On an everyday basis, a large number of shipping containers are being employed to transport goods and commodities over large distances. These goods and products account for nearly 90% of the world’s cargo. These goods can be of different types ranging from perishable food items to sturdy automobiles. Each type of product thus has a different kind of requirement for their transportation. And as it’s rightly said, “Necessity is the mother of invention”. This led to a series of modifications and development of many different container types to accommodate seamless transportation of a variety of cargoes, to serve different purposes, and to help in striking a balance in the global demand and supply chain. Let’s weigh down a few most common types of containers that come in handy in this line of export-import business along with a few specially modified ones and their respective roles in the shipment of freight: Dry Van Containers: Also known as general-purpose containers, these containers are by far the most common type of container used by freight forwarders and suitable for the shipment of most types of bulk cargo that require limited protection. They are fully enclosed and weatherproof. They also have modifications like liner bags or flexible tanks for liquid or dry bulk cargo. Flat Rack Containers: This type of container storage unit has collapsible sides to turn them into racks. They are ideal for shipment of oversized cargo such as machinery, vehicles on the track, construction materials, etc., and can be secured with the end walls. Pallet Wide Containers: In European nations, these are used for accommodating euro-pallets that have a dimension of 1200 x 800 x 144mm. The advantage is the greater width than a general ISO container that enables the shipment of more pallets. Double Door Containers: These containers are open on both sides giving them an appearance of that of a tunnel, thus known as tunnel containers or a tunnel-tainer. Since it is open on both sides, the loading and unloading process becomes much more convenient. They create a wider room for goods such as steel and iron. High Cube Containers: They are similar in their structure to general containers, the only difference being that these container units are taller by 1 foot and used in case the cargo requires a greater volume capacity. A 'gooseneck chassis' is a recess in the floor at the front end that enables the container to be tall and lie lower. They come in 40'& 45' sizes. Side Door Containers: The uniqueness of these cargo containers is due to the bi-fold doors that can either be opened partially or completely to access the items thus aiding in the simplified loading and unloading process. It is also suitable for storage or building houses, offices, etc. Open Top Containers: They are different from other containers as their top part is open and covered with a tarpaulin sheet instead of a solid roof with moveable rear top rail and end doors. They are used for the shipment of goods that are oversized and exceed the container's height. Open Side Containers: They are just like regular shipping containers with an extra feature that their doors can completely open on the sides too. This provides a wider and adequate room and access to goods which are difficult to fit through regular doors. They are available in 20'& 40' sizes. Hard Top Open Top Containers: They are a modification of open-top containers equipped with a removable steel roof, corrugated steel walls, wooden floor, and lashing rings to secure heavy and bulky cargoes in the lower and upper side trails. Half-height Containers: These containers are half the height of standard containers. They are used in the transportation of goods that require easy loading and unloading especially coal, stones, etc. Platform Containers: This is similar to flat rack containers with a slight difference that these type of containers can exceed beyond the length of the floor and are suitable for heavy-duty goods and irregular sized cargo that are difficult to accommodate in any other kind of container. Insulated Containers: They are temperature regulated containers and insulated to maintain the goods at a higher temperature for transportation over long distances. Reefer Containers: These containers are also temperature regulated, generally used for shipment of perishable food items like fruits and vegetables at controlled low temperature. Bulker Containers: They are used for shipment of unpacked dry bulk cargoes like grains, coffee beans, malt, fertilizers, sugar, coal, ore, cement, etc. The goods are loaded via small openings on the roof and discharged through hatches on lower doors or front panels. Tank Containers: They are cylindrical containers mainly used for the shipment of liquids, gases, and powders. They may even be employed for carrying hazardous chemicals or substances of potential danger. They must be filled between 80-95% capacity to prevent dangerous surging from fluid or thermal expansion due to insufficient ullage space. Swap Body Containers: These special containers are used mostly in Europe. They do not comply with the ISO standards but does the job just as well. They comprise of a convertible top and a strong bottom making them extremely reliable for shipping a variety of products. Cargo storage Roll Containers: This is a special type of foldable shipping container that serves the purpose of transporting sets or stacks of materials. They are composed of thick and strong wire mesh along with rollers that enable their easy movement. The wire meshes with a little pop of color add life to these inanimate boxes. Car Carriers: These container units have been custom made for the movement of cars over long distances. They are designed in such a manner that their sides are collapsible making loading and unloading of cars much easier and comfortable without damaging or dislocating the cars. Intermediate Bulk Shift Containers: These types of container storage units solely serve the purpose of intermediate transportation of goods to a location where they can be further packed and shipped to the final destination. Drums: These are smaller storage units circular in size, most suitable for transportation of liquid products in bulk. Steel, lightweight materials, hard plastic, fiber, etc. are used in the construction of the body of these types of containers. They may occupy more space due to their drum-like shape. Special Purpose Containers: These are nothing like the general containers. These are custom-designed storage units that cater to special requirements. But mostly security tops the chart as they are often utilized in the shipment of high profile weapons and arson. Now that you know about different types of containers, you can easily decide which type of container you need, you can buy shipping containers online or you can also place your containers for sale at BOXXPORT.com.
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Think of an item in your house, chances are they were not manufactured in your home country. For instance, you own an item that was manufactured in California but was available in Hamburg. So, how come you have the access to products that you depend on but were assembled and built in some other nation? The key is simple- International shipping.
International shipping is defined as the trade of goods and freight across the international borders to the neighboring nations via air, sea, or land. So, now you know the item you possess was transported by shipping containers in California to Hamburg and was made available. Over the past few centuries, international trade was much more complicated and difficult. Merchandise was transported on foot and over horseback. But ever since the advancement of technology, with the rapid growth of e-commerce, transportation of freight has increased manifolds as the demand for international transportation by various smaller businesses’ has boomed. Before getting into the details of the process of internation2al shipping, let’s brush through the basic knowledge about the various players involved in the process: 1. Importer: The buyer is the importer. The need for a particular product at a particular location is identified by an importer. He then searches for the best goods and service provider globally and places an order. Importers are basically of three types: a. Actual user: One who employs the goods for his use. They can be of two types:
b. Established importer: Based on the history of import transactions, he has availed a quota of products regularly. c. Registered exporter: One who avails to import under the government's export promotion schemes. 2. Exporter: He is the seller who is responsible for manufacturing/ procuring the products required by the buyer. The exporters are mainly classified under the following heads: Merchant Exporter: He exports the products in his name after procurement from the market. Manufacturer Exporter: He exports the finished products after manufacturing the goods from the procured raw materials. Service Exporter: He exports services like software, consultancy, etc. Third-party exporter: He exports freight on behalf of the manufacturer exporter. Project Exporter: He benefits by earning foreign exchange after providing goods and services on completing consignments. Deemed Exporter: He exports goods meant for specific projects like power projects, nuclear projects, etc. Such transactions even though don't exit the country still qualify as an export. 3. Bank: They play a crucial role in international trade. They can be financiers (provide loans, trade finance products like Letter of Credit & Documentary Collections), negotiators of trade, and act as custodians of goods and documents. 4. Insurance Company: They help to cover the risks involved in the container shipping business such as lost or damaged cargo, delays, and additional costs due to various external risk factors. 5. Freight Forwarders: They are like the ticketing agents for cargo shipments. A freight forwarder coordinates on the behalf of exporter & importer with all other players in the shipping industry to negotiate for freight rates, mode of transport, documentation of transport, and much more. 6. Shipping Company: They own the carrier ships that carry out transportation from the loading port to the port of destination. 7. Customs House Agent (CHA): He assists in obtaining the import and export customs clearance for the cargo from the authorities. 8. Custom Authorities: They provide clearance to the cargo to leave the country of export and enter the country of import. 9. Port Authorities: They provide clearance for goods to be loaded on the ship and unloaded from it in the exporting and importing countries respectively. 10. Intermodal Transport Providers: Rail and road transport providers are responsible for transporting goods from the warehouse/factory to the port of loading and from the port of destination to the final destination. Shipping of freight across international borders is a complicated & confusing procedure. To ensure hassle-free shipping, the procedure of International Shipping must be well apprehended. Amidst the wide array of stumbling blocks in the pathway of the shipping procedure, working with a qualified freight forwarder is the best way to ensure the shipping process as smooth as possible. Weighing down the crucial seven steps involved in the process of shipping procedure: 1. Importer Requests quotes and order goods: When an importer/consignee orders goods from the supplier/consignor, the suppliers provide for the issuance of a quote either accompanied by or in the form of a proforma invoice. It provides an estimate and differs from a commercial invoice. After approval of the quote, the consignee creates a purchase order consisting of an outline of the purchase mentioning details of the order, value of freight, shipping date, origin & destination addresses, freight dimensions, etc. According to the latest updated incoterms, the determination of who is responsible for what in the shipping of goods from origin to destination is a critical step. Failure to allocate the most suitable set of incoterms could result in greater losses than anticipated by the buyer. After the purchase order has been placed and incoterms have been finalized, the importer then arranges a freight forwarder. Then the next step is to obtain a Letter of credit to pay the supplier. It is one of the most secure payment methods in international trade as legally bound financial institutions are involved which ensure the terms and conditions prior to the commencement of manufacture of goods. Following this, the supplier provides the importer with a commercial invoice with an order confirmation and details which is required for customs clearance and is proof of sale. 2. Arrangement of export by a freight forwarder: Export customs clearance can be performed by a freight forwarder with a valid license or an agent appointed by him. On the other hand, it can also be performed by a customs house broker directly appointed by a shipper. A freight forwarder then arranges the collection of goods by the overseas buyer. This step involves the preparation of various key documents required in the process of international shipping.
2. Documents to be prepared by the buyer Every nation has different requirements for export customs clearance. But in general, the following documents are required by the buyers:
3. Booking of Freight: Once the documentation process is completed, it is a must for the exporter to book the export shipment early to avoid any last-minute hassle especially if it's the peak shipping season. 4. Goods to travel to international container depot/ port: Once the goods are packed, they are transported to a container depot or port for export. Depending upon the incoterms that were being agreed upon, this transportation is being arranged either by the consignee or consignor through the freight forwarder. When a carrier is delegated to pick up a shipment, a bill of lading is issued. This is the most important document for the exporters in the freight business. It is a legal document signed by the importer, shipping line, and exporter. In a single shipment, multiple bills of lading might be involved. 5. Goods processed through export customs clearance and placed in transit: Before the goods leave the port of country of origin, the goods are reviewed and checked by the related government authorities. All the documents are rechecked for export customs clearance. After the export declaration form is completed and export is cleared, the merchandise is allowed to be placed for international transit. A supplier can choose any mode of transport from the wide array of freight container options available including , Reefer, Out of Gauge, Flat Racks, etc. 6. Goods arrive in buyer’s country for import clearance: Once the goods reach the port of destination, the goods have to go through a customs import clearance and the buyer has to produce certain documents such as Import Licence, insurance Certificate, Purchase Order and Letter of Credit, Technical Write-up(in case of machinery), Test Report, Industrial Licence, Registration cum Membership certificate, Duty exemption documents, GATT/DGFT declarations, etc. The imported commodities may be subject to certain taxes, tariffs, and/or charges. They may also have to undergo quarantine inspection on arrival. 7. Goods are transported from port to the buyer: After the products are cleared by the customs, they receive the green signal to be transported to the agreed delivery point. As per incoterms, the responsible party will arrange the transport according to the discussion carried out beforehand between the receiver and the freight forwarder. The shipping process can be a daunting and confusing task to do. It can intimidate and trouble the rookie exporters and importers in the freight industry, given the numbers of steps, players, and documents involved in the process. But once you are familiar with all this, voila, you're good to go! Demurrage and detention are the charges that can escalate above the original value of your cargo and lead anyone into shock. Shipping itself involves plenty of charges- right from packing of goods till it reaches the receiver’s point. Adding unwanted charges such as demurrage and detention comes to be not less than a nightmare. Call it unplanned, undesirable, or anything, but it's something that ruins the entire budget planning and can lead anyone to pay a huge sum at a time. When it is such a horrible, why not do something that could block its way. To help you to get rid of them, we have made a list of things that can be very beneficial in restricting these charges coming your way. But before we head on, let us know what actually demurrage and detention charges are. Demurrage Demurrage refers to the charge that the merchant pays for the use of the container within the terminal beyond the free time period. It relates to cargo means when the cargo hasn’t been unloaded yet from the containers. In a direct way, it can be said that the charge is levied when you use the port or terminal space for more than the given time frame. For example- you ordered goods from California to the port of Shanghai. And you couldn’t reach the port and collect your goods on time. For longer time in customs clearance as expected, the port of Shanghai will levy a charge known as demurrage. The rate is multiplied by the number of days or part of the day above the agreed laytime. Detention Detention refers to the charge that you pay for the use of the container outside of the terminal or depot, beyond the permitted time frame. It relates to equipment in which both scenarios can be possible-container can be either empty or loaded with cargoes. It usually happens in export when the empty containers after shipment have not been returned to the carrier. Usually, the carrier allows for some free time, within which the container should be returned to the carrier. With delaying days, the carrier starts adding a per day charge known as detention. For example- You hired a few shipping containers from a carrier company to ship your cargoes from Duisburg to the port of Miami. He gave you a free time of 15 days. But unfortunately, due to some contingencies, you returned the container after 20 days. In that case, the carrier company will levy a penalty for keeping the container for extra 5 days. The charge is called detention. How to avoid demurrage and detention? Acquire SOC: The best way to escape yourself permanently from detention charge is by acquiring SOC Containers. SOC are Shippers Owned Containers solely owned by shippers (one who wants to ship goods). Unlike COC Containers, owning SOC Containers offer benefits because you have no liability towards the third party (carrier companies). Containers being your own property can be used for any number of days. When you use your own boxes, you have control over its supply, ownership, shipment, and everything. Even during the high season when the carrier company sometimes goes out of stock, you can still be safe. There is an immense number of advantages to owning SOC Containers. But owning SOC Containers is economical when you have constant needs for import and export. For shipment that emerges once in a while, buying SOC will make no sense. In that scenario, you should implement other things like- Manage your Shipment Wisely: To avoid demurrage and detention, you should have a better management plan for your shipment. Plan and manage everything beforehand. Contact supplier, transporter, carrier company, etc, and fixed schedule with them. Try making every booking in advance to avoid a last-minute hurry. It also gives more flexibility and a bigger time frame to keep extra time for customs clearance. Time is often unpredictable. Make Bookings in Advance: Try to dispatch cargoes as far in advance as possible. Start with pro-active planning. Making a pre-booking for repositioning, transportation, and shipment helps avoid a lot of last-minute contingencies. It enables operators to schedule pick up and/or delivery. Make sure you are prepared for everything in advance, including customs clearance, proper documentation, paying taxes, duties, and generally staying two steps ahead of the actual arrival of the cargo. Also make sure that the suppliers, shippers, and trucking companies are ready to take action when the cargo arrives. Keep a Smooth Flow of Communication: Sometimes, bad communication can mislead your planning and ruin up everything. Proactive communication with each of the stakeholder involvement in your shipment is very crucial. It eliminates chances of disasters. Talk to your stakeholders and make sure both of you agree to the same terms and conditions and have the same understanding of the date, time, quantity, port, etc. Always have a plan B Maybe you have planned everything very efficiently, but contingencies can hit any time. But it should not hinder your shipment. For example- if you’re dealing with a particularly congested port, having an alternate option for a trucker could be a lifesaver when time schedules become tight. For that, you need to keep a plan B ever ready. Keep alternative transporter, supplier, carrier informed. Look for their availabilities during your date. Having a plan B can save you from a lot of mess that often shows up at the last time. Request to Extend Free Time: This is another way through which you can avoid demurrage and detention charges. Try to negotiate terms instead of accepting a freight quote as it is. Though this trick mostly works when you have a good relationship with the suppliers or carrier. Usually, every carrier company works on their own policies by which they allow you some free time for returning the container. In that case, he can negotiate in your free time and can allow you for a few more days. It also works mostly in the case of larger shippers, since they are based on the volume of containers you have with you. You can’t eradicate demurrage and detention, but the above points will at least help you to avoid them to a large extent. We would never want you to pay a hefty amount as a penalty. Being a container trading platform provider, we intent to help you with the right information, right product, and right services. Let us know how did you find this article and how you are going to implement them while planning for your next shipment. |
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