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Have you experienced damaged cargo or loss?

How frustrating is it to receive packages in the mail or delivered to your door and they look like a dog’s breakfast? Do you go back to the online store? Or direct to the supplier & send an email or give them a call to let them know your dissatisfaction.

Or are you on the receiving end of this email / phone call?? ….. How do you feel about receiving complaints from your clients saying they received the package damaged or only partially delivered?

Unfortunately, somethings are out of our control and some risks unpreventable, however did you know that almost 70% of all cargo losses are preventable?

How do I prevent cargo loss?

By being aware and paying attention to the risks that your cargo can be exposed to during your chosen mode of transport will reduce the loss of cargo.

These risks come in many forms, a few have been listed below, Have you considered any of these?

Handling… Rapid acceleration/deceleration of lifting/lowering to ship. Tilting during loading (fork truck handling). Pushing/dragging. Mishandling due to unsuitable equipment or unskilled labour. Improper weight distribution. Unsuitable lifting points.

Via Road… Acceleration/deceleration (stop and go/sudden braking). Impact against loading dock. Tilting (swaying on curves). Vibration and road shocks.

Via Rail… Acceleration/deceleration. Coupling impact (shifting / jolting) Swaying on curves. Vibrations.

Via Sea… Rolling, pitching, yaw and sway, surging. Wave impact Vibrations

Water damage… Rainwater (including snow and ice) Seawater Condensation (in container or on a delivery drivers truck if no tarp / cover)

Flooding, Theft/ Pilferage… Exposure of cargo/ container during all operations including transfer between points. Hijacking of container (Piracy)

Contamination… Residual materials or odours from previous load. Incompatible cargo. Proximity to hazardous or noxious cargos, cross contamination

Errors, omissions and delays are issues that we have all experienced in our lives. It may have been a missed consignment, late delivery, etc. The process of getting materials through airports and wharves can be a complex process.

So what can be done if the flight departure, or the sailing, is missed?

Firstly look after the integrity of the product, especially if it needs special storage. Subsequently look to make alternate arrangements with the exporter / Shipper, Investigate the problem. Identify the cause – this is not a witch-hunt – and implement appropriate procedures and policies to avoid it happening again.

What about Fraud??

Frauds are the result of illegal and unethical behaviour. Fraud may be perpetrated by a number of parties in the transaction, including:

  • the supplier (incorrect or substandard goods)
  • the buyer (obtaining delivery under false pretences)
  • the carrier (changing the departure date on transport documents)
  • and border control agencies (seeking ‘facilitation payments”)

Having Personalised Freight Solutions as your preferred international freight forwarder, we consider the types of processes and the issues that may be encountered, we assist in mitigating these risks and look at what we can do to assist you with these risks when they do occur.

Risk mitigation is the anticipation of risk, so how can you mitigate risk if you do not know or understand the process? How can you identify, analyse, evaluate and treat the risk in ignorance?

You must understand the risk you are trying to manage! Let the team at Personalised Freight Solutions help you.

Have you Considered?

Even the most experienced importers & exporters would appreciate a reminder of the massive list of “things” to consider when arranging shipping internationally. It happens way too often that it is not until a shipment goes wrong do we sit back and reflect on how processes can be improved to ensure that certain something does not go wrong in the future,

We are hoping that this series of “have you considered?” that we will be posting twice a week on social media will not only assist those who are thankful of the reminder but those who are new to international shipping and have not yet experienced enough to say “well I will make sure that doesn’t happen again!”

Bec

Pirates!

Monday night, and part of my studies tonight is covering Risk management.

What are you, the Importer & we, the Freight forwarders exposed to when dealing with foreign trade & how do we all effectively manage these risks??
Have you considered Country Risk / Geographical Risk when importing from a foreign country? Geographical Risk is known as a politically risky country where Piracy is a very big factor.
Pirate activity not only disrupts trade, it often results in loss of lives. South East Asia and the Indian Sub-Continent have now been added to the Piracy and armed robbery prone & warning list.
Make sure to ask your forwarder if the country you are importing from or exporting to – is considered a risky country / geographical risk?
Trading with ‘risky’ countries can impose additional charges like security surcharges on top of your freight. This increases your freight cost and adds to your bottom line.
Check out this live map which shows all piracy and armed robbery incidents reported to IMB Piracy. Reporting Centre during 2015  https://www.icc-ccs.org/piracy-reporting-ce…/live-piracy-map
Remember:
Your information saves lives – Use the 24hr Maritime Security hotline – https://www.icc-ccs.org/p…/24-hour-maritime-security-hotline to report any suspicious activity.
– Christine

Intro to Shipping Internationally

For those of who you have travelled internationally whether it be for business or pleasure, what’s the first thing you need to show before boarding your flight?

– Your airline ticket and Passport

To travel internationally and pass through airline security, customs & immigration barriers, you must provide all the right documents. The basic set of documents you would need; is your ticket to travel and your passport. However, you may also require visas, health cards and/or any other special documents dependant on the country you are going to.

When cargo travels internationally, there is no difference. Your cargo must also have a “ticket” to travel. In the freight industry, we call this a Bill of Lading, or Sea/Air Waybill. Your cargo will also require further documentation to pass through customs and quarantine barriers.

A basic set of documents required will include;
the Bill of Lading or Waybill,
Commercial invoice;
Packing list;
and Packing Declaration

However special documents may also be required which will be dependent on the nature of the goods and the destination.

Here is some examples of these special documents;
Weight & Measurement declarations;
Cleanliness declaration;
New & Unused declaration,
Certificate of Origin,
Manufacture declaration,
Free Trade Agreements,
Insurance Certificate.
Fumigation Certificates,
Dangerous Goods declarations and so on.

Going back to my analogy, there is one main difference between people traveling internationally and your cargo traveling internationally and that is, we can communicate when we need something or when something goes wrong and generally there is an airline host or hostess to attend to our needs.

So bearing this in mind, cargo must be handled correctly and right from the start. Having suitable packaging, timing and routing arrangements, clearance and compliance and correct documentation will all be necessary to ensure that a smooth journey for your cargo is achieved.

Did you know, not only will your cargo travel across at least two governmental and possibly cultural barriers, there is many geographical, climatic and handling hazards that may be encountered too?

That’s where the team at Personalised Freight Solutions comes in, let us assist you in this process. We can co-ordinate the documents, duty and tax implications, size and weight restrictions, special permits, route and schedule limitations, letter of credit stipulations and many other factors that require precise detail, timing and dedicated attention.

– Christine

A guide to Incoterms

You will note our short guide to Incoterms in the side bar of our services pages, here is more of what you need to know & why it’s so important to get Incoterms right from the start!

Are you looking at buying goods from overseas to re-sell in Australia? Has the supplier or factory given you a quote for the goods and told you that the terms are FOB / EXW / CIF etc. Are you thinking … what do these 3 letters mean?

What are Incoterms®?

The term, Incoterms® is an abbreviation for International Commercial Terms.

Incoterms® are a set of rules which outline the responsibilities of sellers and buyers for the delivery of goods under a sales contract. They are published by the International Chamber of Commerce (ICC) and are widely used in International commercial transactions.

The first Incoterms® were issued in 1936. The most current version of Incoterms® is Incoterms® 2010, which were introduced in September 2010 and became effective January 1, 2011.

Incoterms are also known as Delivery terms

What are Incoterms® used for?

Incoterms® provide a common set of rules to clarify the responsibilities of sellers and buyers for the delivery of goods under sales contracts (An example of a sales contract – is the invoice your supplier just gave you).

Incoterms distributes the transportation costs and responsibilities relating to the delivery of goods between buyers (importers) and sellers (exporters) and mirrors the modern-day transportation practices. Establishing the incoterm significantly decreases any misunderstandings among the buyer and seller and thereby minimizing trade disputes and litigation.

What are the Incoterms® 2010?

There are now two main categories of Incoterms® 2010 which are grouped by the modes of transport.

These can be used in international as well as in domestic contracts, the new groups aim to streamline the drafting of contracts and assist with avoiding misunderstandings by clearly stipulating the responsibilities of buyers and sellers.

Group 1 – Incoterms® that apply to any mode of transport are:

  • EXW – Ex Works
  • FCA – Free Carrier
  • CPT – Carriage Paid To
  • CIP – Carriage and Insurance Paid To
  • DAT – Delivered at Terminal
  • DAP – Delivered at Place
  • DDP – Delivered Duty Paid

Group 2. Incoterms® that apply to sea and inland waterway transport only:

  • FAS – Free Alongside Ship
  • FOB – Free on Board
  • CFR – Cost and Freight
  • CIF Cost, Insurance, and Freight

The movement of cargo across international boundaries, by necessity, requires the involvement of a number of service providers and authorities. These parties include Customs and other Permit Issuing Agencies, Transport Operators (Forwarders, Carriers, and Brokers), Insurers and Banks.

The delivery terms assist with telling either party at least;

  • who is responsible for taking certain action and who is to pay for it
  • where the risk in transit transfers from seller to buyer

If you need further assistance with your individual circumstances please feel free contacting us anytime!