West Coast ports, like Oakland, Los Angeles and Long Beach, are facing vessel’s backlog resulting in berthing delays that can last weeks. Such delays also affect the rails like Salt Lake City and El Paso, due to container’s volume increase transportation capacity is reaching its limit and affecting the schedules.
 
East Coast ports, like New York, Charleston and Savannah, are facing very similar issues due the high volume of cargo and lack of proper infrastructure to handle the demand increase.
 
Terminal Rails like Chicago, Kansas City, Nashville, Atlanta, Charlotte, Detroit are equally critical, experiencing long delays and having cargoes rolled between sea and rail service which is aggravating the national logistic crisis.
 
East Coast ports affected by tropical storm Debby:

Image Credits

Information about Manaus valid for exports out of USA.
 
As of September 1st, Cosco will suspend the service to Manaus until further notice due the low water level of the river.
Furthermore, the other carriers operating this port are applying LOW WATER SURCHARGE that currently ranges from USD 4,000 up to USD 5,700.

 CLICK HERE FOR MORE INFORMATION ON THE RIVER WATER LEVELS

We emphasize that our operational department is monitoring the situation on daily basis and keeping all customers updated as soon as we receive any new information from carrier or terminals.

Considering the powerhouse that is China and its economy, it is no surprise that the new virus has shaken the global supply chain. As the third largest trading partner to the United States, China and its industries play an important role for many logistics companies and freight forwarders.

Shipping and production in China have become halted as results of efforts to combat this fatal virus. With companies shutting down operations in China, airlines suspending flights, and busy container ports on lockdown, the chances of these disruptions reaching your company are highly likely. The best thing to do now is to be prepared and stay informed – below are important updates you need to know:

Effects on Ocean Freight

Port shutdowns have caused huge issues within the shipping industry, as many ships cannot gain access to major Chinese ports. Considering China is home to a number of the world’s largest shipping ports, this will likely cause delays and reroutes. It is important to keep in mind that a significant amount of shipping companies have taken a stance in response to the viral outbreak. Maersk, Hapag-Lloyd, MSC, and CMA have released statements regarding their plans to reduce the number of vessels with routes connecting China and the United States. Ocean freight is likely going to take the biggest hit, as most goods are shipped by sea and, since the inception of the COVID-19, demands have considerably dropped. Countries like Australia and Singapore have taken more authoritative measures by refusing to allow any ships that have been in Chinese ports until the entire crew has been adequately screened and deemed virus-free.

Effects on Air Freight

The Coronavirus has not only affected sea freight – air freight has been dealing with substantial disruptions as well. A number of airlines, including American Airlines, United, and British Airways, have suspended their services to and from mainland China, while many other airlines have reduced services by 50%. Taking this information into consideration, logistics companies should expect unpredictable rates, reduced capacity on passenger flights, and added delays. Here are a few other key points to keep in mind when using air freight:

• DHL has currently halted all services in the Chinese Hubei province
• UPS has made flights to China a voluntary option for their pilots
• FedEx Express is continuing services in China, but may be experiencing delays

The Coronavirus and its effects on the shipping and logistics industries are not to be taken lightly; the disruptions have already been significant. However, with the right communication and preparation, you can develop solutions to keep your business and supply chain running smoothly. Global Cargo is here to help – our team has been closely monitoring each update and we are available to answer your questions and concerns. Contact us today – Go Global, your cargo in good hands!

What is a Known Shipper?

Following the events of 9/11, the United States Department of Homeland Security established new rules and regulations to maintain the safety of both domestic and international transportation. These restrictions were also placed on cargo transported on passenger aircrafts, and thus the TSA Known Shipper list was created. The Known Shipper list encompasses all the companies that have been properly screened by the TSA and authorized to ship on passenger aircrafts.

Registering to become a TSA Known Shipper

Since there is no established application to become a Known Shipper, the process may be a little complex. The first step would be contacting an Indirect Air Carrier, like Global Cargo. Indirect Air Carriers then review your company, verifying if you have a history of shipping via air, no legal transportation violations, and no other conditions that may cause issues with the TSA. Once all paperwork is verified and submitted, it may take 24 hours to a few weeks to be fully approved as a Known Shipper. Remember to always keep track of all required documentation, as TSA may need to verify and validate your company.

What are the Benefits?

You have contacted an Indirect Air Carrier, submitted all required paperwork, and have been validated as a Known Shipper by the TSA. What are the advantages of having gone through the whole process?

More Options

The first and most obvious benefit is the added option of transporting cargo on passenger aircrafts. Known Shippers have the choice of transporting freight on cargo aircrafts or passenger aircrafts. Considering that there is a substantially greater amount of passenger airlines in the market compared to cargo airlines, Known Shippers gain the advantages of better routes and faster transit times, all while diminishing the chances of encountering fully booked aircrafts.

Faster Delivery

Passenger aircrafts make up most of the airlines available globally. More passenger aircrafts means more frequent departures, more destinations, and faster delivery. While air freight is usually the quickest option for shipping, those that are Unknown Shippers require extensive planning due to the high demand for spots on cargo airplanes. Since passenger aircrafts tend to have more available spots, last minute bookings become a possibility when you are a Known Shipper.

Reduced Rates and Costs

Price is often influential when shipping freight. Lower rates is a factor everyone seeks, all while maintaining quality service and quick transit times. However, cargo airlines regularly experience rate fluctuations, leaving Unknown Shippers with wavering prices. This is not the case with TSA Known Shippers. Unlike cargo aircrafts, which are entirely funded by shippers and their freight, passenger aircrafts receive money from both passengers and shippers. As a result, the cost of shipping freight on passenger airplanes is usually significantly lower than shipping on cargo airplanes.

Have any questions about becoming a TSA Known Shipper? Contact Global Cargo today, our team will be happy to assist you. Go Global – your cargo in good hands!

Prior to the beginning of the freight shipping process, a legal document protecting the interests of both the shipper and the carrier must be completed. This document is known as the Bill of Lading (BOL). Serving as one of the most important documents in the shipping industry, the BOL contains the essential freight details that are needed in order to ship and invoice the cargo accurately.

The BOL is typically issued by the carrier to the shipper, and is provided to the carrier at pick-up or arrival. This step of the freight shipping process is crucial, as it serves as proof that the carrier has received the cargo from the shipper in good conditions.

Purposes of a Bill of Lading

The BOL outlines the details of the goods that are being shipped. Due to this, the successful completion of a logistics operation heavily relies on this important legal document. As one of the most important documents in the shipping industry, it serves three main purposes:

1. Receipt of the goods

Once issued and signed, this document serves as proof that the carrier has received the cargo from the shipper in satisfactory conditions.

2. Evidence of Contract of Carriage

The BOL represents the contractual agreement between the carrier and the shipper that details where the goods were collected, what is being shipped, and where it will be delivered.

3. Document of Title to the goods

Serving as a document of title means that whoever is the holder of the BOL has the rights to claim the goods being shipped.

Types of Bills of Lading

Straight Bill of Lading

The most commonly used Bill of Lading. The Straight BOL is non-negotiable and is used when the buyer still owes payment to the shipper.

Order Bill of Lading

Opposite to the Straight BOL, the Order BOL is negotiable and is most commonly used when the cargo is covered under a line of credit.

Master Bill of Lading

A Master BOL is used when summarizing multiple BOLs under one document.

House Bill of Lading

Created by a freight forwarder or an NVOCC, an HBL is used for ocean shipments.

House Airway Bill (AWB)

Created by a freight forwarder or an NVOCC, an AWB is used for air shipments

For additional information and inquiries, contact Global Cargo today and our team will be happy to assist you. Go Global, your cargo in good hands!

In order to accommodate the various products that are shipped on a daily basis, there are a number of containers that differ in height, material, and structure in order to ensure the safe transport of your goods. Below are the 9 most common types of shipping containers:

Dry Container

This type of container is arguably the most in demand and most commonly used in the industry. Also known as general purpose containers, they are used for shipping goods that do not require any temperature control. Fully enclosed and weather resistant, this type of container comes in sizes of 10, 20, and 40 feet.

Flat Rack Container

Flat rack containers are characterized by their collapsible sides that can be folded down to create a flat surface. The stable nature of this container makes it ideal for oversized cargo, heavy machinery, and large construction materials.

Open Top Container

Open top containers have a removable roof, allowing them to be the perfect choice for accommodating shipments that are over-height and cannot easily be loaded through the doors.

Tunnel Container

Otherwise known as double door containers, this type of shipping container is identified by the doors on both ends. Tunnel containers are great for quickly loading and unloading, and are ideal for shipments that require wider space.

Open Side Container

Almost identical to dry containers, open side containers differ in that their doors can completely open on the side. Due to their structure, open side containers can properly accommodate over-sized cargo that do not fit through the regular doors.

Reefer Container

When shipping temperature sensitive cargo, a reefer container would be your choice for storage. This type of container uses external power to keep the temperature inside regulated based on the needs of the product.

Insulated Container

Much like reefer containers, insulated containers allow for temperature regulation control in order to maintain the integrity of sensitive shipments. Equipped with a compressor that can cool or heat the air inside, an insulated container is the ideal choice when transporting temperature controlled goods over long distances.

Tank Container

Tank containers are used to transport and store liquids. This type of container is constructed from steel or anti-corrosive materials in order to protect the liquid inside and prevent the risk of spillage.

Half-Height Container

Made obvious by its name, this type of container is characterized by its height, which is half the size of a general purpose container. Due to its design, half-height containers have a lower center of gravity, making them great for transporting bulk cargo.

Have more questions? Contact Global Cargo today, we are happy to assist you in making the right choices for your shipments!

What are dangerous goods?

Dangerous goods is an umbrella term that characterizes a number of different types of products, but to put it in simpler terms, dangerous goods can be anything that could potentially cause harm to those handling during transit if not done with caution. These materials can be solids, liquids, or gasses, and their hazardous effects can cause minimal to fatal damage. Since there are so many different types of products that are characterized as hazardous, shippers and carriers will commonly classify them according to their nature, such as flammable, poisonous, explosive, etc.

Understand what you are shipping

Dangerous goods encompass a variety of different materials, so understanding exactly what you are shipping is a crucial step in this process. Take nail polish and lithium batteries as an example, these two products are completely different from one another, yet are both considered hazardous goods. Nail polish requires very different handling, packaging, and labeling compared to lithium batteries. This example illustrates the importance of identifying and understand what you are shipping – different types or dangerous goods require different types of procedures.

Always follow rules and regulations

Due to the high risk of this process, there are industry standard rules and regulations in place that must be followed to ensure the safety of all parties involved. Always keep in mind that each mode of transport has its own set of regulations and that these regulations can vary from country to country.

When dealing with ocean freight, dangerous goods will be regulated by the IMDG Code, which is used by shippers and carriers internationally. The use of the IMDG Code is mandatory, as it protects the ship’s crew and established a code of conduct for safe transport. The application of the IMDG Code comes with guidelines for the proper care of that particular dangerous goods shipment, such as packaging, labeling, handling, etc.

When shipping hazardous goods via air freight, you will encounter a completely separate set of rules and regulations. The international standard rules for transporting hazardous goods on aircrafts is set up by the International Air Transport Association (IATA). The IATA has a specific set of regulations for dangerous goods which are known as the DGR and are recognized by airlines worldwide. IATA’s DGR are the authoritative rules for shipping hazardous goods on aircrafts and were made to provide shippers and carriers the proper instructions on how to document these shipments.

Packaging is key

Proper packaging is essential to any type of shipment in order to avoid damage, but when dealing with hazardous goods, an added amount of attention is required. Packaging your product effectively is the foundation for safety, it will ensure that no damage will be made to the product and those handling the shipment can do so without risk of harm. If the packaging is done poorly or it is not up to standards, there will be delays in your shipment.

Always make sure that the packaging contains the correct labels. These labels must always be visible, must contain the code, and must indicate the level of risk. Along with labeling, documentation is another critical component to present alongside the packaging. The proper documentation allows you to describe exactly what is contained inside the packaging, how to handle the shipment, and other important details pertaining to the product.

Here at Global Cargo, our employees are trained specialists that are here to help you with your dangerous goods shipments. Get in touch with us today!

Published by the ICC (International Chamber of Commerce), Incoterms 2020 serve as industry standards for determining the duties of buyers and sellers of goods in international trade.

When comparing to the last revision made in 2010, it is important to note that no rules have been removed and no new rules have been added – there still are a total of eleven terms.

So, what are the changes that have been made?

DAT renamed to DPU

The most noticeable change in the Incoterms 2020 revision is the renaming of DAT (Delivery at Terminal) to DPU (Delivery at Place Unloaded). This change in acronym expresses the fact that goods can be delivered at any place, and not exclusively at transport “terminals”. Although this Incoterm has been renamed, the responsibilities of buyers and sellers remain exactly the same when applying DPU.

FCA and Bills of Lading

Another important change in Incoterms 2020 pertains to the term FCA (Free Carrier). When applying FCA, the seller is liable for making the goods available at its own property (ex.: warehouse) or at another predetermined location. Furthermore, when the FCA Incoterm is used, the seller is always responsible for loading the goods onto the buyer’s transport.

However, complications with the application of FCA arose when the seller was responsible for only loading goods onto the transport hired by the buyer, and not onto the international carrier. This brings up further issues regarding payment – international carriers typically will not provide sellers with bills of lading if the goods are not directly provided, and banks won’t pay sellers who do not provide a bill of landing with an on-board notation.

In the revised Incoterms 2020, FCA will now allow the buyer to instruct the carrier to issue an on-board bill of landing to the seller once loading is complete.

Freight Insurance Revisions in CIP and CIF

CIP (Carriage and Insurance Paid To) and CIF (Cost Insurance and Freight) are the only Incoterms that assign the seller the responsibility of purchasing insurance. In the previous 2010 revision, sellers were accountable for buying the minimum level of freight coverage. Incoterms 2020 has changed this rule – the seller must now purchase a higher level of insurance when CIP is applied. This insurance revision in Incoterms 2020 comes from a need for flexibility depending on the type of goods and the mode in which these goods are transported.

Incoterms 2020 will be effective starting January 1^st, 2020. 

Wooden pallets, skids, and crates are three terms that are often confused and used interchangeably in the industry. While all three can be used for shipping and storing materials, choosing the right one for your needs can be more cost effective for you in the long run.

So, what exactly is the difference between a wooden pallet, a skid, and a crate? All three can be made of wood or more durable materials such as plastic, and all three are used in logistics for shipping, warehousing, and storage. However, each one has its strengths, its weaknesses, and its own ideal use.

Pallets

The wooden pallet is likely the most popular and most in demand method of shipping and storing freight. By having a top and bottom deck, the wooden pallet tends to be more stable, very convenient for racking, harder to drag, and easily hauled by a forklift. Wooden pallets are 48”x40” and can carry up to 1000 kilograms.

Skids

Skids and wooden pallets may seem almost identical at first glance, but there is one crucial feature that separates the two: skids have only one deck, meaning it has a completely flat surface. When placing something on a skid, the weight is rested on vertical legs, rather than a bottom deck, allowing skids to be common foundations for heavy machinery. Because skids offer less surface areas on the bottom compared to a pallet, they are easily dragged, making it more manageable to transport heavier materials. As the oldest type of pallet on the market, skids tend to be more low cost, yet very effective.

Crates

Crates are definitely the most distinguishable shipping and storing method from the three, as it is a wooden box. While skids and pallets have flat surfaces, crates have a floor and four walls. Due to a crate’s characteristics, they are great for holding large volumes that need to be stored securely. Although crates can be extremely secure and stable, they also are bulky and harder to transport.

Have any question regarding which is right for your shipping needs? Contact Global Cargo today, we are happy to assist you in making the right choices for your shipments!

The sending of information on the US Customs and Border Protection website occurs through the SED, otherwise known as shipper export declaration. This process is mandatory and is based on the international classification of merchandise (HS Code/Schedule B number), specifically for items with a commercial value of $2,500.00 or higher.

The US Principal Party of Interest is responsible for elaborating the SED (shipper export declaration), thus the vendor, exporter, or merchandise producer can be classified as responsible. However, this responsibility can be transferred to the freight forwarder, who would therefore be held accountable for preparing the SED.

When there is a consolidated shipment, the invoices are individually analyzed to identify if the preparation of an SED is required. An SED should be developed for each export that presents an invoice of $2,500.00 or greater.