excelsior, Author at Excelsior Worldwide Logistics Corp.

7 Factors that Influence Ocean Freight Rates – Infographic

excelsior on September 16, 2021

Ocean freights are a lifeline for companies nowadays, especially for small and medium enterprises (SMEs) that engage in international business affairs. Without them, importing or exporting goods packed inside containers from one location to another is nearly impossible.

Besides, ocean freights are also a cost-efficient method, as a typical cargo ship can handle 18,000 containers at a time. And that’s the reason why a logistics company in the Philippines and other related service providers gain popularity and is always on demand among companies that want to save money and assure that the customers’ orders will arrive on the exact date.

However, the cost of transporting goods isn’t constant, and it changes every time for varying reasons. Given such a fact, business owners and their companies should consider these different factors affecting ocean freight rates.

Container Route

The English Channel is said to be the busiest ocean freight route in the world. It serves as a passageway for more than 500 carriers each day, every year.

Before getting in touch with a logistics company in Manila, business owners should understand that if there is a high demand, the competition becomes more aggressive and it makes a particular route busier than usual. And this turn of events increases the price rate of transporting.

Currency

As the shipping fee covers all expenses, transporters like logistics freight in the Philippines need to pay attention to the exchange rate and the fluctuation factor during the transaction period to avoid delays at work.

We all know that countries have different currencies. Yet, in international transactions, the dollar serves as a common denominator. And this universal rule also applies to cargo shipment, as fuel value is always dollar-based. Also, the currency for port and operational charges also depends on the country where cargo ships will go.

Fuel Prices

Without fuel, maritime and land transportation won’t exist. Indeed, the availability of oil makes good transport possible. Yet, the ever-changing oil price affects the shipping fee of logistic companies. If there is an oil price spike, ocean freights service providers will pass the additional expenses to the company asking for shipment.

On the contrary, if fuel prices go down, there is the perfect opportunity for businesses to afford sea freights at a lower cost.

Additional Seasonal Charges

Sea carriers often apply extra seasonal charges if there is a high demand for them every year. Transporters may add Peak Season Surcharge (PSS) or congestion charges to their temporary overall ocean freight cost for transporting your goods.

Container Type and Size

Enterprises should know and understand that containers have different types and sizes, and their prices vary. Taller and larger containers cost bigger than their smaller counterparts. You may reduce the shipping fee by choosing the best container type and size fit for your goods, as well as secure them.

Space Availability

The cost of ocean freights also depends on the availability of space and equipment. During peak seasons, shipping companies use the high demand for shipment to wage their transport cost higher.

Terminal Service Charges

Shipping companies may apply charges to cover their expenses in processing containers from their origin and destination ports. Additional fees include labor fees, use of equipment, and limited time storage. Most importantly, terminal handling services are different in every country.

Transporting goods through ocean freights is a tricky task. Therefore, business owners should consider all the factors listed above to reduce costs and secure their cargo.

Excelsior Worldwide Freight Logistics conducts 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 excelsior.ph to learn more about our service.

What is the Difference between FOB and CIF?

excelsior on September 15, 2021

When a business carries out an international deal, understanding the different terms used for the movement of goods is necessary. The shipments of goods must undergo legal agreements. In that way, the risk is minimal when things go wrong because it points out the responsibility passed from one party to another – the buyer or the seller. It would be better to choose a trusted logistics company in the Philippines for a smooth and fast transaction without causing delays that might affect the business.

Besides, moving freight from international ports requires numerous handling, various methods of transporting, and most cases happen when the shipment stops before reaching the point of delivery.

To avoid these issues, there are agreements commonly used to define who will take responsibility for the shipment of goods: Cost, Insurance, and Freight (CIF) and Free On Board (FOB).

Cost, Insurance, and Freight

In CIF, the seller is in charge of clearing the goods for export, insurance, freight charges, and documentation. It is the seller’s responsibility to look out for the goods until it reaches the buyer. In other words, once the goods reach their final destination, the ownership promptly transfers to the buyer.

Additionally, the seller takes responsibility for transporting products to the nearest port, loading them on the ship, and pay a freight forwarder that delivers to the harbor the buyer chose. It includes all the necessary documents required by the departing and arrival countries to ensure the safety of the goods at the destination and paying insurance costs.

As a seller that chooses to ship the goods to the buyer with this Incoterm, it is advisable to look for a freight Forwarder in the Philippines that offers a less-expensive service and assumes the responsibility for shipments.

Free On Board

In contrast with CIF, Free on Board (FOB) is a trade term used to indicate that the seller takes the responsibility to pay for the transportation and loading costs and clear the products for export. In addition, the seller also takes charge of loading the goods to the vessel.

Once the stocks are on board, the buyer and seller divide the risks and cost – the seller already fulfilled the obligation for the shipment, and the buyer will bear all costs the moment it arrives.

The good thing about FOB from a buyers’ perspective is that they can save on costs in freight and insurance. Also, they have better control over the shipping process, and the price is cost-effective. From the seller’s perspective, they don’t take the obligation since the buyer books a vessel for the product shipment for the destination harbor of their choice. The seller does not need to sign an insurance contract for the products taking full responsibility for the product value.

Conclusion

Each Incoterm has specific advantages and disadvantages for both the buyer and the seller. In some instances, a seller prefers FOB while the buyer chooses CIF, but some trade agreements look for one procedure convenient for both parties. CIF and FOB are two of the available freight agreement options for international trade. Choosing the best option that suits the given business is essential. It is better to check thoroughly before proceeding with the freight agreement option to prevent delays and problems during product transactions.

Important Questions to Ask Before Choosing a Logistics Service Provider

excelsior on July 30, 2021

Logistics Service

Logistic services contribute to the economic growth as it incorporates a wide range of services, including transportation and cargo distribution. They play a vital role in the Philippines in terms of enabling the movement of goods and products.

Outsourcing logistic services for your business is an excellent way to guarantee efficiency and prevent disruptions to your business operations. While you may be able to find several companies offering logistic services, you must partner with a reputable logistics company in the Philippines whom you can trust for the transfer and shipping of your provided commodities.

Here are the main questions that you must ask to ensure you select a reliable and trustworthy logistic service provider for your business:

How long have you been in operation?

The number of years is not the basis for you to trust them right away. You have to ensure that the logistics provider can prove that they have established relationships with other business partners. Understanding their history is one of the most important things to consider; knowing their identity, purpose, and goals help you to finalize a decision to hire them to provide logistics service for your business.

What kind of customs services do you offer for my business?

Looking for brokerage services in Manila with a firm grip on your business is vital – they should always meet an accurate perspective in your establishment. A logistics provider that can recommend what’s best for your customers through a supply chain movement means that they can be a good partner – and that is a good sign for you to choose them; substantial knowledge for your service needs reflects their accountability.

Also, this can help you to learn more about the services they can provide; you can understand their service limitations.

Is your company technology integrated?

You have to look for a company that is technology deft. Everything is faster and seamless with technology. The technology operates information such as order information, real-time access to inventory, and others; technology-driven applications can notify delivery status.

If you choose a logistics provider that can process and analyze operations swiftly, that would be much helpful for your business.

How do you anticipate disruptions?

In business operations, unexpected disruptions happen. You have to look for a firm offering logistics freight in Philippines that can deal with unforeseen events and provides an efficient solution to solve concerns. Besides, logistic service providers should think of some challenges that might happen during the operations.

Can you provide references from clients with the same businesses?

It is also a good idea to ask for references from a logistics service provider to ensure that you chose the best one. In that way, you can list down all the minimal concerns that you can tell them for improvement. You can trust them with their services since they have catered to similar businesses like yours.

Logistic service providers, like Excelsior Worldwide Freight Logistics, serve as a dominant component in the success of every business company that takes part in dealing at a national and international level. They take part to achieve competitive advantages from business operations that involve buying and selling in global commerce.

Attracting Foreign Buyers for Your Products Infographic

excelsior on July 15, 2021

In this age of technology, finding potential foreign buyers for your products is now more convenient. As simple as setting up a business website can expand your target market on an international scale.

If you have an online store, you can easily list your products for sale and attract buyers from all over the world. Most of the time, when a buyer searches for products on the internet, they are looking for the best deal. They want to save money and find a good quality product. With the current economic situation in the US, finding potential buyers of your products has never been easier.

Why is Online Commerce Booming Nowadays?

One of the main reasons that so many people are turning to the internet to sell their products is because it is cost-effective. The shipping costs are one of the biggest expenses for shipping products from one country to another. Even if you do not ship your items yourself, the shipping costs associated with shipping your items can eat into the profits you are trying to make.

Freight Forwarders Can Save Your Day

When you list your products on an online store, they will be shipped by freight forwarders. Freight forwarders are companies that will specialize in shipping merchandise from one country to another. They have storage space, and they have specialized shipping trucks that will be able to transport your items from place to place. The great thing about these types of companies is that they have access to various global ports. This means that your products will be shipped all around the world.

Finding the Best Freight Company

If you are only going to ship your items to Asian countries, you will need to make sure that you keep a few things in mind. You need to make sure that the freight company that you use has low shipping rates. You also need to make sure that the shipping rates do not hurt your bottom line. If you are only shipping to Asia once a year, and that is all you do, then you will not need to worry about the shipping costs as much as if you were frequently shipping.

If you are selling to non-Asians regularly, you will be able to take advantage of eBay’s marketplace. eBay has an interface for international sales. All you will need to do is register an account, login, and take a look at the listings. There, you will see the various countries around the world that someone might be interested in buying from you. You can also locate sellers near you that may be interested in selling to your customers. You will just need to advertise your products on eBay and wait for potential buyers to contact you.

So, there you have it. Now that you know the best ways for finding potential foreign buyers for your products, all that remains is for you to start your search. You should also remember to add your country of origin to your site’s address line, so you can be found by people who are searching for your products. Good luck!

Utilizing the Power of Logistics for Business: What You Need to Know – Infographic

excelsior on June 30, 2021

Logistics has become a major and integral part of any business, and it helps improve a company’s overall performance and profitability. However, many businesses still do not see the importance of logistics in their overall supply chain management or marketing strategy.

If you want to be competitive, you need to have a robust supply chain and incorporate good marketing strategies. The following tips can help you improve your logistics and make the most out of your overall marketing efforts.

Coordinate Your Supply Chain

It is quite important for any enterprise to properly manage its own logistics to achieve maximum productivity and improve the overall profit margin. You should have proper coordination between the various aspects of the supply chain, including the manufacturer, the distributor, the importer, the wholesaler and the retailer. Proper coordination and communication are vital for the overall performance of any enterprise logistics system.

Take Advantage of Modern Technology

There are many advantages of having a strong and efficient logistics and distribution system. With improved technology, there are new opportunities that any business can grab. You can leverage the benefits offered by the internet, periodicals, online reports and even telesales and make your enterprise logistics and distribution centers more effective. Suppose you want to ensure that you improve the efficiency of your regional distribution center or the main distribution center. In that case, you need to carefully monitor and check the inventory levels, the transportation of the products and how they are stored. You can use any software programs specifically designed to streamline the various aspects of any logistics and distribution system.

Consider Getting an Inventory Management Services

Some of the logistics providers offer customized inventory management services as well. They can give you detailed information on how your products are stored, organized and moved around the warehouse. You can use the appropriate software programs that can help you improve your productivity and cut down on costs incurred during warehousing. Some of the companies also provide customized solutions for the trucking industry. To optimize your logistics management, you should have the proper training to manage and administer your warehouse and its products. There are many factors like the volume of your merchandise or the size of your operation that should be considered before hiring an organization for your logistical management.

Knowing the Logistics Costs of Your Products

The most important factor when determining the logistics cost of a product is the size of the enterprise. For instance, if the items are sold in bulk, you may need to incur additional charges such as customs fees or other costs that may not be included in the stated price. If you purchase the products from a wholesaler, the retailer will incur shipping costs and other distribution services. Thus, the size of the retailing enterprise also determines the logistics cost.

Contacting Multiple Logistics Providers

If you want to improve your retailing enterprise and reduce your logistics management costs, it is best to contact several logistics providers. These organizations can help you enhance your sales by providing timely and efficient service. By partnering with these logistics providers, your enterprise can achieve greater profitability.

Causes of Shipment Delays Every Business Owner Should Know

excelsior on June 15, 2021

Delays occur for a variety of reasons. Depending on the laws of the country in which the cargo is coming and the type of goods being shipped, certain situations may require extra attention. If a country requires extra documentation before the shipment, such as an international address or a credit card number, extra steps must be taken to make the process go as smoothly as possible. Knowing what causes shipping delays can help companies prepare for these situations and make their shipments go as planned.

What Shipment Delays Occur?

Extreme Weather Conditions

One of the leading causes of delay is terrible weather conditions. Natural disasters such as hurricanes, storms, and floods can cause transportation problems. In some cases, goods may have to be held at the port while waiting to be transferred to the final destination. If a shipment is delayed in a natural disaster, it could lead to extra charges because it takes extra time to unload and re-store damaged goods.

Issues with the Freight Company/Supplier

Other causes of shipment delays are problems with the freight company or suppliers. Sometimes, shippers simply cannot meet the needs of their clients. Suppliers may experience a sudden lack of business, or they may be experiencing financial difficulties themselves. In these cases, the goods may have to wait extra few days or even longer before they can be shipped. If goods are held at the wrong port or facility, they may also be sent to destinations that are not appropriate for them, which leads to extra expenses for the clients.

Climate

Changes in climate can also lead to delays in the shipment of goods. In areas where snow or ice makes transport very slow, it takes more time for the products to reach their destination. In some cases, a company’s inability to get goods to its clients may result in lost income and a negative impact on its image. Climate conditions can also cause delays in moving goods from one location to another. For example, in the case of a shipping time delay caused by severe weather, a company would have to spend additional time waiting for weather conditions to clear up, which increases the cost of transportation.

Pandemic

Pandemic outbreaks are another cause of shipment delays. A pandemic is a widespread infection of a disease that spans worldwide. Because it is hard to identify where an outbreak is likely to occur and because many people tend to get sick quickly, a shipment delay can lead to losses. As a result, many companies may choose to avoid sending people who may be carrying the virus or doing things that can cause an outbreak.

Causes of Container Imbalance-Infographic

excelsior on May 28, 2021

Container imbalance is a major problem that affects almost all shipping businesses. There are many possible causes of this imbalance, and it is important for you to identify the root of the problem before embarking on any solution.

This is often caused by the cargo being sent from one country to another in a transport container that is not equipped with enough space to transport the cargo safely. The cargo becomes oversized or simply too heavy to be handled by the transport container.

In either case, you have a severe problem, and you need to contact a freight forwarder in the Philippines or a logistics company to help sort out the issue.

Why Businesses Suffer from Container Imbalance?

One reason that you may be dealing with container imbalance is that your shipping rates are too high. Freight forwarders in the Philippines or logistics companies in the United States can help you reduce the cost of shipping your products to your customers in the Philippines or anywhere else in the world.

Rates that are too high for the average business can put a serious financial burden on the company, and it is imperative that you find ways to reduce your shipping costs. It is impossible to do this without reducing the size of your shipment or moving the cargo to a more affordable location.

Another common cause of the imbalance is that you are using a single freight forwarder to ship to several different locations. This means that you are sending your product to different vendors instead of sending it to just one customer. This makes the product available to multiple customers, and it creates an opportunity for your vendor’s cost to increase since they will be paying to serve multiple clients. This is why it is vital to use more than one freight forwarder to balance your shipment correctly.

If you are not shipping to any customers directly but shipping to a single location, there could be a couple of different causes for the imbalance. Perhaps the cargo being hauled is too light. Light cargo tends to move slowly, which can add to the delay in getting the product to its destination. Perhaps the shipment is coming from a different part of the country than was originally shipped, and the freight forwarder simply doesn’t have the capacity to handle the load.

Regardless of the reason, it is a good idea to contact your freight forwarder and determine whether they have the right equipment to help move your containers.

Dealing with Container Imbalance

There are a few solutions for dealing with container imbalance. The first is to simply wait for your shipment to clear customs before contacting a freight forwarder to help with your shipping needs. This can take some time, but it might also give you some added peace of mind.

The second option is to use a cargo service that can help with your shipping needs. These services will not only get your cargo to its destination faster, but they will also use qualified drivers to make sure that your goods arrive in good condition.

If you choose to use a service to help with your shipping balance, ensure that the service has the appropriate licensing and insurance. You can also check with your forwarder about any container balance requirements or other fees that may apply to your shipment. It’s always a good idea to double-check to know that you are not leaving anything out. Any fees that apply to shipping that cannot be paid for upfront should be clearly marked on the package.

Once you have double-checked all of your requisites, you should be ready to contact a cargo forwarder. When you reach this point in the process, you should already have an idea of how much your shipment will cost to send to your final destination. You can then negotiate a reasonable shipping fee based on the container balance. If you are able to come to a financial agreement, the cargo company may even assist you with finding a secure place to ship your goods as well. This would help you avoid having to pay dock fees or find a shipper who has containers available to move your goods.

Shipping companies are only equipped to help you out when you are already running short on time or a shoestring budget. They are also familiar with the ins and outs of the shipping industry and understand what kinds of options are available to you in order to conserve energy and space while shipping your goods. Just don’t try to do the job yourself. Hire a professional cargo shipping company to save you time and frustration.

What You Need to Know Before Starting an Import/Export Business in the Philippines

excelsior on May 27, 2021

With the Philippines being one of the fastest-growing tourism destinations in the world, more foreign businessmen are eyeing the Philippines as a viable alternative to the other economic vignettes they are encountering. And it’s no wonder why. Despite being under U.S. military rule for so many years, the Philippines is an independent country that still possesses a strong sense of its own identity and pride. The country has a very diverse landscape, but thanks to its close proximity to mainland Asia, the country has to tap the full potential of being an alternative destination for tourism and as a source of raw materials.

What are the basic requirements for anyone who wants to start up an import and export business in the Philippines? Most aspiring entrepreneurs would need a wholesale importer or distributor to get their goods imported into the country. While most importers and distributors advertise on the web, there are still some that you can find through word of mouth. Getting hold of a trusted wholesaler or distributor is the key to starting an import and export business in the Philippines.

Import and Export Directory

A dependable import and export directory should have a comprehensive listing of all the qualified, credible wholesalers and distributors for any product you wish to import or export. In addition, the import and export directory must also have a list of the manufacturers and exporters that are authorized to undertake import or export activities. This is important as you don’t want to end up doing business with a company or an individual who is not licensed to do import and export activities.

In getting hold of the right directory, you can expect to get information on import and export duties, tariff classifications, and corresponding rates. You will also get a list of the best possible products to help you achieve your goals of making money importing and exporting. With a comprehensive list of manufacturers and exporters, you can compare prices easily and quickly. Knowing your exact product availability, shipment costs, and other important information is essential in starting an import and export business in the Philippines.

A Brokerage Firm

Setting up your own brokerage firm can also help you earn more profit in a short period of time. If you decide to go this route, remember that you have to register a business name before operating it legally. You have to secure a steady supply of raw materials and supplies, and you have to ensure that these materials are obtained at fair prices.

Customs Requirements

Planning to import and export goods from other countries requires you to follow their customs requirements. A comprehensive and clear understanding of all the necessary requirements is very essential. There are companies and individuals that offer these services. Inquire about how to start an import and export business in the Philippines with any of these companies.

Freight Forwarding Services

If you do not want to pay for the services of an import and export business broker, you can use the services of companies that offer this kind of assistance. There are several such companies that offer freight forwarders and import support. They can help you find a good and reliable transport company and a good manufacturer or exporter. You need to determine the feasibility of the service before you sign an agreement.

Taking the Big Step

If you know how to start an import and export business in the Philippines, you will undoubtedly be able to successfully conduct your operations. You have to remember that the growth of your business depends on your ability to identify the country’s needs and preferences. This is only possible if you know how to start an import and export business in the Philippines.

What Can You Get from a Freight Forwarding Service in the Philippines?-Infographic

excelsior on April 30, 2021

Hiring a freight forwarder in the Philippines may be one of the most important business decisions you’ll make. As a business owner, you would want to get the best services and facilities that can help your business grow.

Here are the benefits that you can get by hiring a freight forwarder in the Philippines:

Convenience and affordability

The Philippines is one of the busiest sea freight forwarding destinations in the world. Given that there are so many shipping services that are available to you, it would be very easy for you to get your products from other countries in no time. But since these services are not properly monitored, it would be easy for you to fall prey to frauds and scams. For this reason, it is imperative for you to have a logistics company that is well-connected to all the major shipping services. By hiring a freight forwarding company in the Philippines, you can be assured that the shipment would be delivered in the safest possible way. This would also give you great convenience, especially when you are operating in a foreign land.

Reputation and service

The good thing about the logistics industry in the Philippines is that the topmost companies have already established themselves in the country. This means that your goods will be delivered by the best logistics company in the Philippines. If there is any problem with your cargo, your nearest freight forwarding company would immediately be there to assist you.

Access to latest services

Even if you are operating in a foreign land, you still need to be updated about the latest technologies, equipment and methods of delivering your goods. There are a lot of innovative tools today that are being used by the freight forwarders in the Philippines. Therefore, it is up to you to keep yourself abreast about the latest advancements in the industry. By hiring a Filipino freight forwarder, you can easily receive updates on these and other tools. You can also request for demonstrations of these services so that you know how efficient the service provider really is.

Pricing and payment options

In any kind of industry, you will always find competitive prices and payment schemes. However, the situation with logistic companies in the Philippines may be a bit different. Since the service sector in the Philippines remains relatively new, most of the existing logistic companies have not yet established their pricing structure or payment plans. In order to ensure that you receive the best price for your goods, you should try to negotiate with a reputable freight forwarding company or agent. Although you cannot make changes on the pricing structure, you can always ask for price reductions and better payment plans.

Customer service

One of the most important factors that should come into play whenever you are looking for a logistics company is the customer service offered. For instance, should there be any breakdowns in the services? How prompt should they be? What should the company do in case of a breakdown? Before you hire a freight forwarder in the Philippines, you need to make sure that you understand all these things.

Filipino Customs Brokerage 101

excelsior on April 15, 2021

Man Wearing A Suit Jacket And Stripe Necktie

Hiring a Licensed Broker for Your Business and Country

If you want to take advantage of the benefits of economic expansion or if you just want to expand your business operations, one of the smartest moves you can make is to hire a customs broker.

What is a Customs Broker?

A customs broker, as an individual or a company, is responsible for ensuring that the shipment of your items will reach its target customers in the safest possible manner. Licensed customs brokers are highly skilled logistics experts who provide that each shipment meets all international standards, rules, and laws.

Brokers also work closely with auditing authorities and law enforcement agencies to ensure that your shipments comply with local and national laws. With the assistance of a customs broker in the Philippines, you can enjoy the benefits of free-shipment services while enjoying the unique advantages of experiencing firsthand experience with their expert knowledge of Philippine customs.

A custom broker in the Philippines is an excellent choice if you want to enjoy the benefits of free or subsidized import services. Because tariffs are much lower on imported goods in the Philippines than in other countries worldwide, you can enjoy significant savings when it comes to shipping and transportation costs. Since import/export customs requirements are strictly followed, you can enjoy even faster processing and delivery of your products, making it easy to meet your deadline for delivery.

Here are ways of how a licensed broker in the Philippines can help upscale your business and the overall economy of the country:

Less Worry in Complying with the Necessary Documents for Shipping

All the paperwork involved in hiring a Filipino employee is already prepared for you. Brokers usually have documents on file from the government that you will need in order to hire your Filipino employee. Brokers also have agents abroad who will represent you before the immigration authorities. They are well-versed with how to talk to immigration officers to make sure that everything goes smoothly. They will also ensure that you have the documents needed to enable you to leave the country if required.

Break the Language Barrier

Another one benefit of a customs broker in the Philippines is that you will not have to deal with the language barrier. Almost all communication skills are learned during the training period. As a result, you and your agent will get along very well. In fact, you may even learn to converse in Tagalog or Filipino. In addition, you will not have to bother yourself with the process of teaching your new employee how to use the local language properly.

Support Local Filipino Workforce

You can get almost anything you need when hiring Filipino laborers. There are many factories in the Philippines that need help with their production lines and can get almost anything that you need when you are hiring brokers. For example, you can find a lot of good workers for your business in the Philippines if you are hiring directly from the factories. This way, you can give priority to the welfare of the Filipino workers.