China, often termed as “the world’s factory” is unavoidable when it comes to global trade. As of 2017, China accounted for 15% of the world’s GDP. China’s GDP is 64% of that of USA thereby making it the second largest economy in the world.
For majority of the countries around the world, when importing Chinese products, international freight movement is required and you will definitely deal with a variety of freight forwarding companies.
Unverified statistics indicate that in the city of Shanghai China alone, there are more than 10,000 freight forwarders registered. It is conceivable that the total number in China is even more astronomical.
Chinese freight forwarders have also had a bad rap due to a few of them perpetuating fraud and other illegal activities which are affecting many of the legitimate Chinese freight forwarders.
“How can I choose a qualified freight forwarder in China from such a large number?” is a question that might be on the minds of many people.
David Fan gives you some guidance through different perspectives based on many years of industry experience.
The activity of Freight Forwarding has been around for many years and there has been a recent resurgence of the forwarder especially in the form of a digital freight forwarder. Unfortunately fraudulent freight forwarders have permeated this industry as well.
Like any industry, freight forwarding has its good and bad sides and it is quite easy to become a victim of fraud and most of the time, freight forwarders are not associated with the crime or fraud and they may be co-victims just like you.
Here are some of the ways of fraudulent freight forwarders and their scams.
Perishable cargo may be defined as goods that can deteriorate over a given period of time if not stored or transported under ideal circumstances or if exposed to adverse temperature, humidity and other environmental conditions..
Examples of perishable cargo are Fruits, Vegetables, Meat, Dairy etc..
Perishable cargoes are shipped in Reefer Containers (refrigerated containers) which are specialised containers that have been made for the purpose of carriage of perishable cargo..
But reefer containers could also pose a big problem in terms of cargo damages and cargo claims due to various factors.. This places greater attention on the correct and proper packing, handling and monitoring of both the perishable cargo and the reefer container..
As per TT Club, the majority of insurance claims they have received for perishable cargo have been found to be due to 3 main issues..
In one of my previous articles, I had posted about what happens in a day in the life of a Shipbroker.. Then came some questions from readers about what is the difference between a shipbroker and a ship charterer..
In this article, I discuss the Difference between a shipbroker and ship charterer and the role that both of them play in global trade..
Further to the recent maritime disasters and subsequent to the declaration of General Average on the Yantian Express, I received some questions surrounding the consequences and the process of the General Average – once it is declared..
In a GA situation are ALL goods blocked, until the Average Adjusters have completed their work..??
How long can the work of these Average Adjusters take on average?
When will the goods be unblocked?
Will all goods be unblocked?
In this case, the final destination of the ship was Halifax but the ship has been taken to Freeport for assessment.. Do all goods have to stay on board till the full assessment is complete or do they release goods as assessed.. Say for example, containers in a section of the ship that has not been affected at all..??
When do all the different parties have to pay their part of the indemnity fees and is paid by insurance or cargo interest..??
These unexpected delays can of course create a certain “damage” to the owners of the goods; I understand the Insurance does not include any of the consequences of the General Average..??
When will the beneficiaries of the insurance paid out (this would then refer to the owners that really lost material or got their own material damaged) – do they have to wait until the Average Adjusters have done their work, made their conclusions, send in their reports etc… or can they claim immediately to the Insurance company and the Insurance company later on settles with the other parties?
We caught up with Jagannath Muthu, of NAU Pte Ltd to pose these questions and here is what he had to say..
There are several entities involved in the successful transportation of a shipment.. However big or small a shipment is, two entities stand out due to the importance of their roles in a shipment..
These entities are a Freight Forwarder and a Clearing Agent..
It is very important to understand the functions of a freight forwarder and a clearing agent and their role in a shipment as this is often confused..
While in a lot of cases, a freight forwarder and clearing agent may be the same entity, there are many cases where they are different as well and in this post we explore the similarities and difference between a freight forwarder and clearing agent..
It was expected and would have been just a matter of time..
We reported previously that part of the 16-year-old Yantian Express the 7,510 TEU, 320m German-flagged ship of Hapag Lloyd went up in flames on the 3rd of Jan 2019 while on its way from Colombo to Halifax via the Suez Canal..
The container fire that broke out was largely contained and brought under control after one week and the ship sailed to the Port of Freeport (Bahamas) for further recovery and cargo damage assessment. when it arrives in Freeport around the 1st of Feb 2019..
On January 25, 2019, Hapag Lloyd declared “General Average” for the Yantian Express..
As container shipping has evolved over the years, so have the methods of carrying cargo and types of cargo being carried.. Open Tops and Flat Racks are two of the container types that are used in the carriage of (OOG) Out of Gauge cargo (also called (ODC) Over Dimensional Cargo in certain countries)..
This type of carriage has its own individuality and one unique feature of this type of carriage are the Lost Slots which occurs in the carriage of this type of cargo and this is explained in detail in this article..
Previously we shared an article about India’s first blockchain enabled Letter of Credit and also the First blockchain enabled trade finance transaction.. Both of these activities were carried out by HSBC..
HSBC seems to be leading the way in terms of blockchain-based tools to handle financial processes relating to foreign-exchange trades..