Recent developments in China-US trade relations have led to a significant increase in shipping costs, with container freight rates from Shanghai to New York rising by 19%. A shortage of shipping capacity and the evolving trade dynamics have further exacerbated this trend, and it is expected that costs may continue to rise in the future.
This article provides a thorough analysis of the components of freight forwarding costs in foreign trade, highlighting the differences between fixed and variable costs and how to set reasonable quotes to remain competitive. By offering examples of freight forwarding charges, discussing the impact of designated forwarders, and strategizing to cope with fluctuating shipping rates, it aims to help professionals in foreign trade master the calculation methods for these costs, thereby enhancing their business efficiency.
Recently, container freight rates from China to the US have dropped by over 50%. This decline in freight costs reveals potential inflation risks and a shift in demand from US importers. Future market dynamics may be influenced by changes in tariff policies.
Although both shipping fees and customs fees are part of international logistics, they differ in nature, collection parties, and calculation methods. Shipping fees mainly pertain to maritime transport costs, while customs fees are related to customs declaration services. Understanding the composition of these fees helps avoid hidden costs and enhances the effectiveness of logistics cost management.
This article provides an in-depth analysis of key aspects of FOB trade, including cost allocation, risks associated with nominated freight forwarders, and prevention of delivery without original bills of lading. The aim is to help exporters gain a comprehensive understanding of FOB terms, effectively control costs and risks, and ultimately improve trade profits. It explores practical strategies for mitigating potential issues and ensuring smooth transactions under FOB Incoterms.
This paper explores the feasibility, risks, and costs associated with pre-arrival of uncleared goods. Operationally feasible, it relies on coordination with customs brokers and carries inspection risks. Cost-wise, pre-arrival and amendment fees may incur additional expenses. We recommend a comprehensive assessment of factors such as cargo nature, customs broker capabilities, and port regulations before making a decision. Careful consideration is advised.
Customs clearance fees are a crucial aspect of international trade, encompassing various costs such as import duties, taxes, and customs agent fees. Understanding these expenses helps optimize import and export operations while avoiding unnecessary costs. Additionally, duty exemption policies in different countries can facilitate the import of low-value goods.
Prepaid freight (PP) and collect freight (CC) are significant terms in the logistics industry. PP indicates that the shipper has paid the freight, while CC means payment is made upon receipt. Generally, collect freight is more expensive, and its payment method is closely linked to transaction terms. Understanding these concepts is essential for managing transportation costs effectively and gaining insights into international trade.
The trade agreement signed by the Trump administration raises tariff levels, making the Trans-Pacific trade environment more uncertain, which adds pressure on global businesses and economic cooperation. Companies face risks of rising costs, making it increasingly important to seek alternative solutions to navigate the uncertainty.
Maersk has launched the 'Maersk Trade & Tariff Studio' platform to help businesses navigate the complexities of global tariffs and trade regulations. The platform offers features such as a tariff calculator, trade insights, and expert consulting, enabling companies to ensure compliance, optimize costs, and maintain a competitive edge in the ever-changing landscape of international trade.
