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luis uribe

What is the Automated Manifest System (AMS)?

November 29, 2022 by luis uribe

The international maritime sphere poses a lot of stress even for some of the most seasoned professionals with the sheer number of processes and paperwork involved. In truth, every professional that engages in international shipping is exposed to the complexity that comes with the maritime sector. And while human errors cannot be eliminated, they could pose serious risks and problems when they eventually occur.

As a direct response to this, different countries have come up with new processes and regulations to curb the possibility of errors and, by extension, serious risks. These regulations achieve this by simplifying specific complex import and export procedures. In the United States, one such regulation is the Automated Manifest System.

What Is An Automated Manifest System

The Automated Manifest System (AMS) is an electronic communication system that offers U.S Customs and Border Protection relevant documents before cargo arrives. On the other hand, AMS filing is a document provided to the CBP that highlights all cargo imported into the country. Importers or agents are mandated to file this document 24 hours before the vessel leaves the port.

Initially, AMS was implemented in 2004 as a system responsible for tracking freight and minimizing the time required to import shipments into the United States. However, this system has been scaled up to incorporate freight inspection to ensure the safety of imports entering the country. The AMS affects all cargo regardless of the mode of transportation

How An AMS Works

All importations into the US through air or ocean require some sort of declaration with comprehensive information regarding them. In line with this, customs officials utilize the AMS to disseminate electronic information and regulate cargo imported through sea, road, air, and rail.

Shipping lines, airlines, and other forms of freight transportation services are mandated to offer up-to-date cargo information within a particular timeframe, which is registered in the Automated Manifest System. The stipulated timeframe is 24 hours before the cargo leaves the port.

If for any reason, the cargo reaches the U.S without any record of it on the AMS, the cargo is sent back to the loading port with all costs placed on the exporter. Additionally, defaulting on the CBP’s requirements and deadlines attracts a fine of about $10,000 per violation.

Aside from the stipulated timeframe, other requirements include relevant information that must be correctly provided during the AMS filing. This information includes;

  • Sender and recipient’s full names and addresses
  • Carrier name, documentation country, voyage number, and standard carrier alpha code (SCAC).
  • Details of the loading port
  • Hazardous material code
  • Details of cargo, including name, weight, and number.
  • Last foreign port before cargo departs for the U.S
  • Container identification number
  • Container most recent seal number during cargo loading
  • First foreign port of entry where carrier receives goods.
  • Date of arrival in the U.S.

Often, AMS filing is straightforward; however, there could be complications in filing procedures if cargo is transloaded – transferring goods from one mode of transportation to another en route to their ultimate destination. In this case, AMS filing must be carried out at the last foreign port of transloading.

Registering For AMS Filing

AMS is filed by Non-Vessel Operating Common Carriers (NVOCCs) and freight forwarders at the export port. As such, these agencies are responsible for all inaccuracies in the information provided. The Automated Manifest System can be filed on the CBP website through the following steps.

  • Select the “manifest(AMS)” menu and begin a new transaction
  • Input all required information
  • Select the “open AMS” tab and begin the AMS filing process.
  • Enter all the relevant detail in the “AMS manifest” tab.
  • Add the Bill of Lading on the “BOL tab.” This involves inputting details such as BOL number, foreign port of lading, SCAC code, city of origin, and the like.
  • Add container information. For NVOCCs, select “NC” for non-containerized freight.
  • Select the “Equipment Inventory” tab to enter any empty containers.
  • Save and mark AMS filing as complete.

After completing the entire filing process, the manifest can be printed out and sent out from CBP’s website.

Benefits of AMS

Following its implementation, AMS has been largely beneficial in the U.S maritime sector. Here are some benefits of the Automated Manifest System.

Convenience

AMS filing has vastly improved how convenient import and export processes are. It makes it easier for ports and the CBP to track and identify cargo before it enters the U.S. With all information on the shipping line, container, freight, and other online parties, it’s easy for the customs department to monitor all imports.

Efficiency

The electronic nature of the AMS has improved how efficiently shipping processes are carried out. Prior to the AMS, shipping and airlines were mandated to complete large volumes of documentation regarding the cargo and route. However, the AMS filing system has reduced paper-based documentation by accepting electronic data.

Clearance is now also done much faster with this automated system. Through accurate and fast data entry, the whole process is dynamized, thereby reducing downtime and possible overhead.

Security

Security was the initial factor that spurred the development of an automated manifest system. And while the system has been scaled to incorporate other features, security remains the most important. The CBP can utilize the AMS tracking system to quickly check the contents of cargo.

With cargo mandated to be registered, customs officials can now identify and deal with high-risk cargo that could potentially threaten the country.

AMS vs. ISF vs. ACE

All three are implemented to improve security in import and export processes. Yet, they all differ in one way or the other. Firstly, the automated manifest system filing specifies all imports into the U.S, including all relevant details. On the other hand, ISF needs a shipping agent, mostly the freight forwarder, to complete all shipping details of an import into the country.

The Automated Commercial Environment, or ACE, is a system utilized by different maritime professionals to register all imports and exports with the CBP. The ACE system ensures the accurate collection, processing, and exchange of data to the CBP, as well as other relevant federal agencies.

Let Total Connection Help You Stay Compliant with Your AMS Filings

AMS filing is reserved for shipping agents; to avoid unnecessary issues and delays with your import, you are better off engaging a quality third-party logistics service who is knowledgeable in the AMS process. In line with this, Total Connection provides quality, all-around service, which will include the monitoring of a timely AMS filing.

Engage us today by filling out the brief quote below.

Filed Under: Uncategorized

A Complete Guide To Heavy Machinery Shipping

November 25, 2022 by luis uribe

Shipping heavy machinery can be a tedious task at first glance. But thanks to hundreds of years of experience and technology, humans have mastered the delicate art of shipping complicated freight. 

This article is only a result of the mastery that we have gained. And we only hope to use this piece to guide you in the steps you should take to ship your heavy machinery internationally or domestically.

Prepare The Heavy Machinery for Transport

The first step in shipping heavy machinery, especially from your place, is preparing the machinery for transport. This step becomes even more critical if you will ship the freight in the open air. 

Without proper preparation, you risk causing unnecessary damages to the freight that may reduce the effectiveness and efficiency of the machinery during use. Common steps to take to prepare your heavy machinery for shipping include:

  • Always refer to the owner’s manual of the machinery to find out the manufacturer’s packaging preferences for the machinery (if it can be packaged). This alone can eliminate guesswork and help to ensure that the freight is adequately prepared for transport.
  • Secure any loose or dangling part. You don’t want the dangling piece of a heavy equipment to swing into an oncoming vehicle or hit anyone. Apart from the fact that it could lead to severe injuries, the part could also get damaged.
  • Drain all fluid and fuel because friction while trying to load or unload the machinery could cause tiny little sparks to fly off. And even the tiniest sparks can cause a fire.
  • Cover areas exposed to open air from the elements, as the weather can cause the degradation of the machinery material.
  • Finally, it is essential to disconnect all alarm systems and batteries from the machinery. 

Transport Options for Shipping Heavy Machinery

After you’ve prepared your machinery for transport, the next set of things to pay attention to are your transport options. 

There are four major transport options for shipping heavy machinery depending on the freight. 

  1. RoRo (Roll-on/Roll-off)

The transport option is reserved for those pieces of machinery that have wheels or treads and can simply be wheeled onto and off the ship without the need for a container. 

While RoRo shipping is straightforward, they often take up a lot of space around them. For instance, containers can be placed side by side and stacked on one another on a ship. On the other hand, wheeled equipment require space on the sides, and stacking freight steadily on them can be pretty tricky. 

  1. LiLo (Lift-on/Lift -off)

This is a transport alternative for loading and unloading heavy machinery using cranes to lift the cargo. 

LiLo shipping is also straightforward but can be costly. You first need to pay for a big enough crane to lift your cargo. Then you need a trainer crew to operate the crane. These two come at their costs.

  1. Flat rack

The flat rack is an alternative for machinery that can’t be transported using RoRo shipping. The freight is placed on a flat rack, which can take up to 90,000 pounds of weight. 

However, flat racks have limited sizes, which can be a problem for oversize machinery that you can’t disassemble. 

Another downside is that flat racks leave your cargo unprotected from the elements.

  1. Container

If the heavy machinery is not too big, containers can be a great transport option. You may also resort to container shipping if your machinery can be disassembled into smaller pieces.

The potential disadvantage of disassembling your machinery to make them fit into a container is that the disassembling may require a lot of time and labor. Time and labor cost money.

Cost of Heavy Machinery Shipping

There’s no fixed price for shipping heavy machinery. The cost of shipping your heavy machinery depends on four major factors:

  1. Weight and size

The weight and size of your heavy machinery not only determine how much you’ll be charged, but they also contribute to how your cargo will be shipped.

  1. Priority

How urgently you need your heavy machinery shipped also contributes to your shipping costs. You may need to hire third-party logistics providers and specifically require that your shipment take priority. Of course, this would cost you some extra cash.

Unless in rare cases, you can avoid priority shipping if you manage your supply chain well. The proper management of your supply chain involves anticipating when you’ll need the equipment and preparing to transport it long before it is needed. 

  1. Insurance

The insurance coverage on the transportation of heavy machinery is another factor that pulls its weight in how much the shipping costs. 

Insurance keeps you protected from loss if any damage happens to your machinery during transit. And when a heavy machinery freight is in transit, it is most vulnerable to damage. 

Although insurance is not always compulsory, it is very much necessary. And we recommend that you always have your cargo insured because you may need your insurance papers for customs clearance.

  1. Destination

The destination also plays a part in the cost of shipping your heavy machinery through expenses, such as tariffs, tolls, and licensing fees. The route taken to get to the destination may also attract extra costs.

Customs and Documentation

The next step in shipping heavy machinery, if it’s moving across borders, is to prepare for customs checks and have proper documentation. 

Countries often have unique regulations that guide how cargos that come into their borders are handled and cleared. While you may not know about ‌all of these reputations, a competent logistics company that plies your destination should know. 

You can prepare all the documents that your heavy machinery may require to quickly get cleared at the customs. Some of these documents may include insurance papers and bills of sale.

Also, prepare your pocket for several clearing fees during custom checks. 

Trusting Total Connection With Your Heavy Machinery Shipping

Heavy machinery shipping comes with a lot of complications. Only reputable logistics companies can handle the shipping of these freights smoothly and without extra complications. And that is what we do here at Total Connection Logistics.

Total Connection is a third-party logistics service that handles every kind of heavy and bulk freight shipping. We have over two decades of experience in the business and hundreds of happy customers to show for it. Check out our case studies to see our proven track record.

Some common heavy machinery that we ship are: 

  • Agricultural Equipment
  • Continuous Miners
  • Cranes
  • Dump Trucks
  • Excavators
  • Large Parts
  • Mining Equipment
  • Motor Graders
  • Scientific Equipment
  • Stone Cutters
  • Stone Trenchers

But if your heavy machinery is not on that list, we can always work things around for you at no extra cost. 

You too can join hundreds of clients who have entrusted us with shipping their heavy machinery from anywhere to anywhere. They have excellent reports about us, and we’re sure you will too. 

Contact us through the brief quote form below to start the conversation. Our experts are waiting on the other side to reply to you ASAP.

Filed Under: Uncategorized

What Effects Ocean Container Shipping Rates

November 22, 2022 by luis uribe

For so long, shipping has been a critical driving force for socio-economic development. In truth, the shipping industry could stake a claim as the top catalyst that ensures the productivity of any global economy. It connects different facets of an economy and guarantees the possibility of imports and exports.

Comparing all avenues utilized in world trade processes, container shipping accounts for 90 percent. Thus, it’s unsurprising that a seemingly insignificant global market alteration can adversely impact different phases of an economy, including container shipping rates. Changes in container shipping rates can be attributed to some factors directly pertaining to shipping, such as route, operators, volume, and the port. Yet, some other factors go way beyond the control of logistics professionals.

Understanding shipping rates and the factors that affect them is necessary to avoid unnecessary losses during imports or exports. As such, this article explores some major external factors that could affect container shipping rates.

Truck Scarcity

The operations of all logistics service providers are connected one way or the other. This is evident in how much of an impact a truck shortage has on the entire logistics industry. A significant factor that influences truck scarcity is a shortage of drivers. Nonetheless, some elements are a lot more complex.

With the implementation of the ELD Final Rule by the U.S Government, specifying all commercial motor vehicle operators to use electronic logging devices, trucking service has been scarce. This, in turn, has crippled the supply chain in the country.

Following truck scarcity, the capacity of truck operators decreases regardless of the volume of cargo transported by shipping lines. As a result, carriers increase container shipping rates. These extra rates go into securing overpriced trucking services to continue the supply chain flow.

Aside from paying exorbitant prices, shippers can also cope with trucking scarcity through the following processes;

  • Creating a plan B to avoid delays.
  • Shipping out cargo earlier than anticipated trucking shortages
  • Diverting cargo through different routes or ports.

General Rate Increase

General Rate Increase or GRI represents an extra fee included in the standard freight shipping rate through a particular route. Typically, this adjustment made on the shipping fee is applied by carrier companies, primarily during specific periods. While shipping lines implement this increase, it’s done in response to factors beyond their control.

Carriers typically utilize GRI to recover from seasonal occurrences of a “slow market.” Instances of downward market movement usually occur once a year; as such, GRI is applied once. However, it’s not uncommon to implement it various times a year. All container shipping rates, including those on imports and exports, are subject to a general rate increase. However, import rates are most affected, especially for shipping from Asia to the United States.

The entire decision to add extra fees to standard shipping rates lies with the shipping lines. They independently decide on how much would be added as well as the routes that would be affected. However, they must file a notice within a specific period with the federal agency of the country they operate in. Shipping lines in the U.S file to the Federal Maritime Commission (FMC) at least 30 days before the GRI takes effect.

For carriers that fail to complete filing before the GRI is implemented, they are mandated to pay for the increase.

Random Shipping Surcharges

Many unanticipated charges go into shipping, including customs inspection, detention fees, and wharfage charges. These charges are not included in container shipping rates but significantly impact the entire cost of shipping. These costs can be incurred due to inconsistent shipping documents from the shipper’s end.

While some of these charges are beyond the shipper’s control, specific actions can be taken to limit the possibility. Shippers are advised to submit all paperwork and information as when due. Delivering all relevant documents to the appropriate authorities significantly reduces the chance of cargo being delayed.

Peak Seasons

Similar to other sectors, the logistics industry also encounters peak shipping season. This occurs due to increased demand across numerous markets during specific months. Peak seasons mostly start from mid-August to late November, as this period is considered prime time for retail. Evidently, this factor impacts the supply chain worldwide, the volume of freight transported, and the shipping rates.

In response to this increase in demand for their services, carriers increase their container shipping rates at the start of these peak seasons. These peak seasons also require additional logistical processes to balance the high demand. Thus, shipping lines can also increase rates to compensate for the extra work.

Having mentioned August through to November as global peak seasons, there are some other high-demand periods peculiar to specific countries. For instance, China – the second largest exporter in the world, tends to export a lot more during the weeks leading to major holidays such as the Chinese New Year and Labor Day.

Emergency Bunker Surcharge

In the logistics industry, there are numerous extra charges carriers can impose on importers or exporters whenever it’s absolutely required. An example of such a charge is the emergency bunker surcharge (EBS).

The Emergency Bunker Surcharge is a last-minute charge that occurs when current market fuel prices peak, compared to what was initially anticipated by the carriers. Shipping lines utilize this strategy to cope with rising fuel costs. This charge continues to stir controversy with claims that carriers push the responsibility of bearing the extra costs on shippers. These claims have led to extra rates transparency by carriers, showing the EBS to be an independent surcharge.

Another similar charge is the Bunker Adjustment Factor (BAF). However, unlike EBS, the bunker adjustment factor compensate shipping operators for fluctuating fuel costs due to anticipated market movements.

Cargo container for overseas shipping in shipyard with heavy machine . Logistics supply chain management and international goods export concept .

Get The Best Ocean Container Shipping Rates At Total Connection.

Different factors can influence the rates associated with shipping. And while most of these extra charges are understandable, some providers take the opportunity to include hidden fees in their shipping rate. As such, you are best suited to engage logistics service with transparent rates. Total Connection is one such carrier.

At Total Connection, we guarantee a seamless shipping process with very competitive rates. Contact us today through the brief quote form below to enjoy our transparent and cost-effective shipping rates.

Filed Under: Uncategorized

How To Avoid Demurrage Charges?

November 22, 2022 by luis uribe

Ocean freight shipping can be very expensive. But if you really need it, you can manage to wrap your head around the expensiveness. What you may not be prepared for, though, are demurrage charges. And these charges can rack up to thousands of dollars. 

We can imagine thousands of dollars of unexpected charges are the last thing you want. But until you learn how to avoid demurrage charges, you had better prepare to part with those bucks.

That is why we reserve this article to teach you what demurrage charges are and how to avoid them.

What Are Demurrage Charges?

For consignees importing cargo, demurrage is the charge you pay when you don’t move your cargo from the shipping terminal on time. And if you’re exporting cargo, demurrage is the charge you pay for every day your cargo spends at the shipping terminal without being loaded on a ship.

Before a shipping port charges demurrage, though, you must have exceeded the free days allotted to your cargo. These free days are how long your cargo can stay at the shipping terminal without attracting charges. But the length of your free days depends on the shipping port.

perspective view of containers at containers yard with forklift and truck

How To Avoid Demurrage Charges

The best time to avoid demurrage charges is before you are charged. If you wait until you’re charged there most likely wouldn’t be so much to do. 

So, how do you avoid demurrage charges?

  1. Plan and prepare

The first thing that’ll help you avoid demurrage charges is to start your planning and preparations early. Your plans should involve preparing who should pick up your cargo, when the carrier should pick up your load, and where your shipment will go immediately after leaving the shipping terminal. 

Failure to plan adequately could cause you to run late and even exhaust your free days.

  1. A reliable drayage carrier

A reliable drayage carrier who will not disappoint you all of a sudden will help you avoid unnecessary demurrage charges. Some drayage carriers have more customers than their workforce can handle. As a result, they always show up late for pickups. 

Apart from picking up your cargo on time, your drayage carrier should also be able to keep your shipment safe and in good condition while in transit. This could translate to the carrier transporting your load in a reefer if you’re shipping temperature-sensitive cargo. 

If your drayage carrier falls short of these, either get a new reliable carrier or proceed with caution with such a carrier.

Total Connection is as reliable as any carrier can be. That is why hundreds of clients trust us with their port drayage.

  1. Communicate with your trading partners

Proper communication with trading partners about the shipping details of your cargo helps them know when to initiate drayage for your shipment. 

Sometimes, it’s not your carrier’s fault. It’s not your fault either. Miscommunications can often be this way. What you have to do, however, is to ensure that it never happens. 

Ensure that your trading partners know and understand the content of your container. Only then can they know how best to prepare its drayage. Also, keep them updated on any changes to the arrival time of the cargo at all times. And you wouldn’t be doing too much if you reminded them about the load now and then.

Just make sure that everyone involved in clearing your cargo from the shipping terms has clear instructions on what to do and when to do that. 

An experienced carrier, like Total Connection, already has a lot of experience handling drayage. So you can rely on our expertise to help you avoid demurrage charges.

  1. Preclearance

Preclearance is going to save you so much time. Now that we can transfer documents electronically, you can begin the preclearance of your cargo with the customs even before the ship docks. This way, you may not even use up all of your free days before your container leaves the shipping terminal. 

  1. Negotiate for more free days

While it might be difficult to negotiate your demurrage charges and free days, it never hurts to try it, especially if you have voluminous cargo coming in.  

Consignees who have a lot of cargo to clear can use their voluminous cargo as leverage to secure more free days. 

  1. Backup plan

Always have a backup plan for when your initial plan goes down the drain. Issues like port congestion can tamper with your initial plan. But with a backup plan, you can save time and avoid demurrage charges.

Cargo container for overseas shipping in shipyard with heavy machine . Logistics supply chain management and international goods export concept .

How Much Do Demurrage Charges Cost?

Demurrage charges can cost anything from $200 upwards, depending on how long your cargo spends at the shipping terminal.

Demurrage charges are calculated based on daily rates, often falling within $70 to $150, depending on the port. That rate, however, is for the first few days of charge-able delay. Generally, the longer your cargo spends at the shipping terminal, the higher your daily rates go. And when your daily rates go up, your total demurrage charges follow suit.

Assume you leave your cargo at a shipping port for ten days after your free days, for instance. Your total demurrage charges in a shipping port that charges a $100 daily rate for the first five days and $150 for the next ten days would be $1250 ($500 for the first four days plus $750 for the last five days).

Can You Negotiate Demurrage Charges?

You can attempt to and maybe even succeed at negotiating demurrage rates, but this has to be before any contract is drawn. Once an agreement has been drawn, you can no longer negotiate or avoid the charges. 

Demurrage rates are standard and often immutable. So, don’t expect to negotiate it successfully or feel entitled to a discount. But if you’re successful in getting a discount off your demurrage charges, good for you.

Why Is Demurrage Charged?

The shipping business is very complicated and time-dependent. Everything has to be done on time and according to schedule. But you accumulate demurrage charges when you cause delays to the plans by not picking up your cargo from the shipping terminal on time. This fee the shipping port takes in place of the time wasted.

Common Causes of Demurrage

Although we have discussed how to prevent them, knowing the causes could equip you even better to avoid demurrage charges. 

These are the common causes of demurrage:

  1. Miscommunication between the carrier and the consignee

Miscommunication can be costly in shipping and any other area. So, when the shipper and the consignee have not come to specific and well-defined agreements about picking up the shipment at the shipping terminal, demurrage charges could be the consequence of the ensuing delay.

  1. Documentation issues

Documentation issues of the cargo may also lead to plate clearance. Late clearance may exhaust your free days, and demurrage will be charged from the day you exhaust your free days. 

Documentation issues arise when the consignee receives incomplete or incorrect documentation, or the documents don’t get to the consignee in time to start cargo clearing.

  1. Customs

Clearing your cargo on time with the customs can help you avoid demurrage charges. Documentation issues could further delay your clearance with the customs. That is why we advise that you pre-clear your cargo before it arrives at the port.

  1. Inadequate clearing budget by the consignee

When the consignee fails to prepare an adequate budget for transporting the cargo out of the port, the shipment remains on the shipping port, accruing demurrage.

  1. Port Congestion

This is another common cause of demurrage. It happens when there aren’t many storage facilities inland, such as warehouses, to hold your cargo. Your cargo then remains on the shipping terminal, where it continues to gather demurrage.

  1. Consignee is uninformed about the arrival of cargo

A consignee who is uninformed about the arrival of their cargo may not be able to avoid demurrage. This is why it is always important to track your cargo and have all the necessary information about the shipment’s arrival.

  1. Inspections lasting longer than planned

If an official stops your container for inspection, and such inspection lasts for too long, you may be forced to bear the brunt of the delay.

  1. Dispute between carrier and consignee

Disputes between carriers and consignees can lead to loads not being picked up on time. But they’re not very common. Demurrage charges are the result, nonetheless. It is, then, vital that you maintain a good relationship with everyone you work with for the sake of avoiding demurrage charges.

Let Total Connection Help You Avoid Demurrage Charges

While there’s a lot you can do to avoid demurrage charges, you don’t have control over your drayage carrier. Even if you both have had an agreement before the arrival of your cargo, an unreliable drayage carrier can still let you down. Fortunately, this is what Total Connection helps you avoid.

Total Connection is a third-party logistics company with decades of experience handling all kinds of carrier services, including drayage. Our extensive network and our connections can help you save a lot of time, ultimately avoiding demurrage charges.

We also have warehousing capabilities that are close to ports. The warehouses help us guarantee our clients superior cargo safety and peace of mind.

You can fill out the brief quote form below, telling us about your cargo. Our experts are waiting on the other side to help you with whatever you want.

Filed Under: Uncategorized

What is An AES Filing?

November 22, 2022 by luis uribe

In time past, the primary export system was paper-based. This made for an expensive, stressful, and especially error-prone system. As a result, AES filing was introduced as a way to transform how exportation processes are realized. The Automated Export System is a combined enterprise by different United States Federal bodies, created to address a significant issue with export processes; security.

Today, all exports from the U.S is done with utmost consideration on AES filing. Thus, all exporters shipping out merchandise valued at over $2,500 must use this electronic system. Other conditions necessitate an AES filing, which will be discussed in this article.

What is AES Filing?

The Automated Export System is a joint venture run by the U.S Census Bureau to acquire relevant information on exports from the United States. Other dominant commercial and state bodies involved in this electronic system include Customs and Border Protection, Bureau of Industry and Security, Directorate of Defense Trade Controls, and the export trade community.

AES filing solves the issue of export security by collecting different export data and statistics to guarantee conformity with export regulations, identifying export trends and economic indicators, and calculating the country’s Gross Domestic Product.

Customs Declaration Form lies on Parcel with Customs declaration form CN22 on a blue velvet background. Close-up.

How AES Works

The entire export process begins when an individual decides to ship goods out of the country. Depending on the export volume and experience of the exporter, they can either make all shipping arrangements or enlist the services of an accredited agent. Part of the shipping arrangement involves assigning a Schedule B number – a 10-digit international export code necessary for exporting out of the US.

Another crucial process of exportation is Electronic Export Information. The EEI represents an electronic declaration of merchandise that specifies all information about the exported goods. EEI works with the Schedule B number and must be filed when the merchandise classified under the Schedule B number is over $2,500.

Through the EEI filing, exporters or accredited agents can transmit the electronic declaration of merchandise to the AES. Another inherent information held by the AES includes Government agency requirements and laws on exports. With this, the system can validate the good’s EEI and either produce a confirmation or error message.

If the validation is successful, the logistics service will receive the cargo, generate a booking receipt and transmit a departure message after the vessel has departed. Usually, the shipping line transmits the export manifest through the Automated Export System within ten working days after departure. On the other hand, an unsuccessful validation or error message requires the exporter to make adequate corrections to the good’s information (EEI) and transmit them back to the AES.

When Is AES Filing Needed?

Exporting goods from the United States to a foreign country requires an AES filing as long as the merchandise is valued at over $2,500 by the Schedule B number. However, other instances necessitate AES filing.

Firstly, a key consideration is the origin of the commodity. This checks if the merchandise is either foreign or domestic. For instance, an exporter seeking to ship two items under the same Schedule B number with both items valued at $1,500 each will need to file through AEW if both items are either domestic or foreign. However, if one is foreign and the other domestic, the items are treated individually, and with each item valued at less than $2,500, an AES filing is not required.

Some export transactions involving plants and animals require an export license issued by an appropriate licensing agency – in this case, any U.S Commerce or State Department. These departments painstakingly review all the processes and facts associated with this transaction. Hence, an AES filing is required for such export transactions, regardless of the good’s value, origin, or destination.

In 2020, modifications to export regulations by the Bureau of Industry and Security mandated an AES filing for exports appearing on the Commerce Control List and with China, Russia, or Venezuela as its intended destination. Self-propelled vehicles and rough diamonds must also be filled through AES regardless of the destination or value.

There are stringent penalties for exporters that fill erroneous EEI or fail to file through AES. Defaulters could pay a fine of up to $10,000 for each breach. The U.S Department of Commerce, through the Office of Export Enforcement and the U.S Customs and Border Protection, are responsible for identifying defaulters and implementing these rules and penalties.

perspective view of containers at containers yard with forklift and truck

How To File with AES

A critical aspect of AES filing is the ACE portal. This free website was designed to link CBP, trade partners, and other associated government agencies. With the ACE portal, companies can file EEI, Importer Security Informations, Import Truck Manifests, and Protests. Companies can access the ACE portal through the CBP website and provide all essential shipping information on a dedicated AESDirect page.

Aside from the CBP website, the AESDirect page can also be accessed through Total Connections, where businesses can fill in their relevant export information. Once on the AESDirect page, here are the steps to filling with AES.

  • Create or log in to your ACE exporter account or the ACE secure data portal.
  • Click on the “Accounts” tab at the top of the AESDirect page.
  • Next to the “View” tab from the drop-down, select the “Exporter” option.
  • Click on the “Submit AESDirect Filings” option.
  • This page comprises Shipment, Parties, Commodities, and Transportation sections, and all relevant information about each section must be accurately provided.
  • Click on “Submit Filing” only when you’re sure you have supplied the correct information.
  • AESDirect provides a message that notifies you of either a successful validation or errors. For successful validation, businesses are offered an Internal Transaction Number (ITN); otherwise, they must correct all errors.

Benefits Of AES Filing

The maritime industry covers a wide range of professionals, from exporters to logistics service providers, port workers, freight forwarders, and NVOCCs, to mention a few. Regardless of which facet you identify with, Automated Export Systems offer various benefits to the entire industry.

Guaranteeing Compliance

AES’s automated nature ensures it’s much easier to fill in export information. It also instantaneously checks a company’s information for errors, enforcing compliance with relevant export laws and requirements. Businesses can get their ITN number immediately and know when a mistake has been made in the filing process.

Cost Effectivity

Earlier methods of filing export information were pretty costly and inefficient. Some of the costs were incurred from edits and handling expenses. Additionally, there were always occurrences of duplicate records. However, with the automated nature of AES filing, most of these issues have been effectively addressed.

The switch from paper-based to computers has created a platform to conveniently and efficiently store larger volumes of information. With all processes automated, instances of repeatedly inputting numerous documents for one transaction have been eliminated, and as such, significant savings are realized.

Efficiency

AES filing has proven to be highly efficient in different export processes. Firstly, AES is a combined venture that involves various commercial and state bodies, including the BIS and the Directorate of Defense Trade Controls. This makes EEI processing and validation quicker and more accurate. This electronic system is also in line with other foreign bodies making it easier to operate in different countries.

Let Total Connection Help You File Your AES Entries?

Total Connection is a logistics provider that offers top-quality customs compliance solutions, including AES filing services. We also include the AESDirect page ideally to ensure a seamless filing process. We guarantee 24/7 responsiveness and top-quality service to make shipping easier.

Engage Total Connection today for all customs compliance shipping solutions by filling up the quote form below.

Filed Under: Uncategorized

How Much Does a Liquid Tanker Truck Hold?

October 29, 2022 by luis uribe

Distribution is an essential element of every operation, including oil and gas production. Effectively managing fuel distribution ensures an oil and gas company identifies the best possible option for transporting processed hydrocarbon.

Oil and gas professionals recognize how critical fuel transport safety is to the industry, and the need for safe and reliable tanker trucks remains a top priority. Nonetheless, aside from safety, a tanker’s efficiency is also measured by its volume, which begs the question – “just how much does a tanker truck hold?”

Typically, tanker trucks have a capacity between 3,000 and 11,000 gallons based on the type. Hence, we examine the predominant tanker truck types and their specific capacity. When purchasing a quality tanker truck, look no further than Total Oilfield. We source and provide different types and capacities of tankers for adequate fuel transport safety.

What Are Tanker Trucks?

Tanker trucks are vehicles with massive tanks designed to carry liquid or gas on the road safely. They offer a safe and convenient way to move fluid, gases, and even powder in bulk between different locations. 

Tanker trucks typically feature a cylindrical shape that ensures these vehicles have no weak spots, offer better stability, allow for minimal sloshing, and foster easy extraction. Tanker trucks feature specific designs to suit a particular cargo and come in various sizes.

Factors That Determine How Much A Tanker Can Hold

The capacity, type, and size of a tanker truck are all interconnected factors. However, aside from these factors, there are other determinants that affect how much a tanker can hold.

Tanker Type

The oil and gas industry recognizes three significant types of tanker trucks – small, medium, and large tanker trucks.

  • Small Tanker Trucks

Small tanker trucks usually incorporate vehicles with a capacity under 3,000 gallons or about 11,000 liters. Aside from fuel distribution, small tanker trucks are also employed in moving light liquid cargo within a short distance and feature a pumping system to suit their specific requirements.

In fuel distribution, small tanker trucks serve as effective equipment in delivering liquified petroleum gases within a community. The smallest of this tanker type contains about 1,000 gallons (3,800 liters) of fuel under pressure.

  • Heavy-Duty Tanker Trucks

Heavy-duty tanker trucks employed in the oil and gas industry effectively transport gasoline, natural gas, liquefied petroleum gas, and diesel from an oil production site to a filling station. Other cargoes transported with heavy-duty tankers include dairy products, alcohol, water, and industrial chemicals.

Large tankers typically carry about 11,000 gallons and can engage in long-distance distribution. Depending on the application, these tankers are designed from different materials, including steel, carbon, FRP, and aluminum. It’s also prevalent for heavy-duty tanker trucks to have separate compartments for transporting various products at the same time.

Design

The design of a tanker truck can also determine its maximum capacity. There are three basic tanker designs – baffles, bulkhead, and smoothbores; all of which dictate how liquid freight moves when the truck is in motion.

  • Bulkheads

Tanker trucks with a bulkhead design have solid dividers that create different isolated storage compartments within the tanker. The bulkhead design effectively controls back-and-forth movement in the tank; however, it does not precisely address side movements which leaves the tanker at risk of falling over.

To ensure more stability, the front or back compartments of the tanker are overloaded, such that during loading and unloading activities, the cargo is distributed as evenly as possible during loading and unloading activities.

  • Baffles

Baffles are designed similarly to bulkheads and comprise angled dividers with holes that effectively slow down the cargo’s front-to-back flow. While baffles are effective in front-to-back flow control, they do not address side-to-side movements, just like bulkheads. As a result, they are also at risk of overturning on curves if they exceed a specific capacity of about 6,000 gallons.=

  • Smoothbores

For the smoothbore design, there is no compartmentalization in the tanker. Instead, it features one long, smooth exterior. There are several reasons tankers have a smoothbore design; however, when they are partially filled, there is a very high risk of slooshing, which could change the direction of the tanker.

For instance, an abrupt change in speed would result in the cargo slamming into the trailer walls and can cause the vehicle to skid. Regardless of this issue, tanker trucks with a smoothbore design typically allow for a higher capacity.

Density

Aside from the tanker’s type and design, the maximum capacity it can contain also depends on the density of the liquid to be distributed. Density refers to the amount of space a certain material mass takes up. As a result, dense materials such as water would be heavier than gasoline with a lower density.

In the context of fuel distribution, the density of the fuel would determine how much can fit into the trailer.

Filed Under: Uncategorized

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