freightworld-blog

[freightworld-blog]

Shedding Light on New Tariff Impacts

2018 was a tumultuous year for many global companies when, practically overnight, they were hit with a wave of suddenly volatile tariffs. For many, the impact was a direct hit to the bottom line. In October 2018 alone, tariff payments were up 104 percent from October 2017, while import values rose only 13 percent.

A tariff's purpose is to increase acquisition costs of foreign goods to make domestic products more attractive. According to the Trump administration, it is levying these tariffs to protect national security and the intellectual property of U.S. businesses. The reality is that only a fraction of these tariffs apply to products that consumers buy. The majority of the tariffs affect "intermediate" and capital goods—components used to produce consumer goods.

As a result, consumers should brace for a wave of increased prices due to the tariffs. They will likely do their best to move away from imported goods impacted by the tariffs and purchase cheaper alternatives whenever possible.

[freightworld-blog]

Packing Tips to Avoid Damaged Goods

We understand that you can’t review every shipment before it leaves the warehouse; especially if it’s shipped directly from the manufacturer. What you can do is create a Best Practices Guide for the packaging of your product.

It starts with an assessment of product specifics such as length, width, weight — this prevents packaging overkill like the triple-wrapping and double-boxing of a USB cable.

With basic dimensions and characteristics figured out, the three things to note when choosing the packaging are:

Degree of Fragility: Fragile products need protection from shifting around during transportation. Merchants are tasked with gauging the amount of space (and best materials) they need to fill to protect the product. Some sellers do this by shipping multiple goods in one box, the use of compartments or a box-in-a-box packaging.

Know your ECT: The Edge Crush Test rating for a box tells you the amount of weight that can be stacked on a box wall before it deforms and collapses. Single-walled boxes are best used for small and medium sized products, while larger, heavier products should only be shipped in double-walled or triple-walled corrugated boxes.

Isolating Liquids: Shipping liquids, perfumes, aerosols? Liquids (especially in breakable containers) must be separated using padded poly bags or “jiffy” envelopes. It’s also advised to ship these types of items separately when possible. Still unsure about the regulations surrounding your shipment? Here’s a reference from the U.S.P.S. regarding preparing shipments.

In choosing the packing and shipping materials, common materials to consider include:

For “outer” Materials:

Polybag: Cheap, offers excellent water resistance, but no structural strength. Best suited for items that are already well boxed.

Jiffy bag: Similar protection to polybags, but with added cushioning against impact. Best suited for smaller, non-fragile items.

Corrugated boxes: With the product specs in mind, choose between single- and double-wall corrugated boxes that offer rigidity and impact protection. Single-wall boxes are best suited for fragile items while double-wall or triple-wall boxes should be used with heavier orders.

For impact protection:

Bubble wrap: Provides total coverage for products that require impact protection, such as glass; the only downside is it can get expensive.

Brown paper: Cheap, easily scrunched up and zigzagged across the item, it can provide some protection. But it can collapse under heavier loads, especially on longer journeys.

Single-ply corrugated roll: This is used to line thin cardboard boxes to increase impact resistance. Some merchants also use it to wrap bottles, and keep them from striking each other.

Source: https://www.floship.com/can-protect-goods-damage-shipping/

[freightworld-blog]

How to Ship a Container to Africa?

Did you know that there are 17 million shipping containers in the world?  And that at any given time, there are five to six million shipping containers traveling to and fro across the globe?  This fleet of containers makes an astonishing 200 million trips a year!  Shipping containers are filled with our clothing, our cars, our cell phones, our fuel, building materials, and just about everything else that one might want to purchase or to sell.

95% of the world’s cargo moves by ship, so chances are that if you’re shipping to Africa from the USA, or from China, or from the United Kingdom, or from anywhere else in the world, you are moving freight in a shipping container.  

Fast Facts About Shipping Containers

As you get involved in importing goods via shipping containers, you’ll want to be familiar with common information and terms.  

What is a Shipping Container?  Shipping containers are large rectangular, steel boxes, fitted with hinged doors.  They fit neatly on train cars, truck beds, and are stacked by the thousands on cargo ships.   They are widely used, but were only developed in 1956!  In fewer than 100 years, shipping containers have become the most common way of moving goods around the world.

FCL: Full Container Load – This means that all the goods in the shipping container are owned by one party, and regardless of whether the container is at capacity, payment is for a full container.

LCL: Less than Container Load – This means that goods in the container are owned by multiple parties, and the cost is based on the portion of the container used by each party.

Shipping Volumes:

TEU:  Short for “Twenty Foot Equivalent Unit”  (20 feet/ 6.1 meters long)

FEU:  Short for “Forty Foot Equivalent Unit” (40 feet/ 12.2 meters long)

Each standard length shipping container is 8 feet (2.43 m) wide, and 8 feet (2.59 m) high.

Extra tall shipping containers, called “high-cube containers” are also available

Smaller, 10 foot (2.99m) and 8 foot (2.43m) containers are also available,  but cannot be shipped in the same way as TEUs and FEUs.

Imagine this:  a standard TEU can hold almost 100 washing machines, or 3,500 shoe boxes!

Top Products Imported by Africa

If you are importing goods to Africa, or are considering such a business venture, it’s likely that you are focusing on one of these 10 most desirable goods or products, all of which are shipped to Africa in containers!

Vehicles

Computers and other IT products

Clothing and Fashion Accessories

Pharmaceuticals

Mobile Devices

Stationaries

Food

Electronics

Engineering Products

Chemicals

Top Container Ports Worldwide

According to The World Shipping Council, 14 of the top 50 container ports in the world (by TEU volume) are in mainland China. One is in Africa: Port Said East in Egypt which shipped 3.04 million TEUs in 2014.   Of course, Port Said is situated on the African side of the Suez Canal, one of only 8 major shipping lanes in the world!  More than 100 vessels pass through the canal each day.   If freighters were required to sail around the Cape of Good Hope, a typical journey would last 24 days rather than the 16 hours it takes to pass through the canal!

The American Association of Port Authorities lists four African ports among the global top 100.  They are, in descending order based on thousands of TEUs shipped:  Port Said East, Egypt (3,036); Port of Tangier, Morocco (2,971); Port of Durban, ZA (2,770); and the Port of Alexandria/ El-Dekheila, Egypt (1,662).

These African ports are exciting and essential components of African trade and commerce.  They are the links between global trade and the entire interior of the continent.  90% of African imports and exports are expedited by cargo ships, so it’s easy to imagine that these ports are hubs of consistent activity.

Why Maritime Shipping?

Shipping containers are designed to be moved by truck, train, airliner or ship, and obviously, inland transportation is largely handled by trucks and trains where there is the infrastructure.  Maritime shipping of containers is the most widely used, and most affordable way to move cargo overseas.  A single carrier can transport as many as 8,000 containers!  A large carrier may be staffed by a mere 13 persons, making the trip economical for not only the carrier, but the shippers as well!  The kind of efficiency that comes from low staff overhead, technology, and direct routes translates into real savings!

Source: https://www.waystocap.com/blog/how-to-ship-a-container-to-africa/

[freightworld-blog]

Understanding freight shipping terms

We used our extensive logistics knowledge and experience to create a straightforward guide to freight shipping and logistics terminology. Whether you’re new to the freight industry or want to brush up on freight terms, our shipping dictionary is your go-to resource. It covers the terms you need to know to understand the freight shipping process from start to finish.

A

Adjustments - Costs incurred after a shipment has delivered. These costs can be added for a discrepancy between the freight characteristics quoted and the delivered shipment details of weight, class and dimensions, or may be accrued for additional services performed such as a liftgate. Learn how to avoid adjustments. Agent - A person who transacts business on behalf of another person or company with full or limited decision-making authority. In shipping, an agent may supervise customs procedures, documentation, or insurance. This person may also receive a portion of any monetary gain from a transaction as payment. Axle Load - The axle load refers to the weight each axle puts on the nation's highways.

B

Back Haul - The return trip of a truck transporting cargo or freight. It may be a return to the origin of the freight hauled in which the carrier is willing to offer a discount to secure freight for the trip. Beneficial Owner - This is a legal term where specific property rights belong to a person even though the legal title of the property belongs to another person. This term is often used in rail or ocean freight and refers to the actual owner of the freight being shipped, despite the title of the freight being in another party’s name. Bill of Lading (BOL) - The bill of lading (BOL) is the legally-binding contract between the shipper and the carrier, broker or agent that defines all aspects of the freight shipping arrangement including what is being shipped and to whom. Learn more about the bill of lading. Blocking and bracing - This term refers to wood or other supports used to keep shipments in place on trailers or in containers throughout the shipping process. This technique is widely used by expert shippers to secure their freight shipment. Learn the best practices for blocking and bracing. Blind Shipment - When the shipper and receiver are not aware of one another, the freight shipment is called a blind shipment. In such cases, the bill of lading lists the party that paid for the shipment as the shipper or receiver of the freight shipment. Bogie - This is a rail shipping term that refers to a frame with wheels on which a container is mounted for over-the-road transport. Brokerage License - A brokerage license is a legally required document that a broker obtains in order to have the ability to make land, sea and air freight shipping arrangements. Brokerage licenses are different for both transportation and customs. To make sea shipping arrangements, an NVOCC (Non-Vessel Operating Common Carrier) license is required. To make air shipping arrangements, an IAC (Indirect Air Carrier) license is required and obtained through the International Air Transport Association. Bulk Freight - Freight that is not contained within packages or containers is referred to as bulk freight. Often times, bulk freight comes in the form of liquid or a granular form such as sand or crude oil.

C

Cartage - A trucking term that refers to shipping freight within the same city or area. Chassis - A rail shipping term that refers to a frame with wheels and locking devices to secure a container during shipping. Classification - A freight classification is assigned to a shipment for the purpose of applying transportation charges. Freight classifications are used for less than truckload (LTL) shipments. Learn more about freight class. Concealed Damage - Concealed damage is damage not visible to the item(s) until the package is opened. Consignee - The individual who is financially responsible for the receipt of a freight shipment. This person is usually the receiver of the shipment as well.

Consignor - An individual (usually the seller) who sends goods to the consignee and is the legal owner until the consignee pays them in full. Consolidation - A consolidated shipment is when two or more shipments are combined to save money on freight shipping costs. This shipping method is used in less than truckload shipping with multiple stops before reaching the final destination. Learn more about consolidated shipping. Container - A container looks like a truck trailer with no wheels and is now among the most common freight shipping methods in the United States and abroad. Containers are used for intermodal shipping and come in standard sizes to ensure they fit on standard trucks, rail cars and container ships. Cross-Town - A shipping term used when a container or trailer is delivered from one railroad as part of the shipping route, the move is called cross-town shipping. Cubic Capacity - The total freight load capacity of any truck, train or ship is measured in cubic feet. The cubic capacity is the total load in cubic feet which cannot be legally exceeded. Violations of cubic capacity occur when the shipment’s size violates a carrier’s cubic capacity rules. Learn how to avoid violations of cubic capacity. Customs Broker - A person or company who is licensed by the U.S. Treasury Department to act on behalf of freight importers and exporters with respect to U.S. Customs transactions. A customs broker must be used for all shipments going to and from Canada. Learn more about shipping to Canada.

E

Embargo - An embargo is any event that prevents the freight from being accepted or handled. Most often, an embargo is due to international conflict or sanctions imposed on a particular country or group of people. However, embargo events may also include floods, tornadoes or congested highways. Exceptions - When a problem such as shortage or damage is noted at the time of delivery, an exception is noted on the bill of lading before it is signed to designate there was a problem with the shipment.

G

Gross Vehicle Weight Rating - The rating refers to the vehicle’s maximum operating weight as specified by the manufacturer. The weight includes the driver, fuel, engine, body, chassis, and cargo but excludes the weight of a trailer.

I

Inbound Freight - An integral part of supply chain management, inbound freight are shipments coming from vendors. Interline - This shipping term is used when the initial carrier of a freight shipment transfers the freight to another carrier to get it to its final destination. Intermodal Transportation - When freight is shipped using two or more modes of transportation. Intermodal transportation typically refers to truck-rail-truck shipments but may also include truck to air shipping or truck to ship in the event freight is being shipped overseas. Learn more about intermodal shipping.

M

Motor Carrier - The term “motor carrier” defines a person providing motor vehicle transportation for compensation.

Motor Property Broker - A freight broker is a person who makes freight shipping arrangements on behalf of a person or company. The broker determines the needs of the client, has experience in the industry and negotiates shipping rates with a carrier who can meet the client’s requirements.

N

Nested - A term used in less than truckload (LTL freight) shipping in which materials are stacked so that one item goes inside another. Nested freight reduces the amount of space taken up by the combined freight and makes LTL shipping more efficient as a result. Not Otherwise Indicated (NOI) - A general class rate or NOI is assigned to any freight that has no rate listed in the NMFC. The NMFC numbers dictate the freight rating that is assigned to freight. A freight rating is based on density, freight stowability, ease of handling, and liability.

T

Tariff - A tariff establishes the cost and contract of a freight shipment for the shipper and the carrier. Through Rate - A through rate applies to the distance between the point of origin and the delivery destination. Time-Critical - A time-critical freight shipment delivery is set to the earliest possible delivery time to accommodate particular shipping requirements. Time-Definite - Time-definite deliveries guarantee that the delivery will occur on a specific day or time of day. Transit Time - The total amount of time from freight being picked up to freight being delivered. Truckload (TL) - Truckload shipping can be defined as the transportation of goods that will fill up a 48’ or 53’ trailer by volume or weight.  Full truckload shipping typically is contracted to one customer gaining full and exclusive use of the carrier’s trailer. A truckload is ideal for anyone shipping multiple full pallets of freight and LTL shipping isn’t cost efficient. There are multiple pieces of truckload equipment such as refrigerated trucks and dry van trucks. Learn more about truckload freight shipping.

V

Volume Rate - A less than truckload (LTL) shipping term for rates that are made subject to a minimum weight of 7,000 pounds or more, or cubic volume exceeding 750 cubic feet.

W

Warehousing - Warehousing refers to the storage of goods in a facility for a specified period of time. Freight shippers usually store their goods at warehouses until they’re ready to ship. Learn more about warehousing.

Source: https://www.freightquote.com/how-to-ship-freight/shipping-logistics-terminology

Source: https://www.freightquote.com/how-to-ship-freight/shipping-logistics-terminology