £500,000 were unlikely to look into exporting globally despite 73% believing that there was a strong demand for British products and services. A quarter of these businesses added that they wouldn’t know who to turn to when looking for advice. As daunting a task as it may be for businesses, the insight and the advice is out there, whether it be sourced through an external agency or researched by the company themselves, now is as good a time as ever to break through into the global markets.

sea freight china

A Guide to Sea Freight Shipping from China

Sea freight is the largest method of shipping for international import and export business. Competitive prices and multiple options make sea freight the first choice for global trade. When it comes to shipping from China, businesses need experienced freight forwarders like our team at Supreme Freight who are familiar with transporting for companies of differing sizes as well as to a wealth of countries. As a China freight agent, we hope that you are able to gain something from the knowledge and experience shared in this article.

Trade Terms

Get accustomed to all the codes and terminology with our simple breakdown:

Incoterms – A term given to one of the common terms of trade. When applied to buying goods from China, there are four incoterms. Each of the incoterms are assigned a code relating to how far the suppliers transport the shipment to. The codes of these incoterms are as follows:

EXW – Transport as far as the factory/manufacturer

FOB – Transport as far as a nearby port in China

CIF – Transport to a nearby port in your country

DAP/DDU – Transfer to your place of business

The codes can be split into two further categories:

  • EXW/FOB Category – The buyer can utilise your own freight agent and liaise with them directly regarding payment.
  • The Other Category – The buyer uses their own freight company and your company subsidises that.

When looking for a freight forwarder, it is important that you understand these terms and codes to enable them to know your requirements when shipping your goods to China.

Container Types

It is important to know the following commonly used container types:

  • 20’GP – Allows for 20ft of storage. 20’GP is designed to carry more weight than voluminous cargo. E.g. Minerals, metal and machinery
  • 40’GP – Allows for 40ft of storage. 40’GP is designed to carry more voluminous cargo than heavy cargo. E.g. Furniture, tyres, and toys
  • 40’HC – Allows for 40ft of storage for shipments of a great height.

Although the volume of the 40’ containers are double the volume of the 20’, they are still bound to the same weight restriction that China applies to its exports which is no more than 27-28 tons. The ocean rates for a 40’ container shipped from China are less than two 20’ containers and it is no extra cost from a 40’ container for a 40’HC.

Freight forwarders are also knowledgeable of these commonly used container types. Knowing this information upfront will allow the freight forwarder to help and advise you with the right service.

Shipment Type

Shipment types come in the following two categories:

  • Full Container Load (FCL) – In which a company fills a whole container with their own goods. Containers can be from 20 – 45 feet long.
  • Less than Container Load (LCL) – Where different companies share the same container and load their shipments into it. This would then get split once it reaches port.

In order to ascertain what shipment type is best for your business you need to consider the packaging that your shipment requires whilst being transported, if you select an LCL, would it be better for your shipment to use a courier or decide whether it is possible to use an FCL.

Major Ports

Each port has a different charge for FCL and LCL containers. The breakdown of the Chinese ports are as follows:

  • Shanghai – This major city enjoys the most economically developed of everything. From where it is located, it serves interior provinces via river ports along the waterway that extends from it.
  • Shenzen – This port is accessible to Hong Kong and the Pearl River Delta making it another key port for the South of China.
  • Ningbo-Zhousan – This port serves both Ningbo, which has good connections with Central and Western China and Zhejiang, a wealthy region with a manufacturing industry.
  • Hong Kong – Fastly expanding into the ‘international shipping service hub of the Far East,’ Hong Kong provides 340 container liner services per week, connecting to around 470 destinations worldwide.
  • Guangzhou – Historically, a key centre of trade in China, the port is striving to be the international shipment hub for the Maritime Silk Road component. It is a port that provides options for importers, exporters, third party logistic companies and ocean carriers with its reduced port and berthing fees.
  • Qingdao – The most important port of Northern China. It is located next to the Bohai Bay region of which it serves.
  • Tianjin – This port is second only to Qingdao port in capacity in Northern China. The port’s container handling business are developing additional domestic and international routes.
  • Xiamen – The port is located at the mouth of the Jiulongjiang River and has over 68 shipping routes to over 50 countries including Kaohsiung in Taiwan.
  • Dalian – This port is located at the most northern ice-free port of China and is the largest port in North East China serving seaports in East Asia, North Asia, and the Pacific Rim.

Researching into the port that best serves where your shipment will be transported to, will enable your freight forwarder to connect you with our most suitable partners.

For a consultation and advice on your shipment, get in touch with us and we will do our best to help.

 

freight-forwarders-in-covid19

How to Choose a Freight Forwarder

Whether you’re a large company shipping many products internationally or a small business looking to make their first international shipment, deciding on the right freight forwarding company for you is a vital part of the success of your shipment. Ensuring the smooth transit of your goods is an important investment of your company’s time and money and it is worth researching freight forwarding companies to ensure that you pick the right company for the job.

 

What is a Freight Forwarder?

A freight forwarder assists companies in the process of transporting goods from one place to another. They use the most cost-effective methods with a suitable shipping company to ensure that every point of the journey goes smoothly.

Supreme Freight forwarders contract with a number of companies covering sea, air or road to transport goods on behalf of their clients. Although some freight forwarders have their own warehouses and vehicles, they aren’t necessarily the ones to carry out the transportation. Usually, they are the experts that are able to lead on the logistics and arrangements that will enable a smooth process giving companies piece of mind that their goods will be delivered.

Freight forwarders are seen as a necessary extension to many businesses. Mistakes made in shipping processes can be costly and delay goods getting to the places they need to go.

The wealth of knowledge and expertise they have on the process of importing and exporting is invaluable to companies and saves them both time and money. Even large Beneficial Cargo Owners such as Marks and Spencer work with freight forwarders in parts of their businesses. They are seen as a necessity and even regarded to some as an outsourced shipping department.

 


 

Important Questions When Finding a Freight Forwarder

With the freight forwarding Industry growing at an increasing rate, there is a lot of options for businesses to choose from. Many of these options will have varying experience levels and offer different services. It is important for companies to consider exactly what it is they want their freight forwarding company to do for them and to trust that this will be done correctly. With this in mind, it may benefit businesses to find out the following information when looking for a reputable freight forwarder:

Accreditation – Trustworthy firms such as Supreme belong to at least one trade association such as the British International Freight Association (BIFA). Members of BIFA trade to a collective set of trading standards that are backed by the insurance sector. Going with a company that is a member of one of these trade associations will give you peace of mind that your goods will be in the right hands.

Clarification of Services Offered – Different shipments require different services. It is important that you clarify with your potential freight forwarder that your goods will be transported the way that you require them to be. If you are unsure of the services that you will need it may be helpful to ask other businesses for advice. A good freight forwarder will give you a run down of the services that they offer and will be able to advise on the best course of action for your shipment.

Experience – Freight forwarding is a complicated and intricate business. Experience in the industry is key to ensure that everything runs smoothly. It may be even more pertinent to ask about experience if you are transporting cargo that requires additional needs such as specialist transport.

Shipping Process – A good freight forwarder should give you a run down of their shipping process with a clear explanation of how your shipment will reach its final destination, costs and transport plans.

Insurance – Checking a freight forwarder’s insurance policy is imperative. It is important to ensure that your goods will be insured for all of their journey, particularly if they are of high value.

Paperwork – It is important to know upfront what is expected of you and what the freight forwarder will handle in terms of paperwork, particularly with regards to customs. Mistakes with customs paperwork can lead to long and expensive delays.

Shipping Network – Good freight forwarding companies will have an extensive shipping network. An extensive network means good relationships with partners and demonstrates that they have local expertise in the places that you want to ship to. It is important to check that your destination is a place that they cover.

 


 

What are the Advantages of using Supreme Freight Forwarder?

The main benefits of a freight forwarder include

• The transportation of goods can be a logistical nightmare especially when you are dealing with importing or exporting to countries that you have not dealt with before. Different countries have different customs regulations, shipping restrictions and fees and a mistake could not only be costly in terms of fines but could delay your shipment reaching its destination and have a dramatic impact on your business. It’s important that companies get this right first time and the only way to do that is working with somebody that has had previous experience with the logistical side. Not only will this save you a lot of time, freight forwarders provide you with the peace of mind that your shipments will arrive in the desired place, in the desired time in a method that meets your needs and is cost-effective.

• Freight forwarders that have a lot of experience working with the same shipping companies on an international level are going to have a lot more leverage over buying costs than a company that they have never heard of using them for the first time. There is always a deal to be had and shipping companies know that if they strike a deal with a freight forwarder there’s a potential for a lot more business to come their way.

• With the logistical side of shipping being taken care of externally, business owners have the time to focus their time and efforts on other parts of the business that require their attention. If importing and exporting goods is something that is happening quite regularly this could result in a significant increase in productivity.

• As a company that deals with freight services all the time, freight forwarders are going to have gained a lot of contacts and experience that will be invaluable to companies with different needs. This knowledge and expertise will ensure that freight forwarders will be able to tailor their services to your specific requirements.

• Working with a freight forwarder can open opportunities to businesses they didn’t know were possible. With extensive knowledge of the different markets internationally, it could see your business being taken to places you had only dreamed of.

china trade

Top 10 Things to Know When Importing from the UK to China

China is now the UK’s eighth largest export market. In 2017, the UK sold nearly £17 billion worth of goods and services and that figure is only going to increase.

As China’s economy grows and its middle class consumer base expands, the country will be an even more important market for the UK. For companies shipping goods to China, it can be a complex process with many things to consider. Whether you’re an experienced trading partner or expanding your business, these are the top tips to consider when exporting to China.

 

  1. Research Shipping Methods – When deciding to ship goods, companies need to consider whether they will handle the logistics themselves or enlist the services of a company to do it on their behalf.

 

  1. Transport Options – Deciding on the mode of transport that you choose to ship your items will depend on several factors; what your goods are, how much time you have, what sort of budget you have and whether you need to take special requirements into consideration.

 

  1. Sea Freight Benefits – If you are looking to ship bulky items of a high weight, sea freight is one of the cheapest options for you. If you are looking for advise on what the best option of transport would be for you, a freight forward company would be the best people to talk to.

 

  1. Cost – Before you ship your goods, it is important to know upfront the cost to do this. There are lot of potential hidden costs that you may not be aware of if you are not experienced in exporting goods overseas. Surprise costs may prevent your goods from arriving at its final destination and companies can potentially lose a lot of money.

 

  1. Declaring Goods – When importing goods from overseas, all companies must declare them with HMRC. This is done by completing a C88 form.

 

  1. Customs Charges – It is important for companies to familiarise themselves with UK Duty and VAT charges when importing goods into the UK. It is their responsibility to check and pay the correct charges for their goods. Any discrepancy could lead to delays and penalty fees which could be extremely detrimental.

 

  1. Shipping Terms – To avoid confusion, it is important for companies to understand basic shipping terms when transporting goods overseas. The following terms outline of the suppliers and buyers:

 

  • FOB (Free on Board) – Where the supplier pays all the charges at the the shipment’s country of origin which effectively makes it ‘free’ for the buyer to have goods transported by ship.

 

  • EXW (Ex-Works) – Where the buyer is responsible for all charges along the journey of the shipment.

 

  • CIF (Cost, Insurance and Freight) – Where the supplier pays all costs to get the shipment to the UK. Once it is in port the shipment then becomes the Buyer’s responsibility.

 

  1. Commodity Codes – When trading with China, companies must understand and find the correct commodity code. This is a 10 digit code that is required on all imports coming from outside the European Union.

 

  1. Import Licence – Depending on what you are importing, companies may be required to hold an import licence. Companies need to be familiar on what goods are restricted or banned. There are certain import controls on goods such as food, textiles and firearms.

 

  1. Consider a Freight Forwarder – Shipping to and from China is a complex process that has many steps. A freight forwarding company will not only be able to take you through the process, they’d be able to handle all documentation and have local knowledge to ensure that your shipment gets to its final destination smoothly.

 

Why do Businesses Use Freight Forwarders?

Freight forwarders are seen as a necessary extension to many businesses. Mistakes made in shipping processes can be costly and delay goods getting to the places they need to go.

The wealth of knowledge and expertise they have on the process of importing and exporting is invaluable to companies and saves them both time and money. Even large Beneficial Cargo Owners such as Marks and Spencer work with freight forwarders in parts of their businesses. They are seen as a necessity and even regarded to some as an outsourced shipping department.

 

What Can you Expect from a Freight Forwarder?

Supreme Freight will listen to the shipping needs of your business and be able to tailor those to a logistically sound plan at every step of the way. From your budget and time requirements they will be able to recommend you the best method of transportation, whether by road, air or sea. As well as this a Freight Forwarder will be able to make recommendations on:

  • Customs Clearance– From origin to destination, forwarders should be able to deal with all customs processes. This includes handling all paperwork and fees on your company’s behalf.
  • Shipping Documentation– Forwarders should be able to deal with all shipping documentation including Bills of Lading, Certificates of Origin, letters of credit or any documents required by banks before payment is released.
  • Insurance – A reputable freight forwarder will be able to recommend insurance services that will cover a shipment for loss or damage.
  • Logistics and Supply-Chain Management – Which can include but is not limited to fulfilment, customs consultancy and contract logistics services.

If you are interested in importing goods to the UK from China, please get in touch.