Trade

Standard Chartered announced the successful completion of the first cross-bank Letter of Credit (LC) transaction between Vietnam and Thailand conducted over blockchain, in partnership with Asian Development Bank (ADB), Bank for Investment and Development of Vietnam and Standard Chartered Bank (Thai).

In anything that we do in life, the first time is a scary thought - first time on a bike, first time driving a car, first time swimming, first date, first kiss .................... etc..

So why should shipping your first container be any different..??

It could be a scary thought if you are a first-time exporter or importing for the first time, but like everything else, if done and handled correctly, shipping your first container can be a good experience as well..

Here are some tips to assist you in shipping your first container..

If you are in the business of international trade you would have no doubt heard about a Certificate of Origin.. But not everyone is familiar with what is a certificate of origin, why it is required, who issues it etc.. This article aims to clarify these points..

A Trade agreement is a contractual arrangement between countries concerning their trade relationships and how they conduct trade with each other..

Customs department in the importing country may require a “proof of origin” in order to determine whether or not the cargo that is imported may be subjected to trade measures such as the preferential duty tariff (for stuff that is imported from with the PTA bloc), free trade deals, prohibited goods etc..

The latest WTO statistics say that world trade is expected to fall by between 13% and 32% in 2020 as the COVID 19 pandemic disrupts normal economic activity and life around the world. A resilient supply chain is essential to ensure a strong global trade.

Our survey on the impact of COVID-19 pandemic on the supply chain industry revealed how vulnerable the industry was with the results showing that 35% of the market was totally unprepared for it and 59% of the market was severely impacted by it.

Based on these results, on the 4th of June 2020, we organised a Webinar sponsored by Ocean Insights on how the future of global supply chains would look.

This webinar, hosted by Eric Johnson, Senior Technology Editor of the JOC featured Steve Kranig of IM-EX Global, Inc., Pritam Banerjee of Asian Development Bank and Robin Jaacks of Ocean Insights as panelists.

For those of who missed out on this insightful and informative webinar, here is a synopsis of what was discussed.

For the past 84 years, Incoterms® has been the cornerstone of global commercial trade, for robust trade negotiations directly or indirectly between parties and the rules have become the standard in international business rules.. BUT, THERE IS A BIG PROBLEM..

As per Emily O’Connor, Director of Trade and Investment for the International Chamber of Commerce (ICC), “people will frequently choose the wrong Incoterms® rule for their transaction”..

O'Connor has emphasised the importance for anyone who uses the Incoterms® rules to learn or re-learn them – even if you consider yourself an expert – in order to avoid costly mistakes in the process of shipping their goods..

There are several consequences of using the incorrect Incoterms® and users need to fully comprehend what it means when they put a three-letter Incoterms® rule into their sales contract..

But no worries, credible and reliable guidance is at hand for you now..

Many of you would have come across the term Letter of Credit (L/C)..

If you are a shipping line, you would have heard this term from various customers asking you to expedite the draft bill of lading for checking by the bank or for the release of the bill of lading to be expedited because the shipment is under L/C..

If you a freight forwarder or agent, you may have been put under pressure by the BCO to get all the documents required by the L/C sent to them in time..

If you are a BCO, you may have been told by your bank that the documents submitted do not match the requirements of the L/C and some of the documentation may need to be redone..

So what exactly is a Letter of Credit, what is the need for a letter of credit, who issues it and how does it work..

The process of global trade is simple to look at, especially if you look at it from the outside..

• There is a buyer who needs a product ;
• There is a seller who sells this product ;
• They discuss and agree on a price ;
• The buyer pays the agreed price ;
• The seller arranges for the product to be transported to the buyer

End of trade.. Simple, right..?? Many would wish it was so.. While there are several processes and documentary flows involved in trade negotiations, there are even further processes involved in the actual movement of the goods from Point A to Point B.. One such process in the movement of goods that influences product pricing is the process of freight negotiation and freight quotation in which there are several types..

Let us take a deep dive into FAK rates and how it works..

If you are in the business of trade and shipping, you would have surely heard of/dealt with freight quotations along the way..

A freight quotation is a document that outlines the charges involved in the movement of cargo from Point A to Point B..

Many customers have lost $$$ on their transactions because of unclear, incomplete or incorrect freight quotations or they do not understand what a freight quotation entails and what it covers..

Here are some tips on how to understand a freight quotation and how to ensure that you get an accurate one..

The dictionary defines Sanctions as "Sanctions are measures taken by countries to restrict trade and official contact with a country that has broken international law.". Whether economic or political in nature, Sanctions have a real impact on the economy and can affect the interests of those engaged in businesses including international shipping. The US and EU imposed sanctions on Russia due to the latter’s aggression against Ukraine. Here is a look at the impact of these sanctions on the interests of shipping companies.

In any normal year, hundreds of thousands of containers filled with cargo are abandoned all over the world.

While abandoned cargo could be quite stressful and considered to be a big headache for everyone concerned, a freight forwarder may be especially affected by cargo abandonment.

Here are 10 tips to help you avoid losses due to abandoned cargo..

Freight forwarders are an integral part of the supply chain and global maritime trade..

A freight forwarder serves as a conduit for global trade between importers, exporters, BCOs (Beneficial Cargo Owners) and the transportation and regulatory entities such as shipping lines, customs, port etc..

The moment a freight forwarder signs/accepts a contract with the customer, they are exposed to several unique risks and liabilities..

This article discusses the risks and liabilities of a freight forwarder..

To the uninitiated (which included me at one stage), these industries are same or similar and it might come across that there is no difference between Maritime, Shipping, Freight, Logistics and Supply Chain ..

But once you are involved in the business or know about these businesses, you will very soon understand that these are very different industries with different workings, assets, architecture, requiring very different sets of qualifications, experience, expertise, knowledge and attitudes..

In this article I unpack the difference between Maritime, Shipping, Freight, Logistics and Supply Chain and how it is all connected..

Incorrect cargo details, misdeclaration of cargo and its details has been the bane of many shipping lines over the years..

The consequences of cargo and weight misdeclaration were so severe that the IMO had to implement SOLAS VGM regulations..

However there are still several incidents of such cargo misdeclaration including hazardous goods which have caused several maritime disasters..

In this article, Peregrine Storrs-Fox, Risk Management Director of TT Club writes about the importance of declaring correct cargo details and consequences of cargo misdeclaration..

The Incoterms® rules are a globally-recognised set of standards, used worldwide in international and domestic contracts for trade transactions..

Following its introduction in Incoterms® in 1936, these international commercial trade terms were revised in 1957, 1967, 1976, 1980, 1990, 2000, 2010 and most recently in 2019 (Incoterms® 2020) to accommodate changes as global trade developed and evolved..

As per the International Chamber of Commerce, the recently released Incoterms® 2020 rules seeks to “offer a simpler and clearer presentation of all the rules, featuring revised language, an expanded introduction, explanatory notes, and articles reordered to better reflect the logic of a sale transaction“ and traders are encouraged to use the latest version..

A question that has come up in terms of Incoterms® is whether “a shipment can have multiple Incoterms rules”..

Coronavirus has adversely affected the shipping and freight industry and global trade as a consequence.. Here we look at some of the legal implications of this epidemic..

Dealing with Missing Import Licenses “The import permit was rejected, because of missing license!” says your Customs agent in a text message. “Are you sure? We've been importing this for years!”, you reply. Unfortunately, similar conversations like the above happen all the time, and in all parts of the world because of various reasons.. Here are some do's and dont's when it happens..

Are you new into the business of exporting and not sure how to get it right the first time? You are not alone. Not many people are aware of how to handle their first export consignment.

Considering the international nature of the business, it is not easy as it requires a deeper understanding of the entire process of the markets its rules and regulations.

Ensuring this on a regular basis is challenging even for experienced agencies in the export/import market.

So what should you do? Well as a first timer, the best you can do is prepare. Prepare yourself and develop an in-depth understanding of the market you are exporting to. And more importantly, about the export rules and the best practices to keep in mind.

While the business scenario and shipping regulations would differ from country to country, there are certain common things that you must ensure while exporting.

Here’s a look at the 5 important things to consider before shipping your first export consignment abroad.

International trade continues to experience growing pains related to demurrage and detention charges.

Unfortunately, global transport interpretations result in an assumption that these terms are interchangeable.

Depending on the origin and destination, they have different meanings, especially in the U.S. In fact, the Federal Maritime Commission (FMC) took the exuberant step to eliminate confusion and streamline port management.

While beneficial, the new interpretive rule still leaves room for error, notes FleetOwner, lacking the force of legally bound duties.

To avoid an assumption of decreased demurrage and detention fees and keep ocean freight spend under control, shippers need to understand their real impacts and how these fees amount to significant issues in the global supply chain.

In any trade transaction, there are two parties - the buyer and the seller.. When it comes to a sea freight shipment, either one or both of them may end up paying different sets of charges to different entities..

Not just for newcomers to the business of exporting and importing, this question sometimes perplexes many already in the business..

In this article I dissect this process to explain who pays what charges in sea freight shipment..

So who pays what charges in a sea freight shipment..??

In an ICC podcast to mark the launch of the Incoterms® 2020 rules in September, Emily O’Connor, Director of Trade and Investment for the International Chamber of Commerce (ICC), said that “people will frequently choose the wrong Incoterms® rule for their transaction”.

O’Connor went on to emphasise the importance for anyone who uses the Incoterms® rules to learn or re-learn them – even if you consider yourself an expert – in order to avoid costly mistakes in the future. “Learn now, ahead of time to avoid problems down the road.” she said.

One of the initiatives designed to help users avoid mistakes is a new online training course - the Incoterms® 2020 Certificate - developed by the educational arm of the ICC, the ICC Academy. This course is the world’s only ICC-endorsed online training on the Incoterms® 2020 rules and is available for purchase here.