excelsior, Author at Excelsior Worldwide Logistics Corp.

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.

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.

Sources:

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.

5 Most Common Shipping Problems

excelsior on February 15, 2020

The shipping industry in countries like the Philippines is often involved with a lot of requirements when it comes to transporting goods from one place to another. Due to the complexity of the shipping process, it’s not surprising to know that issues and other problems might arise which could disrupt the supply chain of those businesses who rely on services like freight shipping.

Fortunately, such issues can be apprehended by hiring a trusted freight forwarder and customs broker. But still, it would be an advantage for those who are investing a lot in import and export business to be aware of the most shipping problems.

Problem #1 – Missing Documents

The most important document that must always be present at hand during the shipping process is no other than that original copy of the Bill of Lading (BOL). It might sound like a no-brainer but believe it or not, many shippers tend to misplace them due to certain reasons. If you ended up losing your Bill of Lading, there’s a high chance that you will experience delays with the release of your shipment. Make sure that your Bill of Lading is always secured via a reliable channel.

Problem #2 – Unanticipated Closures and Cancelations

One troublesome shipping problem that frustrates many businesses nowadays is when unexpected events happen, leading to the port getting closed or the freight carrier canceling its trip to the destination. The reasons may include strikes by port workers or truckers, and natural disasters. In cases of natural disasters, it’s always better to face the delays instead of the carrier risking the safety of everyone on board and your shipment.

Problem #3 – Overweight Cargo

Failure to properly check the weight of the cargo often results in several problems throughout the shipping process. First, there’s going to be inaccuracies to the documents as the cargo’s weight is essential information that must be submitted. Second, the shipment might become so heavy that it will require different lifting equipment, wasting you a lot of time and (and most likely, money) in the long run.

Problem #4 – Lost Shipment

In addition to missing documents, every shipper must know that if they’re going to have their goods transported on a massive carrier, chances of it going missing are quite high. Ports are now starting to grow larger, and with a plethora of other shipments, you will have to hire a trusted third-party agent to keep an eye on your products.

Problem #5 – Holidays

National holidays can be a good time for being merry and taking some rest from work, but it could mean delays on your part as the shipper. To prevent such problem, do some research on the upcoming port or terminal closures at both origin and destination. Anticipate the holidays by scheduling your shipment before the specific dates, unless you have to suffer a stressful shipping process filled with tons of other cargoes and port congestion.

Responsibilities of a Licensed Customs Broker – Infographic

excelsior on January 31, 2020

A customs broker is a licensed individual that offers services involving the shipment of imported goods as well as clearing the required documentation for export shipments and collecting taxes.

Many licensed customs brokers today tend to have connections with freight forwarders, shipping lines, private institutions, and even the trade authorities in order to serve as the intermediary between importers and the government.

Having a licensed customs broker is highly beneficial, especially if you’re a business owner looking for more customers abroad. Transporting your products is going to be quite an arduous process, with all of that complicated paperwork that must be complied to a given period of time. To lessen your stress and focus more on managing other aspects of your business, a licensed customs brokerage service is the key.

To make you more aware of what licensed customs brokers do, here is a list of their duties that are highly beneficial for businesses that need immediate help in product shipping:

Facilitate Customs Transactions

A licensed customs broker shall help their clients with all the required documents for clearing the imported goods from the receiving customs department. He/She must prepare the entry form which indicates essential information such as the source country, classification code, total weight, and quantity of the goods. Additionally, the broker can also handle other paperwork related to exporting goods.

Represent Their Clients

Since they mostly deal with customs authorities, customs brokers shall be the representative of their clients when it comes to customs-related transactions. A customs broker should be ready to enlighten their clients about the latest changes in customs laws and regulations.

Review the Classification of Goods

Errors in classifying goods can result in additional expenses in taxes and duties, so a licensed customs broker prevents this from happening by reviewing the classification of their client’s goods.

Payments of Duties and Fees

After the review and calculation, all of the expenses in customs duties must be properly calculated by the broker and gets it paid directly from the account.

Record Keeping

A customs broker must be liable to maintain the confidentiality of all transaction records and documents of their clients. And similar to what freight forwarders do, customs brokers should also keep track of their clients’ shipped goods to ensure its safe arrival upon the destination.

5 Questions to Ask When Looking for a New Licensed Customs Broker

excelsior on January 15, 2020

So you just decided to hire a new licensed customs broker to keep your supply chain from getting disrupted by the complexities of shipping processes. In addition to freight forwarders, having a trusted licensed customs broker can bring ease and save a lot of time in transporting your products especially on an international scale.

However, with the growing emergence of such a profession, finding the appropriate licensed customs broker for your business can become quite challenging as everyone will surely fight their way to have you as a client. Not all licensed customs brokers can provide the same level of service, which means that you must be ready to know more about them before making an agreement.

Here are five questions that you must remember when looking for a new licensed customs broker:

May I see your track record?

Knowing the track record can make you more confident that your new licensed customs broker can handle well all of the customs requirements and other related tasks for your business. This can be done after doing initial research. A licensed customs broker working for a company will most likely possess a good online presence. Try visiting their official website and see if they have other online platforms used for reaching out with potential clients. You might even take a glimpse of their track record by checking out some of their webpages, but you still have to ask them in person to see if they can give you consistent information. The more reliable the track record is, the better.

You can additionally look for any certification to verify their license.

Do you have any pending lawsuits?

Since licensed customs brokers frequently deal with customs authorities, dealing with any lawsuit could mean incompetence and a tarnished reputation. While the firm you’re talking with might avoid topics such as this, it’s still quite better to ask them and verify their answer by thorough research.

What is your vision?

Know more about the short and long term goals of the company. Remember the possibility of spending a great deal of time with them, so you better be aware of how assertive they can be. You can give more emphasis on their vision regarding the usage of modern technology in helping their clients clear different shipping processes.

How much will your service cost?

This question will most likely start a long conversation consisting of negotiations between you and the broker. Prices can vary based on your agreement but be sure to have a detailed breakdown of all the services that are going to be rendered. You should also talk about their payment processes to avoid hassles in the future.

Can you provide quality service based on client needs?

Your new licensed customs broker must at least have some experience when it comes to dealing with clients that are related to your industry. This can be an indicator that they will be able to provide your needs as well. Keep in mind that versatility is an attractive trait in business especially those that offer expert services.

5 Things A Professional Licensed Customs Broker Can Do For You – Infographic

excelsior on December 31, 2019

A licensed customs broker is a professional who offers services involving shipments and delivery of goods across countries. Not to be confused with freight forwarding, customs brokerage gives more emphasis on ensuring that no issues regarding legalities will arise during the importing or exporting process.

Many enterprises today prefer hiring customs brokers in addition to freight forwarders because of all the complexities associated with the requirements. If you have a company currently suffering from a lot of hassles in clearing their shipments, hiring a licensed customs broker is definitely the best solution.

Here are five things a professional licensed broker can do for you:

1. Take care of all the customs paperwork

The name implied, their primary job is to serve as the intermediary between you (the client) and the government, specifically the customs authorities. This means that they possess enough knowledge that can complete all of the customs paperwork and other formalities in your place. And if you’re quite worried due to the sudden changes in the customs regulations, a licensed customs broker is always required to be updated at all times to make sure that you will not experience any unnecessary hassles in transporting your goods.

2. Discover new and potential markets

Out to customers abroad is a challenging task, especially for small businesses. Fortunately, licensed customs brokers can help you accumulate more customers across borders as they have a wider significant presence brought by the nature of their profession. They can also aid in formulating strategies on locating new and potential markets so that you can gradually increase your profits over time.

3. Make good use of modern technology for a more affordable and time-efficient service

Is not the only tool of licensed customs brokers. Taking advantage of modern technology, customs brokerage is now more advanced thanks to the development of automated systems that enables the faster exchange of data across geographical borders. Some licensed customs brokers can even provide you access in specific systems that can be used to optimize your productivity and also minimize that chances of non-compliance, saving you more money and time in the process.

4. Offer personalized services

Businesses are precisely the same, and licensed customs brokers are aware of this fact. To be more versatile in offering their services, they are always ready to satisfy the needs of their clients by making it more personalized. Even a small business can attain benefits by hiring a licensed customs broker!

5. Provide expert advice

A professional licensed customs broker can make the most of a customs brokerage service by hearing expert advice from their trusted broker. The essence of being a licensed customs broker far exceeds in making a living out of clearing shipments, but to enlighten and guide their clients on the customs regulations, tariffs, valuation, classification, etc. So, if you’re new to the industry, you can study its nuts and bolts by simply hiring a licensed customs broker.