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FCL stands for Full container Load and it is when a shipper decides to hire an entire shipping container to transport goods by sea. Full Container Load(FCL) allows the shipper to completely fill the container. This is in contrast to LCL (less than container load) shipping where only a portion of the space in a container is booked. FCL is for people or organizations who are looking to import a large amount of stock (over about 20 cubic metres). All they need to do is establish the container size you’ll need and understand some key bits of the process. As your goods are the only thing in the container it will be loaded by your supplier and unloaded by you on arrival. The shipping process: Our office will contact your supplier and a decision will be taken on which ship they will catch , based on the readiness of the goods. Then the container will be taken to your supplier’s factory on the back of a truck, your supplier will load the goods into the container. The container will be sealed and taken to the port where it’ll be cleared through customs and It’s loaded onto the ship which brings it to Nigeria. In Nigeria, the container is taken off the ship and put on the quay. The port gives few days free rent for the container to be customs cleared and delivered . This calls for quickness on our part. Once cleared, the container will be loaded onto the back of a truck , the truck will arrive outside your premises and you have to break the container’s seal The customer has till mid day to offload the truck either by hand or using a fork lift. Failure attracts demurrage. The empty container is driven back to the port to be reused. Characteristics of a FCL It is cheaper per cbm: If you are importing a large amount of stock, FCL is the cheaper option as you pay ‘per container’ rather than ‘per cubic metre’. Quicker than LCL: FCL requires much less loading and unloading at each port. As a result you save time at both ends of the process. Goods is only touched by you and your shipper: This reduces risk of damage. One of the biggest reasons that we recommend marine insurance is that cargo getting damaged in transit is a real concern. Many importers don’t understand how many people need to touch their goods just to get them from one place to another and that accidents can happen. When you ship using FCL, your goods are far more secure as they are transported in the container as opposed to being taken out and handled. You need to import a larger amount of stock. To be a cost-efficient option, FCL requires you to be importing a larger volume of product. For a start-up or small business, this means that FCL may not be viable. In between these movements of the container right from Origin to destination, these are documentations that accompany them like invoice, Bill of Laden, TDO e.t.c The good news is that Edas Global Supply Chain Limited can help with all these and more. We provide you door to door logistics services; straight from Origin to destination without you losing focus on your core business offerings. Reach out to us today and start the process. Email info@edasglobalsupplychain.com or call +2347089921886 https://edasglobalsupplychain.com/blog/2020/09/14/fcl-shipping-and-how-it-works/
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Our world wide shipping services are worth experiencing because they are efficient, reliable and cost competitive. Get in touch today. Call +2347089921886, info@edasglobalsupplychain.com. www.edasglobalsupplychain.com
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In the world of global forwarding, air freight and sea freight are the most commonly used modes of transportation. Choosing the correct mode of transport can be tricky. It’s often a question of time and money. You probably want to strike a good balance between the both. To ease your decision we have put together a number of key factors to consider before making your decision. How do you choose between air and ocean freight? In general terms, air will be faster but more expensive while ocean will be slower and more cost-efficient. Beyond these generalities, however, there is much to think about. Before you finally choose which mode of transportation to use at any point, consider the following; 1. How urgent do you want the item: At Edas Global Supply Chain Limited, we grade RFQs as urgent, semi urgent and not urgent. We get this feedback from the customer to know which mode of transportation or urgency of item to apply. Airfreight is always costlier and faster than sea freight. Even within airfreight, there is express delivery which is the costliest of all freights. Customers choose modes which suit their needs at that particular time. If customers choose sea freight, it simply means they can wait for at least from 10 days to 2 months for the item to arrive or even more if it is a consolidated cargo as ocean freight depends on distance and available services at that time The urgency of your cargo is the first factor to consider in deciding between air freight and ocean freight given the fundamental difference between sea freight and air freight is speed. Air freight typically range from a few up to 10 days, taking into consideration holding time at airports, routing and awaiting available aircrafts and handling at origin and destination. 2. Inventory considerations: Air freight is also best if you want to reduce inventory levels where warehouse space is particularly expensive. Regular flight schedules allow you to pull products into your warehouse on an as-needed, just-in-time basis. So the extra cost of air transportation is partly offset by the savings made in reducing stock holding. 3. Cost implications: Transportation takes up a large part of expenses in business, this is the reason why businesses have to make informed decisions on choosing the most affordable freight option to improve their financials . To find the cheaper freight option, you need to understand how air and sea freight fees work. Airlines use chargeable weight calculated from a combination of the weight and size of a shipment. Sea carriers, on the other hand, use per container rates for shipping in standard containers. For larger and heavier shipments, sea freight is cheaper. As the size and weight of a shipment get smaller, air freight becomes the cheaper option. On paper, using an ocean carrier is the cheapest freight shipping. However, you have to consider that warehousing fees at seaports are higher than at airports. Comparing the actual cost of shipping is not easy. Those customers that are going to ship content that is less than a full container are likely to be charged using a cubic meter measure. That means that if you have large and heavy shipments, consider sea. However; as your shipments get smaller, you will find that the margin price differentials keep reducing. There may come a time when a flight is the cheaper option. It is also important to think about the destination charges. For example; you may be subjected to customs and destination fees that were not originally within your budget. Those that are using ocean liners need to consider the costs of warehousing fees which are typically charged at the seaport. These fees can outstrip anything that the airport will charge. 4. Contractual obligations: Consider if you’ve got any obligations to your customers contractually. If your buyer requires a product before a certain date, you may find that a fast air freight solution is the option to choose. Conversely, perhaps there is a contractual obligation to keep costs to a minimum, in which case the answer may be to use sea freight. Generally speaking, there is no preferred option when it comes to choosing whether to use sea or air freight, it all depends on the items that you are shipping and the urgency of these items getting to their final destination. The speed and reliability of delivery needs to be considered alongside the need to maximize your profit margins. The major reason to choose air service is the speed of delivery. Moving your cargo through the air allows for a truncated timetable compared to ocean service. This is particularly useful when shipping items with short shelf lives. However, the price for faster service is often higher transportation costs. It’s up to your business to determine what makes sense for your shipping strategy at any point in time. Evaluate when your goods need to arrive at their destination, what your budget is, and how each mode will affect your business’s top needs. If your shipments have a hard, quickly-approaching arrival deadline and your budget allows, ship via air. If you have more arrival date flexibility or want to save money, ship via ocean. Contact Edas Global Supply Chain Limited, we will help you make that decision and also freight the items whichever mode of transportation you choose. Email us via[b] info@edasglobalsupplychain.com or call +2347089921886.[/b]
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As with every well organized business, there are always laws or regulations to guide the participants to ensure a smooth running of the business. These rules also apply to the exporters in the country. Before any individual or company can export goods or products, he/she is expected to have some vital documents to enable him have a smooth and unhindered operation. Freight forwarders are widely known for their inkling to having detailed documentation of every process. International travel documents as such can be generally categorized into three (3) groups. The groups are: Transport documents: Examples are bill of lading Custom documents and other regulatory bodies Commercial documents: Examples are commercial invoice, insurance certificate, inspection certificate and Export license. 8 most common documents in Nigeria include: Pro-forma Invoice: This is a quotation prepared by the freight forwarder in the format of an invoice. They are not used for payment purposes and should clearly indicate two statements. First, the invoice is true and correct and secondly, states the country of origin of the goods. The invoice should also be clearly marked as “pro forma invoice”. The foreign buyer typically may not be familiar with the product therefore, a pro forma invoice typically shows a lot of details such as: Name and addresses for both the buyer and seller The reference number of the buyer and date of inquiry The requested products and a short description for them Total cubic volume and dimensions (if applicable) Net gross and shipping weight (if applicable) Trade discount (if applicable) Prices for each item Delivery point Terms of sales and payment Validity period for quotation Insurance and shipping costs Currency of sale and a few others Packing List: Also known as bill of parcel, delivery list, manifest or customer receipt, is a document that provides the contents (weights and dimensions) of each package or container. Bill of Lading: This is the key transport document for sea transportation. It is signed by the freight forwarder and serves as a receipt to the owner of the goods. It stands as evidence of the contract of the transportation, conditions for transporting and also, transfer of ownership of the goods. A bill of lading typically takes many forms such as: Straight B/L: (A non-negotiable B/L in which the goods are assigned directly to a named consignee) Ocean B/L: This B/L covers port to port shipment. Order B/L: This is a negotiable B/L in which the goods are consigned “to the order of” a particular party. Airway B/L: This is a non-negotiable document issued by the carrier or freight forwarder and typically covers air transportation. Certificate of Origin: This is a document that states the country of origin of the goods and depends on the importing countrys’ requirement. Commercial Invoice: This is a document mostly used in international trade. It is provided by the freight forwarder and must include some specific information such as Name and address of parties involved in the shipping transaction (forwarders and shipping company) Manufacturing country Goods being shipped Issue date Invoice number Terms of sale etc Insurance Certificate: This is a document that stands as proof detailing the insurance coverage on the shipment in the case of any loss. This certificate provides many details such as limits of insurance, effective and expiration dates, agent issuing the insurance, key coverage details etc Inspection Certificate: This document certifies the condition and quality of the shipment. It ensures the shipment meets the criteria of the consignee. Export License: This is a certificate issued by the appropriate authority or department of government stating or authorizing the export of certain goods or merchandise. The freight forwarding company and its clients must of necessity be in a strong partnership or a sound relationship all through the supply chain. Effective monitoring and management of the chain is one key to having a successful business. All parties in the supply chain have a duty to keep each other well informed at all times about new developments. This attribute undoubtedly has a positive effect on the safe and timely delivery of goods. Good communication erases doubt, transfers and updates knowledge, informs, and most especially, reduces risk. All businesses typically involves risk therefore, every effort is required to ensure that such risks are reduced to the barest minimum. https://edasglobalsupplychain.com/blog/2020/09/10/8-eight-common-export-documents-in-nigeria/
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Edas Global Supply Chain Limited fits into that description. With strategic partners and hotspots all over the globe, we are able to convey your goods either by air, sea or intermodal according to the specific needs of your shipments. Write or call us today so that we can address your logistics issues. Email info@edasglobalsupplychain.com; +2347089921886 |
Problems in logistics can come in many different shapes and sizes, but all have the potential to undermine your entire business operation, and should be taken seriously. Providers of 3PL services complemented the effectiveness of logistics supply chain management extending the performance of hauliers and forwarders to what might be called outsourced logistics services providers. 3PL might be defined as outsourcing of logistics activities to outside companies that are neither consignors nor consignees. Third party logistics services can help your business in many ways; this article will be looking at some of those ways; 1. Savings on capital investments: By outsourcing logistics activities, companies can save on capital investments, and thus reduce financial risks. Investment in logistics assets, such as physical distribution centers or information networks, usually needs large and lump sum costs, which involves financial risks. 2. Space considerations: We have handful of clients that do not like keeping items shipped for them in their premises either due to space or decision not to keep any around. What they do is they is they engage us as a 3PL, we handle all the shipping and clearing of the items; then they give us addresses to deliver the items; addresses far away from their facility and not managed by them. What this does for them is that they barely have to worry about storage space. 3. Operational savings: Third party logistics providers have professional experience and insights that promote increased efficiency and cost savings throughout the warehousing and delivery process. By taking advantage of vast resource networks, consolidating shipments and implementing advance processes, 3PLs are able to create savings for shippers. 4. Efficiency in operations: It is not news that having too many bottlenecks in your supply chain can kill the efficiency of your business, thereby hampering your overall growth. Customers want all round efficiency in your dealings with them; lag in any section can shake their loyalty. The fact is there are 3PL services out there that can alleviate the pressure of efficiency and keep things flowing smoothly. 5. Quality service: Most business owners are not logistics professionals, and therefore running an integrated logistics operation can cause the quality of service provided to their customers to slip. Using a 3PL ensures that your service quality levels are maintained and brings expert knowledge to your supply chain. Whether the problem exists in inventory management, material handling, order fulfillment, or any other step along the way in your supply chain, 3PL services can be integrated seamlessly in to your existing operations to help eliminate those bottlenecks. 6. Scaling your business: Rather than dedicating your company’s time and resourcing to setting up your own distribution channels, locating and securing new warehouses and storage facilities, and hiring and training new workers to handle the influx of new shipments, it’s simpler to hire a company that has all of these things ready in place. As your business continues to grow, your 3PL will continue to make use of its network to keep up with your new shipments and clients. And if all goes right, you’ll see the effect of economies of scales: Costs per unit going down as volume increases. A new small business might have been satisfied handling these services themselves, but if the business is succeeding, eventually your volume could very well outpace your ability to effectively manage it. 7. Global infrastructure and networking advantage: One of the major advantages of hiring a 3PL company is making use of the logistical infrastructure that these providers already have in place. A reliable 3PL will have a vast network of interconnected routes that allow them to maximize efficiency while shipping for different clients across the country and beyond. 3PL service providers are able to leverage on this network to find the most cost effective ways of moving your products or materials along the supply chain. If any challenges or hurdles arise, they already have a firm understanding of alternative routes and solutions to satisfy your needs. Meanwhile, if you have operate an in-house logistics, you will have counter all these hiccups and address them; costing you time and energy that would have been channeled into developing other aspects of your business. The points above is enough to convince you to consider hiring a reliable, efficient and cost-effective 3pl service provider. https://edasglobalsupplychain.com/blog/2020/09/09/7-undeniable-reasons-why-your-business-needs-third-party-logistics3pl-services/ Lalasticlala Dominique
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In simplest terms, Flight transportation is the preparation and movement of shipments for delivery aboard cargo jets or cargo planes. It is the carriage or the transportation of goods through an air carrier. Air transport services are the most valuable and fastest when it comes to moving express shipments around the globe and it consists of air mail, air freight and air express. Airfreight involves the shipment of packages and goods via an air carrier. An air carrier could be commercial or charter. Transportation via air carriers allows shipments an easier gateway to anywhere that airlines fly and land. The process of airfreight is used in conjunction with other shipping methods such as rail, marine and has since become widely used as one of the most efficient delivery options in exporting and importing in the 21st century. The airfreight industry has grown steadily over the past decades and considered an efficient and quicker way of transporting goods. The process of air cargo requires many vital steps taken by the freight forwarder and the air carrier. Here is a guideline on how the process of air cargo is carried out on a daily basis. The following are critical steps to successful flight transportation; 1. Analyzing shipment details: This begins with knowing the weight, dimension, packaging of the item. All these information will reflect on the documents for the shipment, and this will also be critical deciding your charges. 2. Documents preparation: Customs play critical roles in documents inspection at the port. Once approved, the documents travel with your shipment. It details, according to international agreements, any reductions in duties or tariffs. Handling agents are the one who “physically” take good care of your cargo during its stay in the airport, to and from the aircraft. This includes tasks such as: Controlling the weight and balance of cargo on the aircraft by checking the load sheet to ensure flight safety, Preparing a cargo manifest for your cargo on board for customs declaration, Notifying the captain of aircraft on potential risks of your cargo and right conditioning required for the cargo on-board, Planning and controlling booking, slot-time. Documents must be labeled with consignee address, piece count and AWB number (preferably bar coded) which is Packaged appropriately for travel by air. Paperwork (AWB, declarations, certificates etc.) presented at the same time as the cargo is presented. The Air Waybill (AWB) is a document required to ship cargo internationally and is completed on behalf of the shipper usually by a Freight Forwarder, or an agent appointed by us for the purposes of, documentary evidence of the Contract of Carriage and proof of receipt of the goods for shipment. The cargo is then cleared through customs. Soon after, the receiving forwarding agent notifies the handling agent that your cargo and documents is now ready to be released. 3. Airline booking: This is process of reserving space for your item on a cargo airline. After documents are confirmed, proceed to make bookings and get a code/number for your item. Once code is confirmed, and it gets to time for loading, warehouse workers load the items into oddly shaped or sometimes under the belly of the aircraft. Then the plane takes off. 4. Cargo arrival: Once cargo arrives, they are unloaded and transported to the local terminal warehouse where they are split for easy identification by the numerous owners. Then the customs does their checks, using the accompanying documents as guidelines; these documents are usually Master Airway Bill (MAWB), Packing list, Invoice(optional). With these documents, they are able to ascertain the duties applicable and issue same to the cargo owners. 5. Destination delivery: After tariffs and taxes are paid, goods are released to the owners who eventually transport them to their customers or to their own warehouses. While this may appear so simple on appear, it can be hectic especially if there is too much traffic or if you are not well versed in the procedures. But the good news is that you do not need to worry because Edas Global Supply Chain Limited takes off that aspect in order to enable you focus on your core business. We offer door to door airfreight services globally. This means that no matter where your goods is located, we can go there and pick them up, and deliver to your doorstep. Start the process now. Send us an email via info@edasglobalsupplychain.com or call +2347089921886 https://edasglobalsupplychain.com/blog/2020/09/08/5-major-steps-to-air-cargo-transportation/ |
Ex works is an international commercial term whereby the seller makes the goods available in his facility and the buyer has to make shipping arrangements straight out of the seller's facility. Once the seller makes the goods available in his location, his obligation is fulfilled. All risks attached to the movement of the goods out of the seller's facility is to be borne by the buyer. Ex works, as a contract option, is particularly good for the seller and not so good for the buyer. The seller is only required to safely package the goods, label them appropriately. The seller must also help the buyer get export licenses or other required paperwork, although the buyer must pay the actual fees for the documents. Once the seller has the goods, it is up to the buyer to cover any expenses and account for any risks that pertain to the goods. Risks could include loading the products onto a truck, transferring them to a ship or plane, dealing with customs officials, unloading them at their destination, and storing or reselling them. Even if the seller helps the buyer by, for example, loading the product onto a ship, it's still up to the buyer to pay up if anything goes wrong during the loading. Under the Incoterms 2020 rules, EXW means the seller has fulfilled its obligation when the goods are made available to the buyer, usually at the seller’s location. The seller should package the goods appropriately or as specified in the agreement between both parties. The buyer is responsible for loading the goods on their transport and everything else necessary to get the goods to the final destination. The risk or liability for the goods transfers from the seller to the buyer when the goods are made available at the named place. That means that if damage occurs while the goods are being loaded on the buyer’s transport, the buyer is at risk even if the seller is assisting with the loading. Precautions should be taken. For instance, a UK manufacturer of data centre modules was contacted by a Nigerian company for the purchase of 375kw of data centre modules. The UK company(seller) agrees with the buyer in Nigeria that their delivery terms is Exworks, and their manufacturing lead time is 1 month . What this means that the company in Nigeria(buyer) have 1 month to arrange the pickup of the item from the manufacturer's facility in the UK, either through a third party company or through the firms logistics department(if they have the capacity). The obligation of the manufacturer here is to ensure that the item is manufactured according to specification and must be ready in one month for pick up. They will also hand over all necessary export documents to the logistics company to enable smooth movement of the goods. Most manufacturing companies who do not want to bother themselves with shipping and logistics always choose Exworks as their preferred trading terms; all they have to do is to focus on manufacturing and packaging to agreed specification. Understanding Incoterms is very key to a smooth international transaction. We at Edas Global Supply Chain Limited know this so well and have helped and advised our numerous clients on the Incoterms suitable for peculiar transactions. We engage their manufacturers on approval to ensure that no matter where their goods might be situated, they are seamless picked up, shipped and delivered to our clients. If you need advice or assistance with shipping your goods from anywhere to your doorstep, email us via info@edasglobalsupplychain.com or call +2347089921886. https://edasglobalsupplychain.com/blog/2020/09/07/understanding-exworks-as-an-international-commercial-term/ |
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Without any form of signal, the pandemic tested 3PL service providers , confronting them with unexpected stops and surges; this stops and surges depended heavily on which industries the 3pl service providers served. As much as a lot of them wouldn’t want it; this pattern created by the pandemic is expected to have lasting effect. Most manufacturing companies like the automotive industry, tourism and important segments of basic chemicals came to a stop when factories closed because there was no demand for at that time According to a report sponsored by Penske Logistics and the research was performed by the Kearney consulting firm, researchers and company executives who contributed to the 2020 state of Logistics report issued in June by the Council of Supply Chain Management Professionals (CSCMP) concluded that, “With the transformation of the supply chain wrought by the Coronavirus pandemic, logistics services customers are going to require from their providers increased agility, financial stability, transparency and speed—and some are seriously considering insourcing at least some of those services”. The report went further to state that, “the 3PLs and supply chains serving the hospitality and restaurant industries were mostly stopped cold. On the other hand, high-tech products such as microprocessors continued to fly across the globe, still needed for providing inputs to crucial computers, servers and military products.” In addition, consumer packaged goods and grocery demand surged as people hoarded and then shopped while adhering to shelter-at-home orders. The report remarks that a number of 3PLs were able to redeploy some of their people and assets from the halted and slowed industries to the ones that experienced surges. “Most shippers we spoke with reported that their 3PLs had a ‘we’re in this together’ attitude rather than invoking force majeure clauses,” the researchers reveal. However, the report’s authors warn that 3PLs need to keep investing in technology and sharpening their expertise. “Some shippers told us that advances in technologies (warehouse management systems, transportation management systems, track and trace) make the insourcing decision easier to take.” They add, “Those shippers committed to buying talent and innovation from 3PLs reported that they were seeing incremental improvements in creativity, such as the campus model for 3PLs where multiple shippers are served from the same group of facilities, or the buildup of 3PL last-mile networks and extra cross-dock capacity that can help shippers with surges.” The impacts of the COVID-19 crisis have opened the eyes of customers and providers alike to the value of technology in supply chain management, the researchers stress. “Even providers previously hesitant to invest in shipment location tracking or electronic signatures, claiming such digital technologies were unnecessary, are now embracing them as table stakes.” With rising labor costs, and despite the COVID-19-induced recession, shippers and 3PLs look to automation and robotics to make logistics more efficient—not just by achieving control over complex and unpredictable product flow, but also by helping gain greater control over labor costs. While the Kearney researchers believe that serious growth and application of autonomous trucking is still five to 15 years away, they note that legions of mobile robots are already working alongside humans in many warehouses and DCs. The logistics industry had exhibited very good fundamentals before the pandemic devastated the economy, and those will help it weather the current storm, the researchers claim. “Although almost nobody saw the COVID-19 crisis coming, the state of the industry in 2019 suggests that it could recover quickly.” They contend that the rapid deployment of professional skill and quick actions taken to find creative solutions by logistics professionals on display from the early stages of the pandemic should bode well for the future of the industry. “Logisticians rolled up their sleeves instead of hiding behind their contracts. People across the industry—indeed, across the world—are coming together to face this dramatic crash and rebuild from it. Players in the logistics industry are seeing the rewards of collaboration, which now motivate them to go further with bold new solutions.” The researchers summarize their view: “In general, winners will emerge from this crisis with more digitally savvy logistics operations. https://edasglobalsupplychain.com/blog/2020/08/31/3pl-after-covid-19-building-on-the-success-of-logistics/
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