excelsior, Author at Excelsior Worldwide Logistics Corp.

The Impact of Natural Disasters on Freight Shipping

excelsior on April 15, 2019

In terms of economy, any country will always rely on the continuous transportation of goods and materials that keeps the relationship between suppliers and manufacturers in harmony. This process is very critical for maintaining economic growth because any moment of disruption could bring serious adverse effects. Some of these disruptions are caused by certain deregulations in the financial industry that are to some extent, quite avoidable. However, another thing that can affect a country’s economy is freight shipping, which can sometimes depend on several factors that unfortunately are beyond our control: natural disasters.

Speaking about natural disasters in the Philippines, the likes of floods, typhoons, and earthquakes, are quite common. These calamities typically leave most of the routes that are essential for freight shipping operations unsafe such as roads and seas. This reason is also why you should also be aware of the following ways of how nature can make a significant impact on freight shipping:

The Price of Fuel

One of the most critical prices to look out for when there’s a natural calamity going on is the price of fuel in the world market. Since the cost of most goods and other services are very much dependent on the value of fuel as the source of transportation, your chosen carrier can charge you more than usual. The worst-case scenario in this situation is when there’s a typhoon going on oil refineries strong enough to make it temporarily shut down due to damages.

The Expected Arrival of your Goods

Time is more than just gold in the world of business. Importing your goods in a faraway place requires a definite amount of time to keep up against competitors that are nearer than your target customer. Moreover, if you sell something that thrives on punctuality to retain its usefulness such as food, you should know by now that delayed delivery can ruin its condition. So, if you just shipped your goods during a storm, you better expect for the worse. Carriers tend to choose longer routes over the shorter ones if they find the latter impassable due to the dangers involved.

Refusal of Carriers to take your Cargo

Natural disasters will always make most carriers to be more vigilant to take anyone’s goods. Denial of your goods directly gives detrimental effects on your supply chain, eventually losing considerable revenues in the long run. Just imagine all of your business operations being halted in such a significant amount of time.

Freight Shipping Rates

Rates for freight shipping is always flexible especially on the event of calamities. A domino-effect will most likely happen until it makes its way for you. From the impassable roads making the fuel much more expensive to the delayed accomplishment of shipping service, most financial burdens will be passed into you.

Conclusion

As a business owner looking to ship your goods, anticipating natural disasters is a key for preventing any financial loses that can delay your company’s growth. Always take heed of the weather updates and recent news before making any move.

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5 Questions to Ask your Freight Forwarder – Infographic

excelsior on March 31, 2019

One of the true marks of a successful and competent business owner is how to make the best out of a freight forwarding service. In the world of commerce, freight forwarders are usually the one in charge of facilitating all the transfer and shipping process of certain goods from one place to another.

If you’ve never tried affording a freight forwarding service before, you should be aware that there are several questions that you should ask while contacting a freight forwarder company. Here are five of the most important ones:

Question #1: Do you have any packing services?

Packing services will always depend on the freight forwarding company you hired. Some may offer to seal up your goods as they guide you through the process, while others might not. So, it may not hurt to ask the company first in case you don’t have much time to pack up everything you’ll need for shipping.

Bonus tip: If you’re planning to pack them your own, be sure to do some research on properly packing your specific cargo as it might affect its condition while on board.

Question #2: How extensive is your network?

This is where the competition among freight forwarders comes in: who has the most comprehensive network of connection? Having an extensive network of shipping lines enables a freight forwarding company to give you the best options available as well as providing you the best shipping rates you can surely afford.

Additionally, it also helps with speeding up all of the other client’s requirements and demands.

Question #3: Will I be able to track my shipments?

Once your cargo is currently on its way to the target destination, it is very important to track its condition, location, and the expected time of arrival. In other words, telling this question to your chosen company beforehand gives you the assurance that your goods will always be in good hands.

You can now focus more on planning your other business schedule.

Question #4: What are the specific requirements for the shipping process?

One crucial job of freight forwarders is to make sure that you can complete all of the requirements of shipping as fast as possible. But it might also help a lot if the client is also pretty curious on all of the paperwork that must be taken care of. In fact, it’s more of a self-responsibility than a favor, since import requirements will always vary from country to country.

Question #5: Can I see any of your accreditations?

If you wanted to take a peek on the company’s history, credibility, and reliability, it is your right as the client to be informed about all of the accreditations that company already have. This question is especially useful when you’re still looking on the list of potential freight forwarding companies that you are opting to hire. You can also look at their official website and see all the testimonies and comments from former clients.

Having a freight forwarder’s expertise in keeping your business up and running is definitely a convenient way to avoid all the hassles associated with requirements in both importation and exportation.

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Current State of Port Congestion in the Philippines

excelsior on March 18, 2019

Basically speaking, port congestion refers to the situation wherein a growing number of vessels are starting to queue up outside the port in order to wait for any available space where they can load or offload their cargo. And speaking of the Philippines, maritime-related problems such as port congestion can be quite inevitable, considering the fact that vast oceans and seas geographically surround the country.

Before the advent of their colonizers, the settlers of the Philippines once created wide trading networks within every island that stretches as far as to other neighboring countries like China, Japan, Cambodia, India, Borneo, and the Moluccas.

During the Spanish rule, the trading relations with the said countries continued to flourish, only this time the Philippine capital of Manila has been turned into the center of commerce in the east closing its ports to any countries except Mexico, establishing the what was known as the Manila-Acapulco Trade or the Galleon Trade.

But enough with the history, for this article, will be discussing all about what’s the current situation of the ports here in the Philippines. Intense congestions concerning our harbors can bring detrimental effects for the overall economy of the country in the long run. This is because time is extremely precious for importers, exporters, freight forwarders and other logistics services provider. And with the long delays brought by the port congestion, their operations will surely be disrupted indeed.

How’s the port congestion in the Philippines nowadays?

Based on the most recent news published on various trusted news sites, it seems like there’s some occasional fiasco going on with the government and the Local Truckers Association of the Philippines. This implies that the problem does not lie on the number of the vessels, but on the long queue of trucks waiting inside the terminals. According to PortCalls Asia, the government denied the allegations of any cases of port congestions, for this issue’s roots, can be traced back to a separate problem about by “the high number of empty containers clogging the terminals and this gave the impression of port congestion by the policy of port operators to limit the entry of empty container vans.”

Lest according to the government, the flow of operations within the Philippine ports especially Manila is still within the threshold of being manageable under international standards. As recent as the previous years, they stated that the average dwell time of the ports are seven days, and the utilization level of yards goes in for over 85%. Meanwhile, the quay crane production rate still holds on to 24.84 moves per hour even bearing the international standard of 25.

How this “empty containers” type of port congestion affects the economy?

While there it can be implied that there is nothing to worry about, the congestion of the empty containers in some ports in the Philippines can pose problems like late deliveries of several kinds of goods. It seemed clear that limited space for container yards somehow affects the cost of trucking in the country.

The Conclusion

It can be true that port congestion in the Philippines does exist in a way or two.

However, as stated in the book “Easing Port Congestion and Other Transport and Logistics Issues,” the best way to deal with it is to accept the fact that in most cities like Manila, factors such as port traffic, economy, and human population far outgrows the infrastructures that help connect the ports to nearby provinces that host industrial and commercial estates.

As of now, what we can do now is to trust the government’s figures and hope for the best.

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6 Basic Stages of the Freight Forwarding Process – Infographic

excelsior on February 28, 2019

In the world of commerce, transporting goods or products from one place to another is one of the most efficient methods in maintaining the flow of profits at a desirable rate. This is where freight forwarders really shine when it comes in providing such services.

Freight forwarders is a person or firm that specializes in facilitating shipments for clients such as private individuals or corporations. While freight forwarding can be a pretty complicated topic to talk about, having some fundamental knowledge about its process is a true mark of a successful business owner. Not only it will give you the edge over your competitors, but it also protects you against freight forwarding scams.

Here are the six basic stages of the freight forwarding process:

Stage 1 – Export Haulage

The first stage is called export haulage. This is where the goods to be shipped by the client are brought to the freight forwarder’s warehouse. Depending on the geographical location, type of goods, and the travel distance, this stage usually takes around several hours to a few days.

Stage 2 – Items Checkpoint

Upon the arrival of the goods, the freight forwarders will then thoroughly check everything to see if there are any problems or is it illegible to be shipped to the target location.

Stage 3 – Export Customs Clearance

Once the freight forwarders approved the shipment, it’s time to clear the requirements. Before putting them inside the carrier, some important details about the goods must be validated by the customs authorities of the exporting country.

This is also the stage where freight forwarders work together with customs brokers since they have the required expertise in this kind of legal activity. They can as well submit appropriate payments on behalf of the client.

Stage 4 – Import Customs Clearance

This stage is basically the same with export customs clearance; only this time the goods must adhere to the legal requirements imposed by the receiving country. It can be performed either by the freight forwarder or the nominated customs broker.

Stage 5 – Destination Arrival and Handling

After clearing all the necessary requirements, the freight forwarder shall now take all the important forms for the shipment. These forms may include documentation, carrier bills, among others. This is the penultimate stage of freight forwarding.

Stage 6 – Import Haulage

The final stage of the whole process where the goods are transported from the receiving warehouse to the main recipient. Bringing the goods to the intended destination can still be performed by the freight forwarder or the consignee by simply hauling it themselves.

These stages may prove that freight forwarding isn’t too complicated as it supposed to be. As long as you have your trusty freight forwarder with you, exporting and importing will always be hassle-free as ever.

Indications of a Reliable and Trustworthy Freight Forwarding Company

excelsior on February 15, 2019

A freight forwarding company is a firm that offers the arrangement of shipping goods in place of an individual client or company. Many businesses today prefer hiring the service of freight forwarders in order to sustain their competence in the world market.

While there can be a wide variety of companies to choose from, finding the most reliable and trustworthy freight forwarder can become quite tricky since there are indeed some risks involved concerning the safety and timely arrival of your products from one place to another.

So, without further ado, here are the telltale qualities that can easily help you determine a reliable and trustworthy freight forwarding company:

Possesses good credentials

One of the most easily identifiable signs of a competitive freight forwarding company is a list of credentials. These can be awards, testimonials from former and existing clients, and specific accreditations from the government. Knowing this can almost guarantee that a freight forwarder is capable of providing the best quality of services available.

Strong and wide network of contacts

A strong and wide network of contacts is an essential tool of a reliable freight forwarder, especially when conducting international shipments. The company must utilize their contacts with carriers to move the goods. They should also maintain friendly relations with several custom brokers as well as other forwarding agents in foreign countries. This will help them establish effective communication when they are trying to request for any updates about the status of the package, which can prevent possible delays on the arrival of goods.

A range of quality services

A trustworthy freight forwarding company usually doesn’t only provide one kind of service. Instead, aside from product shipping, they also specialize in an extensive range of services such as trucking, assistance in the requirements of importing and exporting, breakbulk agency, among others. Having a range of services is a testament to a company’s ability in singlehandedly managing a set of complicated but important business requirements.

Excellent knowledge in document processes

Being an expert in the nuts and bolts of running the documentation procedures of shipping is a perk of a trustworthy freight forwarding company. This enables them to do their job efficiently by properly guiding and assisting the clients in the step-by-step process that can prevent them from spending too much money as well as precious time due to utter confusion.

Customer Service

Most experienced clients prefer a freight forwarding company that grants them information regarding their best rates and options. Moreover, having an active website, email, or contact number that regularly interacts with the customers looking for inquiries makes that kind of company a highly sought-after one.

A decent packaging service

Another trait of a trustworthy freight forwarding company is its skill in sustaining the safety of the products through a proper and foolproof packaging service. Packaging serves as the main protection of goods during the shipping time, so it is most vital for the company to have the proper kind of packaging regardless of what kind of goods they’re transporting.

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn more about importation and exportation. It is our advocacy to share our knowledge & experience for 17 years in the business. Visit our website today at www.excelsior.ph to learn more about our service.

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What’s the Difference Between a Freight Forwarder and a Customs Broker – Infographic

excelsior on January 31, 2019

Some exporters nowadays often mistook a freight forwarder for a customs broker and vice versa. While may be working in the same industry, both are fairly different from each other. Here are some of the telltale facts that draw the fine line between the two professions.

1. Definitions

A Freight Forwarder is an agent or company that specializes in logistics and organizing of shipments in place of an individual or a company, to transport their goods. This kind of service usually requires a great deal of connection in the supply chain.

On the other hand, a Customs Broker is a private individual or firm that serves as guide for both importers and exporters in meeting the necessary requirements given by the customs authorities.

2. Duties and Responsibilities

Freight Forwarders are the ones responsible for handling all the processes when it comes in exportation of a cargo. From bringing the goods to its mode of shipment (e.g. truck, plane, or ship) to its arrival at the target destination, the freight forwarders have it all covered. They also give advice as to how to get the best deal for the cost of transportation, as well as guarantee the safety and timely arrival of the goods. To know more about the importance of a freight forwarder please check out the infographic

here.

Customs Brokers are in charge of submitting all important documents like clearances in order for the shipments to be legally allowed to enter its country of destination. They also tend to have a wide area of knowledge when it comes in every entry procedure, including other payments like taxes and fees for imported merchandise. In addition to that they can also help shippers through the following:

Customs bonds
Importer Security Fillings
Dispatching for final delivery
Duty drawback
Reconciliation

One thing custom broker can be similar with freight forwarders is that they can as well give recommendations. Only this time, they do it for the purpose of providing the client on getting the most efficient way of clearing their goods in accordance to customs entry rules and regulations.

3. Can a Freight Forwarder be a Customs Broker at the same time?

Since Freight forwarders can be a wider term compared to customs brokers which has a more specific job, there are cases in which a freight forwarder can offer services similar to that of a customs broker. However, not every customs broker can be a freight forwarder.

For many business owners trying import or export their goods, having both freight forwarders and customs brokers are very critical in ensuring its proper arrival on time while adhering to the complicated rules and process of international shipment.

Freight Forwarding in the Philippines: Tips to Achieve Competitive Cost Saving When Importing From China?

excelsior on January 15, 2019

One of the most critical success factors of an import business is learning how to minimize shipping costs. Whether you’re just new in the international trading industry or have already established a big company, managing shipping cost is an aspect that warrants extreme scrutiny and judgement as it can impact your business’ bottom line really hard.

With that being said, here are some tips that can help you ship from China to the Philippines in a cost-effective way:

1. Choose a Reputable Chinese Supplier

The first step to ensure you get a competitive cost-saving when importing from China is to choose a supplier that is reliable and trustworthy enough to cater to your needs.

If your supplier doesn’t comply with regulations and doesn’t have any certifications, it can lead you to serious legal problems once your cargoes arrive at the port destination, which can ultimately result in delays, additional logistical headaches and shipping costs.

2. Hire a Freight Forwarder in the Philippines

Most freight forwarders in the Philippines are affiliated with numerous international transport organizations and companies worldwide, including local Chinese logistic companies. Hence, you should choose a freight forwarder that can and will use its connections to negotiate for better prices on your behalf.

Furthermore, your chosen Philippine freight forwarder should also be knowledgeable about the freight peak seasons in China (e.g., Chinese New Year) because during peak seasons, importing can become complicated due to high demand, high prices, and a probability of container shortage.

3. Choose Incoterms Wisely

Incoterms are international commercial terms that serve as the basis of agreement between the supplier and the buyer that trades internationally. There numerous Incoterms to choose from, so selecting the most competitive one can be quite challenging.

In general, Incoterms often used to import from China, such as EXW, FOB, and CIF, are the most ideal as they put you in charge of choosing a freight forwarder, shipping routes and times, and other details that allow you to balance all costs so you can stay competitive. However, keep in mind that your negotiation skills and the type and value of goods could also affect the type of Incoterms you should choose.

If you’re unsure of which Incoterm to choose, do read our post on how to select a competitive and safe Incoterm.

These are the steps to follow in order to achieve significant cost saving when you import goods from China to the Philippines.

Here at Excelsior Worldwide Freight Logistics, we have equipped people who are knowledgeable regarding import procedures and are committed to reducing your expenditures as much as you are.

We also conduct free orientation for those who are willing to learn about importation & exportation. It is our advocacy to share our knowledge & experience for 17 years in the business.

Freight Forwarding Company in the Philippines – Why Do You Need One? (Infographic)

excelsior on December 31, 2018

Freight forwarders or forwarding agent have vital roles in the shipping world. In the shipping industry, freight forwarders serve as the support and assistance for the import and export process. This is very, very important in the shipping world as it is one of the most delicate parts of the global supply chain.

In the Philippines, 21.1% of the transporting storage and establishments are freight forwarding companies. They compose the biggest chunk of transporting service in the country – just to ensure that all your goods are delivered to warehouses the fastest and safest possible way.

Businesses become bigger through time, and as they expand, there is much competition in the industry. Products and services ultimately differ in terms of technology and advanced features, including transport service. However, keeping up with the number of shipments going in and out of an import/export company can be challenging; This is where freight forwarding company in the Philippines thrives. They manage the huge efforts in shipping, so you can stay focused on product operations.

If you are still not convinced, here is a list on why you need the help of a freight forwarding company in the Philippines.

Freight Forwarding Company in the Philippines Makes it Easier to Manage Shipping

Handling the entire logistics in-house or using another logistics provider can be very costly and messy. Choosing a freight forwarding company makes a lot of difference as they have the capability and resources to organize all the demands of your shipping.

They are the experts in the import and export industry. Your cargos will be transported to their destinations with the knowledge that they employ the most skilled workers to do the job and they have the machinery to handle even the unexpected. In fact, these employees comprise 10% (~18,000 workers) of the total workers in the transporting industry. They have the processes to make everything systematic, and some even have distinct features to ensure their customers do not worry. All of these will help save you a lot of time and effort.

Freight Forwarding Company in the Philippines: Features and Services

Freight forwarders employ various features to keep you calm, without anything to worry – as their cargos get transported to your customers. Some of their features are:

Warehousing Shipping and Export Documents
Efficient Cargo Space
Freight Management

Freight Forwarding Company in the Philippines is Cost-efficient!

Freight forwarders provide specific services at a price that is not heavy on your pockets! They have some bundle deals that are better than 3PL companies which have wider scopes of services such as arranging transportation options. They have a huge network which can help you negotiate with carriers for a less steep price, due to the volume of containers they with each carrier every day.

They can also look for good freight quotes and have the inside information on which carrier has the best routes, enabling your shipments to land in their final destinations the quickest way possible, at a much-ideal cost.

Freight Forwarding Company in the Philippines Makes Everything Controllable and Simple

Dealing with a lot of volatility in the shipping industry can give you a headache that it can cost you a lot of money for every single mistake, especially when your business is growing bigger and bigger by the day. You only communicate with the company, and they handle all the time, money, effort and frustration; they offer you flexible options and gives you full control.

They also give that assurance that would increase your marketability and your service credibility. They are experts in limiting risks, so they can recover quickly whenever there is a loss of shipments or any other unforeseen circumstance. They can offer transparency necessary for your shipment delivery.

Here at Excelsior Worldwide Freight Logistics, we treat our clients as partners. We also conduct free orientation for those who are willing to learn about importation and exportation. It is our advocacy to share our knowledge and experience for 17 years in the business.

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Steps to Get An Accurate Freight Rate Quote

excelsior on December 14, 2018

There is a famous proverb that says, ‘There is nothing certain, but the uncertain.’ Yes, this statement is true and evident in our daily lives but in doing business and transactions, it’s better to dip your toes first into the water before taking the plunge ̶ you need to know what to expect before closing a deal and that is what a freight rate quote can provide you.

Through these steps, you will be able to have an accurate information on your total shipping expenses and obtain the best freight rate:

Decide where to get a freight quote

Deciding where to get a freight quote can be quite tricky because of the number of options available. To make it easier for you, here are some details on shipping partners that you can choose from:

• Freight Forwarders

If you’re looking for a “one stop shop” that can provide you brokerage, carrier, and international freight forwarding services, then freight forwarders are your best pick.

Be specific with your shipment details

In order for your freight forwarder provide you with an accurate freight quote, you must provide them with the following details:

What are you shipping?
What is the value of your shipment?
What is the size and weight of your shipment?
Where is your shipment going?
When does it need to arrive?

Prepare an RFQ (Request For Quotation)

Once you’ve prepared all the details above, the next step to provide them to your chosen shipping provider. Depending on the services they provide, you may receive just one quote or several to choose from. After you pick a price and service, review all the details to make sure it’s accurate and in order.

Sources:

https://fitsmallbusiness.com/how-to-get-a-freight-quote/
https://learn.org/articles/What_Does_a_Freight_Broker_Do.html

Freight Forwarder In The Philippines: 6 Things You Should Look For (Infographic)

excelsior on November 30, 2018

Choosing a freight forwarder is a crucial decision for every business because you need someone whom you can rely on and entrust the safety of your goods.

It is no secret that there are freight forwarding companies who get banned, imprisoned and fined for illegal operations.

There are also some who just aren’t knowledgeable with the ins and outs of the industry, leading to mistakes and inefficiency.

Having that said, here are seven things that you should look for in a freight forwarder in the Philippines to make sure that your transaction goes smooth:

Expertise

When a freight forwarder has been in business for more than a decade, it’s a good indication that they have sufficient knowledge on transport rules and regulations and have already encountered and overcome lots of challenges in the past, given the fact that they outlasted other freight forwarding companies in the competitive industry.

That is why choosing an accomplished freight forwarder over a newbie will give you more assurance that your transaction will be a satisfying one.

A good business reputation

In connection to expertise in the industry, a good business reputation also comes along with it. They wouldn’t last long in the industry if their services aren’t satisfying, and if they aren’t professional when it comes to dealing with customers because negative customer feedbacks are a deal-breaker.

The good thing is aside from word-of-mouth, you can now check their customer reviews online to know whether their customers are satisfied with their service or not.

A vast network

Another benefit of choosing a freight forwarder who has been in the industry for a long period of time is that they’ve already built connections with multiple logistics companies worldwide, and they can use it negotiate for better prices on your behalf, wherever you’re importing from around the globe.

Accreditation

Aside from long industry experience, you can also evaluate whether a freight forwarder can be trusted or not through checking if they are accredited or not.

Before any transaction, look for a certificate of accreditation from the Department of Trade and Industry first or check the recent list of accredited Non-Vessel Operating Common Carriers (NVOCCs), International Freight Forwarders (IFFs) and Domestic Freight Forwarders (DFFs) at the official website of DTI.

A customs broker’s license

If the freight forwarder also offers customs brokerage services, you should look for a custom’s broker license to ensure that they are really knowledgeable on preparing necessary documents, country-specific rules and regulations, and calculation of duties and related taxes. Otherwise, you might end up wasting money and your shipments held at customs.

Excellent customer care

Good customer service should always be a priority when looking for partners in business, especially when you will entrust them to deliver your goods on time and in good condition.

A freight forwarder with excellent customer care manifests effective communication skills and good business etiquette.

Try to inquire first to determine whether or not they are polite, willing to answer your questions, and attentive to details. If they aren’t, better look for another one that you can get along with, understands your needs and is truly concerned with your business.

Otherwise, your transaction might fail due to miscommunication and misunderstanding. In worse cases, it might even result in lawsuits.

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