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luis uribe

How Much Does an ISO Tank Hold?

October 29, 2022 by luis uribe

A tank container remains the most efficient means of transporting fluids, gases, and various hazardous materials. Thus, finding the most suitable container type is an essential aspect of logistics. Today, professionals have become heavily reliant on tanks that meet the required specifications of the International Standard Organization.

These tanks, typically called ISO tanks, are fashioned from stainless steel with a protective layer surrounding them, making them suitable for both hazardous and non-hazardous fluids. But just how much does an ISO tank hold?

Typically, the nominal capacity of an ISO tank range from about 21,000 to 26,000 liters. However, other dimensions determine an ISO tank’s capacity, which we will explore further. 

ISO Tanks must be certified and approve in order to be fit for transport.

ISO Tanks Certification

ISO certification represents a globally acknowledged standard applicable to various businesses to ensure they consistently meet high standards. In the context of a shipping container, the ISO certification incorporates size standardization, strength, and durability compliance. Additionally, ISO containers should also include a Container Safety Certificate, which indicates the container has passed specific tests and met minimum standards for capacity, weight, and resistance.

Specification

Aside from the capacity, dimension, and resistance level, ISO standards also specify that a protective frame must surround the tank. A tank with a 20ft protective frame typically has a capacity of about 21,000 liters of fluid. The frame dimension also includes an 8ft length and about 8.6ft height.

The specification above represents a container’s overall international standard dimension for moving hazardous and non-hazardous fluids in bulk. Nonetheless, there are other ISO tanks with slightly bigger nominal capacities, tare weight – the weight when empty, and max payload.

  • 24,000liters: They have a tare weight of 3,900kg, a max cargo temperature of 120-degree celsius, and a maximum payload of 32,100kg.
  • 25,000liters: They have a slightly lower tare weight of about 3,730kg and a max payload of 32,270kg.
  • 26,000liters (baffle): ISO baffle tanks with separate compartments come with a tare weight of 4,060kg and a max payload of 31,940kg. The maximum cargo temperature is 130-degree celsius, the same as the 25,000 liters tank.

Aside from the capacity, tare weight, and max payload, all other dimensions of an ISO tank follow a specific standard. They all have a discharge outlet at the bottom, a max gross weight of about 36,000kg, 6.00Bar test pressure, and 4.00Bar working pressure.

Lining

ISO tanks also feature protective lining that serves as an extra shield against highly corrosive acids such as hydrochloric acid.

Types Of ISO Tanks

Special containers like ISO tanks also come in various types, all of which are suited for specific fluids. Hence, before buying or renting one, you should recognize the types and their particular use.

  • T1 ISO tank container: Wine and other light liquids
  • T4 ISO tank container: Non-hazardous edible fluids and non-edible oils
  • T11 ISO tank container: Non-hazardous chemicals
  • T14 ISO tank container: Hazardous chemicals and corrosive acids
  • T50 ISO tank container: Normal gases
  • T75 ISO tank container: Low-temperature gases (cryogenic gases)
  • Rubber-lined tanks: Acid-based chemicals
  • Food-grade tanks: Food-grade products
  • Reefer tanks: Food and chemicals
  • Gas tanks: Ideal for all gases, regardless of the temperature

Transport Your Fluids In Bulk Through Total Connection

Total Connection offers quality services for shipping any liquid cargo in bulk across the United States and beyond. We transport your shipment through our rich network of shipping lines, carriers, containers, and storage facilities.

Explore our services today by filling up the brief quote below, and our representative will reach out to you as soon as possible.

Filed Under: Uncategorized

A Complete Guide to Shipping Alcohol

September 20, 2022 by luis uribe

Alcohol shipping has become more popular now than it was many years ago. According to a Forbes article released in 2020, “online sales of alcohol in the U.S. are expected to grow by more than 80% this year,” increasing the need for alcohol shipping.

But shipping alcohol can be problematic, thanks to its regulations varying from one state to another. This article explores everything you need to know about shipping alcohol within a state, from state to state, and internationally. We also describe some methods of packaging alcohol for shipping.

We’ll cover:

  • Can Anyone Ship Alcohol?
  • Packaging Alcohol for Shipping
  • Shipping Alcohol Within A State (In-State)
  • Shipping Alcohol Out Of Your State (Out-Of-State)
  • Shipping Alcohol Internationally
  • Shipping Alcohol Through Total Connection

Can Anyone Ship Alcohol?

Not anyone can ship alcohol. Consumers in some states, for instance, are not allowed to ship alcohol in the United States. The only consumers allowed to ship alcohol are those with permits, but it is uncommon for consumers to own such licenses.

The reason consumers are unable to ship alcohol is because of the 21st amendment. After the ban on alcohol consumption was lifted in the United States, states were allowed to make their own regulations. 

States’ Direct-to-consumer laws

Thanks to the 21st amendment, each state has unique rules and regulations that pertain to the shipping of alcohol to consumers within its borders. While most states allow the shipping of alcohol directly to consumers, three prohibit it, and four others only allow it provided the consumer orders onsite.

The three states that prohibit the shipping of alcohol directly to consumers are Alabama, Mississippi, and Utah. Mississippi allows consumers older than 21 to make an order, but it goes to the state liquor store, not directly to the consumer’s address. Utah does something similar.

Arkansas, Delaware, Kentucky, and Rhode Island allow consumers to pay on-site before having their alcohol shipped to them. 

Every other state allows direct-to-consumer shipment, albeit with varying degrees of freedom. Minnesota and Ohio, for instance, place a limit on the quantity of alcohol a consumer may buy. North Carolina has minor complications in how its onsite and offsite direct-to-consumer alcohol sales are set up. And Nevada almost has no laws, even permitting the shipment of a certain amount of alcohol into the state without permits.

Packaging Alcohol for Shipping

Before any reasonable shipping is done, you first must understand how to package alcohol properly. How you package your alcohol for shipping would determine if the receiver receives spilled alcohol and shattered bottles rather than what they paid for.

Here are tips on how to package the three most common alcoholic drinks: wine, beer, and liquor. 

Packaging wine for shipping

The first step in packaging wine for shipping is to know its preferred storage condition. You’ll then try to mimic the wine’s storage condition during transit. 

For instance, some wines prefer to be stored standing while others are stored on their sides. You must transport each wine the way it should be stored.

Another tip on packaging wine for shipping is to reduce empty spaces around every bottle. The bottles risk clattering against one another until they break or crack during transit. But if you pad the empty spaces with, say, bubble wrap, you solve the clattering problem.

Labeling your wine as either alcoholic or fragile is another packaging tip that your shipment could benefit from during transit. 

Packaging beer for shipping

Packaging beer for shipping is not simple. Beer is bubbly, so its air can expand and contract like any other gas. So, if you ship beer in cans, the air could expand until the cans burst during transit. And that is why shipping beer over long distances in cans is not advisable. However, on the upside, cans offer an easy way of transporting beer.

Another packaging method for beer is through glass bottles. However, this method requires a lot of caution. And in no other beer packaging method is shrink wrapping more important than in bottle packaging. The shrink wrap secures each bottle in place to minimize clattering.

You can also package beer in kegs, which offer one of the best protection for their content during transit. However, beer kegs are not the most convenient for shipping. 

And as best as you can, try to keep your beer shipment away from the reach of sunlight and heat. Otherwise, the beer could lose its freshness and taste.

Packaging liquor for shipping

Shipping liquor is a little more tricky than shipping beer or wine, as liquor could quickly lose its taste under unfavorable conditions. And although the glass bottles that hold liquors are often thicker and less likely to crack than those that store wines and beers, proper packaging is still required. 

The packaging methods we described for beer and wine also apply to liquors. Proper padding prevents clattering of bottles, and protection from light and heat preserves freshness. You also wouldn’t be doing too much by insuring your liquor shipment. Liquor is generally more expensive than wine or beer, and compromised shipping is more costly.

Shipping Alcohol Within A State (In-State)

Alcohol shipping within a state is pretty straightforward, as long as you know the laws to follow. And in this case, the regulations to follow are those of the state, towns and municipalities you’re shipping in. The alcohol distributors in the city would be most familiar with these laws.

Shipping Alcohol Out Of Your State (Out-Of-State)

Out-of-state shipping of alcohol is just as easy as in-state shopping, only that the involved states’ laws must all be followed. This means you have to get familiar with the laws of the state you’re shipping from and the state your shipment is going. You need not worry too much about the laws of the states you’re shipping through, though, as long as you don’t open the package in transit.

But suppose you don’t want to burden yourself with the regulations of your alcohol shipment destination state, and the state permits shipping alcohol directly to consumers. In that case, there’s a way around that. You simply contact a retailer in that state and get them to ship the alcohol to your recipient. The retailer is likely to know their state laws concerning shipping alcohol, and you’re absolved of the responsibility. 

Shipping Alcohol Internationally

This is where things get a little more complicated. 

You must now get familiar with import and export shipping laws out of your country and your destination country. Then, you would need to know the alcohol shipping laws of the state and city you’re shipping to. Also, your alcohol shipments are going nowhere without the proper permits, taxes and documents. 

These laws may be hard to keep up with, so we always recommend that you rely on a third-party logistics company capable of shipping alcohol across international borders.

Shipping Alcohol Through Total Connection

You could get into trouble or have your alcohol shipment confiscated if you tried to ship it yourself without following the regulations that cover alcohol shipping. But when you entrust a reliable third-party logistics company, such as Total Connection, to the job, you can rest easy.

Total Connection is a third-party logistics company with decades of expertise in satisfying alcohol shipping customers like you. Our services not only stop at shipping alcohol, but we also provide warehousing and other supply chain services to ensure that every freight you ship through us remains in perfect condition.

Contact us through the brief quote form below to let us know about your alcohol freight. Our experts are waiting to get back to you ASAP.

Filed Under: Uncategorized

What is an ISF Filing 10+2?

September 20, 2022 by luis uribe

Compared to other global industries, maritime is perhaps the most international and, as a result, has the potential to be very dangerous. Hence, different federal agencies have made unrelenting efforts to improve sea safety. A significant way this is achieved is by developing international regulations on cargo going in and out of a country.

In the United States, imports are regulated through ISF filing. ISF is a U.S Customs and Border Protection (CBP) regulation that impacts importers and ocean shipments coming into the country. This is a crucial facet of importation that all importers must be aware of at all times.

What is ISF?

An Importer Security Filing or ISF is a filing mandated by the U.S Customs and Border Protection that evidences legal documents, importing information, and other relevant details, as cargo is shipped into the country. All information included in an ISF filing helps to improve the CBP’s ability to identify high-risk cargo that could be a threat upon its arrival.

ISF can be filed directly by importers or agents electronically before any ocean shipment is imported. The filing must also be made no later than 24 hours before the cargo is stacked on the vessel. Typically, the ISF filing fee is about $30 to $50. However, agents could charge a fee for their services. They could also include the costs for other documents, such as an ISF bond which could increase the cost to about $120.

How Does ISF Filing Work

The U.S Customs and Border Protection (CBP) mandates both the importer and shipping lines to provide information concerning shipments through an ISF form. While the deadline for ISF filing is 24 hours before cargo is loaded to the vessel, information must be provided through the ISF form 72 hours prior.

Failure to complete an ISF filing within the required timeframe can result in stringent penalties for importers. These penalties are enforced by the CBP and could range from $5,000 per infraction to $10,000 per transaction. Aside from fines, the CBP can also decide to hold the shipment at the port for further evaluation. The importer would also bear all evaluation costs.

The process for ISF filing is pretty straightforward. Before beginning the filing process, importers must have all relevant shipment information from various parties. Here are steps to complete ISF filing;

  • Collect and ready all the information necessary for filing.
  • Find a licensed ISF software partner for filing.
  • After providing all information, constantly follow up on the ISF status.

Types of ISF Filing

The ISF filing only impacts imports through an ocean vessel. Imports entering through other modes of transportation are not affected. The filing process involves submitting electronic numbers of 10, two, and five elements, depending on the shipment type or who is carrying out the filing process. Thus, here are the two kinds of ISF filing.

10 + 2 ISF

This is probably the most common type and features 10 data elements required to conform with stipulated regulations for imports destined for the U.S. The importer or supplier fills in the first ten pieces of information. This information includes;

  • The manufacturer or the supplier’s name and address
  • The owner’s name and address
  • Buyer’s name and address
  • Ship-to party’s name and address
  • Country of origin
  • Importer of record number / FTZ applicant identification number
  • Consignee’s number
  • Consolidator’s name and address
  • Container stuffing location
  • Commodity Harmonized Tariff Schedule (HTSUS) number for each item on the shipment.

Aside from the information provided by the importer, the carrier or shipping line also bears some responsibilities. They have to provide two documents, referred to as ISF 2, which include the following information.

  • The vessel stow plan
  • The container status message

All ten pieces of information from the importer must be provided 24 hours before cargo is loaded on the vessel bound for the U.S. The documents provided by the shipping line should be completed 24 hours before the ship arrives at a U.S port.

ISF-5

The ISF-5 is similar to the typical 10 + 2, but it’s reserved for Freight Remaining Onboard (FROB), Immediate Export (IE), and Transportation and Exportation (TE) Bonds shipments. This type of ISF requires importers, authorized filers, or Foreign Trade Zone (FTZ) operators TO submit five data elements to CBP for these shipments. The information needed for the ISF-5 includes;

  • Booking party
  • Foreign port of unlading
  • Location for delivery
  • Ship-to party’s name and address
  • Commodity Harmonized Tariff Schedule (HTSUS) number for each item on the shipment.

Custom Bonds

Customs bonds are another critical feature of shipping safety. These import bonds guarantee that Customs and Border Control can collect duties, taxes, and fines associated with importations into the United States. They serve as a form of insurance on occasions when importers cannot pay these amounts as when due.

Importers obtain custom bonds from insurance or surety companies, and if they default in payments, the CBP can collect these dues directly from the insurance company. Here are the types of customs bonds.

ISF Bond

The ISF bond is a bond of choice for importers with a relatively low import activity. It also serves one-time importers engaging in a single shipment filing. For such importers, obtaining a continuous bond is pretty costly; hence, ISF bonds serve as an efficient alternative. It guarantees a $10,000 ISF penalty limit in the case of non-compliance.

Single Transaction Bond

A single transaction bond, or single entry bond, is insurance obtained by an importer to cover a single shipment entry. This indemnity guarantees customs the payment of duties, taxes, fines, and penalties associated with the compliant cargo import. For ocean-bound shipments, an ISF-D bond is also required.

The value for this bond equals the shipment face value plus tax duties and other levies. Based on different factors considered by the CBP, a single transaction bond could also amount to three times the face value of cargo.

Continuous Bond

This is the most common type of customs bond utilized by importers with high import activities. This could range from two to three bulk importations annually. As the name implies, this financial guarantee renews continuously and automatically until it is canceled. Continuous bonds do not expire until the client makes the required payment for each renewal. It offers a more efficient customs clearance process and saves costs for frequent importers.

The value of continuous bonds typically amounts to 10% of the duty and other importation taxes paid in the previous year. For duties less than $1,000,000, continuous bonds are paid in multiples of $10,000, or multiples of $100,000 for duties over $1,000,000. Currently, the minimum bond amount required by the CBP is $50,000, and they make certain the bond is adequate to cover the duty, as opposed to the shipment value.

Engage Qualified Customs Brokers With the Help of Total Connection

Enlisting the services of a qualified and licensed customs broker is the best way to engage in ISF filing correctly and avoid non-compliance penalties. Total connection can connect you with capable custom brokers that can effectively file your ISF and other relevant information accurately and on time.

Our professionals will help guide you to file all information directly with U.S Customs officials, follow up on the ISF status and monitor your shipment throughout the customs clearance process. Fill out the brief quote below to get started.

Filed Under: Uncategorized

The Ultimate Guide To ISO Tank Container Shipping

September 10, 2022 by luis uribe

Containers are one of the first components that come to mind when we think of shipping processes. In truth, intermodal containers are so common that it is easy to overlook how essential their role is to international trade. Different types of intermodal containers exist, including dry freight, open top, insulated, refrigerated, and of course, tanks.

Following their introduction, they have remained a critical aspect of the logistics industry and have also seen different designs to suit modern freight. As such, various efforts have been made to improve the quality of these containers, leading to the development of ISO tank containers. This article offers an ultimate guide to ISO tank container shipping.

What is an ISO Tank Container

ISO tank containers or ISOtainers are special containers designed to meet ISO standards for transporting hazardous and non-hazardous liquids in bulk. By following the standards of the International Organization for Standardization, these tanks offer the best in both safety and efficiency.

The ISO tank container is typically fashioned from steel or aluminum and adapted to different modes of transportation. Aside from liquids, these intermodal containers also safely transport powders and liquefied gases.

Based on ISO standards, there are two types of ISO containers; the 20-foot and 40-foot tank, both of which are utilized in shipping. Another feature that differentiates the ISO tank container from other types is its airtight nature.

How They Work

The idea of intermodal containers began in England; however, most ISO tank containers are manufactured in China and Germany. China, in particular, produces more than 85% of the world’s ISO containers. This strategy ensures cost-effectiveness as a massive volume of liquid freight shipped in ISO tanks is produced in China. Hence, developing these containers close to the source only makes sense.

Typically, ISO tanks that transport highly corrosive materials can last for at least two years, especially those made from steel. Although, the design of these tanks is now altered to suit different types of liquid freight, which potentially brings about a shorter useful life.

Some standard features of ISO tank containers include the size, mechanical frame, connection mediums, and locking mechanisms. These features are consistent across all ISO tanks to ensure they can be handled easily and securely transferred from one location to another. They are also designed with a volume of about 4,000 gallons, making it easy to quickly move thousands of gallons of liquid.

Below are the numerous types of liquid that can be transported in ISO tank containers

  • Molasses
  • Alcoholic and non-alcoholic beverages
  • Liquefied sugars
  • Milk and other dairy products
  • Sulphuric acid and Nitric acid
  • Corrosive chemicals and solvents
  • Hydrogen peroxide
  • Vegetable oils
  • Petroleum products, including diesel, gasoline, and liquefied petroleum gas
  • Liquid resins
  • Liquid food products

ISO Tanks vs. Flexitanks

Like ISO tanks, flexitanks are also practical components in transporting bulk liquids. However, bulk liquid transportation is a vast aspect of shipping. Hence, considering factors such as the type and origin of the liquid and the freight’s final destination can determine which component would be more efficient and economical.

Both ISO tanks and flexitanks have specific dissimilarities that make them ideal for particular processes. Flexitanks offer a more cost-effective option for non-hazardous liquids depending on the origin and destination of the cargo. A general process in shipping is tank repositioning, which refers to moving an empty container from an area with surplus containers to one with a deficit. Tank repositioning usually incurs high costs, especially when it’s moved back to its origin. Based on this price increase, shippers prefer using flexitanks rather than ISO tank containers for transporting non-regulated liquids

Benefits of ISO Tank Container

While they might not be cost-effective in some scenarios, there are also numerous reasons why ISO tank containers are preferred for bulk liquid transportation. Here are some of the benefits of ISO tanks 

Cost-Effective

In a one-way shipping business, ISO tanks could be an expensive option. However, they are the most cost-effective option when it comes to a two-way trade at the origin and destination. Their consistent design standard makes it easy to move them from vessels to trucks or rail lines using essential handling equipment. This significantly reduces charges for handling and storage by as much as 30%

Safety

The standard set by ISO ensures the tank remains safe and provides an assured containment of liquid freight. Liquid cargo can be transported safely in an ISO tank container regardless of how hazardous they are. They are also designed to maintain a particular degree to suit temperature-sensitive cargo.

Efficiency

ISO tank containers are specially designed to eliminate the possibility of spillage, save fuel and limit carbon dioxide emissions into the environment. They also last longer and can be used repeatedly with few inspections. Furthermore, they are fashioned from steel or aluminum, making them capable of withstanding fluctuations in temperature and pressure.

Challenges Faced With ISO Tank Shipping

ISO tank containers transport different liquids with different chemical compositions and temperatures. As a result, these liquids act differently in certain conditions. Take high-temperature liquids, for example; these fluids are at some point bound to solidify in the tank if the temperature is not maintained.

This is a common occurrence, and ISO tanks are built so that they can be heated to melt the fluid inside before draining the tank. Alternatively, the solidified fluid can be forced out of the tank using pressurized air. Yet, while all these are efficient methods in discharging high-temperature fluids, they significantly strain the tank, leading to cracks and leaks.

ISO tank containers can also be damaged when their coatings are broken during repair or maintenance procedures. Once the protective layer is compromised, the exposed surface becomes more susceptible to cracks. However, compromised protective layers can be repaired to restore the tank’s integrity.

Ship Your Liquids In Bulk Through Total Connection

Total Connection provides top-quality services for transporting bulk liquids in the United States. We carry out each shipping process through a network of shipping lines, motor carriers, rail lines, and storage facilities. We offer a team of experienced logistics specialists to examine your requirements and recommend the perfect solution for your needs.

Engage us today for your ISO tank container shipping needs by filling up the brief form below.

Filed Under: Uncategorized

What is the Difference Between an NVOCC & Freight Forwarder

September 7, 2022 by luis uribe

The maritime industry is saturated with various service providers, most of whom engage in relatively similar functions. Take third-party logistic providers, for instance; two predominant terms in this sector are NVOCCs and freight forwarders.

With so many similarities in both operations, you are surely not alone in asking the question; What is an NVOCC vs. Freight Forwarder? The confusion between both terms and when each should be employed has been a major concern in the maritime industry, mostly because they are both classified as Ocean Transport Intermediaries by the Federal Maritime Commission. This essentially attributes the same responsibilities to both agencies, including cargo documentation and transportation, clearance, and tracking.

They also bear a major similarity in that both agencies do not have a ship or any other transportation vehicle. Regardless of these parallels, NVOCCs and freight forwarders are two pretty different agencies. And while they may both act as intermediaries between small-scale businesses and shipping lines, their modes of operation are dissimilar.

How Do NVOCCs Operate

NVOCCs or Non-vessel operating common carriers are agencies that offer all cargo transportation services similar to shipping lines without a vessel. They enter agreements with these shipping companies operating through specific routes and buy space on their vessel.

Typically, an agreement between NVOCCs and shipping lines covers certain details, including how much business a non-vessel operator can deliver over a certain period. Depending on the NVOCC’s profitability, a shipping company could decide on the rate for selling space in its vessel.

NVOCCs issue their own Bill of Lading (BOL), a legal document detailing information about the cargo, such as the type, quantity, and destination. Aside from shipping-related responsibilities, non-vessel operators offer consultancy and expert advice to customers regarding freight transportation. Additionally, some NVOCCs provide storage and warehousing services before shipment and delivery.

What Are Freight Forwarders

Freight forwarders are larger in stature and function as agents for importers and exporters by assisting in developing a concrete relationship with various cargo carriers, including airliners, ocean liners, and trucking companies.

Freight forwarders oversee all shipping operations, including transportation, documentation, and storage. However, instead of buying a space like NVOCCs, they negotiate the best possible price for transportation with shipping lines while also deciding the best route to optimize the cost and speed.

Importing or exporting involves a lot of processes, paperwork, and considerations, making it a very tasking operation, especially for inexperienced individuals. Hence, freight forwarders step in to carry out all these processes, perhaps why they are sometimes mistaken for actual shippers.

Key Differences Between NVOCCs and Freight Forwarders

At this point, we have highlighted both agencies’ definitions and essential functions. Evidently, they both have similar responsibilities; nonetheless, they remain different entities. As such, we highlight the critical differences between NVOCCs and freight forwarders.

The significant disparity between both agencies stems from their relationships with shipping lines, clients, and other cargo carriers. NVOCCs serve as intermediaries between businesses and shipping lines and issue their own HBL to the shipper. On the other hand, freight forwarders are given the power to engage in all operations and make relevant decisions on behalf of the shipper.

Here is a rundown of some other differences between both agencies

  • Registered Associations: NVOCCs are under no associations and operate as independent agencies. Freight forwarders are, however, associated with the International Federation of Freight Forwarders Association. As such, they follow all FIATA standards in their operations.
  • Responsibilities: While NVOCCs are appointed as carriers for shippers, freight forwarders are viewed as agents to businesses.
  • Associated Components: NVOCCs own containers in which they transport cargo; they, however, do not offer warehouse provisions except for a few large-scale operators. Freight forwarders have no need for a container, but they are required to provide warehouse solutions for clients.
  • Rate Negotiation: The rates for non-vessel operators depends on the agreements between NVOCCs and shipping lines. This, in turn, affects the rates issued to businesses. Freight forwarders identify the most effective route and negotiate the best possible rates for businesses.

While both may offer similar services, the intricacies of each service show how different they are. As such, businesses need to understand both providers entirely to decide on which agency suits their specific needs and requirements. The easiest way to differentiate between both agencies is by checking the bill of landing. Businesses are issued a House Bill of Lading (HBL) by NVOCCs, but for freight forwarders, it’s a Masters Bill of Lading (MBL) administered directly by the shipping line.

Deciding Between NVOCCs and Freight Forwarders.

Having understood how both providers differ from each other, it’s time to ascertain what service perfectly suits your needs. In the maritime industry, the decision on which to choose between NVOCCs and freight forwarders dials down to some critical factors – service, cost, and availability.

The first factor in deciding is the array of services. This involves making sense of all the services you need. Depending on this, you can decide on which provider would be best. Cost is another critical factor. You can decide on the provider that would offer a more cost-effective service based on the service you require. 

For instance, most small and medium-scale businesses do not have enough goods to fill a container. Therefore, they utilize NVOCCs that share the container with other clients, thereby reducing costs. Large businesses have better bargaining power and find it more profitable to use freight forwarders.

At times, the decision stems down to which is available. Depending on your cargo type, it might be wise to opt for what is available rather than wait for the ideal option.

Explore Both Services With Total Connection

In today’s world, non-vessel operating common carriers and freight forwarding work collectively. As such, it’s unsurprising that a single provider offers both services. In line with that, Total Connection further blurs the line between agencies and offers both services to customers.

Be it a small or large-scale organization looking to get the best deals for cargo transportation. Total Connection offers the best of both services to suit all businesses and requirements. We offer a full range of services and act as your one-stop shop for all shipping operations.

You can fill in the brief quote below, and our representative will contact you as soon as possible.

Filed Under: Uncategorized

What is a Freight Forwarder? | A Complete Guide to Choosing a Freight Forwarder

September 6, 2022 by luis uribe

Identifying the part freight forwarders play in cross-country shipping and logistics is critical to understanding how to import and export. All production businesses, especially those with a significant scale, get to work with these professionals at some point.

These agencies offer different logistic services for businesses, including storage, cargo consolidation, and deconsolidation, as well as cargo insurance and customs clearance.

Freight forwarders are a fundamental aspect of the supply chain and maritime industry. They are involved in different means of transportation such as air, road, and sea. However, quite a few people are still unfamiliar with the concept of freight forwarding; hence, we provide a complete guide on what it is and how to choose one.

What Is A Freight Forwarder

Freight forwarders are agencies working within the logistics industry to help streamline the entire process of cargo transportation. These agencies are not responsible for directly transporting freight. Instead, they act as effective intermediaries between shipping lines and the final destination for the goods. To achieve this, they work closely with different shipping lines to offer customers a wide range of transportation options, including sea, air and rain freight, and road transport.

In the logistics industry, freight forwarders enter binding agreements and partnerships with different transportation entities. With this, they are not only able to offer customers varying options but also negotiate the best possible prices. Partnerships could cover additional agreements on the most effective routes, transportation medium, reliability level, and other variables that need to be considered.

Over time, freight forwarders have been misconstrued for NVOCCs, but while they share some similarities, they have different modes of operation. Typically, freight forwarders engage in large volumes of cargo transportation and are critical elements in a ”triangular shipment.”

In a shipping context, triangular shipments are logistic operations involving the participation of three different entities, typically the manufacturer, intermediary, and consignee from three different countries. Processes like these are complex as regards paperwork and VAT agreements.

Different international and local bodies recognize freight forwarders; hence, all processes are simplified, especially regarding customs clearing.

freight forwarding manager,worker, at container terminal

Responsibilities Of Freight Forwarders

In one sentence, the core element of freight forwarding is ensuring cargo is picked up from the seller and delivered in prime condition to the buyer at a specific destination. However, the responsibilities of freight forwarders go beyond this. Businesses and individuals are exposed to different complex processes during cargo transportation. These include transport and finance paperwork, contracts, port inspection, cargo tracking, and customs clearance.

Needless to say, these processes are daunting, and that’s where freight forwarders come into play. Here are some capabilities and responsibilities a reliable freight forwarder is expected to have.

  • Vast experience and connections in different means of freight transportation such as road, air, sea, and rail
  • Serve as effective intermediaries and offer cost-effective rates based on a customer’s needs.
  • Effectively work out the best possible rates with shipping operators.
  • Issue house bill of lading to customers or NVOCCs
  • Be able to arrange the dispersal of cargo based on the sender’s orders.
  • Be able to make storage provisions for cargo.
  • Effectively complete all required shipping documentation and processes in both locations.
  • Possess extensive knowledge of cargo movement in different countries.

Tips For Choosing A Freight Forwarder

As regards large-scale cargo transportation, engaging a competent freight forwarder is crucial. The agency you opt for must have different options in place to support you perfectly. Here are some tips for deciding on a freight forwarder.’

  1. Understand Requirements

Prior to starting your search for a freight forwarder, you should understand and highlight all requirements. This paints a clearer picture and helps identify specific needs that should be addressed. By creating an explicit requirement, customers can also maintain a good working relationship with freight forwarders to foster better business growth.

  1. Make Research

This involves finding out relevant details about different freight forwarders, including their experiences, reach, network, and pricing structure. Starting with the first factor – experience; freight forwarders with extensive expertise can guarantee a more efficient logistics process. They should also have an unparalleled global reach, as a good network could determine success or failure.

Pricing is another factor that cannot be overstated. Any agency you opt for should offer competitive rates and explain every charge in the quote.

  1. Choose an Agency With a Wide Array Of Services

Knowing your freight forwarder can deliver a wide array of services if needed is of great comfort. Thus, tailor your potential lists to include only agencies that can provide a significant number of logistics services. Your freight forwarder should always be ready to assist in all issues regarding logistics.

  1. Consider Risk Management

Typically, the world of logistics and transportation is subject to unforeseen circumstances. As such, you need a freight forwarder with policies in place to reduce risk factors and manage them if they eventually occur. This covers an agency’s level of proactivity in safeguarding clients’ cargo.

One such strategy is cargo insurance. Ask about the agency’s policies on insurance and opt for a freight forwarder with the best insurance coverage. There are many insurance types; hence, you might want to enlist the services of a professional to access all options and decide on the best possible solution.

  1. Check Licenses and Permits

Nothing evidences a freight forwarder’s competency and legitimacy like licenses, certificates, and permits. These agencies are customarily required to have different documentations that highlight the kind of cargo they can handle. Be sure the agency you choose is licensed to handle your cargo type.

Benefits Of Engaging A Freight Forwarder

Freight forwarders are ideal solutions for bulk shipping, specifically international orders. These agencies offer client storage and warehouse provisions and engage in all necessary logistic processes and documentation. Another crucial benefit of freight forwarders lies in the constant progress reports these agencies give clients. As a result, clients can track the current location of their cargo.

All in all, freight forwarders make it relatively easy for businesses to manage all freight transportation processes. Additionally, the insurance option gives that added security to clients.

Total Connection Is Your Best Freight Forwarder Solution

Total connection is a third-party logistics company with top-quality experience in various logistics operations, one such being freight forwarding. We are perfectly poised to become your cargo management partner, engaging in all logistic processes.

We leverage over 25 years of freight relationships from different parts of the world to find the best possible routes with the most competitive rates. Fill out the brief quote form below and get an immediate response from our representatives today.

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