excelsior, Author at Excelsior Worldwide Logistics Corp.

Guide for Successful Exporting

excelsior on July 15, 2020

Exporting or the act of trading goods by sending them over to another country has been an attractive venture for many people for as early as the prehistoric times. From the barter system, up to the modern forms of trade, exported products have become so popular that it is one of the primary reasons for the development of globalization and cross-cultural communication.

In the Philippines, a number of products manufactured locally have a considerable amount of export markets to offer on an international scale. According to the Department of Trade and Industry, one of the top export markets of the country can be found in countries such as Japan, the United States, China, South Korea, and Singapore. Along with the country’s growing economy, the Philippines is now more than capable of mass-producing exportable products like electronic materials, minerals, and fruits.

Selling products abroad can be a lucrative business, especially if you know certain methods and techniques in practicing your trade. In case you’re planning to start an exporting company, there are several benefits that you should anticipate.

Benefits of Exporting

Vast markets – Exporting allows an enterprise to gain access to a great number of potential markets. Doing thorough research can help you identify a list of specific locations where you can sell your products and gain maximum profit.

Increased sales – Exporters can enhance their sales potential since they can reach out to more customers.

Better profit margins – More customers lead to increased demands, which in turn results in fairly profitable business.

Makes budget for research a worthy investment – Conducting market studies can help an exporter improve specific products in order to meet the needs and satisfaction of new markets.

Tips for Successful Importing

Despite having some advantages, exporting products is a challenging task. Such practice requires you to establish healthy connections with foreign consumers, which can be very difficult due to cultural and language barriers. You need to learn how you can promote your products and convince international markets on why they should view your brand as a trusted supplier.

To help you increase your chances of success, here are some of the best tips for exporting your goods:

Prepare a well-detailed research

Research is one of the most crucial steps in starting an exporting business. The data that you will receive from the results can give you a proper understanding regarding the demand for your chosen product. When conducting market research, make sure that you establish achievable goals like identifying the economic rate of a potential market, the demographics, as well as closest competitors.

Plan accordingly

You have to consider the following factors:

Capacity – Determine whether you have the adequate capacity (resources) to meet the changing demands of different markets.

Knowledge – Study your products, mainly the driving reasons that can make it valuable and worthy of people in other parts of the world.

Packaging – The design of your packaging reflects a significant portion of your brand’s identity.

Select a marketing route

In order to reach out to a massive number of customers across borders, you can choose one of the marketing routes below:

Using a distributor
Creating a joint venture
Using a sales agent
Be a direct seller

Understand the nuts and bolts of the exporting process

Exporting comes with several procedures that involve varying rules and regulations of bringing exported products from one country to another. Remember to check if the goods you’re trying to export will require some paperwork to be done before they can be cleared by the authorities.

Hire a freight forwarder

Freight forwarders are highly skilled professionals that possess immediate knowledge in logistics and can ensure seamless documentation and customs clearing processes when exporting your products. Consider hiring a freight forwarding agency for your business if you want to avoid any unnecessary delays and other related hassles associated with exporting.

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 www.excelsior.ph to learn more about our service.

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How to Prevent Shipping Damage – Infographic

excelsior on June 30, 2020

Shipping damage can cost any business owner a significant loss in annual gross sales. Although it can be prevented, damages on shipping can happen more often and might bring a series of detrimental effects for both the buyer and the seller.

The reputation of a brand also relies heavily on its capability to secure its products during the shipment process. For exporters, as well as those who own an eCommerce business, maintaining the pristine condition of each product before it reaches the customer must always be a priority.

Reminders for Shipping Your Products

To first step for preventing shipping damage is setting a set of goals. Your package must be able to:

Keep the product safe despite any changes in the environment, such as temperature, humidity, etc.
Get through the process of freight transport, order fulfillment, and last-mile delivery.
Survive a four-foot drop (the most common height that package usually gets when dropping in transport)

Tips for Securing Your Products to Avoid Damages

Do not leave any void spaces on your package.

Having extra space in your boxes makes the products stored inside extremely prone to damages. If you’re transporting fragile products such as glassware and plates, keep in mind that it will be shaken and rattled at some point along the way, so you have to fill in the void spaces to prevent them from sustaining any cracks.

The following materials are excellent shock absorbers that you can put inside the boxes to ensure the safety of your shipment:

Bubble wraps
Corrugated boards
Engineered foam
Kraft paper
Polybags (for preventing water damage)

Be mindful of fragile items.

In case you have to put more than one fragile item in one box, make sure that they are stored separately. Organize the interior of the box by creating partitions using corrugated boards so that each space is well divided for your products.

Label each box properly.

Indicate your fragile packages through proper labeling, so that anyone is well aware of its contents and take extra care while lifting them. This can also be applied to products that must be held in a specific position.

Purchase parcel insurance.

The most efficient measure against shipping damage would be getting parcel insurance. It doesn’t necessarily mean that shipping damage is an inevitable situation, but it’s always better to be prepared than facing the consequences later on. Parcel insurance can protect you financially from losses incurred by shipping damages, saving you from more trouble in the process.

Hire a freight forwarder

While freight forwarders are usually hired to ensure the timely arrival of shipping products and clearing most of the necessary documents, hiring one can also help you minimize the odds of getting your products damaged. Since these people are highly knowledgeable about logistics and shipping processes, they can give you expert advice on how to package your products correctly.

Ways of Preventing Shipment Delays

excelsior on June 15, 2020

Untimely arrival of shipment is perhaps one of the most common problems of businesses nowadays. With the world currently facing the COVID-19 outbreak, supplies can deplete faster, and delayed shipments could result in poor customer service and wasted profit opportunities.

On the other hand, those who specialize in manufacturing are more likely to suffer from the effects of delayed shipment. Based on a study, around 62% of respondents believed that they are less likely to negotiate again with a supplier whose products were not delivered to them within the promised dates.

If you’re running an import/export business trying to transport your products with minimal to no delays, then here are some of the ways to do so.

Know the Cause of the Delay

The first step for preventing delayed shipment is through having an understanding of what causes the delay in the first place. This will enable you to prepare solutions the next time around.

Examples of scenario that are usually attributed to the untimely arrival of shipment include:

Bad Weather – Typhoons and even other forms of natural calamities are purely unavoidable, which make it the most tolerable cause of shipment delays.
Errors in Documentation – Any errors in documentation, such as the misspelling of the address, incorrect order forms, and incomplete information, can also lead to unnecessary late deliveries.
Package Redirection – A change in information, especially the address, can usually make a shipment be transferred in a different time of arrival.
Customs Delay – Customs authorities typically require a list of requirements before you can clear your shipment. Failure to submit these documents in time will guarantee a late shipment.

Practicing utmost care and planning ahead of time are the best measures that you can do to prevent any of these indicators from happening.

Make your Warehouse More Organized

Keep your warehouse well-organized, especially if you receive tons of orders every day. Arrange your products based on how popular they are, and make sure that the packages that you will transfer are all in a separate place so that they can be easier to find upon dispatching.

Utilize Logistics Software

Automation can be considered as one of the efficient ways of combating delayed shipment. However, you should take note that using software for managing logistics can prompt you to invest more money, as they can be quite expensive. But in case you don’t have enough resources to afford logistics software, you can still go for an alternative way. Formulate a step-by-step checklist that will guide your employees while doing logistics tasks.

Hire a Freight Forwarder or Customs Broker

Partnering with a freight forwarding agency or a customs broker in the Philippines comes with a lot of benefits, which include preventing any delays in your shipment. Since both professions are very knowledgeable in logistics, they can provide you some helpful advice of the best carrier company that will ensure the timely arrival of your goods. And if you have issues with your documents, a customs broker will surely help you clear everything up as they are very familiar with the process involving customs requirements.

If you want to know more about what freight forwarders and customs brokers do, check out the infographic here.

Tips for Managing your Supply Chain during the COVID-19 Outbreak – Infographic

excelsior on May 31, 2020

The COVID-19 outbreak has given many businesses today a rough time, especially in the aspect of growth and making a profit. As the virus spreads throughout the world for the past months, it is quite an unfortunate scenario for anyone who thrives in keeping their supply chain intact.

Since a lot of places such as cities and provinces are currently under quarantine, it can be an absolute challenge for an enterprise to reach out to their customers, let alone their suppliers. Failure to find a solution to this issue could be highly detrimental to your business.

However, there are ways of how you can minimize the negative effects of the pandemic on your supply chain. Here are some of the best tips that can help your supply chain to survive during the COVID-19 outbreak:

Know More about Your Suppliers

With obstacles that are about to befall your line of communication, it is crucial for you as the owner to know more about your suppliers. Make sure to make an assessment regarding their capabilities to comply with your agreements during this situation. Ask them whether they manufacture the goods you receive from them, or if they receive it from others. Having such information can help you identify potential issues and the future and plan a strategy ahead of time.

Understand the Possible Implications of the Pandemic in terms of Demand

The rise and fall of demand for these times can depend on the type of business. For example, grocery stores tend to have a significant increase in demand for their products since people would most likely buy to replenish their food supply at home. This is, of course, not the same case with other businesses such as those that thrive in entertainment and leisure.

You need to consider what type of business you have, as well as your target market, in order to develop a more efficient response. You also need to keep in touch with your suppliers and talk with them regarding possible changes, especially in the arrival of their deliveries.

Study the Restrictions or Guidelines about Importing and Exporting

To hinder the swelling number of those who are infected with the virus, governments across the world implemented their own quarantine measures, which greatly affect the existing regulations in importing and exporting goods. If your business involves international importing and exporting products, then you need to know about these new guidelines.

Prepare a Pre-emptive Plan

Considering that China is one of the countries that got severely devastated by the virus, it won’t be a surprise that it will send a negative domino effect in global trade. There are still no clear indicators that this pandemic will be over soon, so always expect the unexpected. Prepare multiple alternative options in case of any disruptions in the part of your suppliers and be wary of early warning signs such as any changes in your suppliers’ payment terms.

Give Consideration for Your Workers’ Health and Welfare

Your workers play an essential role in making your supply chain in a stable condition. In line with this pandemic, successful businesses tend to survive because of the support that they receive from the loyal workforce. To look at this situation from a positive perspective, it can be an opportunity for you as the owner to show that your worker’s health and welfare will always be paramount. Adjust and develop new working practices like remote work and increasing your automation methods.

Why Freight Shipping is Important in the Philippine Transportation Industry?

excelsior on May 15, 2020

Freight shipping is the term used to describe the practice of transporting commodities, cargo, and goods via land, air, or sea. Being an archipelagic country, freight shipping plays a major role to the Philippine economy. With thousands of islands trading different products that keep the economy intact, the importance of freight shipping become even stronger especially for the transportation industry.

In this article, we have gathered some information regarding the essence of freight shipping in the context of transportation:

Freight Shipping: One of the Oldest Industries

Freight shipping is known to be one of the oldest industries in the world, entering the Philippines for as early as the pre-colonial period. During this time (around mid-16^th century), the islands were already populated with trade routes used by merchants selling products from China, India, and other Southeast Asian countries. As time goes by, with the advancements in the field of technology, freight shipping in the Philippines continued to grow together with the rising demands of products that are only available in certain regions of the country. Thus, with the arrival of the colonizers, Filipinos continued to take advantage of utilizing freight shipping as a primary method of trading from one place to another.

Facts that You Need to Know About the Impact of Freight Shipping

Few people have a grasp of how freight shipping affects the world, let alone the transportation industry in the Philippines. To help you understand the impact of freight shipping, take a look at the following facts that are just outright interesting:

The Philippines is slowly establishing a global reputation as one of the leading ship producers. In 2010, the country was hailed as the fourth-largest producer of ships in the world.
According to a 2017 review of the local maritime industry, Philippines have a 4.2 market share in container ships, which makes it on par with other world-class ship producers such as China, South Korea, and Japan.
Several data suggested that the Philippines is a potential competitor for global container shipping services.
The top trading partners of the Philippines are as follows: Australia, India, Vietnam, Taiwan, Malaysia, Singapore, Thailand, and South Korea.
In 2016 the nation registered a +4.6 growth rate in the national fleet. Most of it consists of carriers, general cargo, and container ships.

Hurdles that Businesses must Overcome in Freight Shipping

Given the significance of freight shipping in the Philippines, businesses especially those that are still new to the industry must be able to have an in-depth understanding of how specific systems work in order for them to be successful. This involves having knowledge in the overall process of shipping, which can be quite a challenge even for the seasoned ones.

If you own a business that is aiming for reaching greater number of customers across country borders, you will need professional help to guide you all the way through the requirements. In these case, hiring freight forwarders and customs brokers is the most ideal solution.

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The Impact of Coronavirus to the Freight Industry – Infographic

excelsior on April 30, 2020

The spread of the coronavirus or COVID-19 has led to many significant adjustments in modern society. In order to prevent the rising number of the infected as well as the fatalities caused by the virus, many business sectors were forced to shut off their daily operations. This might sound like a problematic situation for the freight industry since most freight professions rely on offering their services to different business institutions.

But what are specific effects that must be expected throughout the entirety of this pandemic crisis? Here is everything you need to know about the impact of coronavirus to the freight industry:

Coronavirus and the Global Supply Chain

Due to the fact that most people are staying indoors, global demand for many products will start and continue to become scarce. Importers and exporters are going to experience any delays in the transportation of their goods. However, those that are working in the freight industry won’t have to worry too much since it will stay operational as usual, delivering the most essential goods in places where they are most needed.

Coronavirus and Ocean Freight

In an attempt to prevent the collapse of ocean freight rates, carriers decided to blank a new record number of sailings from now until around the last days of June. There is a considerable amount of cancellations in sailings, though it stays the same within the past weeks.

Coronavirus and Air Freight

Despite the drop in ocean freight demand, air freight will continue at an extremely high cargo rate due to the rising demands in the immediate transportation of urgent supplies. With the air carrier as a faster mode of transportation, freight forwarders are now recommending their clients to go with the less expensive ocean freight services that can guarantee them more space for the cargo.

Coronavirus and Trucking

The trucking industry remained operational, especially during the start of the crisis, where retail stores are more inclined to order more supplies due to panic buying. But as the people slowly adjusted to the situation, the industries that rely on trucking are keeping themselves in stable condition. The government is also cooperative with truckers as they let them pass through main roads as long as they can present a viable permit.

Tips for Transporting Your Goods amidst the COVID-19 Crisis

Anticipate delays – always be updated with any news that might involve your business and the transportation sectors.
Communicate with your suppliers – establish effective communication with your suppliers to confirm order ready dates.
Talk with your freight forwarder – hiring a freight forwarder can make things a lot easier as you can have someone that can assist you in your transportation needs, as well as a guide that can help you make better decisions during these hard times.

How Customs Brokerage Firms Help the Philippine Economy

excelsior on April 15, 2020

There are several factors that affect the economy of a country. From the total population, natural resources, to technological growth, it is highly essential for such a massive social unit to thrive and make efforts to enhance and develop its own economy.

In the Philippines, one particular industry is becoming more renowned as a great contributor to the country’s economic growth. Customs brokerage refers to the profession of rendering services to an organization, usually an exporter or importer, to assist them in clearing customs requirements and processes so that they can transfer their products in different locations without facing any legal issues.

The Bureau of Customs, the Philippine government’s agency that facilitates the nation’s trade through an effective customs system, had been touted local customs brokerage firms to be their partners in maintaining the economy. Why did the government say so?

Customs Brokers Helps the Government to Fight Corruption

Customs brokers, as licensed professionals, spent considerable time studying different customs regulations, as well as the most effective ways of negotiating with the authorities. This means that they are well educated on how the government agency operates. Since customs brokers are always dealing with them, it can be easy to spot and report any irregularities committed by any customs authority.

Customs Brokers Aid in Encouraging Investors in the Country

The Philippine government raises funds from taxes. Greater portions of taxes came from businesses. Customs brokers, in a way, encourage investors to do business in the country hence augmenting the country’s economic growth and providing the government with more funds more developing many projects such as infrastructure, public facilities, and combating poverty.

Customs Brokers Can Help Create More Jobs

This is inlined with the profession’s capability to trigger a chain of events that leads to attracting more people to invest in the Philippines. More businesses result in increased job demands, reducing the unemployment rate. This is perhaps one of the best benefits that are often neglected, as many people thought customs brokers only affects what’s going on within the field of the trade itself.

Customs Brokers as an Integral Profession

The Philippine government is currently in full support of the continuous rise of customs brokerage firms. As it was stated in the Customs Modernization and Tariff Act (CMTA), one of the state’s ruling policies is that a priority and support must be given “to professionalizing the practice of customs brokers profession in the Philippines which will be beneficial to the country in general and to the economy in particular.” This further highlights the integrity of customs brokers as key players in maintaining the stability and growth of the Philippine economy in general.

Traits of a Reliable Customs Clearance Service Provider – Infographic

excelsior on March 31, 2020

Dealing with customs authorities for shipping your products is one of the most time-consuming and stressful parts of running an export or import business. Apart from hiring a reliable freight forwarder, getting a customs broker in the Philippines is also essential towards clearing your transported goods and keeping your supply chain in stable condition. But not all agents can be considered as “reliable” and “trustworthy.”

To make the most out of a customs brokerage service, one must be able to identify an agent or company that can provide the highest quality of service, with a considerable amount of experience and knowledge in the field.

Here are some signs that a customs broker is definitely a worthy investment for your business

A Reliable Customs Broker Is a Licensed Professional

Every country has its own laws that regulate the individuals that practice customs brokerage. The Bureau of Customs (BOC) in the Philippines is the one that issues information regarding accreditation guidelines for customs brokers. With a licensed customs broker, expect that you will experience a seamless and trustworthy service that keeps your shipping goals on the right track.

A Reliable Customs Broker Possess Excellent Organizational Skills

With a plethora of documents and requirements that must be cleared, being organized must always be a staple trait of every customs broker. The client will be the one to suffer in case something during the shipping process goes wrong, so a reliable customs broker should be able to prevent unnecessary errors and ensure that the goods will be able to arrive at its destination without delays.

A Reliable Customs Broker Must Be Well-Educated and Trained

Similar to other professions, customs brokers should spend a significant amount of time for training and keeping an ample amount of knowledge on different topics such as logistics and laws that concern product transportation. Being a reliable customs broker in the Philippines requires familiarization of laws and regulations, including trade-related information, and basically everything about customs processes and requirements for clearing shipments.

A Reliable Customs Broker Must Be Always Updated With Any Recent Changes in Customs Policies and Freight Forwarding Process

One of the reasons why many businesses today are more inclined to hiring freight forwarders and customs brokers in the Philippines is that requirements for clearing shipments can change at any given moment. Customs brokerage service providers that are top-notch in the industry tend to experience lesser problems when complying with the requirements because they always keep themselves updated with everything that is going on, especially in customs and freight forwarding policies.

A Reliable Customs Broker Must Have Adequate Knowledge about Your Business

It is highly beneficial for your business if your chosen customs broker is equipped with enough knowledge regarding the nature of your shipment. This way, you can get expert advice that can make save you a lot of resources when transporting your goods in the future.

Why You Need a Licensed Customs Broker in the Philippines

excelsior on March 16, 2020

Commercial businesses in the Philippines, especially those that specialize in importing and exporting, are always facing challenges that are often involved with shipping and customs processes. Transporting products in and out of the country requires an enterprise to comply with specific rules and regulations that can be complex and time-consuming. This became the reason why customs brokerage has become an ever-growing business trend as hiring a licensed customs broker can save a business owner from getting worried about preparing the necessary documents.

Are you planning to run an import/export business in the country? Then you better know more about how customs brokers and why you need to hire one:

Reason #1: To Establish Effective Communication with the Government Authorities

Dealing with government authorities to ship your products can be a tedious process that requires technical knowledge in the existing laws and regulations. For your shipment to be released by Philippine Customs and other government bodies, you will have to submit a number of documents and fill-out forms. Failure to effectively communicate while complying with such requirements can result in wrong shipment information and further delay in your supply chain.

Customs brokers can get rid of this problem because they are well-connected with those in authority, speeding up the clearing process and avoid any problems usually associated with customs requirements.

Reason #2: To Help You Focus More on Other Areas of Your Business

With a trusted customs broker taking care of your shipment tasks that you were supposed to do, you will find yourself in a more convenient situation. More time means more opportunity for addressing other important areas of your business, such as managing your employees, daily operations, etc.

Reason #3: To Prevent Unnecessary Expenses

There are some businesses today who gets fallen on the trap of clearing shipments themselves because they thought that it would save them more money. This is a clear misconception because the rules and regulations in cross-border transactions can fluctuate at any given moment, making it easy for know-it-all companies to experience delays, and others unwittingly commit violations that could prompt them to spend more money in the long run.

Reason #4: To Save Time and Effort

Time, as a precious resource for an import/export business. Depending on the nature of your products, ensuring that it will arrive at its destination on time is a must. Customs brokers in the Philippines are trained and skilled enough to work in a way that can optimize the flow of your overall supply chain, especially in the aspect of product shipping.

Reason #5: To Help You Find the Best Option for Shipping

A customs broker can serve as a guide for your shipping options. By considering several factors, customs brokers can recommend the best carrier, be it via air, ocean freight, or truck freight.

How to Be a Successful Importer – Infographic

excelsior on February 28, 2020

Selling products that came from abroad can be a pretty rewarding business, especially if there is a growing local market that can buy your goods. Imported products tend to be available for a cheaper price, and usually in high quality. And with the rapid spread of globalization, new and commercial items from an international supplier could emerge, which gives importers instant access and offer it their own country maximizing their profits in the long run.

If you’re one of those aspiring entrepreneurs who are planning to start an importing business, then you should be aware of some tips that can help you thrive and succeed as the competition becomes tougher as the years go by.

Have a piece of in-depth knowledge about your products

While this might sound like a no-brainer, conducting research about the products that you wanted to import is critical for your success. Know more about the existing market and have an assessment to identify if there are people who will be willing to purchase your imported products. You also have to make sure that the products are allowed to enter the country.

In case you’re from the Philippines, below are some examples of items that are either prohibited or restricted for importation as mandated by the Philippine law according to the International Trade Administration:

Toy guns
Used motorcycle parts, except engine
Specific narcotics, or synthetic drugs (i.e., marijuana, opium, heroin, among others)
Gambling paraphernalia
Dynamite, ammunition, explosives
Laundry and industrial detergents containing hard surfactants

You can view the full list here.

Negotiate effectively with your supplier

Dealing with suppliers from another country can sometimes become a challenging task as the diversity of culture can hinder your chances of getting a favorable deal. Study more about the culture of the exporting country so that you can implement suitable strategies once you negotiate with your supplier. Have a thorough understanding of the terms before placing an order so that you avoid mistakes that often lead to additional expenses. Check if the calculations of all the costs that you have to pay are correct.

Analyze your insurance coverage

Make sure that you analyze the insurance aspect of your import transaction. Unexpected events might happen as your products are being transported, and this could help you identify the party responsible in case of a loss or damage.

Contact the customs authorities

There’s a good chance that you will have to comply with several permits as well as submit documents and forms before you can clear your imported products during the shipping process. This could be a very time-consuming stage for those who are relatively new in this kind of industry. Since time is a valuable resource that must never be allocated alone for shipping processes, it’s highly recommended to hire a licensed customs broker to prevent unnecessary delays on your shipment.

Maintain good relationships within your network

Every person or agency that you’re doing business with will always play an essential role in your success. From your supplier, freight forwarder, customs broker, carrier company and even the customs authority, you must treat them with utmost professionalism and respect. Maintaining social harmony in your business sphere will make your daily importing operations as smooth as possible.