international freight forwarding company Archives - Excelsior Worldwide Logistics Corp.

Container Congestion in Singapore: How It Affects Worldwide Logistics?

excelsior on July 30, 2024

Port congestion is considered the most compelling issue in the shipping industry today. It is a situation where ships experience backlogs while waiting to load or unload cargo due to overbooked capacity ports, leading container ships to berth instead.

This logistic concern has led to numerous concerns regarding supply chains, higher shipping costs, and major shipment delays.

In fact, Singapore, known as the world’s largest transshipment hub and the second-busiest port in 2023, is also exposed to and affected by container congestion, which disrupt operations and lead to lengthier transit times.

According to Chee Hong Tat, Singapore’s transport minister, the issue concerning Singapore port congestion has gotten worse as 90 percent of the container ships arrive off-schedule.

This Singapore congestion has been aggravated by the Red Sea Crisis, which prolonged the rerouting of vessels and ocean carriers between Asia and Europe and damaged global ocean shipping.

With this concern affecting not only Singapore but also worldwide logistics, various factors have been added to the list, which has generated huge impacts on the shipping industry and consumers.

Sources of Port Congestion

Weather Conditions

Severe weather conditions, like storms and rough seas, hinder the normal operations of shipping services. Given that cargoes and goods are transported out of the channel by sea, massive delays are possible, which could knock ports and customers off their feet.

Labor and Manpower Disputes

Port workers, such as truck drivers, dockworkers, port operators, and other staff members, are responsible for packing, unloading, document checking, cargo clearing, and cargo moving. Strikes, disputes, stoppages, and other job working conditions could limit and drastically slow down these services.

Poor Infrastructure and Equipment

Container congestion is largely caused when ports lack cargo handling equipment like chassis, and there is insufficient storage, container yards, and berths. Due to infrastructure deficiencies, major backlogs lead to the piling up of cargo and containers, which could lead to delays.

Demand Surges

The influx of imports and exports from the e-commerce market and platforms has become prevalent during the pandemic and continues to the present. The demand surges swamped the port’s capacity, causing service disruptions and container shipping traffic due to the large amounts of goods that needed to be transported.

Impacts of Singapore Congestion on Worldwide Logistics

Container Congestion in Singapore: How It Affects Worldwide Logistics?
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Major Delays

As shipping operations have been halted due to container congestion, a domino effect could spread throughout logistics. A supply chain crisis could emerge and cause longer transit periods, backlogs, and delays in shipping schedules, which will directly impact the consignees and consumers.

Generates Extra Costs

When a ship stays longer in port, the higher the costs and the driving of inflation. Singapore container congestion will not just cause significant delays in deliveries; this will generate extra fees for the consumer due to increased billing for port services and fuel usage. Higher freight rates for shipping companies are also possible; hence, this could lead to congestion surcharges.

Lost Revenue for Businesses

A small delay could lead to a huge disturbance. Congestion could also impact small businesses, causing them to lose revenue and income due to inventory delays, production discontinuance, and missed sales due to customer unsatisfied remarks.

How to Deal With Singapore Port Congestion?

It is essential to illuminate potential solutions that could be applied to avoid Singapore port congestion and future delays.

Thorough Planning

Through intensive and streamlined planning, delays, shipping methods, production schedules, and supply chain operations would be seamlessly solved and anticipated, lessening the impact of congestion.

Enhancing Port Infrastructures

As the shipping industry becomes increasingly relevant, meeting the demands also means expanding and enhancing the needed infrastructure. Having a larger capacity of ports and sufficient containers, berths, and storage will limit congestion.

Diversifying Routes and Logistics Network

Optimizing routes and searching for alternative gateways with larger capacity and low congestion levels are necessary. Finding alternative transportation should also be considered to ensure prompt delivery and freight assistance. In this case, it is also essential to look for a freight forwarder with a vast logistics network to handle delays and shipping issues professionally.

Conclusion

Although PSA Singapore claims to deal with shipping lines and freight services to minimize container congestion, it is still necessary to be aware of how the shipping industry affects global logistics and how it should adapt amidst the rising issue of port congestion.

Learn more by reading these articles:

Differences Between a Freight Forwarder and a Carrier

excelsior on June 28, 2024

When it comes to global logistics, understanding the distinct roles of a freight forwarder and a carrier is crucial. Both play vital roles in ensuring goods move smoothly from one point to another, but their functions and responsibilities differ significantly. Continue reading and learn about the key differences between a freight forwarder and a carrier and how they interact within the global and local supply chain.

What is a Carrier?

A carrier, often referred to as a common carrier, is the entity that owns the transportation assets and is responsible for the actual movement of goods. Carriers can be shipping lines, airlines, trucking companies, or rail operators.Types of Carriers· Shipping Line: A shipping line operates a fleet of ships that transport goods across seas and oceans. Major shipping lines include Maersk, MSC, and CMA CGM.· Airlines: These carriers transport goods via air, which is crucial for time-sensitive and high-value shipments.· Trucking Companies: They handle overland transport, providing flexibility and direct routes for domestic and cross-border shipping.· Rail Operators: Rail carriers are ideal for bulk goods over long distances within continents.Carriers are responsible for the safe and timely delivery of cargo and for operating the vessels, aircraft, trucks, or trains that physically move the goods.

What is a Freight Forwarder?

A freight forwarder acts as an intermediary between the shipper and various transportation services, such as shipping lines, air freight, and trucking companies. Essentially, a freight forwarder does not transport goods directly. Instead, they arrange the logistics and coordinate with carriers to ensure the efficient movement of cargo.Services Provided by a Freight Forwarder· Logistics Planning: A freight forwarder helps plan the most efficient and cost-effective route for shipping goods.· Documentation: They handle necessary paperwork, including customs documentation, ensuring compliance with international shipping regulations.· Cargo Insurance: Freight forwarders often offer insurance options to protect goods against potential damage or loss during transit.· Consolidation: They can consolidate smaller shipments into one larger shipment, reducing shipping costs.An international freight forwarding company leverages its network and expertise to navigate complex shipping regulations, ensuring timely and secure delivery of goods.

Key Differences Between a Freight Forwarder and a Carrier

When it comes to their roles in the supply chain, a freight forwarder acts as a coordinator, arranging transportation, handling documentation, and ensuring smooth logistics. On the other hand, a carrier owns and operates the transport vehicles and is directly responsible for the physical movement of goods.Here are other differences between the two:

Responsibilities

A freight forwarder offers a comprehensive suite of services, including route optimization, documentation, and shipment consolidation, ensuring efficient logistics management. In contrast, a carrier is dedicated to the actual transportation of goods, focusing on maintaining schedules and ensuring cargo safety throughout the transit process.

Relationship with Shippers

A freight forwarder directly collaborates with shippers to plan and manage logistics, offering customized solutions to meet specific needs. On the other hand, a carrier works with freight forwarders or shippers to deliver transport services according to established schedules and routes.

Can a Carrier Be a Freight Forwarder?

While primarily distinct in their roles, a carrier can offer freight forwarding services. Some large shipping lines and airlines have established logistics divisions to provide end-to-end solutions, acting as both carrier and freight forwarder. This integration allows them to offer comprehensive services, from planning and documentation to the actual transportation of goods.

Conclusion

Understanding the differences between a freight forwarder and a carrier is essential for efficient and effective logistics management. While a freight forwarder arranges and oversees the shipment process, a carrier is responsible for the actual transportation of goods. Both roles are vital, and their collaboration ensures the seamless movement of goods across the globe. Whether working with an international freight forwarding company or directly with a common carrier, businesses can optimize their supply chains by leveraging the strengths of each entity.

How the Suez Canal Issue Affects the Global Supply Chain

excelsior on March 27, 2024

The recent Suez Canal blockage caused by the Houthi rebel attacks has sent ripples through the global supply chain. As one of the busiest waterways, the canal facilitates the daily transit of billions of dollars’ worth of goods between Europe and Asia. The disruption has led to a backlog of vessels, delaying shipments of vital commodities.

Many international freight forwarding company rerouted around the Cape of Good Hope, while others container ships paused their cargo movements until further notice. This resulted to the prolonging of many shipments’ journeys which adds up costs to maritime companies. This is also expected to add to yet another pile of inflation causing further economic strain.

With the current low water level of the Suez, it is expected that prolonged delays will likely impact industries worldwide, from manufacturing to retail, highlighting the vulnerability of the interconnected global supply chain to unexpected disruptions, prompting reassessment of logistical strategies.

Importance of Suez Canal in Global Trade

Engineered by French diplomat Ferdinand de Lesseps, the Suez Canal was constructed between 1859 and 1869, during the era of European colonial expansion. Situated in Egypt, this waterway holds immense economic significance in global trade due to its strategic location and pivotal role as a maritime artery connecting the Mediterranean Sea to the Red Sea. Upon its completion, the Suez Canal immediately transformed global trade patterns, reducing travel distances and transit times for maritime vessels.

This ambitious endeavor emerged as a vital lifeline for global trade, serving as a crucial conduit for the transportation of goods between Europe, Asia, and Africa. Approximately 12% of global trade volume passes through the canal annually, encompassing a diverse range of commodities, including oil, natural gas, manufactured goods, and agricultural products.

Impact on Global Supply Chain

The Suez Canal is a vital link in many global supply chains, particularly for time-sensitive goods such as perishable items or components used in manufacturing. During the pandemic which started at the end of 2019, supply chains were put to extreme pressure but was able to flow smoothly by 2023.

However, by the end of the year, another disruption happened when the Yemeni rebels—the Houthis attacked Israel. Adding to their strategy is attacking civilian container ships at the Red Sea that goes to and from the Suez. This is seen as a major global impact as it will again cause long term effects on global trade and supply chains such as the following:

Shipping Delays and Increased Costs

In the event of geographical conflicts, maritime traffic through the canal is greatly disrupted altogether. This result in delays and congestion as vessels are forced to reroute around the Cape of Good Hope, significantly extending transit times and increasing costs for shipping companies.

What adds to the price are higher fuel costs and additional expenses for shipping of the goods and other commodities therein. These increased costs would likely be passed on to consumers, leading to higher prices for goods transported by sea.

Impact on Energy Markets

Approximately 10% of global seaborne oil trade passes through the Suez Canal, making it a critical route for the transportation of oil and gas between the Middle East and Europe. With the recent events unfolding every day definitely leads to fluctuations in oil prices and supply shortages affecting energy markets worldwide.

Financial Losses

The economic impact is so significant that billions of dollars is lost revenue for shipping companies, insurers, and other businesses reliant on maritime trade. The ripple effects of supply chain disruptions would also be felt across various industries, leading to financial losses and decreased economic growth.

Response and Risk Mitigation Efforts

As these attacks happen, the UK and US governments are trying their best to pacify the rebel group through airstrikes. However, the group keeps all efforts to strike back at any moment they can.

As for analysts, the problem has happened before and many say that ocean freight security process will again be restored. It is a hopeful take. However, time can only tell when it is to happen. But as of now, the most feasible course of action are the shipping alternatives around the southern part of South Africa. Some industry experts focus on nearshoring or relocation of their supply to avoid further delay of goods, streamline production, and avoid going through middlemen system.

While the attacks are showing no signs of halt, shipping companies are doing their best to think of ways to protect and keep the supply chain going. The expected recovery timeline is still bleak and all that commercial vessels can do is move forward doing the effective commerce despite the danger of the continuing conflict.

Freight Forwarding Trends 2024: Things to Expect in the Industry

excelsior on January 26, 2024

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

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

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

Freight Forwarding Trends of 2024

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

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

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

1. Digital Transformation and Automation

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

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

2. Blockchain Integration for Enhanced Security

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

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

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

3. Real-time Tracking and Visibility

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

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

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

4. Eco-friendly Initiatives and Sustainable Practices

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

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

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

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

5. Resilience Planning and Risk Management

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

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

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

6. Collaborative Platforms and Ecosystems

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

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

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

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

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

To learn more, read these informative articles by Excelsior.

Tips When Working with a Freight Forwarder

How Currency Exchange Affects Freight Forwarding Costs

Tips when Working with a Freight Forwarder

excelsior on May 14, 2023

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

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

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

· Ensure Proper Communication

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

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

· Pay On Time

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

· Avoid Cramming Shipments

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

· Understand Export Compliance

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

· Focus on Long-Term Goals

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

Conclusion

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

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

How to Mitigate Currency Fluctuation Risks when Shipping

excelsior on April 11, 2023

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

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

Understanding Currency Fluctuations

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

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

Mitigating Currency Exchange Risks

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

1. Use Forward Contracts

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

2. Understand the Currency Adjustment Factor (CAF)

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

3. Currency Options

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

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

Conclusion

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

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

International Freight Forwarding Trends for 2023

excelsior on January 14, 2023

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

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

Freight Forwarders to be More Prepared

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

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

Mergers and Acquisitions will Continue

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

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

Sustainability will be a Key Goal for Forwarders

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

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

International Freight Forwarders Will Go Digital

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

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

Conclusion

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

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

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

The Importance of Sustainability in the Shipping Sector

excelsior on November 14, 2022

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

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

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

Why is Sustainability Important in International Freight Forwarding?

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

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

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

How Can the Global Shipping Industry be More Sustainable?

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

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

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

Shipping Companies that Go Green

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

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

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

How to Import to the Philippines?

excelsior on October 14, 2022

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

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

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

How can New Importers Start?

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

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

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

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

Documents Required when Importing Products

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

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

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

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

Conclusion

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

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