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INSIGHTS ON AIR FREIGHT AND COST CALCULATIONS IN 2019

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EVERYONE KNOWS THAT AIR SHIPMENTS ARE MUCH MORE EXPENSIVE THAN SHIPPING VIA SEA OR TRUCK, BUT SOMETIMES, URGENT CARGO REQUIRES A SHORTER TRANSIT TIME, LEAVING NO OTHER ALTERNATIVES THAN SHIPPING BY AIR. In those cases, it is useful to know how airlines build their transportation costs, to make an appropriate decision on what service to prefer and how costs are built up. Some of the most important cargo airlines in the world are: Cathay Pacific Cargo Korean Air Cargo Emirates SkyCargo Lufthansa Cargo Singapore Airlines Cargo China Airlines Cargo EVA Air Cargo Air France Cargo For air shipments, the cost is calculated by multiplying the rate (provided per kg/lbs) for the “chargeable weight”, which is calculated based on the weight or volume of goods. The volume/weight ratio is very simple to calculate: 167 kg is estimated for each cubic meter of space (formula: 1 CBM = 167 kg), but if the weight exceeds the chargeable weight, the actual weight will be applied for cost calculation....

DIGITIZATION WILL HELP IMPROVE PORT PRODUCTIVITY AND PROFITABILITY

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PORT PRODUCTIVITY IS GENERALLY EVALUATED BASED ON THE NUMBER OF CONTAINER MOVES PER HOUR. When comparing the first half of this year’s performance to 2017’s, there has been a 4% decrease in port productivity, which means vessels spent 70,000 extra hours in ports earlier this year. Each additional hour a vessel spends in a port could cost approximately $2,500. With 70,000 extra hours during the first-half of 2018, the growing size of vessels calling ports, the number of containers being exchanged with each port call, and the idle vessel fleet being at a low-point for 2018, the additional costs for the logistics industry could total more than $175 million. Terminals are limited in their capacity to handle larger vessels. Physically adding more cranes may not be possible, or may be highly-challenging, for some terminals. To increase productivity, terminals must focus on and consider alternative solutions. DIGITIZATION IS ONE KEY SOLUTION THAT COULD HELP IMPROVE COLLABORATION AN...

How does the logistics industry catch up with the imported express train?

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Article source: China Road Transportation Network In the face of changes in the domestic and international environment, China will implement a more active open strategy and build an open economic system. One of the important measures is to actively expand the scale of imports by holding the first international import fair. The expansion of the scale of imports means that the proportion, structure and flow of imported goods in China will change significantly, which will bring significant benefits to China's freight logistics industry. The author believes that the most anticipated impact is that it may change the control of foreign-funded logistics enterprises on import and export transportation rights. For a long time, China's foreign trade export goods are mostly traded on FOB terms, and the decision to transport is in foreign buyers. Due to the heterogeneity of services and the lack of overseas networks of domestic enterprises, buyers will choose foreign logistics com...

SHIPPERS FACE UNREASONABLE RISING DEMURRAGE AND DETENTION CHARGES

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FREIGHT FORWARDERS ARE RAISING THE ALARM ABOUT THE INCREASING DEMURRAGE AND DETENTION FEES CARRIERS ARE CHARGING TO MAXIMIZE THEIR PROFITS. Demurrage refers to a charge that a merchant pays for a container that sits at a terminal without being picked up by a trucker. In the case of demurrage, the terminal incurs extra costs from acting as a storage yard. In detention, however, ocean carriers lose the opportunity to return their containers for other shippers needing to move freight. ACCORDING TO FIATA (THE INTERNATIONAL FEDERATION OF FREIGHT FORWARDERS ASSOCIATIONS), THE AMOUNT OF FREE-TIME AT TERMINALS AND FOR USE OF CARRIER EQUIPMENT HAS BEEN DECREASED, WHILE TARIFFS IMPOSED AFTER FREE-TIME ENDS HAVE BEEN INCREASED. Terminals and steamship lines oppose the continued use of detention and demurrage charges as a way to encourage pick up and return of containers to scale up cargo fluidity that has been challenged by discharge of large mega-ships. Additionally, FIATA does not be...

The best logistics solution

FIC Logistics strategic warehousing locations combined with best in class design tools, processes and systems ensure cost-efficient distribution solutions. And our rich experiences in cargo consolidation, sorting, packaging, and shipment of goods from different suppliers, varied specifications enable to offer you best logistics solutions effectively.  l ARE YOUR PRODUCTS MADE-IN-CHINA? l DO YOU NEED HELP DEALING WITH CHINESE MANUFACTURERS ( FROM A LOT SUPPLIERS ) ? l ARE YOU FRUSTRATED WITH THE WAREHOUSING CHORES AND LOGISTICS? l DO YOU WANT TO CUT COST? Our hassle free e-commerce fulfillment service is modeled for the online sellers of Made-in-China products and the sellers all around the world. We primarily store these Sellers's product in China and ship them out whenever required. We provide much cheaper Warehousing and handling services from China and this interprets in maximizing revenue margins for the sellers. Alternatively, the sellers can introduce discou...

About re-transportation FIC Logistics know more

Specializes in re-exports third-party transport (third-country trade quotas) business, according to the requirements of the guests , we entirety provide exports of goods transport , logistics operations and related technical processes. Shenzhen Sunpower Logistics Co., Ltd. has cooperation with local factories in Indonesia, Bangladesh Gala, Myanmar, Malaysia and South Korea, offering appropriate support services for customers and provide original certificate issued by the Some third country . Document the role of third countries: the way to take transit exports, quota-free, to avoid anti-dumping duties, tariffs destination: FIRST . certificate of origin issued by third countries of products: apparel (clothing), shoes, hats, cloth, plastic, ceramic tiles, ceramic system Products, television sets, lighting (excluding light bulbs) and bicycles accessories. These products are limited to Chinese exports, or transit in Singapore or Malaysia (Malay documents only), as well as Dubai, Unite...

Freight forwarding logistics enterprise exploration mode transformation

"In the past, the rapid development of the international freight forwarding industry mainly solved the problem of 'can do', and with the change of the competitive environment and the upgrading of customer demand, the focus of high-quality development is to solve the problem of 'doing well'. This is the industry innovation. The basic path of development.” On August 2nd, at the China International Freight Forwarding Industry Development Forum hosted by China International Freight Forwarders Association, International Business Newspapers and Zhejiang Jinhua Municipal People's Government, Zhao Huxiang, President of China International Freight Forwarders Association Make the above statement. The China International Freight Forwarding Industry Development Forum is held once a year. The Forum insists on highlighting the characteristics of the times, constantly discovering the value of the industry and guiding the company to keep pace with the times. The theme of th...

China's logistics program "package" to the world

Article source: Overseas network From the center of Moscow to the south, until there is no asphalt road, only in the summer surrounded by green trees and grass, arrived in a logistics warehouse called Radius. Here is the white Stolby, still in the state of Moscow. You don't have to step into the warehouse to see the Chinese elements - the truck that says " China Shipping " is parked outside. The real impact from China is not seen. In the frenetic atmosphere of the World Cup, fans from all over the world are following the beloved team to many cities in Russia, but the goods from all over the world and even Russia are transported to local consumers at a slow speed. The logistics solution from China is speeding everything up. 1. From 70 days to 5 days “The number of parcels this year has increased by 40% compared with last year. Last year, it increased by 40% compared with the previous year. This is the situation after we cooperated with the rookie.” In an interv...

4 major new technologies may subvert future shipping industry

Source: Maritime Services Network CNSS In the past one or two years, one of the hot spots in the shipping circle can be described as "cross-border development." Currently, blockchains, cloud technologies, and virtual reality technologies are quietly changing the shipping industry. Shipping companies , manufacturers, customs and ports can all benefit from these new technologies. Therefore, new technologies are bound to bring great potential to the shipping market in the future. This article will focus on the current "four biggest new technologies" in the shipping circle and how they will embrace the era of the big platform: Blockchain technology The so-called blockchain technology, also known as distributed ledger technology, is an Internet database technology that is characterized by decentralized, open and transparent, so that everyone can participate in database records. Explain in plain language: If we assume that the database is a book, reading and writ...

Is Your Business Exporting? Here’s How to Reduce Clearance Delays (And Frustration)

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  Here is a scenario: your e-commerce operations have been rising on a wave of interest from international buyers. To keep up the momentum — and keep your global customers happy – you need your exports to arrive quickly and safely in their destination countries, and more importantly, in the hands of your clients. But as the number of transactions grows, delivery delays are creeping into the picture, caused mostly by confusion about complex and changing Customs requirements, as well as recurring problems with border clearance documentation. You are frustrated. Your team is frustrated. And your customers are considering taking their business elsewhere. Fortunately, there are specialists and resources available to help, and specific steps you can take to keep your products moving efficiently. With fewer in-house staff available to manage documentation requirements and compliance with Customs rules, small businesses need to pay particular attention to some basic border clearance...

The Functions and Importance of a Customs Broker

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Freight shipping is a very complex and, at times, costly industry. Ocean and air carriers implement fees if deadlines are not met, if corrections are needed to documentation after the vessel has sailed, or if the container is not returned within the allotted free days. Additionally, terminals will implement their own costs regarding container activities on their premises, for example, if the container remains on site longer than the time allowed, if it must be out-gated prematurely, or if it needs to be moved within the grounds. As costly, confusing, and time-consuming as it can be to understand the requirements and procedures implemented by terminals and carriers, the most powerful players in logistics are governments – both domestic and international. THE RULES AND REGULATIONS PUT INTO PLACE BY CUSTOMS (AT ORIGIN AND AT DESTINATION) ARE VERY COMPLICATED AND DETAILED. If these laws are not properly obeyed, it could result in ghastly fines, the cargo could be placed on inspec...

FCL vs. LCL – Which One is More Suitable for Your Business?

If you are uncertain about whether LCL or FCL shipments are more suitable for your business, here is a review of definitions and procedures for both shipping methods, to help you determine the right decision. LET’S START WITH FULL CONTAINER LOAD (FCL.) Just like it sounds, FCL is a type of ocean freight, and refers to Full Container Load, which means that you are the only user of the container, and do not need to fill the entire container. NEXT IS LESS CONTAINER LOAD (LCL.) The LCL type of ocean freight are shipments priced based on the volume of cargo. These are smaller volume cargoes, which belong to several shippers, combined and tacked inside a single container. The important point with LCL is to plan wisely, and maximize available space if you are considering the LCL option. WHEN AND WHY SHOULD YOU CONSIDER FCL? If you have regular shipments, and are planning to transport more than 15 cubic meters, FCL would be the most economical type of ocean freight. Filling a fu...

WHAT FIRST TIME IMPORTERS NEED TO KNOW

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The world is in a place where globalization has taken center stage, and the interactions and business dealings between the countries and organizations is at an all-time high. The import and export businesses are two of the most important, and crucial, businesses in the era of globalization. Therefore, it is important for first-time importers to be aware about current market situations, legal matters, financial details, and the political environment in various countries where businesses plan to conduct their operations. The e-commerce business has catalyzed the import and export businesses, and people buy and sell goods online, through different websites and vendors, with an intent of keep costs at a minimum possible level. THE FIRST THING THAT FIRST TIME IMPORTERS MUST BE AWARE OF IS KNOWLEDGE 0F THE MARKET. An importer must not invest in markets where he or she is not completely aware of their inner workings. In cases of high product demand, the importer must purchase a suff...

"China International Maritime Exhibition 2017" highlights the highlight of smart ships and shipping

Hailed as the vane of the development trend of the international maritime industry, this year's most influential and large scale global maritime industry, "China International Marine Convention 2017" opened its doors at Shanghai New International Expo Center on the morning of the 5th. As the future development trend of the shipbuilding industry and shipping industry, smart ships and smart shipping have become the highlight of each of the exhibitors at this year's exhibition. CSSC delivered the first smart ship in China on the opening day of the exhibition and initiated the establishment of a smart ship innovation alliance. China Classification Society held smart ship unmanned vessel related seminar at this exhibition; COSCO SHIPPING will hold smart shipping launching ceremony; and Rawls Royce brought the world's first intelligent induction system ..... The blossoming of related exhibits and technologies marks the imminent entry of mankind into the era of smart ...