There seems to be so many problems associated with shipping, by new that I'd like to get several responses from old and new members on how they go about setting up transportation of their products.

Whats your process given the following:

Order: 

1. 1000 widgets
2. palletized and shrink wrapped
3. 29CBM and 17,000kgs
4. FOB Ningbo

The question now is who and how many are you going to contact and what exactly are you going to book.

No right or wrong answers here, I just want to see the responses as it seems people are really having a hard time in defining their shipping.

Ranger

Hello,


an educational question! Now here is what I would do:


1. I first determine if the widgets are normal trade goods, or need any special treatment (cooling, are they fragile, are they dangerous, etc.). Second I check the customs code of the widgets, and see if there is any quota or ADD against them.


2. For the sake of simplicity let us imagine that the widgets are normal trade goods. Now since they are 29cbm and 17mt, this is roughly a 20'FCL. I look up 4-5 forwarding companies with office in my country, and ask them for a quotation, with following information included: official name of the goods, value of the goods, volume and weight of the goods, FOB port of departure, port of destination, location of end delivery. I ask the forwarder to include all extra charges in the quotation (BAF, CAF, Peak surcharge, war/piracy surcharge etc)., so that I can compare the quotations. I also ask for the vessel schedules to see which is the earliest date of the departure. I ask the forwarder if they can make customs clearance in the destination port (it may be important in Europe, this way you can pay VAT later), what are the costs and conditions for that. Finally I ask what are the insurance fees and conditions at given forwarder.


3. I compare and calculate the shipping quotations, and pick the offer which suits me the best. That is: schedule is early, fee is reasonable, where they do the customs clearance (in some backyard customs office where it takes two weeks or at a high-traffic logistic centre where it is made in hours), what is its cost, what are the transit times.


4. When I have the best offer, I ask for the commission form to fill out, ask for the details of their local office and the details of their office in Ningbo. I fill out the commission for the shipping and the insurance bond. I give the details of my partner to my forwarder. Additionally, I call my friends, if they happen to need a little container space (about 3 tons and 3cbm will still fit into this container). I tell my friends the schedule and the forwarder, to make the possible shipment consolidation out among themselves.


...end of part 1.

5. I tell my partner the details of the forwarders' Ningbo office. I ask them to make out the details of the FOB delivery among themselves. It is an additional security.


6. I ask both my partner and the forwarder what is the earliest possible departure date. 2-3 days before this date I call both contacts to be sure they keep to this date.


7. As soon as the delivery has been made, I request my partner to send me a copy of the B/L, and other original documents, invoice, C/O, packing list, and certificates or declarations if necessary for said widgets. Normally they are expected to send it by courier service, since they need to arrive earlier than the shipment itself.


8. I keep calling my forwarder once a week to make sure my shipment is OK.


9. 8-10 days before the arrival of the vessel I ask for a commission form for customs clearance from my customs agent. In most cases it is the usual customs agent of my forwarder. I fill out the form, including the legal name of the products, and the customs codes. I send it to the customs agency along with an original B/L copy, C/O, invoice and packing list (all original, signed and stamped by the supplier). After I have sent everything I make a follow-up call if they received it well or if they still need anything. The B/L copy must be endorsed on the back.


10. After my customs agent has finished the clearance, I will receive a customs resolution with the amount of customs duty, customs fee and environment protection fee I must pay, and the banking details where it must be done. After the payment I fax a bank proof to the customs agent, and my goods will be released. My forwarder calls me, what I want, should they deliver the goods to door, will I appoint a land forwarder or pick it up myself. For simplicity I normally ask the forwarder to bring the shipment to my door. At the same time I also receive the invoice of the customs agency which I must also pay.


11. My forwarder picks up the goods again, and delivers them to my site. There I unload it to my stockhouse.


12. In 8 days I receive the invoice of the forwarder, which I pay.


Now I am in full possession of my goods. I give all documents to my accountant since these may be important for accounting and taxing reasons. With all payments done I can finally calculate the actual costs of my transaction.


I am sure I have forgotten some details but I think this is the rough process. Hope it helps.


c[ ]



...end of part Deux.

  Gabor,  now maybe someone else will respond in how they have gone about it, or even ask you questions about why you did it that way.  Hopefully new buyers can learn something from this thread and experienced buyer's can discuss what works best for them.  As always, thanks for your well thought out and detailed responses.

Ranger

You're welcome! I hope I could help. (First it may seem intimidating but actually organizing shipping is not a difficult thing, you must only be aware of the process).


c[ ]

Quoting from [Ranger]:

There seems to be so many problems associated with shipping, by new that I'd like to get several responses from old and new members on how they go about setting up transportation of their products.

Whats your process given the following:

Order: 

1. 1000 widgets
2. palletized and shrink wrapped
3. 29CBM and 17,000kgs
4. FOB Ningbo

The question now is who and how many are you going to contact and what exactly are you going to book.

No right or wrong answers here, I just want to see the responses as it seems people are really having a hard time in defining their shipping.

Ranger

The basic decision to be made is, are you going to try to learn the freight business or spend you time on your business. My asnwer was to use "Expeditors Inc ."to handle my shipping. They are listed on the New York Stock Exchange and have offices world-wide.

They attend to all details. They pick it up in any form I chose to deliver it to them, they pack it, they insure it, they deliver it, they handles customs, They handle regulatory agencies, they handle licenses and permits, they advise on freight legalities.

There is no real reason for any manufacturer to get involved with a new trade. Frieght Forwarding is like engaging an attorney, an accountant and a banker, You stay out of those businesses, if they aren't your business. Make it their business to take care o f that so you can take care of your business.

 

Quoting from [Ranger]:

There seems to be so many problems associated with shipping, by new that I'd like to get several responses from old and new members on how they go about setting up transportation of their products.

Whats your process given the following:

Order: 

1. 1000 widgets
2. palletized and shrink wrapped
3. 29CBM and 17,000kgs
4. FOB Ningbo

The question now is who and how many are you going to contact and what exactly are you going to book.

No right or wrong answers here, I just want to see the responses as it seems people are really having a hard time in defining their shipping.

Ranger

Send it to me and I can handle everything.  I can scan the whole market to get you the best price in the business

Quoting from [Ranger]:

There seems to be so many problems associated with shipping, by new that I'd like to get several responses from old and new members on how they go about setting up transportation of their products.

Whats your process given the following:

Order: 

1. 1000 widgets
2. palletized and shrink wrapped
3. 29CBM and 17,000kgs
4. FOB Ningbo

The question now is who and how many are you going to contact and what exactly are you going to book.

No right or wrong answers here, I just want to see the responses as it seems people are really having a hard time in defining their shipping.

Ranger

Okay lets boil it down to the brass tax of the situation.  My company ships over 50000 TEU a year and does close to 100000 CPM per anume do you?  If not more than likely I can beat anything you can even hope to try to get.  So you send the inquire to my email at mcartwright@re-trans.com  I get you a good cheap rate,  Even if you had the connections or the experience you would never be able to come close to the price that I could get you. Expetitors Inc and NVOS and Freight Forwarders make up 65% of our business so if they are coming to me then shouldnt you! So send it to me and forget about everything else you read on this board!

Quoting from [DrPeterPalms PhD]:

 

The basic decision to be made is, are you going to try to learn the freight business or spend you time on your business. My asnwer was to use "Expeditors Inc ."to handle my shipping. They are listed on the New York Stock Exchange and have offices world-wide.

They attend to all details. They pick it up in any form I chose to deliver it to them, they pack it, they insure it, they deliver it, they handles customs, They handle regulatory agencies, they handle licenses and permits, they advise on freight legalities.

There is no real reason for any manufacturer to get involved with a new trade. Frieght Forwarding is like engaging an attorney, an accountant and a banker, You stay out of those businesses, if they aren't your business. Make it their business to take care o f that so you can take care of your business.

 

DR,  your right that is a good one for new buyers and the company has a good track record as well.  Thanks for your contribution.

Ranger

Quoting from [Ranger]:

There seems to be so many problems associated with shipping, by new that I'd like to get several responses from old and new members on how they go about setting up transportation of their products.

Whats your process given the following:

Order: 

1. 1000 widgets
2. palletized and shrink wrapped
3. 29CBM and 17,000kgs
4. FOB Ningbo

The question now is who and how many are you going to contact and what exactly are you going to book.

No right or wrong answers here, I just want to see the responses as it seems people are really having a hard time in defining their shipping.

Ranger

With the greatest respect to DrPeterPalms PhD, I have to disagree. No one running a

Trading / Import / Export / Manufacturing business today can afford to complain about

having to learn something "new" or "time consuming" about his or her own business -

and that too something which is very much related to their work.  This is not a question 

of "learning about the freight business" but rather simple shipping calculations and 

decisions that are the backbone of any good business.

Shipping & Logistics is a vital part of the Import/Export business and I would encourage 

anyone seeking to develop an all-round understanding of this business to hone their skills in

each and every part of the business, if their time so permits. You can never go wrong with

the knowledge you gain.