Understanding Incoterms: The Essential Guide for International Trade

"The existence of overseas warehouses has brought great convenience to cross-border e-commerce logistics. More and more cross-border trade is gradually inseparable from overseas warehouses. So, do you know what the functions of overseas warehouses are? , how do overseas warehouses generally operate?1. What is the Function of Overseas Warehouse?The functions of overseas warehouses are as follows:1) Delivery function: Overseas warehouses can provide delivery services for cross-border e-commerce sellers. Express delivery in the destination country will be much cheaper than domestic express delivery. However, with the continuous development of cross-border e-commerce in recent years, if it is still Based on the original business model of small parcel delivery, overseas warehouses will face rising warehouse operating costs and labor costs. At the same time, warehousing automation, FBA competition and Amazon’s last-mile layout will have a negative impact on the development of enterprises. Wait for a bigger impact.2) FBA returns and exchanges, etc.: Overseas warehouses with single functions can easily be replaced. In addition, operating costs continue to grow and profit margins continue to be diluted, which directly affects the development of enterprises. It is necessary to evolve from the original drop shipping idea to a multi-functional logistics transfer center. Auto Shipping provides one-stop overseas warehousing services, including FBA returns and exchanges, transfers, reprinting or labeling, FBA product testing, cartoning, payment of customs duties, insurance, etc.3) Bonded function: When an overseas warehouse is approved by the customs to become a bonded warehouse, its functions and uses are broader, and it can simplify customs clearance processes and related procedures. At the same time, re-export trade can be carried out in bonded warehouses, using the location of the overseas warehouse as a third country to connect the seller and buyer countries. This method can effectively avoid trade sanctions. In bonded overseas warehouses, simple processing and other corresponding value-added services can also be performed, which can effectively enrich warehouse functions and enhance competitiveness.4) FBA transfer function: first send the goods to the overseas warehouse in the destination country by air or sea, and then, if the warehouse capacity allows, require the overseas warehouse to affix the FBA label and send it to FBA by local express, so as to reduce some links risk of delay.5) Transportation resource integration function: Overseas warehouse system providers feel that due to the relatively small number and high frequency of international trade B2C orders, in order to better integrate the upstream supplier resources of domestic warehouses and the downstream customer resources of foreign warehouses , to meet the high-time delivery requirements of logistics, using domestic warehouses as the end point of joint distribution and overseas warehouses as the starting point of joint distribution, to achieve effective integration of transportation resources, achieve scale effects of transportation, and reduce distribution costs.Click here learn more amazon fba warehouse location:https://globalshippingauto.com/amazon-warehouse-locations-usahttps://globalshippingauto.com/amazon-warehouse-locations-canadahttps://globalshippingauto.com/amazon-warehouse-locations-mexico2. How do Overseas Warehouses Generally Operate?Overseas warehousing services refer to one-stop control and management services for cross-border e-commerce sellers to store, sort, pack and deliver goods in the country of sales destination. To be precise, overseas warehousing generally includes three parts: first-leg transportation, warehousing management, and last-leg transportation (local distribution). The specific operating procedures for overseas warehouses are as follows:1) First-leg transportation: Cross-border e-commerce sellers transport goods to Auto’s overseas warehouse in the destination country through other methods such as sea transportation, air transportation, land transportation or small parcels.2) Warehousing management: Sellers use the logistics information system to remotely operate overseas warehouse goods and manage inventory in real time.3) Last-mile transportation (local delivery): Based on the order information, the overseas warehousing center delivers the goods to the customer through local post or express delivery.If cross-border e-commerce sellers choose our Auto overseas warehousing service, they must make full use of its various functions to make their cross-border e-commerce more cost-effective, worry-free, time-saving and labor-saving.3. What are the Advantages and Disadvantages of using Overseas Warehouses?Advantage1. Low cost increases profit margins: Take Nacheng International Logistics’ overseas warehouses in the United States and Russia as examples. The overseas warehouses in the United States provide a 30-day free warehousing discount, and the Russian overseas warehouse provides a 90-day free warehousing discount.2. Personalized packaging: Sellers can flexibly choose packaging that suits their products, reducing the damage rate of subsequent deliveries and reducing the return and exchange ratio.3. Flexible return and exchange processing: Overseas warehouses provide return and exchange services for goods.Shortcoming1. Enterprises that have just entered the e-commerce field should not choose overseas warehouses when the shipment batch is small and orders cannot be formed quickly during the market exploration stage. Although Amazon FBA compresses profit margins, it can help sellers increase product exposure. Once the products are recognized by the market, they will consider increasing profits.2. Amazon Prime members can enjoy free 2-day delivery in the United States. Overseas warehouses currently cannot guarantee 2-day delivery within the United States, and will need to charge a certain delivery fee.3. Not all products are suitable for "overseas warehouses". Generally speaking, the products suitable for "overseas warehouses" mainly include:(1) Products with large size and weight: Since the specifications of these products in small packages and dedicated line mail will be limited, and international express delivery is very expensive, using overseas warehouses will break through the product specification restrictions and reduce logistics costs.(2) Products with high unit price and gross profit: This is because high-quality overseas warehouse service providers can control the damage rate and loss rate to a very low level, reducing risks for sellers selling high-value goods.(3) High cargo turnover rate: what we often call best-selling products. For best-selling products, buyers can process orders more quickly through overseas warehouses and withdraw funds; for slow-moving products, corresponding warehousing fees will be incurred while occupying funds. Therefore, in comparison, overseas warehouses are more suitable for products with high turnover rates. "ConclusionSelecting a reliable freight forwarding company is crucial for cross-border e-commerce sellers, as it directly impacts the efficiency and safety of product transportation. A high-quality freight forwarder can ensure goods are delivered quickly and safely across the globe, while also helping sellers minimize costs and avoid potential logistical issues. The value protection service provided by Auto Shipping ensures that in the event of any loss or damage during transport, the freight forwarding company will offer compensation, thereby reducing the risk for the seller.

Decoding Shipping Container Weights: Comparing 20-Foot, 40-Foot, and High-Cube OptionsUnderstanding the weight of shipping containers is essential for safe and efficient transportation of goods. Containers vary in weight depending on their size and type. This article outlines the typical weights of the most common containers: 20-foot standard, 40-foot standard, and 40-foot high-cube containers.20-Foot Shipping ContainerA 20-foot shipping container is a staple in global trade due to its versatility and compact size. On average, an empty 20-foot container weighs between 1.8 to 2.2 metric tons, which is approximately 3,970 to 4,850 pounds. More precise figures suggest that a standard 20-foot container weighs around 2,230 kilograms, or 4,916 pounds, when empty. This weight accounts for the container's structure, including its doors and fixtures.40-Foot Shipping ContainerThe 40-foot shipping container is another widely used type, primarily due to its higher capacity compared to the 20-foot container. An empty 40-foot container typically weighs between 3.8 to 4.2 metric tons, equating to approximately 8,340 to 9,260 pounds. Some sources provide a more narrowed range, indicating that the tare weight of a 40-foot container can range from 3,490 to 3,980 kilograms, or 7,700 to 8,775 pounds.40-Foot High Cube ContainerFor cargo that requires additional height, the 40-foot high cube container is an ideal choice. These containers are slightly taller, leading to an increase in weight. Generally, a 40-foot high cube container weighs about 3.9 metric tons, or 3,900 kilograms, equating to 8,598 pounds. The increased weight is a result of the additional metal used in the container's construction to accommodate the extra height.What Is Tare Weight?Tare weight, also known as tare mass or simply tare, is a critical metric in various industries, particularly in shipping and logistics. It refers to the weight of an empty container or packaging material without the goods inside. Understanding tare weight is crucial for accurate weight calculations and regulatory compliance. Definition and ImportanceTare weight is the measure of a container's empty weight and is essential for determining the net weight of the contents within the container by subtracting the tare weight from the gross weight. In the context of a shipping container, for example, tare weight includes the structure, fixtures, and any non-removable components but excludes the cargo.Application in ShippingIn shipping, tare weight allows for the calculation of the net weight of the cargo, which is vital for billing, inventory management, and compliance with transportation regulations. The net weight is calculated as follows:\[ \text{Net Weight} = \text{Gross Weight} - \text{Tare Weight} \]Where:Gross Weight includes the combined weight of the container and its contents (cargo).Net Weight is the weight of the cargo alone without the container.Accurate tare weight measurements are necessary to ensure that the total weight does not exceed the legal limits set by regulatory bodies such as the International Maritime Organization (IMO). This helps in preventing overloading, which could compromise safety and lead to penalties or shipment delays.Examples of Tare Weight Usage1. Maritime Containers: A 20-foot standard shipping container typically has a tare weight of around 2.2 metric tons, while a 40-foot standard container has a tare weight of about 3.8 metric tons.2. Vehicles: In the transportation industry, the tare weight of a vehicle refers to its weight without any cargo or passengers. This is crucial for calculating payload capacity and ensuring that vehicles comply with road weight limits.3. Packaging: In the retail industry, tare weight is used to determine the net weight of products. For instance, a tin of beans might list the net weight as 400 grams, which excludes the weight of the tin itself.Regulatory ComplianceTare weight is an important factor in complying with international shipping regulations. For instance, under the SOLAS (Safety of Life at Sea) regulations, shippers must verify and provide the Verified Gross Mass (VGM) of packed containers before loading them onto ships . The VGM includes the tare weight of the container plus the weight of the cargo, ensuring that ships are safely loaded.ConclusionThe weight of common shipping containers varies by size and type: a 20-foot container weighs between 1.8 to 2.2 metric tons, a 40-foot container weighs 3.8 to 4.2 metric tons, and a 40-foot high cube container weighs around 3.9 metric tons. Understanding these weights is indispensable for safe shipping practices and regulatory compliance.By keeping these details in mind, shippers can ensure they optimize their loads while adhering to safety standards and regulations, thereby minimizing risks and enhancing the efficiency of their logistics operations.

What is freight forwarding?Freight forwarding is a service used by companies that deal in international or multi-national import and export. Essentially, freight forwarders are intermediaries between the company that makes the goods and the ultimate destination for those goods. They handle the logistics of transporting goods from one destination to another, managing the details and paperwork involved in transporting goods across international borders. This includes arranging for storage, handling customs clearance, and selecting the best modes of transportation (air, sea, rail, etc.) to optimize time, cost, and reliability.Freight forwarding services1.Transportation: Coordinating different modes of transport (air, sea, rail, truck) to optimize cost, efficiency, and reliability.2. Warehousing: Arranging storage solutions before and after transit.3. Customs Clearance: Handling necessary paperwork and procedures to meet regulatory requirements in different countries.4. Cargo Insurance: Offering options to protect goods against loss or damage during transport.5. Packing and Inventory Management: Ensuring goods are properly packed for transport and managing inventory before and after shipping.Do I need a freight forwarder?Whether you need a freight forwarder depends on several factors related to your business's shipping needs:1. Volume and Frequency of Shipments: If you regularly ship large volumes or your shipments are frequent and complex, a freight forwarder can help streamline your operations.2. International Shipping: Navigating the complexities of customs, tariffs, and international shipping regulations can be challenging. Freight forwarders specialize in this and can manage these processes for you.3. Resource Allocation: If your business lacks the internal resources or expertise to manage logistics efficiently, a freight forwarder can provide significant value.4. Multi-Modal Transportation Needs: If your shipments require multiple modes of transport (air, sea, road, rail), a freight forwarder can coordinate these logistics seamlessly.What is a customs broker?A customs broker is a professional who is licensed to act as an agent for importers and exporters. They facilitate the clearance of goods through customs by ensuring that all legal requirements, documentation, and duties are properly handled. Customs brokers are knowledgeable about the entry procedures, admissible requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise. They play a crucial role in international trade, helping businesses comply with complex regulations and avoid costly delays.Freight Forwarder vs Customs BrokerFreight forwarders and customs brokers play distinct but complementary roles in international trade:1. Freight Forwarder: A freight forwarder arranges the transportation of goods across international borders. They handle logistics like booking cargo space, warehouse storage, cargo consolidation, and ensuring that the appropriate shipping method is used. They are essentially the architects of the entire shipment process from origin to destination.2. Customs Broker: A customs broker is specifically involved in the process of getting goods cleared through customs. They prepare and submit documentation required to facilitate exports or imports into the country, adhere to regulatory and legal requirements, and communicate directly with customs authorities. They ensure that all duties and taxes are paid and that the goods comply with all regulations.While a freight forwarder may sometimes act as a customs broker, and vice versa, their primary functions differ significantly, focusing on logistics and regulatory compliance, respectively.International Freight Forwarding CompaniesInternational freight forwarding companies specialize in arranging the transportation and logistics of goods across borders. They offer a range of services including cargo booking, warehousing, cargo consolidation, shipping, customs clearance, and tracking. These companies often have a global network that enables them to handle the complexities of international shipping effectively. Well-known international freight forwarders include DHL Global Forwarding, Kuehne + Nagel, DB Schenker, Panalpina and Auto Shipping. These companies are recognized for their ability to manage and streamline the supply chains of their clients globally.Are you Looking for a Great Price?If you're asking about finding the best prices for services or products, it generally involves comparison shopping and leveraging any available discounts or promotions. For services like freight forwarding or customs brokerage, getting quotes from multiple providers and negotiating terms can lead to better prices. Let me know if you need tips on how to compare prices effectively or if you have a specific product or service in mind! Click here to check our freight quote：https://globalshippingauto.com/fcl-shipping-from-china