Recently, I’ve been watching the YouTuber, “What the Ship?” Coupled with your emails, “What the Ship?” has been very helpful to understand all things floaty.

Thanks, Shirley. Is the video not showing up for you?

That certainly plays into the trucker shortage problem.

Yeah, mainstream media has agendas. Stories that don’t push that agenda forward get little to no attention. Or they get warped to fit the agenda.

Thanks for this comment. We’ll have to look into share form. Our content can be shared on social media, but finding ways to make it better and easier for that sharing would definitely be good.

So thanks for this much-needed clarification. When you need to know the facts, go to the folks who actually get the work done!

The article embracing international shipping. And the information regards of entertaining international shipping blogs helps a lot.

Interest to join the blog

Well explained about customs clearance and the important documents required.

I’m trying to order about 2000 t-shirts, and Miami is the closes port to deliver from overseas. Once my shirts arrive, I need to figure out how to get them from Miami to NW Florida. Would a Freight Forwarder be able to assist me with that?

Thanks Jared for the much needed insight. God bless you

Did you use roro then? If so how was the car scratched or anything like that?

So glad you shared this. I was going through this with them this week.

Thanks Kate, it’s so educative

while putting my resume on all the major job sites (Indeed, Monster, Glassdoor, Job Seekers, LinkedIn, etc.) I randomly get an email from this company. In the email they say “thanks for your interest in the Project Manager position”. Except I never applied to them. I emailed back and forth just to see what it may be about, and they asked me to start doing paid training……before I ever actually spoke with someone.

I agreed to the training, which entailed them sending PDF docs on their company, as they did not ask for any personal info (bank info, etc.) that they couldn’t have got from my resume. 3 days into being send these random freight industry terms, I looked a bit further into their “company”.

– The domain was just registered 3 weeks ago, out of the Ukraine, not Switzerland which they claimed is the corporate HQ.

– all the addresses are of shared spaces, including the “HQ”. You’d think if you need to inspect cargo for heavy machinery, you wouldn’t do it from a small shared space office.

– the “HR Manager” couldn’t answer basic questions like: how long has the company been in business? (he answered “more than a few years”)

– they have zero web presence. No employees on LinkedIn, no job postings on any job sites, nothing pops up on google. zero.

When I asked the “HR Manager” about this via email, his reply was “We’re a European company, so we’re still making a name for ourselves in the states”. Sure buddy….

Sharing this just in case….

Can you put car spare parts in your vehicle ie a van and would this be charged differently from the van itself

There are quite a few instances cargo is not highly valued in itself. Some scrap, raw materials, and earthen products such as minerals or clay, among others, are just not worth a large amount of money. It is also a fact total transport costs can add up to a dollar figure that will get your attention. Depending on the transportation origin and destination the cost of getting your export shipment to the buyer’s port can be a larger amount of money than the cost of the actual freight. When the transport costs and the freight value are added up, it’s not an insignificant number anymore. For this reason it is most often suggested CIF (Cost, Insurance, Freight) + 10% as the formula to use when insuring your shipment. It’s the industry standard for a good reason. If you ship a container to your buyer and it is lost in route while you still own it, you will likely have to ship another container to make good on the shipment that was lost.

What is difference between freight forwader and co-loader

Good call.

Love it.

if your box is under ~70# and certain dimensions typical of a standard cardboard box, it would likely be considered a “parcel” and you would want to use a parcel service such as UPS, FedEx, DHL, etc., opposed to a freight service.

I had a chuckle at the first comment though challenging you on the beginning of the article. I for one understand that probably the most difficult part of the article to write was the intro. The comment pointed it out well. On a politically charged issue, there’s almost no right answer.

I sure hope the ACE remains operational. Any updates on that so far? Fortunately, the two shipments I’m waiting on are electronics and magnets. Unless the magnets are considered health risks I should be golden!

However anyone’s political views lean, I hope we can all agree that keeping the economy of our country running is important. Since I work in the field of shipping & receiving products both nationally and internationally I very much appreciate the valuable insight.

It is a disservice to your readers to imply that “both sides are to blame” for the shutdown. The president took ownership completely before he acted to make it happen. Divided government has its challenges, obviously, but in this instance, that is not the key problem. To remedy the situation, businesses need to demand that the Senate approve funding and put the pressure on to get agencies open again.

thank you.

Billal

Is there anyone who is familiar with trading with Chinese ? Our cargoes are now on the way to Japan now. The arrival notice in our possession
shows FAF + YAS JPY55,200.- Our trade terms is CIF and I trust these chareges shall be born by shipper when it comes to CIF terms.
I am not quite sure if my understanding is correct or not. But at least I have been told by our forwarder that shipper should pay them in case
of CIF terms.

Chinese shipping companies seem to charge Japanese importers on purpose these fees. Appreciate kind advice from somebody.

1. From the above discussion, I’ll bet you would consider using a 3PL. How can 3PL service providers help shippers such as Universal Cargo improve performance and reduce costs? Why is information technology an important issue to customers when outsourcing transportation and logistics activities and why do 3PL’s do this very well? What value do third party logistics companies bring to global transportation execution? Some things they do involve international freight forwarders, NVOCCs, and Customs brokers. Briefly define each of these specialties and how best to determine 3PL needs. Explain how 3PL’s become 4PL’s.

Stupid, stupid, stupid. This is only good news for the shippers that outgate during the day.

thanks and regards

Soledad

FedEX Express defines Clearance the way Management Study Guide does. It makes for a very muddled, unclear, and difficult to communicate process. Clearance documentation and the information they contain are simply inputs into the shipment clearance activity. Looking at clearance any other way makes it impossible to properly diagram and document, especially when those diagrams and documentation will be used to define requirements for software development.

Thanks, Shirley. Thank Gina for sharing her and her brother’s story. It’s a very moving one.

Sorry Gary, that last reply was meant for the comment above yours. Thanks for the comment and the sentiment.

The full amount has not yet been raised. The gofundme link in the article goes to the place you can donate. Here’s the full link: https://www.gofundme.com/michaeljuarezfundraiser

The full amount has not yet been raised. The gofundme link in the article goes to the place you can donate. Here’s the full link: https://www.gofundme.com/michaeljuarezfundraiser

I appreciated what you said about a shift in perspective. As someone new to this industry, it took me some time to understand what I was doing and see a way that it could be connected to my beliefs and passions for change. While I’m still learning about the industry, I found increased motivation when I realized that finding more efficient transportation methods and technology would allow me to solve problems on multiple levels. I appreciate the information about the collective effort to stand by the Paris agreement.

Thank you for these tips. The infographic that you used, aptly conveys the point. Are there any specific rules and regulations for barrel, drums or containers used to ship materials to China?

What are the responsibilities of the consignee under FCA terms?

Thanks

You’re right, Gary, that these contracts don’t guarantee labor won’t strike or organize slowdowns, but it does give employers at the ports legal options for dealing with them.

Completely agree, Gary. I’ll likely quote you in an article I’m putting together now on Hapag-Lloyd issuing this fee again.

Thanks for the great comment, as always, Gary. Opportunity for collusion certainly doesn’t suddenly appear because there are three alliances instead of four. The fear people have of collusion within the alliances isn’t new with the latest reshuffle. I was hearing rumblings of it back when Maersk, MSC, and CMA CGM were planning the P3 Network and it’s only intensified as carriers alliances have grown in dominance. Collusion has certainly existed in the last 6 years, but where we’ve really seen it is in the RO-RO market. That’s where carriers have been found guilty of price fixing several times in the last few years. On the container side, there have been price wars, and, you’re right, if there have been attempts at price fixing there, it has failed miserably. Unless some of the carriers at the top were intentionally pushing freight rates way down to drive out some of the competition. The issue of Alliances ganging up through group negotiation against the tug boat operators (and port operators too) is an issue that the FMC is addressing. I’m with you in that I don’t think eliminating carrier alliances is an option. Right now they seem necessary for the carriers to cut down costs and get back to be profitable.

Hi Riyham,

If you are inexperienced with international logistics, you may want to consider using a freight forwarder.
The maximum legal weight will depend on what kind of move you are looking to do.

Thanks,
Hannah

How do I know if I need a freight forwarder? What is the maximum weight of a shipment? Thanks

Hi Leia,

If the forwarder will be importing the goods on behalf of the client, then all shipment related documents will need to be issued with the forwarder’s name and address.

The forwarder will be able to tell you what documents are required and how they are to be issued.

Thanks,
Hannah

Hi Romeo,

It is the responsibility of the buyer to handle origin customs charges and other formalities.

Thanks,
Hannah

Great to hear from you, Gary! We love your comments.

Your experience is certainly better than the experience described by shippers in articles like the Loadstar one shared. While the research cited on shippers’ losses comes from a trusted source, my second paragraph feels a little hyperbolic in hindsight as you point out this is not every experienced shippers’ experience.

I have to think BCOs have a better time of it than medium to small shippers. While the shipper who commonly experiences rollovers quoted in the article is big enough to be a BCO with 170,000 TEU, the research about money lost by shippers due to carrier unreliability doesn’t appear to be specific to the size of the shippers losing money. It just lumps them all together.

The problem definitely exists in general or there would be no need for a company like the New York Shipping Exchange to exist. But I guess the real viability of the company will be seen with time.

I do like your client’s quote. The arrival of the goods is the absolute most important thing. That’s why professionals like yourself and the team here at UC are successful. We make sure shippers get their imports and exports reliably delivered no matter what challenges the industry faces.

Hi Luciana,

No, you do not need a freight forwarder for such a small shipment. You can use FedEx or UPS.

Thanks,
Hannah

Hi Hannah. Do i need freight forwarder if somebody ship goods to me from indonesia to USA. The weight is about 50lbs. Thanks

Duty should be included in the EXW price, but only the seller can confirm these details.

Thanks,
Hannah

Hi Selina,

Yes, if you shipped EXW or FOB, you could still manage the shipment to your client’s warehouse.
The forwarder or broker could work with your customer directly for customs related issues and fees.

Thanks,
Hannah

Hi Paul,

A freight forwarder could handle the US side, but I would recommend hiring a forwarder to handle everything from the loading port (POL) in Brazil to your facility in the US.

Thanks!
Hannah

With my current company, we are based in the US, have a factory in China, and our client is in the US. Currently, we do not have Incoterms in place with our client. We have a 3PL and plan from factory door to our clients warehouse. We have been shipping under DDP as we initially pay all the fees associated (freight, tax, duty)because we previously quoted the shipping on the original PO to the client. Our 3PL suggests we should ship either EXW or FOB to maximize our profits.

If we were to ship via EXW or FOB, would we still be able to manage the shipment with our 3PL all the way through until delivery to the clients warehouse? Would our 3PL then just bill the client for the remainder of the fees we are not responsible for?

Thank you for your time!

Hi Jay,

A Customs Agent is a federal law enforcement officer whose primary responsibility is to protect and secure the U.S. Border.

A freight forwarder is an agent who acts on behalf of shippers to arrange the transportation of goods. Freight forwarders offer customs brokerage services (customs clearance, ISF filing, etc). This can sometimes require them to work with customs agents to resolve customs issues.

Hannah

For shipments under both CPT and CIP incoterms, the US Importer is responsible for customs clearance.
Please click here to view a list of incoterms and their definitions.

Thanks,
Hannah

Hi Melyssa,

I’m not familiar with that Incoterm. Please click here to view a list of current incoterms and their definitions.

Thanks!
Hannah

If terms Ex works- is it responsibility of shipper for handling origin custom Custom documentation and other formalities Dangerous goods handling procedure ?

.

t

Cheers, CFR Rinkens

When the terms is exw , shipper won’t pay anything ,all the cost will be bear by consignee from shipper factory or shipper warehouse till destination .

When the terms fob , shipper is responsible for below

1- transport from his factory or warehouse to port

2- export custom clearance

3- terminal handling charges

4- documention

5- weighment of cargo

In fob terms consignee is responsible

1- ocean freight from port to port

2- destination charges till his warehouse

Hope the above is sufficient to clear your doubts , if any kindly advice , we will happy to assist.

Regards
Dillip Kumar Agrawal
Senior executives in logistics
Chennai – India

Hover on the “COMPANY” tab of the menu bar and then click on “THE TEAM” to contact individuals in the company, myself included. I’ll let you pull it up there to avoid spam that might pop up from typing my email out in the comments section. I look forward to reading your suggestions.

Hi Nerissa! Our Incoterm Quick Reference Guide can help explain which charges will be paid by the shipper (seller) vs. the consignee (buyer). You can check it out here.

Thank you, sir, for reading and commenting.

Thanks for the question, Dave. That is a great one, and a major issue for the international shipping in general right now. Carriers do not have very good transparency when it comes to their finances or even operations, like when a scheduled sailing is going to be cancelled or delayed or cargo is going to be placed on an alliance partner’s ship. The collapse of Hanjin is creating a demand from shippers for carriers to have a greater level of transparency, especially in terms of finances. Hanjin’s z-score was even worse than other carriers, but what these z-scores reveal is that many carriers are in a dangerous place financially. Many larger shippers are demanding to see financials from carriers before signing big contracts with them. The carriers make the shippers sign confidentiality agreements. Small to medium shippers, who can’t deal directly with the carriers, unfortunately do not have the same options. However, with the demand for transparency shift, big carriers should start getting used to a higher level of transparency because they’re not going to really have much of a choice.

Bringing up the carriers anchoring vessels furthers my point. Doing so, carriers decreased capacity. That made sense in controlling freight rates and decreasing downward pressure on rates. The megaship craze has increased capacity when they should have been controlling it with strategies like anchoring and scrapping vessels.

For Maersk, there was some sense creating bigger ships. They did so with thought and strategy (of course, even Maersk has not been without its struggles either). The rest of the carriers just seem to do whatever Maersk does whether it really makes sense for them or not.

Ships have gotten better in terms of fuel consumption and CO2 emissions because they were forced to by environmental regulations regarding pollution in the international shipping industry.

Cargo tracking is not my biggest focus on ship improvement (although, I do like that for more transparency from carriers, which is certainly lacking) but on things like predictive maintenance technology on ships which could save a lot of money for carriers rather than bigger ships that increase capacity and congestion while pushing freight rates lower.

I think the most important technological advancement this industry is the need for full visibility of container location. I believe the best way to achieve this is live tracking on the containers themself.

Supply and demand Gary, we all must obey the law!

I say it is my view that shippers will pay exactly whatever the carrier charges. They will always say they are paying too much but we know from the days when the rate goes up to $4-$5k that they can pay higher rates.

Welcome back Gary, we missed you!

I agree, the only way the industry becomes profitable again is through contraction of providers.

I may be slow in learning but once things are explained to me further I learn and does not depart from it:)

Under Exworks and FOB terms, what particular charges are paid by the Shipper and what would paid by the Consignee.

Needs your help.

Nerie

is the shipping policy document is necessary to include at for clearing the shipment arrive from importing. Can you possibly gave me an idea what is the shipping policy document valued for?

Thank you.

The small guy, or new business, will suffer, often their premise to achieve sales based on a rate that allows the product to be sold cannot sustain such sales when market rates return to near normal, in Canada the Alberta high grade hay could only be sold to Japan when the shipper achieved a bucket rate, and the carriers will always give space to the higher revenue cargo.

The process of carrier competition through aggressive rate practices has been around for many years, and we cannot project if multiple bankruptcies will stop this from taking place, in the freight business it’s always been there and always will be as long as a forwarder or carrier wants the business and is prepared to cut profits to get it and damage the competitor.

Denton
dentonio@ymail.com

We are testing the comments on the new website and blog.

Looks like everything is working.

Thanks,
Raymond