excelsior, Author at Excelsior Worldwide Logistics Corp.

Exploring All Modes of Freight Transportation for 2024

excelsior on February 9, 2024

In the global business landscape, the challenges of transporting goods have evolved through innovation, effectiveness, and adaptability, giving rise to a robust industry. Logistics corridors no longer follow the straight lines of the past; rather, they span the boundaries of technology, sustainability, and creativity. This year of 2024, check out the various modes transportation in an international freight forwarding company that bring a distinctive level of service in the freight forwarding industry and how it help meet the growing need for better logistics.

Here is are the possible best modes of freight transportation that will continue to shape the industry’s future because of new emerging technologies.

Traditional Modes of Freight Transportation

Trucking: The backbone of freight transportation continues to be trucking, but with technological advancements. Autonomous trucks and platooning are becoming more prevalent, promising increased efficiency and reduced operational costs.

Rail Freight: With high capacity and eco-friendly advantages, rail freight is experiencing a resurgence. Innovative technologies, such as precision scheduled railroading, are optimizing routes and enhancing overall efficiency.

Air Freight Revolution
Drone Delivery: Unmanned aerial vehicles are taking center stage for last-mile deliveries. Companies are investing in drone technology to achieve faster and more cost-effective deliveries, especially in remote or congested areas.

Air Cargo Innovations: The air freight industry is witnessing advancements in cargo planes, including increased fuel efficiency and capacity. Supersonic air travel is also on the horizon, potentially reducing shipping times across the globe.

Seaborne Solutions

Smart Shipping: The maritime industry is incorporating IoT and blockchain technologies for smarter shipping operations. From predictive maintenance to real-time tracking, these innovations are enhancing reliability and transparency. However, this may affect forwarding costs due to currency exchange which is also true for other modes of transportation.

Autonomous Ships: The concept of autonomous vessels is gaining traction, promising to revolutionize the maritime sector. These ships can navigate oceans efficiently, reducing human error and operational costs.

Underground Freight

Hyperloop and Tube Transport: The emergence of hyperloop technology and tube transportation systems is changing the game for long-distance freight. With the potential for high-speed travel and minimal environmental impact, these systems are being explored for their viability in the near future.

Urban Mobility Solutions
Cargo Bikes and E-scooters: In congested urban areas, cargo bikes and electric scooters are becoming popular for last-mile deliveries. These eco-friendly options help reduce traffic and emissions, contributing to sustainable freight transportation.

Space-Age Logistics
Satellite Logistics: As technology continues to advance, satellite logistics is playing a crucial role in tracking and managing freight globally. This space-age solution ensures real-time visibility, security, and efficiency in the supply chain.

Electric and Sustainable Initiatives
Electric Trucks and Ships: The shift towards electric vehicles is impacting freight transportation. Electric trucks and ships are gaining momentum, reducing the industry’s carbon footprint and contributing to a more sustainable future.

Green Initiatives: Companies are increasingly adopting eco-friendly practices, such as carbon offset programs and sustainable packaging, to align with environmental goals and consumer demands.

The future of freight transportation in 2024 is a fascinating amalgamation of traditional methods and cutting-edge technologies. From the skies to the seas, and even beneath the ground, the logistics industry is exploring every avenue to create a more efficient, sustainable, and interconnected global supply chain.

In Excelsior we embrace these innovations to ensure that the freight transportation sector remains dynamic and adaptable in the years to come.

Freight Forwarding Trends 2024: Things to Expect in the Industry

excelsior on January 26, 2024

Trends come and go, and the same is true with the freight forwarding industry. Its constant evolution is shaped by technological advancements, global economic shifts, and changes in consumer behavior—something to always look out for.

As we step into a new year, several leanings are poised to redefine the landscape of freight forwarding trends in 2024.

From digital transformation to sustainability initiatives, these are not only reshaping the industry but also providing opportunities for innovation and efficiency.

Freight Forwarding Trends of 2024

Take, for example, the current consumer behavior that boomed during the pandemic—online purchasing. This is one good reason and factor in predicting the industry trend for the coming years.

Businesses need to stay ahead and learn from this developing habit of consumers and also to take good care of their supply and its flow.

Counting the days to 2024, here are some of the things to expect in the freight forwarding industry:

1. Digital Transformation and Automation

In 2024, the freight forwarding industry is experiencing a significant digital transformation.

Automation technologies, such as robotic process automation (RPA) and artificial intelligence (AI), streamline processes, reduce errors, and enhance overall efficiency. Automated booking systems, real-time tracking, and predictive analytics are becoming the norm, empowering freight forwarders to make data-driven decisions and optimize supply chain operations.

2. Blockchain Integration for Enhanced Security

Blockchain technology is gaining traction in the freight forwarding sector, offering enhanced security, transparency, and traceability.

By implementing blockchain, an international freight forwarding company can address key challenges such as documentation errors, fraud prevention, and real-time visibility across the supply chain.

Smart contracts within blockchain systems enable the automated execution of agreements, minimizing delays and disputes.

3. Real-time Tracking and Visibility

In 2024, real-time tracking and visibility have become essential components of freight forwarding.

Advanced tracking technologies, including Internet of Things (IoT) devices and sensors, enable shippers and logistics providers to monitor the location and condition of goods in transit.

This level of transparency not only enhances customer satisfaction but also allows for proactive problem-solving and risk management.

4. Eco-friendly Initiatives and Sustainable Practices

Sustainability is no longer a choice but a necessity in the freight forwarding industry.

With increasing awareness of environmental issues, companies are adopting eco-friendly initiatives to reduce their carbon footprint.

Electric vehicles, alternative fuels, and optimized routing for fuel efficiency are some of the sustainable practices gaining momentum in 2024.

Freight forwarders are not only meeting regulatory requirements but also aligning with the growing demand for environmentally conscious supply chain solutions.

5. Resilience Planning and Risk Management

Global events, such as the COVID-19 pandemic and geopolitical tensions, have underscored the importance of resilience planning in the freight forwarding industry.

In 2024, companies adhere to using a guide for international freight forwarding process to help prioritize risk management strategies and mitigate disruptions.

This includes diversifying supply chain sources, leveraging technology for scenario planning, and implementing flexible logistics solutions to adapt to unforeseen challenges.

6. Collaborative Platforms and Ecosystems

Collaboration is key in the evolving landscape of freight forwarding. Digital platforms and ecosystems are connecting various stakeholders in the supply chain, fostering communication and collaboration.

These platforms enable seamless information sharing, coordination, and optimization of resources, ultimately leading to more agile and responsive supply chains.

As we navigate through 2024, the freight forwarding industry is embracing a paradigm shift driven by digitalization, sustainability, and a commitment to resilience.

Companies that adapt to these trends will not only thrive in the current landscape but also position themselves as leaders in a future that demands innovation, efficiency, and a sustainable approach to global logistics.

The convergence of technology and a forward-thinking mindset is paving the way for a new era in freight forwarding.

To learn more, read these informative articles by Excelsior.

Tips When Working with a Freight Forwarder

How Currency Exchange Affects Freight Forwarding Costs

Tips when Working with a Freight Forwarder

excelsior on May 14, 2023

Working with a freight forwarder international has been a crucial part of exporting products to various ports worldwide for many years. This allows exporters to have third-party support that can handle the consignments when they arrive at their destination. There are also freight forwarders that act as a customs brokerage firm as they assume responsibility for managing clearances on behalf of the shipper.

However, despite being a vital part of the global trading process, many exporters fail to build a healthy working relationship with their international freight forwarding provider. This usually led to price fluctuations, delays in procurement, and details getting overlooked. A solid connection with a forwarder provides several benefits, including lower freight rates that shippers might not secure on their own.

Here are some tips you can consider if you want to start partnering with an international freight forwarding company or improve your connection with them.

· Ensure Proper Communication

The most crucial part of working with freight forwarders is ensuring effective communication throughout the shipping process. You can communicate your priorities and possible future projects to help the forwarders make the process more efficient. In addition, you can also communicate any potential negative experiences with previous forwarders, as it can help build a healthy relationship with your new freight forwarder.

Communicating about the expectations, responsibilities, and projects will make the shipping process more manageable than usual. This will also allow both sides to collaborate on particular issues that might arise during transport.

· Pay On Time

One of the most significant issues faced by freight forwarders for years is late payments. This leads to them having problems paying their own vendors and creditors, which can further delay shipment. This is why exporters must pay on time, enabling them to have a good credit relationship with their freight forwarder. Payment overdue jeopardizes the entire shipping process and can lead to forwarders ending their relationship with the exporters.

· Avoid Cramming Shipments

Transporting shipments takes many things to be successful, which is why it is vital that you plan it in advance. Only giving yourself a few days to have the shipment out will lead to various complications. This includes difficulties in finding vessel space and shipment booking. This will also result in more expenditure due to delayed container use.

· Understand Export Compliance

Another crucial thing to do when exporting products is to ensure you properly understand the requirements to transport your product. For example, you must accurately classify what items you are shipping. You should also know the requirements when labeling the cargo and the paperwork required for your goods. This can help forwarders properly tender shipments and ensure they arrive at their destination without complications.

· Focus on Long-Term Goals

If you are looking to expand your business in the future, it is vital that you consider your freight forwarders as a part of your logistics team. You should not only see them as a third-party service that provides the lowest prices, as this can result in a challenging situation. Making them a part of your internal team will allow you to develop a healthy connection with them, helping you get competitive prices and faster transport speeds.

Conclusion

With freight forwarding expected to be more crucial in the succeeding years, exporters must be able to find a freight forwarder that they’ll be confident working with for a long time. Building a healthy relationship can be a game-changer for many exporters, enabling them to reap several benefits that make shipping cost-effective and faster than usual.

And if you are looking for the best freight forwarder in the Philippines for all your transport needs, then Excelsior Philippines is for you. We have been in the industry for more than two decades, providing our clients with peace of mind that their shipments will arrive at their destination safely. To learn about our services, contact us by visiting www.excelsior.ph/contact-us or calling (+632) 8525-9775.

How to Mitigate Currency Fluctuation Risks when Shipping

excelsior on April 11, 2023

For decades, exporting products has been vital to the Philippine economy, allowing entrepreneurs to increase profits through global trading. Despite its downward trend recently, exports still account for more than $5 billion of the nation’s GDP. The continuous expansion of digital trading can provide new opportunities for Filipino business owners to export their products to various countries, potentially increasing export rates moving forward.

And despite being an essential part of the economy, numerous exporters face unique issues that can hinder their operations in the long run. For starters, not partnering with an international freight forwarding company can significantly risk the packages getting lost or damaged while in transit. But what remains one of the top issues exporters face on a day-to-day basis is foreign exchange, which constantly fluctuates for several reasons.

Understanding Currency Fluctuations

International forwarding invoices are often complex, with many factors contributing to freight rates around the globe. And one of the significant ones is currency exchange, which mainly refers to how much of each currency is needed when people exchange them. Some factors that lead to currency fluctuations are economic conditions, market sentiment, and political situations.

Currency exchange rates have always been a massive part of calculating freight costs, and even a tiny change in the rates will significantly affect shipping prices. Besides freight prices, currency fluctuation can negatively impact a company’s potential revenue and profit margins. This can decrease an enterprise’s competitiveness in the market, especially if most of its competitors come from countries with stronger currencies.

Mitigating Currency Exchange Risks

The risks of currency fluctuations when it comes to shipping prices are not a new thing. Many organizations have already implemented different techniques that allow them to reduce the impact of fluctuating currency rates when shipping their products.

1. Use Forward Contracts

One of the most straightforward solutions to decrease the complexities of shipping costs is to use forward contracts. This means that the merchant and buyer will agree to a fixed exchange rate that they can use for future transactions. This will allow both parties to know exactly how much the payment would be without worrying about changes in the currency rate.

2. Understand the Currency Adjustment Factor (CAF)

The concept of CAF is mainly used by freight forwarders, enabling them to mitigate the risk of currency fluctuations, especially for long-term contracts. Here, the shipper will have a flat percentage surcharge on the invoices sent to their clients, and this usually is based on the currency where the freight will depart and arrive. Exporters must know this concept to help them plan out their finances in the long run.

3. Currency Options

Apart from forward contracts, it will also help if companies consider currency options strategies when exporting their products. Many enterprises have used this risk management technique to protect themselves against currency fluctuations.

Like forward contracts, this hedging strategy gives businesses the right to export at a fixed price in the future. But the main difference is that the parties are not forced to finish the transaction when the deadline arrives. This is beneficial if the exporter believes they will get a more favorable currency rate, allowing them to mitigate the risks of financial losses.

Conclusion

With digital platforms opening up new opportunities for merchants to sell their products to international customers, exports are expected to continue to rise in the coming years. And so, firms must know the risks they might encounter when exporting products, such as the ever-changing foreign exchange rate. By understanding this, they can implement the proper currency fluctuation management solution that will protect them from financial losses in the long run.

Excelsior Philippines, the country’s top freight forwarding and customs brokerage company, has been in the industry for more than two decades, providing our clients with peace of mind that their shipments will arrive at their destination safely. We can also help you negotiate freight charges for the best shipment value. To learn about our services, contact us now by clicking here or calling (+632) 8525-9775.

How Currency Exchange Affects Freight Forwarding Costs

excelsior on March 15, 2023

Global trading has significantly grown in the past decade as more and more businesses and individuals rely on imports and exports to make money. Experts forecast that international trade will hit more than $32 trillion in 2022 as countless products from different industries are shipped across borders daily.

And along with the positive development in global commerce is also the rise of the international forwarding industry. Numerous enterprises are now partnering with international freight forwarding companies to effortlessly transports their shipments to their destination. In addition, a freight forwarder can help companies tackle various factors that affect the shipping process, including the constant currency exchange rate fluctuation.

What is Currency Exchange?

In its simplest form, the currency exchange rate refers to how much each currency is needed to be exchanged with one another. The US Dollars has always been the standard for currency exchange rates and holds the most daily shares with more than 88%. Currency rates are always considered floating as various factors affect them daily, including economic activity, GDP, and the supply and demand for different products.

The continuous fluctuation of currency rates across the globe can result in shipping surcharges for companies. This makes freight forwarding invoices complicated for organizations to handle. Currency exchange rates affect various factors in how freight costs are calculated, and companies must know how to manage them to avoid massive financial losses in the long run.

Impact on Freight Forwarding Costs

The primary currency used for freight costs is US dollars, and its value against other currencies can affect the overall shipping prices. Various things contribute to the total freight costs, and currency rates significantly affect whether the amount will increase or decrease.

Varying Currency Exchange Rate

The exchange rate in every nation is different, which can significantly impact freight costs. The amount needed to transport goods to one country differs considerably in other nations. Exports to a nation with a weaker currency than the US dollar are a little more expensive. This means that you need to adjust your budget.

Tariffs

For decades, imports have been subject to taxes even before arriving at the destination port. Authorities do this to generate income and protect local producers, as imported items must be sold at a higher price. A specific percentage of the total value of the shipment usually calculates the tax to be paid. Stronger currency rates between the two nations decrease the overall cost of the freight and offset any increase in the tariff rate.

Transaction Fees

Apart from tariffs, many exporters also pay different transaction fees based on how the shipment is delivered. The amount may fluctuate based on the currency value of where the importer or exporter is paying. Financial institutions implement foreign currency conversion and transaction fees, which a shift in the exchange rate can significantly impact.

Conclusion

As global trade continues to expand, it is vital that businesses that rely on shipping understand the various factors that affect forwarding costs. One of which is the exchange rate, which significantly affects the overall shipping expenditures. Currency exchange rates adjust daily, and it can be tedious for importers and exporters to handle them. But partnering with a reputable logistics company can help them efficiently plan the needed amount for every freight.

How China’s Latest COVID-19 Outbreak Affected the Global Supply Chain

excelsior on February 13, 2023

The COVID-19 pandemic has crippled various industries worldwide. This led to many companies scrambling to keep their business afloat amid uncertain times. Contactless transactions have become the norm, and the adoption of modern solutions has significantly increased as organizations pivot to remote work and digital commerce.

And one sector heavily impacted by the global health crisis is the international freight forwarding industry. Strict lockdowns have led to international freight forwarding companies suffering losses due to a decrease in manufacturing and massive congestion in major ports worldwide.

It’s been more than two years since the first wave of the pandemic hit the globe, and freight forwarder international firms have slowly recovered since then. But a recent COVID-19 outbreak in China has brought new uncertainties in the global supply chain, with the sudden increase in cases causing worker shortages in ports and important factories across the country.

The Latest COVID-19 Outbreak in China

After easing their harsh zero-COVID policies amid the wide protests in big cities, China has faced what many experts consider the worst COVID-19 wave recorded. Authorities in the country estimated that almost 250 million individuals contracted the virus during the first 20 days of December 2022, making it the fastest rise of COVID patients in the nation since 2020.

This unprecedented situation has led to businesses needing to close down again, as most of the workforce is infected or exposed to an infected individual. Reports also said that medical establishments are overwhelmed by the situation, most of which are struggling to cope with the sudden spike in COVID cases right after the government became lenient with their COVID prevention policies.

Effects on the Global Supply Chain

As home to some of the biggest ports around the world, there is no wonder that the latest COVID surge in China significantly affected the world’s supply chain. Some crucial ports like Shanghai and Shenzhen have recorded a notable increase in shipment cancellations rate, with reports expecting it to go up to 31%. This came as factories found it hard to operate with limited people, especially with many reporting that more than half of workers were infected with the virus.

The latest COVID surge in China also further decreased the demand, which was already down before the fiasco, for goods and raw materials coming from the country. This led to domestic and international factories experiencing delays in procuring products and consumers seeing a shortage in supply for some necessities.

The lack of workers and reduced demand has also led to shipping companies decreasing the number of cargo ships sailing. The delays in the acquisition of freights have significantly contributed to the growth of blank sailings, referring to shipping firms skipping one port or altogether canceling their ship’s voyage. This causes delays in the delivery not only of goods but also consumer parcels in many parts of the globe.

Conclusion

As economies continue to bounce back from the crippling effects of the COVID-19 pandemic three years ago, new disruptions brought fresh challenges to the global supply chain. China’s latest COVID surge led to factories operating at limited capacity and ports experiencing bottlenecks. Countless Chinese manufacturers could not complete orders in time, and freight rates plummeted along with it.

The fear of another COVID-19 outbreak is already expected, especially with the country celebrating the Lunar New Year in late January 2023. But reports show that port congestion and freight procurement have improved in recent weeks, with pickup charges increasing by almost 10%. This can be a good sign that the supply chain will gradually go back to normal, despite the worries of another COVID surge in China.

Looking for a Reliable Freight Forwarder in the Philippines?

The whole shipping fiasco can be daunting for Filipino importers and exporters, but partnering with a reliable freight forwarding company can help you navigate the possible hurdles you’ll encounter. Excelsior Philippines has been in the industry for more than two decades, providing our clients with peace of mind that their shipments will arrive at their destination safely. To learn about our services, contact us now by clicking here or calling (+632) 8525-9775.

International Freight Forwarding Trends for 2023

excelsior on January 14, 2023

With the new year well underway, several enterprises are trying to do everything they can to keep up with the latest trends in their respective sectors. This includes every international freight forwarding company that will leverage new technologies to keep up with the ever-changing demands on how goods will be transported around the globe.

This year will bring unique challenges to the international freight forwarding industry. From the new COVID-19 outbreak in China, several geopolitical issues, and the continuous rise in prices, every freight forwarder international firm will need to adapt to changes to survive. To get ahead of the curve, learning about the possible trends in the industry can help freight forwarders become more flexible with their operations.

Freight Forwarders to be More Prepared

There were many issues in 2022 that challenged the freight forwarding industry, such as the Russian-Ukrainian war, the Suez Canal obstruction, and the continual effects of the COVID-19 pandemic. These events resulted in a massive disruption in the global supply chain and firms suffering billions in losses. This year, international freight forwarders are expected to be readier when facing unexpected events disrupting the supply chain.

Data collection and analysis have been more efficient in 2022, and freight forwarders are using this technology to make accurate predictions of what will happen in the next year. This will allow them to promote resiliency in their operations and be more agile, flexible, and visible in the market despite adverse situations.

Mergers and Acquisitions will Continue

The pandemic has brought growth and revenue to the transportation and logistics industry. This enticed various private equity firms looking to put their money into fast-growing sectors. And although mergers and acquisitions (M&A) slowed down recently, experts project that they will continue in 2023.

The war in Ukraine, new COVID variants, equipment shortages, and supply chain disruptions resulted in some of the major players in the industry trying to acquire more businesses to leverage the supply chain. M&A will allow them to expand their services and potentially optimize the workforce.

Sustainability will be a Key Goal for Forwarders

A Sustainable Freight Buyers Alliance report said that freight transport is responsible for 8% of the world’s CO2 emissions. And this is projected to increase to 42% by 2050. To prevent this, freight forwarders can opt for more sustainable products and practices to help the logistics industry become more environmentally friendly.

By asking for and buying products that are good for the environment, freight forwarders and shipping lines can help move the dial and reduce emissions. They can also promote green practices and technologies that can make the supply chain more efficient, effectively boosting sustainability in the sector.

International Freight Forwarders Will Go Digital

The logistics industry, like other fields, has also undergone a digital transformation in recent years. And in 2023, it is expected that more forwarders will use modern solutions to transport goods and reduce paperwork in the freight forwarding process.

Freight forwarders can also measure supply and demand more accurately, improve efficiency, and automate simple tasks by transforming their operations. This will also allow their employees to work remotely, which is still seen as the norm this year.

Conclusion

By keeping up with these trends, freight forwarders can stay competitive in the market despite various disruptions. This can also be an excellent opportunity for further growth and advancements in the field, allowing them to remain engaged in improving their services for their customers.

If you are looking for the best freight forwarding company in the Philippines, then Excelsior is for you. With almost 20 years in the industry, you can guarantee that Excelsior has everything you need regarding logistics. Our mission is to ensure that your shipment will arrive at its destination safely.

If you have inquiries, contact us at (+632) 8525-9775 or email us at wecare@excelsior.ph. You can also visit our website for more information about our services.

A Guide to the International Freight Forwarding Process

excelsior on December 15, 2022

Import and export of goods via trade is the heart of every economy in the world, which is why international freight forwarding organizations are some of the most importance firms around. International freight forwarders closely work with sellers and buyers in different countries to make sure that goods get where they need to go.

International freight forwarding companies act like the middlemen of the trade, helping both sides ensure the success of shipping. They strictly follow freight forwarder international standards which helps guarantee that the goods will be delivered on time. So, if you are a merchant or consumer that wonders how freight forwarders work, here is a step-by-step guide to help you out.

Stage One – Export Haulage

Export haulage is the process when an exporter moves their cargo to the freight forwarder’s warehouse. The forwarder use trucks or trains are used to move the cargo and might take a few hours to a couple of weeks depending on the location and other external factors.

Stage Two – Checkpoint

Checkpoint is the process of checking goods for damages or irregularities. When the export haulage stage is over, the freight forwarders who are getting the goods will check the shipment to make sure that the goods aren’t damaged in transit.

Stage Three – Export Customs Clearance

Every cargo requires clearance from the country of origin before being transported to another nation. Custom brokers do this by submitting details and supporting documents about the cargo. If a freight forwarding company does not offer this service, it is required to find a third-party customs broker service to help with the process.

Stage Four – Import Customs Clearance

The country where the shipment is going has to check the import customs documents once the shipment gets there. The freights forwarder or the customs broker chosen by the shipper can get this done before the cargo arrives as doing so can expedite the next steps of the shipment.

Stage Five – Destination Arrival and Handling

This is the stage where the cargo finally arrives and is taken care of by the freight forwarding company. Once the cargo arrives, international freight forwarders will receive documentation about the shipment from the office at origin. Here, the shipment is also transported to the forwarder’s warehouse before getting delivered or picked up by the buyer.

Stage Six – Import Haulage

This operation moves the merchandise from the warehouse to the intended receiver’s final location. Freight forwarders usually help deliver the merchandise to the shipping address. However, the consignee can also choose to pick up the shipment directly from the warehouse should they wish to.

How do Freight Forwarders Work?

Many people would think that freight forwarders have planes or ships they use to transport cargo vessels. However, this is not always the case. Instead, these companies simplify the process for both importer and buyer as they act like the main point of contact for these people throughout the shipment process.

The freight forwarder takes care of all the details of the shipment from start to finish. This includes tracking the arrival of the cargo ship and getting in touch with trucking, airline, or shipping companies to make sure the shipment is picked up and delivered on time. The freight forwarding partner handles all of these details and tells clients what they need to know.

Deliver Your Goods Using an Experienced Freight Forwarder

Excelsior is an international freight forwarder with 20 years in the industry. Our company is present in across Luzon, Visayas, and Mindanao and will make sure that your cargo is being transported at the right time safely whether by land, air, or sea. If you want to have your goods delivered by professionals, you can contact us at (+632) 8525-9775 or visit our website at https://excelsior.ph.

The Importance of Sustainability in the Shipping Sector

excelsior on November 14, 2022

According to the World Bank, the international freight forwarding industry is responsible for 3% of the world’s total greenhouse gas emissions (GHG) annually. If no action is taken, the international freight forwarding industry will account for 17% of global GHG emissions by 2050.

Every international freight forwarding company is responsible for these emissions, and sustainable transport is the biggest challenge for the shipping industry. Shipping is crucial for economic growth, helping nations move essential products to cater to the demand. Every logistics company in the Philippines, freight forwarding enterprise, and shipping company should do their best to make shipping sustainable.

Here are some reasons why sustainability in the shipping industry is essential.

Why is Sustainability Important in International Freight Forwarding?

Online e-commerce has grown exponentially since the pandemic, and the global shipping industry is needed now more than ever. Joining the fight against climate change is a way for the worldwide shipping industry to thrive more. Shipping companies choosing to continue their operations via sustainable means reduce environmental threats as they step towards green and sustainable shipping.

Sustainability is also the current trend when it comes to different transport industries. Automobile manufacturers have constantly been developing electric cars for the longest time. The aviation sector is also doing its part to reduce carbon dioxide emissions to the point where flights today generate 50% fewer emissions than flights in the 1990s.

A sustainable shipping industry does not only reduce global carbon dioxide emissions. It also prevents oceans from having oil spills which can harm various organisms living in different water bodies and limit people’s access to clean water.

How Can the Global Shipping Industry be More Sustainable?

Compliance with environmental regulations is one of the best ways to have a sustainable shipping industry in a country. Nations and businesses in the maritime world have agreed to comply with the global conservation goals of the following three decades set by the International Maritime Organization and the Sustainable Shipping Initiative.

Creating a sustainable work environment can also promote sustainability in the sector. Making eco-friendly ports, switching to alternative fuels, and investing in green technologies can go a long way in fighting the rising global greenhouse emissions. Having a greener shipping environment also benefits the safety and trust of workers within the industry, enabling them to build more vital trust and transparency in the workplace.

In addition, increasing vessel efficiency can also be a game changer for many international forwarding firms. They can do this by using cleaner ballast water, decreasing marine litter, using alternative fuel sources, and enhancing the ship recycling process. And when vessel efficiency is optimized, less carbon footprint is produced.

Shipping Companies that Go Green

As economies rebuild after the negative impact of the COVID-19 pandemic, the shipping industry will continue to be an essential part of society. But various traditional practices in the sector have led to the rise of GHG emissions over the years, resulting in the need to adopt sustainable methods to protect the environment and workers in the industry.

If you need a sustainable international freight forwarding company with exceptional service, Excelsior Worldwide Freight Logistics has been one of the leading shipping companies in the Philippines for almost 20 years. We provide freight services for land, sea, and air. Excelsior has everything you need regarding logistics, and our mission is to ensure that your shipment will arrive at its destination safely.

If you want to know more, call us at (+632) 8525-9775, email us at wecare@excelsior.ph, or message us through our contact page.

How to Import to the Philippines?

excelsior on October 14, 2022

The Philippines is a strategic trading location as it shares maritime borders with many different countries, including China, Taiwan, Indonesia, Malaysia, Vietnam, Japan, and Palau. Its top import partners aren’t limited to its neighbors as it also imports goods from Korea and the United States. Because the Philippines continues to comply with ASEAN-wide economic integration, the opportunities for both importers and exporters will only continue to grow.

Importers and exporters will need to rely on experts knowledgeable on the latest updates in the shipping scene. For example, if any crises affect trade routes, customs brokers will be critical to ensure that products can still be imported and exported promptly.

Written below are the top things to keep in mind when importing products. Knowing how to import to the Philippines will ensure that businesses will have smooth customs clearances.

How can New Importers Start?

New importers will need first to submit the following relevant documents, as listed by the Bureau of Customs, to be accredited:

Duly notarized accomplished Application Form and signed by the owner, for Sole Proprietorship, Responsible Officer, for Corporations, the Chairman, for Cooperatives, or authorized partner, for Partnerships
Bureau of Customs Official Receipt or BCOR showing proof of payment of the Php1,000.00 processing fee
Corporate Secretary Certificate for Corporations / Affidavit for Sole Proprietorship / Partnership Resolution for Partnerships / BOD Resolution for Cooperatives designating its authorized signatories in the import entries
Two (2) valid government-issued IDs of Applicant, President, and Responsible Officers
- Passport
- Driver’s License
- SSS ID
- UMID Card
- For aliens, Alien Certificate of Registration and Alien Employment Permit
Applicant’s NBI Clearance, issued within three (3) months preceding the application
Photocopy of either DTI Registration or SEC Registration / Articles of Partnership and Latest General Information Sheet or Cooperative Development Authority Registration and latest Cooperative Annual Progress Report
Applicant’s, President’s, and Responsible Officers’ Personal Profile
Proof of Lawful Occupancy of Warehoouse and Office Address
Updated Lease Contract under the Corporation or Proprietor’s name
Affidavit of Consent from the owner and the Title of the Property under their name

In case of Sublease, certification from the Lessor or Owner allowing the sharing of office
Printed Client Profile Registration System or CPRS of the Company and updated notification of “STORED” status
BIR Form 2303 or Certificate of Registration
If applicable, Income Tax Return or ITR for the past three (3) years duly received by the BIR
Valid Mayor’s Permit certified by the Bureau of Permits and Licensing Office
Proof of Financial capacity to import
Bank Certificate or other financial certification
The Top 1,000 Taxpayers and those under SGL Companies are exempt
If applicable, endorsement from the District Collector
Detailed sketch map ofthe office and warehouse address
Company Profile with geotagged pictures of the office with proper and permanent signage and pictures of warehouse or storage area

After getting accredited, businesses can start importing products to the Philippines.

Documents Required when Importing Products

Businesses importing products must provide the following required import documents, as shown here, once their goods arrive:

Duly endorsed Airway Bill or Bill of Lading, or certification by the carrier or agent of the vessel or aircraft,
Commercial Invoice or any other verifiable commercial document proving payment if there is no sale for export
Packing list
Duly notarized Supplemental Declaration on Valuation or SDV
Certain documents as may be required by certain rules and regulations, including:
Import Permit or Clearance
Authority to Release Imported Goods or ATRIG
Proof of Origin for Free Trade Agreements or FTAs
Copy of an Advance Ruling, if the ruling was used in the goods declaration
Load Port Survey Reports or Discharge Port Survey Reports for bulk or break-bulk importations
Document evidencing exemption from duties and taxes
Other relevant documents like a Tax Credit Certificate or TCC or Tax Debit Memo or TDM

When importing animals, plants, food, medicine, or chemicals, importers must also obtain a Certificate of Product Registration from the Philippines’ Food and Drug Administration.

Not all items can be imported into the Philippines. For more information, see this list of prohibited and restricted items.

Conclusion

Knowing how to import to the Philippines involves plenty of technical know-how that reliable licensed customs brokers should know. Businesses must look for a reliable customs broker in the Philippines to ensure that their shipments will arrive on time without difficulty.

When importing goods to the Philippines, you’ll need to rely on a reputable international freight forwarding company and licensed customs broker. Let Excelsior Worldwide Freight Logistics help you handle both on your behalf.