Stay informed on the latest trends and insights in the freight market with Beeontrade's comprehensive weekly update for October 11, 2023. Subscribe to our newsletter for exclusive tips on freight forwarding.

Beeontrade Freight Market Update - Oct 11, 2023

October 11, 2023.png

Greetings!Our objective is to make your shipping experience easier by offering you the latest and most informative details and insights regarding the freight market. We aim to provide accurate and relevant content that brings benefits to your business.We highly value your feedback as we continuously strive to improve the quality of our weekly market updates. We value your thoughts on our current content and encourage you to suggest specific topics that you would like us to cover in more depth.Moreover, we are open to adjusting the style of our updates to better align with your preferences. If there are any ports or regions that we haven't addressed yet but you're interested in, please let us know.We wish to create the most informative newsletter possible. We appreciate your continued readership and subscription, and we thank you for taking the time to provide us with your valuable feedback, which will help us enhance our future performance.

From the Editor’s Desk

<ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The most recent Global Liner Performance report from Sea Intelligence reveals a 0.9% month-on-month decline in global schedule reliability, which now stands at 63.2%.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The China market has become busier following the Golden Week holiday.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Many small shippers in the US experienced issues with misapplied Demurrage and Detention (D&amp;D) charges during the Covid-19 pandemic.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">European carbon tax surcharges are set to take effect on January 1, 2024, but the exact surcharge amounts for shippers remain undetermined.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The International Air Transport Association (IATA) has reported that global air cargo demand increased year-on-year in August 2023, marking the first growth in 19 months.</li></ul>Read on for more in-depth updates.

Key takeaways for the US

Ocean Freight Market Updates

Freight market update - 11 October 2023

Stay updated on the latest trends in the freight market with Beeontrade's comprehensive weekly update for October 4, 2023. Subscribe for exclusive tips on freight forwarding.

Beeontrade Freight Market Update - Oct 4, 2023

October 4, 2023.png

<ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The Ukraine invasion has caused a trade imbalance between China and Russia, resulting in about 150,000 TEU of empty containers stranded in Russia.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Second-hand container prices in Russia have dropped significantly.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Qatar Airways Cargo plans to use additional bellyhold capacity for two new destinations in China.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The US International Longshoremen and Warehouse Union (ILWU) has filed for Chapter 11 bankruptcy while stating that its operations will continue as usual.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Overall BAI air freight rate index increased by 4.8% compared to the previous week, indicating a positive trend.</li></ul>Read on for more in-depth updates.

Freight market update - 04 October 2023

Stay updated on the dynamic freight market with Beeontrade's comprehensive update for September 27, 2023. Subscribe now for exclusive tips and insights.

September 27, 2023.png

<ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Maersk and CMA CGM have joined forces to advance sustainable shipping practices.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Container spot rates from China and Asia to North Europe have plummeted by half their value within a span of three weeks.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Recent data reveals a positive shift in the global air cargo market during the second full week of September, with a 4% increase in global air cargo.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Members of THE Alliance have suspended their PN3 Asia to North America loop due to unfavorable market conditions.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Carriers have defied Panama Canal transit restrictions and boosted capacity on the Far East to US East Coast route by a remarkable 20% since the conclusion of August.</li></ul>Read on for more in-depth updates.

Freight market update - 27 September 2023

Stay informed with Beeontrade's Freight Market Update on September 20, 2023. Subscribe for exclusive tips on freight forwarding in this 8-minute read.

September 20, 2023.png

<div class="raw-html-embed"><h2>From the Editor’s Desk</h2>

Greetings!

Our objective is to make your shipping experience easier by offering you the latest and most informative details and insights regarding the freight market. We aim to provide accurate and relevant content that brings benefits to your business.

We highly value your feedback as we continuously strive to improve the quality of our weekly market updates. We value your thoughts on our current content and encourage you to suggest specific topics that you would like us to cover in more depth.

Moreover, we are open to adjusting the style of our updates to better align with your preferences. If there are any ports or regions that we haven't addressed yet but you're interested in, please let us know.

We wish to create the most informative newsletter possible. We appreciate your continued readership and subscription, and we thank you for taking the time to provide us with your valuable feedback, which will help us enhance our future performance.

<h2> 
Key takeaways for the US</h2>

<ul>
	<li>U.S. ports imported 2,196,268 twenty-foot equivalent units (TEU) in August.</li>
	<li>The Port of Los Angeles experienced its first monthly year-over-year increase in 13 months in August.</li>
	<li>Carriers have increased the number of blank sailings in preparation for the approaching Golden Week holiday.</li>
	<li>The Vietnamese government has given the green light to a $1.7 billion plan for the development of inland container depots (ICD).</li>
	<li>During the first half of 2023, major container ports in both Europe and the United States faced substantial declines in throughput, with decreases ranging from 5% to 25%.</li>
</ul>

Read on for more in-depth updates. 
&nbsp;

<h2>Ocean Freight Market Updates</h2>

<h3>Asia → North America</h3>

<h4>US/CA</h4>

<h3>Transpacific Trends and Market Updates</h3>

<ul>
	<li>Descartes reported that U.S. ports imported 2,196,268 twenty-foot equivalent units (TEU) in August.</li>
	<li>This figure was an increase of 0.4% compared to July and a 5.5% increase compared to June.</li>
	<li>August's import volumes were also 2.5% higher than those recorded in August 2019, before the COVID-19 pandemic.</li>
	<li>Chris Jones, executive vice president of industry and services at Descartes Systems Group, mentioned in the monthly import report that August imports resembled the typical rise seen during peak seasons in non-pandemic years.</li>
	<li>He also observed that U.S. import volumes remained consistent with the results from 2019.</li>
	<li>The Global Port Tracker report, published by the National Retail Federation (NRF) and consultancy Hackett Associates, revealed that August saw a 5% increase in imports compared to July.</li>
	<li>The report predicts that total imports will surpass 2 million TEUs per month for three consecutive months, from August through October.</li>
	<li>Jonathan Gold, NRF vice president for supply chain and customs policy, expressed optimism about these numbers, indicating that retailers are importing goods they believe they can sell for the upcoming holiday season.</li>
	<li>According to Global Port Tracker's projections, the ports it covers are expected to handle 22.3 million TEUs in full-year 2023, representing a 2% increase compared to 2018 and a 3% increase compared to 2019, pre-pandemic levels.</li>
	<li>Carriers have increased the number of blank sailings in preparation for the approaching Golden Week holiday.</li>
	<li>Specifically, 29 blank sailings have been added on the Trans-Pacific route, and an additional 18 on the Asia-Europe route.</li>
	<li>The Golden Week holiday, which occurs in early October, typically sees a slowdown in manufacturing activity, as factories close, leading to reduced demand for container shipping to and from Asia.</li>
</ul>

An analyst's report indicates significant scheduled capacity reductions on various shipping routes:

<ol>
	<li>Asia-North America West Coast: Capacity reductions have risen from 3.7% to 14.1%.</li>
	<li>Asia-North America East Coast: Capacity reductions have increased from 2.2% to 16.1%.</li>
	<li>Asia-North Europe: Capacity reductions have gone up from 6.8% to 19.9%.</li>
	<li>Asia-Mediterranean: Capacity reductions have seen an increase from 7.7% to 21%.</li>
</ol>

<ul>
	<li>The Vietnamese government has given the green light to a $1.7 billion plan for the development of inland container depots (ICD).</li>
	<li>The ICD development plan is set to be completed by 2030 and is expected to significantly enhance Vietnam's logistics infrastructure.</li>
	<li>The overall capacity of the Vietnamese depot system is projected to range from 11.9 million to 17.1 million twenty-foot equivalent units (TEUs) annually.</li>
	<li>Deputy Prime Minister Tran Hong Ha approved this plan with the goals of meeting transportation demands for imports and exports, reducing logistics expenses, shortening cargo storage durations at ports, enhancing port handling capacity, and ensuring cargo safety.</li>
	<li>The plan anticipates that by 2030, ICDs in Vietnam will have the capacity to handle 17.1 million TEUs annually, addressing approximately 25% to 35% of the demand for export and import container shipping.</li>
	<li>Vietnam has experienced substantial growth as a result of the "China-plus-one" strategy, capturing 10% of manufacturing activities due to its favorable business environment and cost-effectiveness.</li>
</ul>

<h3>Conclusions</h3>

Rates -&nbsp;The rates will remain soft on most origin-destination combinations.

Space -&nbsp;Space open, no issues with equipment.

Recommendations -&nbsp;We recommend blank sailings to continue. Book at least two weeks before the date your vessel gets ready to depart. 
&nbsp;

<h3>Turkey → North America</h3>

<ul>
	<li>The Port of Los Angeles experienced its first monthly year-over-year increase in 13 months in August.</li>
	<li>Cargo volumes at the port grew by 3% compared to the same month the previous year.</li>
	<li>Loaded imports saw a notable increase of 7%, while loaded exports surged by 22%.</li>
	<li>Conversely, the number of empty containers declined by 10% during this period.</li>
	<li>Gene Seroka, the executive director of the Port of Los Angeles, described August as a strong month for the port, with growth evident in both import and export activities.</li>
	<li>He also noted that global trade has shown signs of easing throughout the year, a trend expected to continue in the coming months.</li>
	<li>Seroka highlighted the significance of the recent ratification of a six-year contract between the International Longshore and Warehouse Union and the Pacific Maritime Association.</li>
	<li>He emphasized that this contract, in effect through 2028, provides stability and confidence for customers, ensuring the uninterrupted flow of cargo through the nation's busiest port.</li>
</ul>

<h3>Conclusions</h3>

Rates -&nbsp;The rates will remain soft on most origin-destination combinations.

Space for capacity -&nbsp;No capacity issues or issues with space.

Space for equipment -&nbsp;No issues with equipment. 
&nbsp;

<h3>North America → Turkey</h3>

<ul>
	<li>During the first half of 2023, major container ports in both Europe and the United States faced substantial declines in throughput, with decreases ranging from 5% to 25%.</li>
	<li>The impacted ports included Los Angeles/Long Beach, New York/New Jersey, Savannah, Rotterdam, Antwerp-Bruges, and Hamburg.</li>
	<li>These declines were primarily linked to the economic slowdown taking place in Western countries.</li>
	<li>Los Angeles/Long Beach, for instance, experienced a sharp 25% reduction in volume, resulting in a net loss of 2.6 million twenty-foot equivalent units (TEUs) compared to the same period in 2022.</li>
	<li>The recent ratification of a new labor agreement for US West Coast dockworkers is expected to potentially assist Los Angeles/Long Beach in recovering some of its lost business to East Coast ports.</li>
	<li>Meanwhile, US East Coast ports such as New York/New Jersey and Savannah also reported significant declines of 24% and 18%, respectively, during this period.</li>
	<li>According to data from Sea-Intelligence, the inventory trends in the United States show a decrease in wholesalers' inventories, an increase in retailers' inventories, and relatively stable inventories for manufacturers.</li>
	<li>This information is based on data from July 2023 provided by the US Census Bureau.</li>
	<li>Overall, the total level of inventories in the United States has remained relatively consistent since the beginning of 2023, indicating the absence of a significant inventory correction.</li>
	<li>The juxtaposition of rising retailer inventories and declining wholesaler inventories suggests that wholesalers may be effectively managing their inventory, which could potentially lead to a decrease in imports by retailers.</li>
	<li>In contrast, both wholesalers and manufacturers currently maintain inventory levels significantly higher than what pre-pandemic trends would have indicated.</li>
	<li>These observations point to the absence of a substantial inventory correction in the United States, and there may be indications of an impending market contraction, particularly affecting wholesalers and manufacturers.</li>
</ul>

<h3>Conclusions</h3>

Rates -&nbsp;Stable rates over the last week.

Space for capacity -&nbsp;No major capacity or space issue.

Space for equipment -&nbsp;Equipment issues have started owing to low levels of import.

&nbsp;

<h2>Terminal Updates</h2>

<ul>
	<li>Vessels heading to North America via the North Atlantic Sea are expected to have a change in schedule due to severe weather conditions.</li>
</ul>

&nbsp;

<h3>New York:</h3>

<ul>
	<li>No waiting time is expected for a berth at Global Container Terminals Bayonne and APM Terminals.</li>
	<li>No more waiting time at Maher Terminals LLC.</li>
	<li>Average gate turn times: 45 minutes for single transactions, and 70 minutes for double transactions.</li>
</ul>

&nbsp;

<h3>Norfolk:</h3>

<ul>
	<li>Berth for large vessels is congested due to previous multi-day periods of severe weather.</li>
	<li>Vessels are waiting for 2 days for a berth.</li>
	<li>Average gate turn times are 30 / 43 minutes for single and double transactions respectively.</li>
	<li>One crane is out of service.</li>
</ul>

&nbsp;

<h3>Charleston Terminal:</h3>

<ul>
	<li>1 day waiting time for vessel berthing at Wando Welch Terminal.</li>
	<li>0.5 days waiting time expected at North Charleston Terminal.</li>
	<li>Average truck turn times: 21 minutes at Wando Welch Terminal, and 17 minutes at North Charleston Terminal.</li>
</ul>

&nbsp;

<h3>Savannah:</h3>

<ul>
	<li>Waiting time for vessel berth at the terminal is up to 4 days, depending on the size of the vessel.</li>
	<li>Average gate turn times are 36 / 52 minutes for single and double transactions respectively.</li>
</ul>

&nbsp;

<h3>Houston:</h3>

<ul>
	<li>Barbours Cut Terminal has up to 1 day waiting time for vessel berthing.</li>
	<li>Due to vessel bunching the yard is facing congestion impacting the discharge productivity and extending port stays.</li>
	<li>The average gate turn time is 42 minutes.</li>
</ul>

&nbsp;

<h3>Oakland:</h3>

<ul>
	<li>Average wait time of up to 2 days at Oakland Int’l Container Terminal (OICT) and up to 3 days at TraPac.</li>
	<li>Average import deliveries can take up to 5.3 days at TraPac and 4 days at OICT.</li>
	<li>Average gate turn times are 52 / 65 minutes for OICT and TraPac respectively.</li>
</ul>

&nbsp;

<h3>Seattle-Tacoma:</h3>

<ul>
	<li>Wait time of up to 3 days at Tacoma and 3 days at Seattle.</li>
	<li>Import deliveries are 3.4 days at HUSKY – due to EB/WB railcar imbalance, 3-5 days at Washington United Terminal, and 1-3 days at T18.</li>
	<li>Availability of rail cars in Union Pacific Rail and BNSF Rail continues to fluctuate weekly.</li>
	<li>Average gate turn times are 27 / 33 / 42 minutes for T18, Washington United Terminal, and HUSKY respectively.</li>
	<li>T18 will be closed on September 22 and 29, 2023.</li>
	<li>Husky will have Saturday gates on September 16, 2023.</li>
	<li>WUT has received 2 new Post Panamax Cranes.</li>
	<li>WUT has commenced commissioning both, operational by the mid/end of September.</li>
</ul>

&nbsp;

<h3>Los Angeles/Long Beach:</h3>

<ul>
	<li>All terminal gates are running as published and in line with the Pier Pass program.</li>
	<li>Port of Los Angeles dwell time for local import cargo is 3.3 days, on-dock rail dwell is 4.5 days, and import units on the street are averaging at 4.3 /5.5 days for 20 ft and 40+ ft containers respectively.</li>
	<li>Port of Long Beach dwell times for local imports are stable, and the average terminal gate turn time is between 23-70 minutes, depending on the terminal.</li>
</ul>

&nbsp;

Chassis Pools: All pools are operating as normal except:

<ol>
	<li>
	Minneapolis / St. Paul – Constrained on 20’, Deficit on 40’ and 45’ chassis.
	</li>
	<li>
	Chicago – Constrained on 20’ and 40’ chassis.
	</li>
	<li>
	El Paso – Deficit on 40’ Chassis.
	</li>
</ol>

&nbsp;

Intermodal Operations:&nbsp;Truck power can be secured within 1-3 days for the majority of locations, including marine terminals, rail ramps, and depots.

<h3>Port Status</h3>

<table>
	<tbody>
		<tr>
			<td>
			Range
			</td>
			<td>
			Port
			</td>
			<td>
			Vessels at Anchor
			</td>
			<td>
			Vs Last Week
			</td>
			<td>
			Waiting Time
			</td>
			<td>
			Vs Last Week
			</td>
		</tr>
		<tr>
			<td>
			PNW
			</td>
			<td>
			<h4>Vancouver</h4>
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
		</tr>
		<tr>
			<td>
			PNW
			</td>
			<td>
			<h4>Seattle</h4>
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
		</tr>
		<tr>
			<td>
			PSW
			</td>
			<td>
			<h4>Oakland</h4>
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
			<td>
			1
			</td>
			<td>
			-
			</td>
		</tr>
		<tr>
			<td>
			PSW
			</td>
			<td>
			<h4>LA/LB</h4>
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
		</tr>
		<tr>
			<td>
			USEC
			</td>
			<td>
			<h4>New York</h4>
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
		</tr>
		<tr>
			<td>
			USEC
			</td>
			<td>
			<h4>Norfolk</h4>
			</td>
			<td>
			3
			</td>
			<td>
			-
			</td>
			<td>
			1
			</td>
			<td>
			-
			</td>
		</tr>
		<tr>
			<td>
			USEC
			</td>
			<td>
			<h4>Charleston</h4>
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
		</tr>
		<tr>
			<td>
			USEC
			</td>
			<td>
			<h4>Savannah</h4>
			</td>
			<td>
			14
			</td>
			<td>
			-
			</td>
			<td>
			3
			</td>
			<td>
			-1
			</td>
		</tr>
		<tr>
			<td>
			USGC
			</td>
			<td>
			<h4>Miami</h4>
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
			<td>
			0
			</td>
			<td>
			-
			</td>
		</tr>
		<tr>
			<td>
			USGC
			</td>
			<td>
			<h4>Houston</h4>
			</td>
			<td>
			2
			</td>
			<td>
			-6
			</td>
			<td>
			4
			</td>
			<td>
			-1
			</td>
		</tr>
	</tbody>
</table>

<h2>Final Thoughts</h2>

In light of the latest updates and trends, it is evident that the market is currently in the course of demonstrating robust performance and is equipped with ample capacity and resources.

Individuals and businesses involved in import/export activities must stay well-informed about market dynamics and strategies to make informed decisions. To ensure a smooth and hassle-free experience with your import/export operations, it is recommended to seek guidance from industry experts.

Conduct thorough research on ports that offer available space and suitable equipment despite the ongoing conditions. By doing so, you can minimize complications, facilitate shipments, and maximize efficiency.

Taking proactive measures and staying proactive in your approach will help you navigate the market effectively. We greatly appreciate your continued readership and encourage you to subscribe to our weekly market updates to stay abreast of the latest developments and insights.</div>

Freight market update - 20 September 2023

Stay updated on the latest in the freight market with Beeontrade's comprehensive market update on September 13, 2023. Subscribe for exclusive tips and insights in this 8-minute read.

September 13, 2023.png

<ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Recent months have seen a narrowing of volume declines in the airfreight industry.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Chinese ports are experiencing robust container activity despite a decline in exports to the U.S.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Rates to major U.S. East Coast ports have seen substantial increases.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Container port volumes in China reached 176.2 million TEU between January and July 2023, representing a 4.5% year-on-year growth.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">U.S. President Joe Biden is planning a shift in shipping routes from India to Europe.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">U.S. West Coast ports saw an increase in their market share in August compared to the previous month.</li></ul>Read on for more in-depth updates.

Freight market update - 13 September 2023

Explore the intricacies of freight forwarding with Beeontrade's comprehensive guide. Learn the essentials of international shipping in this 8-minute read, covering key stages, common misconceptions, and valuable tips.

12 Things You Need to Know About Freight Forwarding

Freight forwarding is a crucial aspect of international trade, and it can be quite complicated. The process involves the transportation of goods from one country to another, and it requires a lot of coordination and expertise. In this blog, we will explore 12 things you need to know about freight forwarding basics to make the shipping process as smooth as possible.

Freight forwarding basics

A freight forwarder is a company that specializes in arranging the transportation of goods from one location to another. They act as intermediaries between shippers and carriers, handling all aspects of the logistics process.

They help their clients manage the entire shipping process seamlessly. This includes the entire process from the moment the cargo leaves the warehouse until it reaches its final destination.


What is a freight forwarder?

Freight forwarding involves several stages, and it is essential to understand each one to ensure that your cargo arrives at its destination on time and in good condition. These six stages are:

Export Haulage:

Export haulage is the transportation of cargo from the shipper's location to the port of departure. This stage is critical in ensuring that your cargo is transported safely and securely. It involves selecting the right mode of transportation, such as a truck or a train, and ensuring that the cargo is properly packed and labeled.

For example, if you are shipping perishable goods, you may need to use a refrigerated truck to keep the cargo at the right temperature. A freight forwarder can help you arrange for the most appropriate mode of transportation, and can also handle the necessary documentation, such as booking confirmation and transport contracts.

Export Customs Clearance:

Export customs clearance is the process of obtaining the necessary documentation and approvals from the customs authorities to allow your cargo to leave the country. This stage involves submitting the appropriate paperwork, such as the bill of lading and the commercial invoice, and paying any necessary fees and taxes.

A freight forwarder can act as your customs broker, handling all the relevant paperwork and fees involved in clearing your cargo through customs. They can help you navigate any customs regulations or restrictions that may apply to your shipment.

Origin Handling:

Origin handling involves the processing and preparation of your cargo for loading onto the vessel. This stage includes tasks such as inspecting the cargo for damage, verifying the accuracy of the documentation, and ensuring that the cargo is properly packaged and labeled.

The company you invest in will help you arrange for any necessary inspections, and can also provide packaging and labeling services to ensure that your cargo is properly prepared for transportation.

Ocean Freight:

Ocean freight is the transportation of cargo across the ocean to the port of arrival. This stage involves selecting the right carrier and mode of transportation, such as a container ship or a roll-on/roll-off vessel, and arranging for the necessary documentation and approvals from the authorities.

This includes helping you select the most appropriate carrier and mode of transportation based on the nature of your cargo and your budget. They can also handle the necessary documentation, such as the bill of lading and ocean freight contract.

Destination Handling:

Destination handling involves the unloading and processing of your cargo at the port of arrival. This stage includes tasks such as inspecting the cargo for damage, verifying the accuracy of the documentation, and arranging for any necessary storage or transport to the final destination.

They will help you arrange for the storage or transportation of your cargo from the port of arrival to its final destination. They can also provide warehousing and storage services if needed.

Import Customs Clearance:

Import customs clearance is the process of obtaining the necessary documentation and approvals from the customs authorities to allow your cargo to enter the country. This stage involves submitting the appropriate paperwork, such as the import declaration and customs bond, and paying any applicable fees and taxes.


There are six key stages of freight forwarding

Freight forwarding can be a complicated process, especially for those who are not familiar with it. An experienced freight forwarder will simplify the process, making it easier for you to ship your goods.

They will handle all the necessary paperwork, arrange transportation, and ensure that your cargo arrives at its destination on time. They can also advise you on the most efficient and cost-effective way to ship your cargo based on the destination, the type of goods, and the size of the shipment.


An experienced freight forwarder will simplify the shipping process

It is essential to understand that freight forwarders are not responsible for shipping delays. While they will do their best to ensure that your cargo arrives at its destination on time, several factors are outside of their control.

For example, bad weather, port congestion, or delays at customs can all cause shipping delays. However, a reliable freight forwarder will have contingency plans in place to deal with such situations and keep you informed about any delays.


Forwarders are not responsible for shipping delays

The paperwork required for international shipping can be complex. It is your responsibility to make sure that all your paperwork is up-to-date and meets the requirements of the countries involved in the shipment.

Failure to do so can result in your cargo being delayed or even seized by customs. A freight forwarder can help you navigate the maze of documentation and ensure that your cargo is shipped in compliance with all the relevant laws and regulations.


Make sure your paperwork is up-to-date

Each country has its regulations and restrictions when it comes to shipping goods. It is essential to be aware of these restrictions to avoid any issues with customs. For example, certain items, such as weapons, chemicals, or hazardous materials, may be subject to strict regulations, and shipping them may require special permits or licenses.

A freight forwarder can help you navigate these regulations with ease. They will ensure that your cargo is shipped in compliance with all the relevant laws and regulations. Be sure to inform the company about your origin and destination specifically to prevent any miscommunication or inaccurate predictions.


Shipping restrictions you should be aware of

Freight forwarders offer a range of additional services that can make the shipping process even more comfortable. These services can include:&nbsp;1. Customs Brokerage: A freight forwarder can act as a customs broker, handling all the necessary paperwork and fees involved in clearing your cargo through customs.&nbsp;2. Insurance: Freight forwarders can provide cargo insurance to protect your goods against loss, damage, or theft during transit.&nbsp;3. Warehousing and Storage: Freight forwarders can arrange for the storage of your cargo at their facilities or a warehouse near the port of departure or arrival.4. Packaging and Labeling: Freight forwarders can provide packaging and labeling services to ensure that your cargo is properly packed and labeled for transportation.&nbsp;5. Door-to-Door Delivery: Freight forwarders can arrange for the transportation of your cargo from the point of origin to the final destination.

Extra services offered

Now that you know the freight forwarding basics, it is time to choose the right freight forwarder. This step is crucial to the success of your shipping operation. You need a shipping partner you can trust, one that has the experience, knowledge, and resources to handle your cargo with care and efficiency.

Look for a freight forwarder like Beeontrade that has a proven track record of success, who has established relationships with carriers and customs officials, and who is committed to providing excellent customer service.

With the additional services offered by our experts and by choosing the right shipping services we provide, you can make the shipping process even more comfortable and stress-free. The best part is how customizable the entire process is and how our team is always available to clear your queries!


Partner with a shipping partner you can trust

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