HMRC

UK Tariff Changes announced from 1st January 2021

From 1 January 2021, the UK will apply a UK-specific tariff to imported goods.

This UK Global Tariff (UKGT) will replace the EU’s Common External Tariff, which applies until 31 December 2020.

The new tariff is tailored to the needs of the UK economy. It will support the economy by making it easier and cheaper for businesses to import goods from overseas. It is a simpler, easier to use and lower tariff regime than the EU’s Common External Tariff (EU CET) and will be in pounds (£), not euros.

The UKGT also expands tariff free trade by eliminating tariffs on a wide range of products. The UKGT ensures that 60% of trade will come into the UK tariff free on WTO terms or through existing preferential access from January 2021, and successful FTA negotiations will increase this.

This will lower costs for businesses, ensuring they can compete on fair terms with the rest of the world, as well as keeping prices down and increasing choice for consumers.

The Government is maintaining tariffs on a number of products backing UK industries such as agriculture, automotive and fishing. This will help to support businesses in every region and nation of the UK to thrive. Some tariffs are also being maintained to support imports from the world’s poorest countries that benefit from preferential access to the UK market.

The UKGT was designed following widespread engagement with businesses across the UK. As it will come into force on 1 January 2021, it’s important that businesses can familiarise themselves with the new tariff regime ahead of this date.

The Government are backing UK industry by:

Maintaining tariffs on agricultural products such as lamb, beef, and poultry.
Maintaining a 10% tariff on cars.
Maintaining tariffs for the vast majority of ceramic products.
Removing tariffs on £30 billion worth of imports entering UK supply chains. 0% tariffs on products used in UK production, including copper alloy tubes (down from 5.2%) and screws and bolts (down from 3.7%).

UK consumers will also benefit from more choice and lower costs on numerous goods thanks to zero tariffs. These include, for example:

Dishwashers (down from 2.7%).
Freezers (down from 2.5%).
Sanitary products and tampons (down from 6.3%).
Paints (down from 6.5%) and screwdrivers (down from 2.7%).
Mirrors (down from 4%).
Scissors and garden shears (down from 4.7%).
Padlocks (down from 2.7%).
Cooking products such as baking powder (down from 6.1%), yeast (down from 12%), bay leaves (down from 7%), ground thyme (down from 8.5%) and cocoa powder (down from 8%).
Christmas trees (down from 2.5%).

The Government will promote a sustainable economy by cutting tariffs on over 100 products to back renewable energy, energy efficiency, carbon capture, and the circular economy. The following are all dropping to zero tariffs:

Thermostats (down from 2.1%).
Vacuum flasks (down from 6.7%).
LED lamps (down from 3.7%).
Bike inner tubes (down from 4%).

Almost all pharmaceuticals and most medical devices (including ventilators) are tariff free in the UKGT. However, some products used to fight COVID-19 maintain a tariff. To ensure those working on the frontline can access vital equipment easily, the UK has introduced a temporary zero tariff rate on these products. This relief waives the tariff and VAT for personal protective equipment (PPE), medical devices, disinfectant and medical supplies from non-EU countries.

The UKGT will apply to all goods imported into the UK unless:

An exception applies, such as a relief or tariff suspension
The goods come from countries that are part of the Generalised Scheme of Preferences
The country you’re importing from has a trade agreement with the UK

It only shows the tariffs that will be applied to goods at the border when they’re imported into the UK.

It does not cover:

Other import duties, such as VAT
The precise details of trade remedies measures
Other restrictions on imports, such as anti-dumping, countervailing or safeguards

Goods covered by a tariff-rate quota:

Some products are covered by a tariff-rate quota. This allows a limited amount of a product to be imported at a zero or lower tariff rate.

The limit may be expressed in units of:

weight
volume
quantity
value

If this limit is exceeded, a higher tariff rate applies.

If there is a tariff-rate quota on your product, you can apply to import a limited amount at a reduced rate of customs duty.

Some tariff-rate quotas are only applicable to products imported from a specified country.

Please follow the below link to check the tariffs that will apply to goods you import from 1 January 2021.

https://www.gov.uk/check-tariffs-1-january-2021

If you need any help or support please contact us.

NHS charter

PPE Equipment to arrive today for the NHS

We are very proud to announce that we have arranged a full charter of vital PPE equipment directly for the NHS to arrive today. Flight number F79540 landing into London Heathrow at 13.30 from China.

Our thanks as ever go out to the NHS and all those working to keep us safe.

 

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.

 

 

 

Freight Forwarder

What Questions Should You Ask when Looking for a Freight Forwarder?

Supreme Freight assist companies in the process of transporting goods from one place to another. We use the most cost-effective methods with a suitable shipping company to ensure that every point of the journey goes smoothly.

Supreme Freight contract with several companies covering sea, air or road to transport goods on behalf of our clients. In this article we have put together some questions we feel all customers should ask when speaking with freight forwarders.

The Right Questions to Ask

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 normally 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 Benefits of using a 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.

Feel free to get in touch with any questions, or if you need some assistance with freight forwarding.

 

ports open

Southampton Port remains open as normal

Southampton port has been classified as a vital site for the country in terms of supply chain, and there are no plans to cease operations, despite the crippling effects of the Covid-19 virus taking hold of the country.

We’re working hard as ever from their homes to ensure critical medical supplies and other essentials can get into the UK. Essential frontline staff at the port being thoroughly supported and operational teams are being segregated to ensure plenty of cover, as well as several other measure to ensure they stay safe, and the port stays open at all costs. 

See below the official statement from DP World…

DP World Announcement

We’re also in the fortunate position to be able to help the country in the fight against the Coronavirus, by offering net cost from the airlines and shipping lines and free customs clearance on the import of ALL MEDICAL SUPPLIES.

Whatever is going on in the world, you’re still at the centre of ours. 

Please get in touch if you have any queries about your shipments, and above all, stay safe. 

digital age

What does Freight Logistics Mean?

Freight logistics is the overseeing and management of a cost effective operation and the delivery of goods. It combines logistics experience, human resources and knowledge to ensure the smooth journey of goods between carriers and shippers.

Freight logistic activities in their most basic form include:

  • Making contact, selecting and engaging carriers and transport companies.
  • Negotiating terms and conditions and rates for the transportation of goods.
  • Preparing the labelling and appropriate paperwork that is associated with the transportation of shipments.
  • Scheduling shipments to be picked up by carriers at desired times.
  • Planning to optimise the best mode of transport, routing and load balance.
  • Tracking the movement of shipments through the Supply Chain.
  • Working with Customs brokers to ensure compliance.
  • Ensuring the necessary insurances are in place to ensure goods are insured whilst in transit.
  • Handling freight claims.
  • Managing the receipt and payment of invoices associated with the shipment of goods.
  • Constantly looking for optimal methods to improve delivery performance, reduce time and cost and lower environmental impact.

This long list of tasks can be very much underestimated and underappreciated when it comes to freight logistics. Without a proper Freight Management Company most company operations would cease.

The Role of Freight Forwarders

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.

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.

What Can you Expect from a Freight Forwarder?

A freight forwarder will be able to 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 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.

Communication

Logistics collaborates with several departments in an organisation, among those; operations, manufacturing and marketing. These interactions influence finance, production, engineering, marketing, transport, warehousing, purchasing and inventory management. When the responsibility of communication is passed to a reputable logistics provider, related costs are reduced as they minimise the amount of connections needed to link a variety of economic players all working towards the same goal.

Tracking Your Shipment

Freight forwarders typically use specialised software called a Transport Management Systme (TMS) to track shipments, making any freight’s journey transparent to the freight forwarder and to the company instructing them. This helps logistics management to save money, develop more efficient procedures and improve customer service.

A TMS provides important data regarding carrier performance, costs and market trends. This enables freight forwarders to constantly stay cost effective. Additionally, the TMS enables forwarders to pick up on potential delays earlier enabling them to notify customers quicker.

Warehousing and Distribution

Diligent procedures in the warehousing and distribution area of freight logistics can pay dividends within the supply chain. Many costly mistakes can be made in this area. Consistent warehousing and distribution procedures help logistics earn trust within the industry and strengthen relationships between partners.

Several value added warehousing and distribution services include:

  • Cargo Packing and Crating
  • Pick and Pack (where individual components of an order are gathered together and placed into a box.)
  • Labelling
  • Vendor Assembly and Consolidation
  • Kitting (where individual items that are related packed together into one unit)
  • Visual Inspection Services

Customs

When goods enter or leave the country, customs brokers provide documentation for the shipper to prove that the required procedures have been carried out and that the goods are cleared for shipment. This is easier said than done. Goods are warehoused whilst going through customs clearance and if procedures aren’t complied with and mistakes are made, the fees can accumulate to hundreds and thousands of pounds.

The paperwork for customs clearance can be extensive and can differ from country to country and even port to port. Without the proper attention from a licensed customs broker, errors can be made when importing or exporting freight which can cost time, money and trust.

Some of the documentation required for importing and exporting cargo are:

  • Purchase Order from Buyer
  • Sales Invoice
  • Packing List
  • Shipping Bill
  • Bill of Lading
  • Bill of Entry
  • Certificate of Origin

When shopping around for a freight forwarder, it is important to research their experience in dealing with customs brokerage. If not consider hiring a customs broker independent from your forwarder.

Insurance

According to experts, the theft of cargo is a $30 billion a year business. Alongside this there are other threats that could happen to your cargo along the way which include:

 

  • Long Voyages
  • Extensive moving of cargo
  • Handling
  • Bad weather

 

The protection of your cargo from any of this is extremely important. Some forwarders will provide a range of insurance options. Check with yours to see if there is an appropriate premium to suit your needs.

Lufthansa cargo

What is Air Freight Logistics?

Air freight logistics is the shipment of goods via a chartered or scheduled air carrier. Air freight is a popular choice for many companies as it ensures passage for their goods to anywhere in the world that an aircraft can fly to and land. Goods transported by air have the advantage of being taken to their final destination at high speed which could prove advantageous if the shipment is time sensitive. For smaller and medium sized companies, it allows them to participate in international trade in as an effective manner as larger companies. Furthermore, shipments that are transported via air carrier go through a higher level of security than other methods which makes it one of the most secure ways to transport goods.

There are a few choices when it comes to organising an air freight delivery:

  • Consolidated Freight – Where one flight contains many shipments.
  • Back to back or Direct Services – Where a flight contains one single shipment.
  • Charter Services – Where an entire freight plane is chartered for a single air freight delivery.

These shipments will either be placed into the hold of a regular passenger jet or in a dedicated freight aircraft, which can hold huge amounts of cargo on one flight.

How does Air Freight Work?

In a lot of cases, air freight is arranged by an experienced Freight Forwarding Agency. 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.

These are the general steps to receive shipment of your goods via air freight:

  • Choose an air freight company and negotiate a price to ship your goods.
  • The Freight Forwarder will arrange for your goods to be collected pre-packed or will arrange for the packing to be done prior to transportation.
  • The goods will be taken to the airport and go through Customs checks at the point of origin.
  • The goods are loaded onto the plane. If being delivered with a consolidated shipment, the plane will remain on the ground until it is filled with cargo which could take a few days.
  • On arrival at its destination, the shipment will go through another Customs inspection and will not be released into the country until all duty and taxes are paid.
  • The shipment is delivered to you as per the agreement with your freight forwarding company.

The Advantages of Air Freight

There are a number of advantages for transporting goods by air. These include:

  • Efficiency – Air freight is quick, particularly if you use a direct service. You can expect goods to be at its intended destination within days of sending it whilst sea freight can take several weeks.
  • Good Value on Smaller Deliveries – Air freight is charged based on weight as opposed to volume which makes it more cost effective to send smaller deliveries via air freight than by sea.
  • More Options – Shipping companies are able to offer more options to the importer with air freight, including consols and direct routes.
  • Less Potential to Damage Shipment – Providing the goods are correctly packaged, air freight is usually a better way of shipping fragile items as damage is less likely compared to sea freight.
  • More Traceable – As flights are tracked, shipments are more easily traceable which can give businesses more peace of mind.

The Disadvantages of Air Freight

Depending on what exactly you’re shipping and where you are shipping it to, air freight could potentially cause businesses some problems. Some of these include:

  • Expense – Using air freight can be a lot more expensive than sea freight, not just for the cost of delivery but for import duty and VAT. These are calculated as a percentage of the cost of the goods plus the cost of shipping
  • Logistical Restrictions – When using a consolidated freight shipment, the business will have to wait until the flight is full with other deliveries before it is sent. This can add time to the delivery with some flights only going once or twice a week to main destinations.
  • Transport Restrictions – Air freight is much stricter in what it is allowed to transport than sea freight. Hazardous materials such as explosives, gases, flammable or radioactive items, toxic chemicals and strong magnets are among some of the items that are prohibited from being delivered by air freight.
  • Environmental Restrictions – Air freight is considered worse for the environment compared to shipping goods by sea.

Should I use 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.

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.

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.

gridlock customs

Should I use a Freight Forwarder?


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

At Supreme we contract with specialist companies covering sea, air or road to transport goods on behalf of their clients. We are the experts that can lead on your logistics needs and arrange a smooth process that will give you piece of mind that your goods will be delivered.


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 we have on the process of importing and exporting is invaluable to companies and saves them both time and money.


What Can you Expect from a Freight Forwarder?

As a freight forwarder we will be able to listen to the shipping needs of your business and be able to tailor those to a logistically sound plan. Tailoring a logistics plan to meet your budget and time requirements, Supreme Freight will able to recommend you the best method of transportation, whether by road, air or sea. As well as this we 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.

What are the Advantages of a Freight Forwarder?

  • 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. Along with saving you 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.
  • Supreme Freight have been supporting their clients with their logistics needs since 1986 and in doing this we have built up an excellent reputation with customers and partners alike. The relationships we have formed with are logistics partners allows us to negotiate the best rate for are clients. Using these relationships and are expert knowledge as freight forwarders we can plan and deliver in a timely and cost-effective manner every time.
  • 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, Supreme Freight have the experience that will be invaluable to our clients. 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.

When you work with Supreme Freight you will have over three decades of expertise on your side supporting you with your freight forwarding requirements. To discuss your logistics needs, contact Supreme Freight on +44 (0)23 8033 7778.

 

sea freight

What is Sea Freight Import?


If you are considering the logistics of Importing goods into the United Kingdom for your business, sea freight will naturally be an option you will consider. Sea freight is a good choice for those businesses that are looking to import a large amount of consumer goods and is most often used when importing from Far East Asia. One of the main reasons for this is because sea freight is a cost-effective option that has been a preferred method for many industries for decades.

Sea freight is the method of transporting a large quantity of goods using cargo ships. These come in the following forms:

  • 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.
  • Roll On Roll Off (RORO) – Where lorries or other vehicles are packed with shipments, drive onto the cargo ships and drive off once they have reached their destination.
  • Dry Bulk Shipping – Where materials such as metals or aggregates can be poured into the ships hold rather than being loaded into containers.

What are the Advantages of Sea Freight?

The advantages of importing using sea freight include:

  • Can be highly cost effective for businesses looking to import large quantities of goods. Sea freight has been known to be 4 – 6 times cheaper than air freight. Additionally, duty and VAT are calculated at a cheaper rate than air freight keeping the costs down
  • Supreme freight can also organise container sharing for smaller loads that can keep costs down for their clients.
  • Sea freight is a global business and is accessible from most countries around the globe.
  • Sea freight importing is much better for the environment than other methods.

What Will you Need to Pay for?

When importing into the UK, businesses not only need to consider the cost of the goods and the fee they are going to pay to the shipping company to transport them, they must also consider the duty and the taxes incurred on the goods as they pass through customs processes.

The price of these costs depends a lot on where the shipment is coming from. Currently, importing from the EU typically costs less than from outside as there normally isn’t duty to be paid. This may change as the United Kingdom goes through the process of leaving the European Union and businesses will need to consider this when pricing up their shipment.

Shipping costs depend a lot on the size of the shipment and what it is. Other costs excluding the shipping cost could include:

  • Cost of goods
  • UK import duty
  • UK VAT (There are some cases where businesses can claim this back.)

How Sea Freight Works

Arranging a shipment can generally be done using these steps:

  • Contact Supreme to discuss your logistic requirements and agree a plan.
  • The goods will be collected by the shipping company from the supplier.
  • The shipment will be transported to the port and proceed through customs.
  • Goods are loaded into an FCL or LCL container and loaded onto a cargo ship.
  • Once the shipment has arrived into the UK, the shipment is met by customs and released when duty and taxes are paid.
  • Goods are delivered to your business.

When you work with Supreme you will be working with a reputable, cost effective shipping company who will ensure that the process runs smoothly. Planning and organisation will be key as shipments can take a long time to reach their final destinations especially if delays occur. To discuss your sea freight needs or any other freight requirements contact the expert team at Supreme Freight on +44 (0)23 8033 7778.

emissions

IMO have a lack of urgency to clear up shipping

The IMO has decided on a goal-setting approach by member states to decarbonise shipping, rather than progress the proposals put forward by some members for a mandatory speed reduction on vessels.

The strategy, decided last week in London, not to opt for speed restrictions has angered the members of the Clean Shipping Coalition (CSC) who blasted the IMO for its “bureaucracy” and “lack of urgency”.

An IMO working group agreed a draft text that will be put forward to the next Marine Environment Protection Committee (MEPC) meeting in March.

The text urges member states to develop and update a voluntary national action plan, which includes an improvement in the domestic and legislative implementation of existing regulations and a commitment to develop activities to further enhance the energy efficiency of ships, along with initiating the research and the uptake of alternative low- and zero-carbon fuels.

The IMO said that during the working group sessions “a number of proposals were discussed”, including an Energy Efficiency Ship Index (EEXI), mandatory power limitations on ships, measures to optimise speed on a voyage and speed limiters.

According to the UK Chamber of Shipping,“after lengthy discussions it was clear that there was no appetite for prescriptive speed reduction regulation”.

However, the UK Chamber, which is against the implementation of speed restrictions on shipping, arguing among other things that it would require more ships to be built with ‘old’ technology to take up the slack, said there was a “positive outcome” from the meeting.

Shipping policy director Anna Ziou said: “The progress made sets the right direction of travel and is a good foundation for the IMO’s work to put the strategy into action.”

Meanwhile, the CSC said measures were “urgently needed” if the IMO’s plan, agreed in April last year to half emissions from shipping by 2050 was to be met.

Bill Hemmings, shipping director of CSC member, transport & environment, said: “Time is running short but that’s not the feeling you get inside the room. The commitment last April to agree and implement in the short-term immediate emissions reduction measures has fallen foul of procedure, bureaucracy and delay spearheaded by countries that were never really on board.”

Mr Hemmings named the key member states as the US, Saudi Arabia and Brazil that “spearheaded” the movement against mandatory speed restrictions.

And John Maggs, senior policy advisor at fellow CSC member Seas at Risk, was equally damming of the IMO’s decision not to implement vessel speed restrictions at this time.

“Ships have deployed slow-steaming over the past decade in a way that has seen dramatic reductions in emissions. The world is not blind to this,” said Mr Maggs.

He said that the speeds of ships “must initially be capped” and “then progressively lowered” and suggested that the “commitment of many at the IMO to genuinely reduce ship emissions” was absent.

Nevertheless, several shipowners and operators The Loadstar has spoken to in recent weeks argued that they were already operating their vessels at the lowest speeds recommended by engine manufacturers, in order to conserve fuel and cut voyage costs to the bone.

Indeed, one executive from a major container carrier said: “Our masters are under strict instructions not to ‘put their foot down’ unless it is a matter of safety; if we miss a berth window so be it, we have a network that can adjust to that and it is generally cheaper than burning the extra fuel.”

Source: The Loadstar