Education

Business Woman exploring her options for logistics.

You’re a New Business? But how can Freight Forwarding help you?

You’re a New Business? But how can Freight Forwarding help you? 2560 2128 tgl_editor

Hey! So, you’re a new business and your considering using a freight forwarder to handle your logistic? Let’s find out how a freight forwarder can be beneficial to a new or small business.

What is a freight forwarder?

Firstly, you may ask what a freight forwarder is. A freight forwarder is an agent, or solutions specialist, as we like to call it, that assists in shipping goods on behalf of the seller or buyer. They utilise their expertise to arrange your goods to be exported and imported from start to finish. Some freight forwarders also assist with customs clearance, warehousing stock, and door to door delivery. No matter if it’s globally or locally, freight forwarders can get your goods wherever they need to go.

And what do they do?

Many freight forwarders offer support to businesses looking for assistance with their logistics and warehousing needs. By offering freight services such as, sea, air, and land, freight forwarders, like TGL, are able to move your goods anywhere around the globe. Freight forwarders also match your business needs with the appropriate freight option which is the most time and cost-effective to you. Specifically, with international shipping, all items must clear customs before entering the country for sale. Freight forwarders can assist in customs clearance by ensuring the correct documents and information is available to the customs officers for easy clearance of goods.

Some freight forwarders also offer assistance with warehousing as they can ship your business’ goods to the warehouse and then distribute them to your customers for you. This is called Third Party Logistics (3PL) warehousing.

How can a freight forwarder help you?

Now here comes the juicy stuff, how can they help you? Being a new business owner can be extremely difficult as you begin to navigate the world of business. Whilst your putting on multiple different hats such as marketing, logistics, finance, and HR, let us take the logistics hat off your head.

Release logistics related stress

Using a freight forwarder means you can alleviate the stress that surrounds importing and exporting your goods, especially if you’re an international buyer or seller. Using a freight forwarder to assist in your logistics tasks will allow you to rely on their expertise to ensure your goods will arrive on the agreed time with assistance on customs clearance, document generation, and facilitation between shipping partners.

One solutions specialist to help

With many freight forwarders, you are passed through multiple service support staff which, can lead to confusion, miscommunication, and mistakes. At TGL, we focus on our customers and their shipping needs. One way we drive this is by allocating one solutions specialist, or THINKERS as we like to call them, to each client. They are your one-point contact and specialist that assists you in every aspect of the exporting or importing process. From assisting with shipping enquiries, quoting, customer questions to anticipating delays, facilitating with partners, and preparing documents for customs clearance. Our THINKERS are your one-stop-shop for all things logistics and can assist in all areas of shipping, customs clearance, and warehousing. Gone are the days of being cross handled by 10 contacts and not knowing who to call for what.

Hands on knowledge

With being a new business, it can be difficult to navigate the logistics world. By using a freight forwarder to assist in your logistics needs, this can allow you to tap into years of experience and a bucket full of knowledge that you can learn from. At TGL our THINKERS collectively have 34 years of experience in freight forwarding. By harnessing this knowledge, TGL will be able to anticipate delays, compare different options for shipping, documentation requirements, negotiate an appropriate price all whilst relaying this information to you in an understandable way. Using a freight forwarder can allow you to have access to hands-on knowledge and give you the security to know that your goods are in the safest hands when making their way to you.

There are also specialist freight forwarders. For example, if you are looking to ship your goods via air freight, there are freight forwarders that specialise in this service and can assist with your shipment. These specialised businesses are selective, but the majority of freight forwarders have experience in every freight transport method (sea, air, and land), as well as customs clearance.

Developed Network

An established freight forwarder will have a developed network of suppliers that they partner with for importing and exporting. Much more than a simple google search for the best shipping supplier in Sydney, a freight forwarder will have strong relationships with shipping partners all over the globe that can assist in shipping your goods from A to B. When using a freight forwarder and tapping into their network, you can feel secure knowing that your goods are traveling with tried and tested reliable partners. With this network also comes competitive prices and strong quotes. As a freight forwarder has developed a relationship with their network of suppliers, you know that you will be receiving an appropriate price for your shipment, but you also have the added support of the logistics specialist if pricing negotiation is required.

E-commerce businesses

As the world of technology and the internet continues to develop, the rise of E-commerce and online only businesses has grown drastically. Whether you are starting your own online business or working for an online business, a freight forwarder can be a handy addition that can assist in multiple areas of business. Freight forwarders can assist in with an e-commerce business by:

  • Shipping support: Like all traditional businesses, freight forwarders can assist in importing and exporting goods domestically and internationally. By harnessing the power of a freight forwarder, you are tapping into expert knowledge, a developed supplier network, and documentation and customs clearance assistance. This can be a beneficial factor as the shipping of goods does not occur just once. The continuous shipping of new products and the restock of past products is a major task for all businesses, so gaining the support of a freight forwarder can make this task a whole lot easier. This allows businesses to focus on the core of their business without becoming bogged down in logistics stress. They will stay up to date with their logistics movements through constant communication and tracking but the weight of their tasks will be placed on the freight forwarders’ shoulders.
  • 3PL Warehousing: As all E-commerce businesses are run online and rarely have a physical location to shop or store their products, it can be hard to source an area that meets the needs or growth of the company. This is where 3PL Warehousing or Third-Party Logistics Warehousing comes into play and why it can be a major asset to any E-commerce business. For businesses that need to ship and hold products in various locations at once, warehousing is a clever way to outsource the storage and distribution of your products. At TGL, our 3PL Warehousing service allows our THINKERS to ship any goods to our warehouse, store them securely and pick and pack them for distribution. Investing in a freight forwarder that offers 3PL Warehousing can save many E-commerce businesses time, resources, and mistakes whilst, allowing them to clear their home packing centre, aka the dining table. This can allow you to focus more on the core of your business whilst still being ‘in the know’ with your inventory and shipping.

So, that was a lot! You now know the basics of freight forwarding and how it can help you. We encourage you to continue to learn about sea, air, land, customs clearance, 3PL warehousing and follow industry news to grow your knowledge of logistics and freight forwarding.

TGL Team

Different Shipping Container Options

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There are a number of different types of shipping containers used within the logistics industry and each container serves its own purpose and suits different needs. We take you through the different varieties of shipping containers you may come across when shipping your goods through us.

Dry Storage Container

Dry storage containers are the most commonly used container within the shipping industry ranging from the 3 main sizes 10ft, 20ft, and 40ft. These containers are built for the intermodal freight model, meaning they are able to be transported by different modes of transport from ship, rail to truck. The containers are standardised by the ISO for ease of use and transport as they are able to be effectively stacked on top of each other and side by side.

Flat Rack Container

Flat rack containers are used for heavy loads and cargo that need loading from the top or sides such as pipes, machinery, or busses. The containers only have aides on the short end of the container. Newer flat rack containers are able to hold 40,000 – 50,000kg with uniform distribution of load. Due to the way flat racks are stationed and dimensions of the load, stacking them on one another is impossible with legal regulations.

Open Top Container

As the name suggests this type of container has an open top. Due to it being open roof a tarpaulin is used to cover the cargo if needed. Even though it is an open roof container there are door on either side that can be swung open for easy loading if convenient.

These containers are used for cargo that is too large and if they are irregular shapes. An example is heavy materials and machinery that can’t be loading sideways through the door but eased down by heavy-lifting industrial cranes. Due to being open roof they are able to store more than regular containers. There aren’t many of these containers within circulation resulting in elevated pricing; but prices may increase if your cargo is in “gauge” meaning if it is protruding from the top; if so no other containers can be staked on top wasting space on cargo ships resulting in the further increased pricing.

Hard Top Container

Hard top containers are very similar to open top containers; the only difference is having a detachable steel roof instead of a tarpaulin sheet. The roof can be removed by a forklift as it has points that allows for a forklift to safely remove it.

High Cubes

In short high cubes are very similar to standard containers coming in both 20ft and 40ft measurements; these dimensions are the same the height of high cubes are increased allowing for more cargo to be stored and allows it to meet more cargo demands.

Open Side Storage Container

These storage containers have door on one of the long sides of the container; that can change into completely open sides providing much more room for loading. Even though these containers are able to open from the sides they still have the standard doors on either short side of the container.

Double Doors Container

These containers are built to have double doors that swing open outside on both sides and either side is built with the same specifications. Double door containers are made to be the most convenient option for loading and unloading a container.

An example of this convenience is when a car is loaded through one side of the container; it can simply drive out through the other side.

Another name for double door container that is commonly used is ‘Tunnel Container’

Refrigerated ISO / Reefer Container

Reefer container are just refrigerators in the shell of a standard container which is used to transport cargo that needs to be kept at a certain temperature. The flooring has t shaped decking to allow cool air to get into the container and allowing constant airflow. Temperatures that can be kept and maintained are -30 degrees to +30 degrees.

Cargo that is most commonly carried include: fruits/vegetables, medicine, meat and even ice cream. Each item may need to have its own temperature which can be achieved as the container can be sectioned cooled.

Pallet Wide

These containers were specifically made to carry euro wooden pallets that as the name suggests are commonly used in Europe. Sizing is the same as regular containers coming in at 20ft and 40ft models as well as high cube containers.

These containers were made to measure exactly two-euro wooden pallets in width. This allows the pallets to be packed neatly and tight as to not have a chance of the cargo slipping.

Tanks

This method is most commonly used for the transportation of liquids. These tanks are made of anti-corrosive material or steel guaranteeing that they have a long-life span; and provides the necessary protection of the liquid within. Tanks are used by a large portion of the shipping industry when it comes to transporting liquids.

Although there are a large number of different containers, they might not suit your business needs. At TGL, we guide you through the process and select the right containers to meet your needs.

References:

https://container-xchange.com/blog/container-types-and-dimensions/

https://www.tigercontainers.com/blog/different-types-of-shipping-containers/

www.marineinsight.com/know-more/16-types-of-container-units-and-designs-for-shipping-cargo/

Shows how Drones will be implemented in warehouses

Future of Warehousing

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What will the future of warehousing look like?

Warehousing and logistics, an industry with complex operations is in need of flexible and innovative solutions. Currently many in the world of warehousing are jumping at the chance to upgrade their warehouses to make them more efficient and digitised. Amazon, XPO Logistics, and Alibaba are major powerhouses that have successfully deployed innovative technologies achieving the future of warehousing.

Here are some innovations that are in practice and some that are predicted to be implemented in the near future of warehousing.

Robotics and Cognitive Computing

With robotics and cognitive computing already taking centre stage at major companies namely Amazon and Alibaba – they are already carrying out 70% of all tasks. AGV’s (Autonomous Guided Vehicles) are now used as potential substitutes for forklifts and are revolutionising the way cargo is transported inside the warehouse. Drones are set to disrupt warehousing as well, as they have the ability to locate cargo fast and efficiently with sensors, cameras, barcode scanners, and RFID (Radio-frequency identification) technology. Therefore, drones will be able to manage inventory in one-third of the time currently needed. Cognitive computing is currently able to efficiently optimise robotics in real-time in the form of decision engines, decision logic, computer vision systems, and transportation execution system.

Predictive Maintenance

A range of technologies is impacting the traditional idea of maintenance. Maintenance has long been a passive, reactive process of waiting for the machine to break to then fixing it. Today a mix of technologies are allowing organisations to gain unprecedented insight into the lifecycle of products, components and even materials. Technologies such as enterprise asset management, digital twins, sensors, RFID tags, smart supply chains, and artificial intelligence are allowing warehouses to operate more efficiently. Warehouses around the world are increasingly adopting proactive maintenance processes eliminating costly and time-consuming equipment failures.

Warehousing on Demand.

An emerging trend from the need for greater warehouse flexibility to accommodate temporary demand for additional capacity. On-demand warehousing enables companies who have already built warehousing to handle their peak season demands. In addition, they are able to monetise their unused space during quieter times of the year.

Flexe and Stowga are start-ups that have created apps and cloud platforms that allow warehouse owners to lease out space, and potential clients to rent that space on-demand over periods that range from days and months. Similarly, this can help regenerate brownfield sites and unused buildings, in the same way that Airbnb has for personal accommodation.

Real-Time Inventory Management.

The current state of commerce is creating heavy pressure on warehouse managers for more efficient inventory management. Automation identification systems such as smart sensors, RFID, GPS, etc., can not only provide end-to-end visibility of inventory but also operational intelligence through the data that these sensors collect. In conclusion, these will optimise inventory management while making warehouses safer with increased visibility.

Warehouse Automation.

Warehouse automation is a present reality and one that is also a part of the future of warehouse automation. Automation and robotics can simplify the performance of manual tasks in a more efficient and cost-effective way. With the introduction to AI in warehousing, robotics will become more human-like in aspects of memory, sensing, skills, and affinity for learning. Advanced sortation systems are already being leveraged due to them providing faster unit and parcel sorting. For example, applications such as direct to consumer order fulfilment, retail or even return processing, can be used. Automation is one indispensable aspect which warehousing is unlikely to survive in the future without.

Sources.

https://www.supplychaindigital.com/logistics/future-logistics-warehouses

https://www.logisticsmgmt.com/article/the_warehouse_of_the_future

https://articles.cyzerg.com/warehouse-digitalization-the-future-of-warehousing

https://www.forbes.com/sites/stevebanker/2020/07/31/automation-is-the-future-of-warehousing/#5e32e71130f4

11 Incoterms

Do you know all 11 Incoterms?

Do you know all 11 Incoterms? 2560 1706 tgl_editor

Do you know all 11 Incoterms?

The 11 Incoterms 2020 stand for the International Commercial Terms. They cover a wide range of responsibilities and obligations that both the seller and buyer have, including:

  • Which party is responsible for the difference in costs during the whole transportation and operations process?
  • Where goods are to be picked up and transported to
  • Who bears the risk in a case of lost or damaged goods at any specific point in the cargo’s journey?
  • Which party is responsible for the loading and unloading of the goods
  • Which party arranges to unload and pay for inspections of the goods.
  • Who is responsible for producing documentation, submitting as well as exporting and importing customs entries, or arranging the export/import licenses, as well as a range of other contractual obligations.

The following is a brief overview of each of the 11 Incoterms. 7 of which are for any mode of transport.

Rules of any mode or modes of transport

EXW (EX Works)
  • Ex-works is when the seller places the goods at the disposal of the buyer at the named place (i.e., seller’s premises, work, or warehouse, etc.).
  • The seller does not need to load the goods on any collecting vehicle. Nor does it need to clear them for export, where such clearance is applicable.
FCA (Free Carrier)
  • The seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place.
  • The parties are well advised to specify as explicitly as possible the point within the named place of delivery, as the risk passes to the buyer at the point.
CPT (Carriage Paid To)
  • The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place.
  • The seller must contract for any pay the costs of carriage necessary to bring the goods to the named place of destination.
CIP (Carriage and Insurance Paid To)
  • The seller has the same responsibilities as CPT. In addition, contract for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage.
  • The buyer should note that under CIP the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.
DPU (Delivered At Place Unloaded) – (Replaces Incoterm 2010 DAT)
  • DPU replaces the former Incoterm DAT (Delivered At Terminal). The seller delivers when the goods, once unloaded are placed at the disposal of the buyer at a named place of destination.
  • The seller bears all risks involved in bringing the goods to and unloading them at the named place of destination.
DAP (Delivered at Place)
  • The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destinations.
  • The seller bears all risks involved in bringing the goods to the named place.
DDP (Delivered Duty Paid)
  • The seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination.
  • The seller bears all the costs and risks involved in bringing the goods to the place of destination. They must clear the products not only for export but also for import
  • The seller has to pay any duty for both export and import and to carry out all customs formalities.

Rules for sea and inland waterway transport

FAS (Free Alongside Ship)
  • The seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment.
  • The risk of loss of or damage to the goods passes when the products are alongside the ship. The buyer bears all costs from that moment onwards.
FOB (Free On Board)
  • The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered.
  • The risk of loss of or damage to the goods passes when the products are on board the vessel. The buyer bears all costs from that moment onwards.
CFR (Cost and Freight)
  • The seller delivers the goods on board the vessel or procures the goods already so delivered.
  • The risk of loss of or damage to the goods passes when the products are on board the vessel.
  • The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
CIF (Cost, Insurance, and Freight)
  • The seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the products are on the ship.
  • The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
  • The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage.
  • The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements

Sources:

https://www.koganpage.com/article/master-the-11-incoterms-rules

https://fulfillrite.com/blog/11-incoterms-and-why-you-should-know-them/

https://internationalcontracts.net/contract/11-incoterms-en

when-to-use-a-freight-forwarder

When to use a Freight Forwarder?

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Do you need help coordinating and transporting your goods? Are you time poor or inexperienced when it comes to logistics? Then a freight forwarder is for you. 

They are the experts in logistics when it comes to moving your goods from A to B. Freight forwarders have the knowledge, networks, and equipment required to manage your shipments.

Whether you are looking to import or export goods, a freight forwarder can deal with all parties involved in the supply chain and in the overall process. Therefore, ensuring that your goods arrive at their intended destination as quickly and safely as possible. Freight forwarders are your go-to for transporting goods anywhere in the world.

Having a freight forwarder company is an asset, as they can save you unnecessary headaches and time as they provide reliable transportation of your goods at a competitive price that keeps you happy.

What is expected of a Freight Forwarder?

A freight forwarder must be able to understand your requirements and identify the best transportation method and move your goods within the timeframe that you set as well as competitive pricing.

Below are some of the services that are provided by freight forwarders:

  1. Cargo Transportation (SeaAir, and  Domestic)
  2. Warehousing and Storage (3PL)Customs Clearance and Customs advisory services.
  3. Insurance Solutions (Internationally, and Domestically)
  4. Packing solutions that are relevant for shipping standards
  5. Inventory Management solutions
  6. Shipping Documentation (Bill of Lading, Commercial invoicing, Certificate of origin, Inspection certificates, Export licenses and packing lists).
  7. Consulting Services
  8. Real-time tracking of transported goods.
What are the Benefits and Disadvantages of using a Freight Forwarder?
Benefits:
  • Freight forwarders have built strong relationships with transporters, allowing for better pricing and smoother communication. Through these connections, they can develop the best solution to deliver efficient, cost-effective, and reliable services.
  • They have in-depth industry knowledge and expertise.
  • A freight forwarder allows you to focus on growing your business, while they handle the transportation and customs of your goods.
  • Leveraging volume and buying power to reduce transportation costs.
  • Freight forwarders can safeguard your company from any potential lawsuits, customer complaints, and severe losses.
Disadvantages:
  • Within Australia, the freight forwarding industry is unregulated, which allows anyone to start their own company within this industry. In addition, it is wise to spend some time and research into the freight forwarder you choose to work with 
  • Due to the industry being opaque, it can become difficult to identify between good and bad freight forwarders.
Sources:

https://www.pjscustoms.com.au/news/2020/2/3/do-you-need-a-freight-forwarder-or-customs-broker#:~:text=When%20Should%20I%20Use%20a,knowledge%20to%20manage%20your%20shipment

www.opentoexport.com/article/advice-for-exporters-should-i-use-a-freight-forwarder/

https://www.customsclearanceworld.com.au/why-use-a-freight-forwarder/

https://6digitscargo.com/2019/11/21/advantages-and-disadvantages-of-using-a-freight-forwarder/

air vs sea freight

Airfreight vs Sea Freight

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There are two options for businesses and individuals to transport their goods overseas. These two options for international freight are air and sea. Airfreight has in recent times become more popular in international freight shipping.

To ship internationally efficiently tends to require tremendous knowledge and experience. International logistics introduces a different set of rules, regulations and implemented practices. These make the transportation of goods even more challenging. As such, many factors must be considered for an individual or company when choosing which method in transportation they should use for their goods. Furthermore, this includes the cost, speed, reliability and in some cases even environmental impact.

Speed:

International air freight is considerably faster than its alternative, which is sea freight. Air freight is primarily used for instances that speed is the most important factor in the transportation process.

Sea freight transportation takes longer than airfreight as its speed is naturally much slower. In addition, vessels tend to have more stop overs and potentially require refuelling during transit to the final destination. Moreover, the average speed of sea freight movement is 2 weeks to 3 months, depending on the distance.

Cost:

The charges gained by either air or sea can vary greatly depending on the amount of weight for air freight and volume for sea freight that you are intending to transport. For heavier and bulkier cargo, it is often cheaper to ship by sea. However, when shipments are smaller, margins between the prices of sea freight and air freight reduces, resulting in air freight becoming less expensive and the more efficient method. Furthermore, depending on the agreed Incoterms between the shipper and importer; each party should also consider destination charges, where both methods of transportation will incur customs and destination fees.

Reliability:

Air transportation can be affected by bad weather, as well as other circumstances such as, strikes, that can result in delayed times. Although, air freight is one of the safest ways for international cargo transportation – It is fairly reliable especially if the air carrier has extensive operations and a large number of flights daily.

Whilst air transport is one of the safest ways to move cargo, Sea transportation is also relatively reliable. The vessels undergo inspections and confirmation on the condition of the vessel, if it is safe and in good condition to depart from the port. Most ships are designed to overcome difficult weather conditions, although more harsh weather may induce unforeseen delays. In addition, port congestions tend to become a big issue for sea transportation (especially during peak seasons each year).

Regardless of which method you choose, it would be wise to ask your international freight forwarder about insurance coverage for your own peace of mind.

Environmental Impact:

A report from the Guardian newspaper suggested that shipping creates 2.5 times the amount of emission that airplanes create, thus making air freight the more environmental option. This article by the Guardian doesn’t count that although shipping does contribute more emissions than airplanes, they also carry much more cargo than planes can. Therefore, planes have to make additional trips or increase the number of planes used for transporting the same amount of cargo, in comparison to that of a vessel, which subsequently results in a less environmentally friendly option.

Limitations of Air and Sea Freight:

Although these methods are great to use, there are some limitations that come with each of them.

Air Freight:
  • Airlines have stricter regulations when shipping hazardous materials.
    • Hazardous materials includes gases (lamp bulbs), all things flammable (perfumes), toxic/corrosive substances (batteries), magnetic substances (speakers), public health risks (untanned hides), oxidisers/biomedical products (chemical medicines).
Sea Freight:
  • Routes and timetables of sea freight are usually inflexible
  • Basic freight rates are subject to fuel and currency surcharges

Sources:

www.freightos.com/freight-resources/air-freight-vs-ocean-freight-making-the-decision

www.globaltrademag.com/airfreight-vs-sea-freight-which-works-better

www.allworldlogistics.com.au/sea-freight-vs-air-freight

Customs-Clearance-Documents

Documents required for Customs Clearance

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Customs is one of the most important steps within the freight industry. Therefore, Customs clearance and document handling of custom brokers has previously been accompanied by a large price tag. As digital tariffs and multinational commoditising has entered the scene; custom brokers have also lost their importance within the field even though they play an important part.

As competition is increasingly becoming fiercer within the customs clearance field, companies operating are cutting corners by opting for younger, less experienced customs brokers. As such, they avoid hiring the much needed, highly experienced brokers that can offer higher efficiency and more insight. Furthermore, Custom Brokers ensure documents are filed correctly and are sent to the necessary people to make the importing of goods possible and more streamlined.

Overview

Within Australia, in general, there are no requirements for importers (individuals/companies) to hold an import license. However, depending on the nature of goods imported, the importer may need to obtain permits to clear their goods from customs control.

Labelling of Goods:

For general goods imported into Australia, there are no strict rules on labelling requirements by the Australian Border Force (ABF). However, if importers do not label goods that require labelling or don’t meet the strict requirements, their goods may be seized by Australian Customs as a result. If you are unsure of what labelling your goods require, it is always best to check out the ABF website for further information. Moreover, you will need to make sure to inform your supplier of the origin of such labelling requirements; as you will experience hold by Australian customs for correctly relabelling the goods upon arrival into Australia.

Bill of Lading:

The Carrier issues the Bill of Lading, which shows details of the cargo method of transportation.

(note: Airfreight use Airway bill, sea freight use Bill of Lading).

Declaration Fees and Charges:

The majority of Australian importers are aware of the GST and DUTY that Australian Customs charges for imported goods. However, other ‘admin’ charges are neglected. Therefore, for all customs entry lodgement, there are ‘lodgement fees/admin fees’ that are applicable.

The table below provides the summary:

Rule/Certificate of Origin:

Australia is one of the biggest importing countries in the world – we are very fortunate that the Australian government has signed various Free Trade Agreements (FTA) with other countries. Nevertheless, these FTA’s have different rules. In general, they benefit Australian importers by reducing or eliminating ‘Duty’ compared to the standard duty of 5% for the majority of generally imported goods). One of the most common methods to apply for eligibility under FTA is for origin suppliers/sellers to provide the Certificate of Origin (COO) for each shipment transported out of an FTA country. As such, the COO will determine where imported goods have originated from.

Australian Business Number:

Commercial importers require ABN numbers for the claiming of tax credits for GST purposes.

Concessions:

Some imported goods may be eligible for concession treatment under section 4 of the Customs Tariff Act 1995. This encompasses numerous types of goods to support a range of industry assistance objectives.

Sources:

https://www.abf.gov.au/importing-exporting-and-manufacturing/importing/how-to-import/requirements

https://www.abf.gov.au/importing-exporting-and-manufacturing/importing/how-to-import/requirements/labelling

https://www.abf.gov.au/help-and-support-subsite/CustomsNotices/2015-44.pdf

Environment, Logistics

Global Efforts for Sustainable Logistics

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The logistics industry is a key player in global trade but in environmentalists eyes, the industry could be making more of a conscious effort to assist in helping the environment. As time has passed, the logistics industry as a whole and individual operators have begun to make changes to their operations, swap out resources and regulate processes all to reduce their environmental footprint. Reducing emissions released into the air is one major way for companies to reduce their carbon footprint and assist in bettering the environment.

Reduce Emissions

Whilst the logistics industry relies on transporting goods from one place to another, it is a priority for companies to improve the emissions they release into the environment. Implementing a greener solution, will allow companies to reduce their carbon footprint. Today many logistics operators understand how each kilometre travelled, equates to noxious gases released into the air. With this understanding, operators can reduce the total number of kilometres travelled to reduce their gas output. This in turn lowers their carbon footprint.

Continuing into the future, logistics operators can focus on renewable resources to fuel their ships and cargo planes as well as renewable energy sources to fuel trucks and operate offices.  As these become more available, businesses will dramatically reduce their carbon footprint or become a zero emissions company.

An example of a net-zero emissions company in logistics is Qantas, who announced its commitment to becoming zero emissions by 2050. To allow this goal to come to fruition, Qantas will invest 50million dollars over the next 10 years to develop sustainable aviation fuels with much lower emissions compared to traditional jet fuels (Geck, 2019).

Energy Consumption

Reducing the overall energy consumption by a single transport operator could greatly impact the environment. By making small changes to operations in the office, at port and onboard could allow companies to make a smarter move to assist the environment. Although, there is currently the biggest debate in the transport industry that the fasted option isn’t always the most efficient yet the most efficient option isn’t the fastest option. This is where a lot of logistics companies struggle with the operation and the environment as they are trying to transport goods in a timely fashion whilst doing their best to use sustainable resources and reduce their environmental footprint.

Reducing Waste

Within the logistics industry, there are many products used in operation that have an expected lifespan. Whether that is tires, oils, parts and screens, the more frequent that a part is used the shorter its lifespan gets. When logistics companies are using their vehicles to return to distribution centres after delivery, they are using materials for no profitable gain which will, in turn, increase their waste generation. As a result, the company’s carbon footprint increases with every movement it makes. By limiting the amount of movement without goods and turnover of parts/waste, logistics companies can reduce their contribution to landfill and emissions produced into the environment.

Government Regulations

The Australian Government has strong legislation that logistics operators must abide by to trade and transport goods. Adhering to regulations about sustainability practices and resource management can allow operators to transport freely although there are rigid consequences such as fines, penalties and other criminal or civil consequences, that could be a repercussion of misunderstanding the legislation.

Within Australia, 99% of our exports are transported via sea freight, so, therefore, we have strict guidelines in place to protect our marine environment. The Protection of the Sea Act 1983 and the Navigation Act 2012 were implemented into domestic law to set out the legislative obligations relating to the prevention of accidental and operational marine environment pollution from shipping. The Australian Maritime Safety Authority is in charge of administering the protection of the sea legislation and is responsible for compliance by all bodies in the industry. Learn more.

For land or domestic freight, the Australian Government applies strict design rules (ADR) administered by the transport ministers, who regulate the noise and emissions produced by heavy vehicles. Since 2011, standards for heavy vehicles (ADR 80/03) to limit the amount of carbon, nitrous oxide and partial matters that can be produced by this vehicle.

For air freight, regulations are in place regarding shipments of dangerous goods and their impact on the environment, control of air quality and air noise. In an effort to reduce air noise, the Australian government controls the air traffic and the number of planes ready to fly to predict the overall emissions per flight.

The Australian Government has also set up an Emissions Reduction Fund (ERF) to incentivise businesses to reduce their emissions across all operational activity.

Sources:
Geck, M. 2019. Seven major companies that committed to net-zero emissions in 2019. Retrieved from:https://www.unpri.org/pri-blogs/seven-major-companies-that-committed-to-net-zero-emissions-in-2019/5255.article

10 Facts about Freight Forwarders

10 Freight Forwarding Facts

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Want to know more about Freight Forwarding? Here are 10 facts that I bet you didn’t know

1. Freight Forwarders can help business A LOT

Freight forwarders can assist your business in all of your logistics and shipping needs but they also take the responsibility for your shipments arriving on time. They are an end to end business support system that will use their expertise to determine routes, the best shipping partners and price available to your business

2. Freight Forwarders offer multiple services

Usually, most freight forwarding companies offer a number of services to their customers. These services range from; air freight, sea freight, domestic or land freight, distribution warehousing, and customs clearance.

3. Freight forwarders alleviate logistics stress

Using a freight forwarding company means you can alleviate the stress that surrounds importing and exporting goods, especially if you’re an international buyer or seller. Having a freight forwarder will allow you to rely on their expertise to ensure your goods will arrive on the agreed time as well as assisting in customs clearance , document generation and facilitation between shipping partners.

4. Freight Forwarders are not to blame for your shipping delay

When there is a shipping delay it is usually out of the freight forwarders hands.  Shipping delays can occur due to bad weather conditions, delays in different ports, vessel breakdowns and any unforeseen changes to the route. In fact, the freight forwarder is usually trying to resolve the problem at their end to ensure the goods reach their final destination in a timely manner.

5. Freight forwarders abide by strict regulations.

There is strict protocol that all freight forwarders must abide by when shipping goods internationally. For example, in Australia all businesses associated with global trade report to the Australian Trade and Investment Commission. This government body ensures that businesses importing and exporting from Australia all follow the same regulations. Most regulations surround the topics of:

  • Dangerous Goods
  • Perishable Goods (eg. Fruit & vegetables)
  • Drugs (eg. Prescription & recreational)
  • Alcohols
  • Batteries
6. There are specialist freight forwarders.

Just like most other occupations, in freight forwarding, there are specialists that have expertise in the different modes of transporting cargo. Some freight forwarding companies handle many clients within one category of freight forwarding, so, therefore, they are more knowledgeable in that field. It is advised that you source a freight forwarder that is an expert in dealing with your cargo type.

7. Freight forwarders deal with documentation & different information a lot

Because freight forwarders handle multiple clients cargo all the time, they are experts in filling out the specific documentation linked to importing or exporting goods. Documents such as commercial invoices, bill of landing, shippers’ export declaration and inspection certificates. These documents help you to ensure that your customers receive their goods and also act as a layer of security in case of loss or damage.

8. The speed of logistics has improved with time

A lot of global traders are hesitant to use sea freight because of the considerably long time span that it takes to ship goods across seas. As time has passed, shipping services have worked hard to improve their speed of travel allowing it to be more accessible to many other global trade partners.

9. The strength of a freight forwarder’ network is vital.

A well-established freight forwarder will have a strong and reliable network of contacts that can assist in your logistics needs. This will not only allow you to get a great price for shipping your goods but it will ensure that they arrive in a timely manner.

10. Shipping through freight is cost effective!

Believe it or not, transporting your goods through a freight forwarder can be one of the cheaper solutions. The shipping costs usually depend on the size of the cargo, quantity and the destination it is travelling to. This information is all used by the freight forwarder to quote for their services.

Sydney Waterfront Industrial Action - Wharf Strike September 2020

Shipping Terms Explained

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What is LCL?

LCL means Less than Container Load. This type of shipment is used when a shipper doesn’t have enough goods to fill an entire container. Further, the shipment comprises of consolidated goods from multiple shippers to fill the container.

What is FCL?

FCL means Full Container Load. An FCL ocean shipment refers to a shipment used by a shipper who occupies a full container, of any size. Therefore, the shipment contains goods from one shipper and is not shared.

What is the difference between LCL & FCL?

LCL shipping is used when there are isn’t enough cargo to fill and occupy an entire container. This type of shipment allows you to lower your warehousing costs, for example, when you are stocking a warehouse until you can select an FCL shipment to lower costs. However, the cost of an LCL shipment is higher than an FCL shipment and may take longer to be delivered.

LCL shipments, when shared between multiple parties, may have different delivery addresses that need to stop at various ports, open and rework the containers, which may cause delays.

FCL shipment costs are lower than LCL, as the cost unit per freight is lower than LCL. Although, importing feeds will still need to be paid regardless of the size of shipment and type of container. Furthermore, FCL shipments have faster lead times and include cargo that is meant for a single party, rather than multiple parties.

TGL is built on a foundation of simplicity, transparency and the people. Our knowledgeable freight forwarder team strive to serve your business’ needs to deliver your freight on time.

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