Mercator was recently asked to arrange the export shipment of a handmade wooden dinghy. The boat was hand crafted by a company in Plymouth, and they approached Mercator looking for a freight forwarder to take care of the export shipping to Chile for them. The Plymouth based company create hand built traditional wooden boats in the oldest covered slipway in the world.
As the cargo was not a sufficient size (10’ in length) in order to warrant a dedicated shipping container for the sea freight shipping, Mercator arranged for the dinghy to be loaded into a shared shipping container. This is sometimes known as groupage, or LCL (less than container load), where several shipments share one shipping container and split the cost according to the volume taken up by each consignment.
The manufacturer arranged to build a crate for the dingy to be transported in. They ensured that the crate was a snug fit so that the dinghy would not move inside the box and therefore minimising the risk of damage. They added extra packaging in order to protect the parts of the boat that would otherwise be in direct contact with the crate.
Mercator arranged for a curtain sider to pick up the dinghy once it was packed and ready for shipping. The onsite forklift truck loaded the crate onto the haulier’s truck in order for it to be transported to London Gateway Port and then loaded into the container nearby the quay.
The sea freight route from the UK to Valparaiso port in Chile is usually through the Panama Canal and then South down the West Coast of South America. Valparaiso port is located just outside of Santiago, the Capital of Chile, about a third of the way down the coast of the country. The other major container terminal port in Chile is Concepcion, approximately 300 miles further south.
Mercator has a partner agent based in Chile, in Santiago. We have worked alongside them for over 6 years now. They are also a member of the global freight forwarder network MarcoPoloLine (MPL). As a member they are required to meet certain standards, have good conduct and be an independent freight forwarder. Membership to MPL ensures that customers can trust that their cargo is in safe hands no matter where it is.
Our freight forwarder agent in Chile can assist with shipping to Chile once the cargo has arrived, including local customs clearance and even onwards delivery to the destination. The connection with Chile also allows Mercator to have expert local knowledge directly from Chile with regards to shipping, clearance and documentation.
If you have an export shipment for Chile make sure that you choose a well-established and reputable freight forwarder who has direct connections locally in Chile. If you would like to discuss an export shipment to Chile (or any part of South America) or you would like a quotation, then get in touch: +44 2392 756 575 or email sales@mercatorcargo.co.uk
We were recently approached by a UK based company, Nim’s Fruit Crisps, to assist with the import shipping of some machinery that they were purchasing from China.
Nim’s had purchased the goods from the Chinese manufacturer on an FOB (free on board) basis. FOB is one of many international trade terms (INCOTERMS) which sets out who is responsible for different parts of the international shipment. It is generally recommended to agree to purchase your goods FOB when they are coming from China. FOB means that the supplier of the goods (the exporter) will arrange for your shipment to be delivered either to the port or warehouse in China. From there, you are free to arrange for any UK based freight forwarder to take control of the shipment and arrange for the freight to the UK, UK customs clearance and delivery to your door.
FOB is best used when importing from China because it gives the UK agent ultimate control of the UK costs once the shipment arrives in the UK. We have found that sometimes if the exporter (the company/person you are purchasing the goods from in China) arranges the ocean freight for you, the cost may seem competitive compared to what the UK freight forwarder is offering. However, we have seen many importers stung financially, as once the shipment arrives in the UK there are extremely high charges to be paid upon import which cannot be avoided. It works whereby the exporter has arranged for a UK agent to accept the shipment once it arrives, for which the exporter expects a remuneration in kind for giving the shipment to that particular agent. The collection of this remuneration in kind unfortunately is built into those high charges you did not expect to be billed for. It’s essentially a ‘back hander’.
Fortunately Nim’s agreed an FOB term, and so they contacted us to handle the ocean freight, UK clearance and delivery for them. Our agent in China assisted to liaise with the Chinese exporter to arrange the drop off of the machinery to the origin port: Huanghua. Huanghua port is just outside Beijing and Tianjin, in the north-east of China. We were then able to arrange the sea freight from China to Felixstowe port in the UK.
As the cargo was not enough to fill a full shipping container, we arranged for the crated machinery to be loaded and shipped in a shared container. Opting to ship goods as an LCL (less than container load) shipment brings the cost of the freight down. Sea freight from China takes around one month.
Once the shipment arrived in the UK, Mercator complied the documents, arranged to pay HMRC import VAT & Duty that was due on Nim’s behalf, and then arranged for a truck to deliver the machinery to their door.
It is always recommended that you speak with a freight forwarder before you commit to buying goods, just to make sure that the commodities you are hoping to purchase will not be costly or impossible to import into the UK, to get advice about which Incoterm you should negotiate and to find out how much importing the goods might cost you. If you want to import goods from China, then get in touch to discuss or to get a quote: +44 2392 756 575 or email sales@mercatorcargo.co.uk
With less than six months to go before the implementation of the SOLAS VGM (verified gross mass) regulations for accurate declaration of ALL shipping containers globally, the freight forwarding and shipping market is full of confusion and misunderstanding over the new procedures and how it will affect us all, including our customers.
The scheme, in a nutshell is designed to avoid any injury or damage caused by mis-declaration of container weight for all global container movements, in theory a good idea, but in practice the industry, including ocean carriers and freight forwarders alike, are having problems implementing effective solutions to make it viable.
At Mercator Cargo we have been aware of the upcoming changes for some time, and have been working with carriers and professional associations to be ready for the start date.
The scheme offers two choices for declaring the correct container weight:
Both of these options have obvious flaws.
The lack of public or indeed any weighbridges in the UK is a huge problem, and finding one is also an issue, it would be most useful if a list of them was published, and made easily accessible to use for option 1.
Calibrated equipment is the flaw in option 2 – how can any agent, freight forwarder or carrier be sure that the equipment is calibrated and certified and is correct.
At the time of writing I must say I have huge reservations about this, and I am not alone. Of the carriers I have spoken with, most of them have no idea how they are going to comply with these terms, and it seems unlikely to change in the near future.
And the UK is fortunate that most export containers that are loaded are certainly within ballpark figures of being correct in terms of weight. However other countries such as India and China, who are two of the biggest global players, are notorious for mis-declaration of weight, we ourselves had one shipping container of stone imported from India declared as 25,000kgs but was in-fact over 35,000kgs!
How will countries with even worse infrastructure than us in the UK cope with these regulations? It remains to be seen, and I am sure this will not be the final blog I write on the subject!
The FAQ’s about the change can be viewed here: VGM FAQ
If you have any questions please email george@mercatorcargo.co.uk or call +44 2392 756 575
It is becoming more of an issue that when goods are purchased in China and the freight is prepaid by origin, the importer will receive a bill for extra (but unfortunately payable) charges.
When you buy goods from China (or from any country in the world for that matter) you will agree with the seller a ‘buying term’. The ‘buying term’ used will be from a list of Incoterms – which are internationally recognised terms, set out by the international chamber of commerce. An Incoterm will outline who is liable for paying for what in order to transport the goods to its destination. Commonly you’ll come across FOB (free on board – where the seller is liable for the costs to get the goods onto a vessel, the buyer is then responsible for the ocean freight and any costs from then onwards); CFR (cost and freight – the seller is responsible for loading the goods onto the vessel and for the ocean freight, the buyer is liable for the unloading of the goods and all costs from then onwards); CIF (cost insurance freight – same as CFR but the seller also arranges the marine insurance). There is a whole book on Incoterms, so if you are not sure then make sure you do your homework or ask a reputable freight forwarder for some help.
Why is it important to make sure you have the correct Incoterm when it comes to importing from China? Unfortunately we have seen the same issue come up time and time again where someone has agreed the purchase of some goods from China on either a CFR or CIF basis (or others where the seller arranges the freight). When the goods arrive in the UK, the buyer gets a large bill from a UK based agent (who has been nominated by the seller). You are under no obligation to clear the goods with that nominated agent, however, you are liable to pay for the charges that they have billed to you. It works on a kind of ‘back hander’ basis. Your seller in China has contacted the UK agent, agreed they can accept the shipment when it arrives in the UK, and for that the Chinese seller will expect a remuneration in kind, which you’ve been billed for. It can be hundreds of pounds – so it is so important to avoid this situation.
How do you stop this happening? Agree a term such as FOB with your seller. They’ll arrange for your shipment to get on the vessel in China and you can appoint a UK agent to accept the goods in the UK (a freight forwarder such as Mercator Cargo). When the shipment arrives there will be ocean freight, UK landing charges and customs clearance to pay. No hefty fees on top, just the regular price to pay. Be careful of the sellers who say they can arrange your freight for a very low price, as they will be making up for this via their nominated UK agent. Don’t pay too much unnecessarily.
Having full control of the freight element of the goods will ensure you avoid these surprise charges.
Just yesterday, we had a new customer call us asking for help as this had unfortunately had happened to him. He understood that we were unable to do anything about the charges from the other UK agent. However, he did not want to use that particular agent for the clearance and delivery as he felt he could not trust them, so came to us. We have arranged to clear and deliver his shipment for him, and also to help him for future shipments so that the same issue does not happen again.
We have partner agents in China, so if you do not wish for your seller to be involved in any of the transport of your order, we could arrange for the whole shipment from door in China to door in the UK – Simple!
Don’t get caught out, make sure you appoint a reputable freight forwarder who can offer you reliable and cost-effective advice. Make the most of the professionals who are willing to help and go the extra mile for you.
Still need some help? Get in touch, we’ll be happy to discuss this issue with you. Or if you need to find a UK based freight forwarder who can handle the freight from China, give us a call with the details and we’ll get a quote together for you: +44 2392 756 575 or email sales@mercatorcargo.co.uk
Export trade for the UK is gradually improving however the volumes that we import still out stretches the volumes of UK exports.
When more full containers arrive in the UK than leave, there is an issue of empty containers being left on the quay in the UK. The carriers will then juggle around numbers, ordering empty containers to be loaded on to certain vessels in order to be transported to the country where they are required for loading.
Just a small snap shot of the situation can be seen on the Southampton Port website which shows current numbers of empty TEU (which are 20’ equivalents, so a 40’ container would be 2 TEU). On 30th November 2015 (just as an example) there were 6608 TEU empty exports.
Have you ever seen stacks and stacks of shipping containers at ports around the UK? These will be empty because it’s not possible to stack loaded shipping containers higher than three.
Confidence is growing in the UK export market: UK goods are in demand around the world; the UK is manufacturing some great products; and the Government is promoting UK exports with the slogan ‘Exporting is GREAT’, running workshops and talks, and Export Week.
Once the balance has evened out a bit between UK imports and UK exports, it should reduce the cost of ocean freight, as the inbound and outbound shipping container journeys will both be utilised with a cargo load. Exporting more goods from the UK will also benefit the UK economy.
Are you interested in growing your business to include the export market? Mercator is a well-established and reliable freight forwarder based in the UK. For over 20 years we’ve been helping UK businesses get their heads around exporting, offering advice and full export shipping services to almost every country worldwide. We are an independent freight forwarder, and we pride ourselves on our customer care – we can handhold you through the process of exporting your goods so you can concentrate on running your business, knowing that your export shipment is in good hands.
Get in touch to discuss current shipping rates and UK export protocols: sales@mercatorcargo.co.uk or call us +44 2392 756 575, we’ll be happy to help you out.
The answer to how many pallets fit in a container can be answered by first establishing what kind of pallets you have, and what size container they will be loaded into.
There are two standard pallet sizes known as europallets and standard pallets. A europallet measures 1.2m x 0.8m, whereas a standard pallet is 1.2m x 1.0m.
A 20’ container is exactly that: it measures twenty foot long, and a 40’ container measures forty foot long. Most containers will be a standard size – that is they will measure about 8 foot wide, and 8 foot 6 tall. The only standard exception to this is a ‘high cube’ which is 9 foot 6 in height (great for tall cargo).
Europallets (1.2m x 0.8m)
11 europallets will fit into a standard 20’ container
You can get 25 europallets in a standard 40’ container
Standard pallets (1.2m x 1.0m)
You can fit 10 standard pallets in a standard 20’ container
21 standard pallets fit into a standard 40’ container
There are, however, all manner of other kind of pallets and other sizes of containers, for example palletwide (although these are usually quite rare). Get in touch if you require further information of how many pallets fit into a container if they do not fit the standard specifications above.
If you have a shipment to arrange that is palletised, then get in touch, we can arrange for loading into a container, sea freight and clearance at destination. Or if you have goods which you need palletising for shipment, we can also arrange for this for you.
To get in touch email our team on sales@mercatorcargo.co.uk or give us a call +44 2392 756 575.
Mercator was instructed to arrange the sea freight shipping of three mobile cranes from Southampton in the UK to Taiwan. The cargo was classed as oversized (also sometimes referred to as out of gauge cargo). Due to the dimensions, non-standard shipping containers were used. If oversized cargo shipping is not planned thoroughly then it can end up being very expensive. The three cranes were loaded onto two flat rack shipping containers and one open top container.
Two of the cranes fitted into the parameters of the flat rack shipping containers after some adjusting – including removing the wing mirrors. This small adjustment took a few minutes but saved thousands in shipping costs. If the crane were overhanging the sides of the shipping container (even if it was just a wing mirror) then the shipper would be liable to pay for all the spaces around the container on the ship which would be unusable. The other crane was driven into the open top container, it was such a tight squeeze that the driver had to climb out of the window as the door wouldn’t open.
We managed to get the cargo into three shipping spaces on the vessel, but if not done thoroughly then it could have been up to 6 or 7 spaces to pay for for each crane! Therefore, it’s really important if you are going to ship something that is oversized to ensure that you choose a reputable freight forwarder who will do everything that they can in order to keep the cargo within the gauge of the container. A good freight forwarder is worth their weight in gold.
To ensure that everything would go smoothly, our MD (Paul) took a trip to Southampton Port on the morning of the crane loading and strapping to ensure he was satisfied with the shipping plans. The lashing on the cargo is important to ensure that there is no movement (and therefore avoiding damage) during the shipping process. Each mobile crane weighed in at about 25 tonnes, therefore the lashing put in place would have been for up to 3 times the cargo weight.
Later that day, the cranes were transported to the dock side, loaded onto the shipping vessel and set sail for Taiwan.
If you have an unusual load that you need to ship internationally, then get in contact with Mercator’s shipping team. We have over 20 years’ of experience in international freight forwarding, and thanks to our founding membership of MarcoPoloLine (a worldwide network of independent, vetted freight agents in over 90 countries) we have contacts across the globe to ensure the safe onward transit of your shipping consignment.
Shipping to Turkey with Mercator is a straight forward process. We have contacts in Turkey who we work with regularly thanks to our founding membership of MarcoPoloLine, the global shipping network. Our contacts in Turkey can assist with your shipment once it has arrived at the port, whether you need customs clearance and onward delivery, or advice on whether the goods are suitable for import into Turkey.
Our shipping services from the UK include pick-up from your door and delivery to the port/airport, and sea/air freight to Turkey. We can also assist with document requirements for shipping to Turkey and any duties you have as an exporter.
Shipping to Turkey can either be undertaken via sea or air freight. If your shipment is urgent and you are able to cover the extra cost, then you might choose to ship your goods via air freight. However, if you don’t have time constraints, then the cheaper sea freight option might be preferred. Air freight to Turkey takes a matter of hours, but you do need to factor in a couple of days either side to allow for packing, customs and unpacking. Whereas sea freight to Turkey can take between 10 and 20 days depending on your destination port (Istanbul is about 9 days, whereas as far round as Ismir takes up to 19 days).
Our capacity for load sizes when shipping to Turkey vary from a single pallet through to 40’ containers. Thanks to our long-standing business relationships with the major carriers and vessel operators, we can offer our customers competitive quotations for shipping to Turkey. Using a freight forwarder to handle your shipping to Turkey might be a cheaper option than doing it yourself! Our knowledge and expertise are invaluable when you delve into international trade. Don’t get your fingers burnt, it’s always best to have an expert to assist you with your shipping tasks.
Our export shipping team can assist you with obtaining a fully comprehensive quote for your shipping to Turkey, can put you in touch with our partner agent in Turkey if you need onward transport for your goods, and can offer any advice you require. So if you’re looking to appoint a reputable freight forwarder to undertake your Turkey shipments, then get in touch +44 2392 756 575 or email sales@mercatorcargo.co.uk
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Mercator is a family-run, UK based independent freight forwarder, offering highly effective sea, road and air freight services around the world.
