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Blog Archives

Freight Forwarding News – Exports to Turkey

Turkey is set to be a prosperous business partner in the years to come.  Turkey has had their credit rating increased whilst many European countries have had theirs cut.

Turkey has been said to be one of the new high growth countries, alongside the ‘BRICS’ – Brazil, Russia, India, China and South Africa.  Whilst the majority of Europe has been crippled in construction for financial reasons, Istanbul is experiencing its construction boom.  And Turkish banks are looking to lend more, something a lot of European countries can only dream of.

Turkey is currently Europe’s sixth biggest economy, predicted to rise to the fourth biggest economy in Europe by 2050.  This would push them to the thirteenth biggest economy in the world (currently sat in seventeenth).

The construction industry is booming in Turkey.  As the economy has grown, people have become wealthier and are demanding bigger and better houses.  Some UK businesses have cashed in on the construction industry by creating partnerships with Turkey-based companies, supplying the construction industry with JCBs and materials.

The banks have reduced their lending rate in order to encourage consumers to spend more.  This has resulted in high streets booming, with big stores moving in to cash in.  Stores such as Nike, Marks & Spencer and Gap, all line the high streets.

Despite this, the UK is lagging behind on its exports to Turkey.  In 2012, the UK exported goods worth £3.7bn, a far cry from Italy’s £8.7bn, and Germany’s monstrous £14bn.

The “new middle class” is said to be the major area of growth for Turkey’s economy, with household spending accounting for 70% of national income.  There is said to be an opportunity for luxury goods, electronics and mobile phones, items which are not as developed as they are in other European countries.

There are several options when exporting goods to Turkey in terms of modes of transports and ports.  The most frequently used port for air freight is Istanbul, whilst there are many options for sea freight, including Mersin, Ambarli, Gebze, Haydarpasa, Istanbul and Evyap.

We have excellent contacts in Turkey, and we work closely with our Turkish agent regularly.

So if you are considering exporting your goods to Turkey and are looking for a freight forwarder, give us a call today – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.

 

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Freight Forwarding News – Benefits of Freight Forwarders Belonging to a Global Network

Mercator Cargo is a founding member of the global freight forwarding network Marco Polo Line (MPL).  What does this mean for you, the potential (or existing) customer?

Marco Polo Line was founded with the intention to give independent freight forwarders (like Mercator Cargo) advantages that the bigger freight forwarders have traditionally enjoyed over the independent forwarders.

The first, and biggest impact that Mercator finds invaluable on a daily basis (both for our customers, and our operations in the office) is the personal contacts that we now have globally.  Marco Polo Line holds annual conferences, where members can meet face-to-face and build working relationships.  Mercator Cargo takes full advantage of these conferences, sending at least two members of the freight forwarding team.  These personal contacts allow Mercator to arrange shipments seamlessly, using valuable local knowledge, and offer to-door shipments in almost any country in the world (thanks to our global partners).

The other advantage is that members are ‘vetted’, tried and tested (you cannot join MPL by just filling a form in).  Membership is monitored, so if there are problems, these can be raised and eradicated.  This means that our partner offices are trustworthy and reliable to handle your shipments, where ever they are in the world.

These are just a few examples of the benefits of choosing Mercator as your freight forwarder.

Contact us today to discuss how we can help you with your freight forwarding needs – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.

 

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Freight Forwarding – Terms of Delivery when Buying Internationally

If you are looking to begin international trade: buying your goods outside of the UK and importing them, there are some terms of delivery which you will agree with your supplier that are important that you understand.

It is generally advised that you use ‘INCOTERMS’ when buying your goods internationally. INCOTERMS are a set of rules which have been issued by the International Chamber of Commerce. The terms outline both the buyer’s and the seller’s obligations and risk under given terms of delivery. The precise nature of these terms and their definitions can prevent misunderstandings between the buyer and seller and their obligations.

The following are the main terms used for delivery (there are many others, but generally these are the ones to know about).

EXW – Ex Works. The buyer is responsible for the door to door transport costs, destination taxes and duties, and marine insurance. It is the buyer’s risk from door to door.

FOB – Free on Board. The seller is responsible for charges up to and over the ‘ship’s rail’ (the ship’s rail being the point where the container is lifted off the quay and over the side of the ship). It is the seller’s risk up to and over the ship’s rail.
The buyer is responsible for the shipping costs from the port of departure to the place of delivery, marine insurance from the port of loading and destination duties and taxes.

CFR – Cost and Freight. The seller is responsible for the FOB charges and ocean freight up to the named port of destination. It is the seller’s risk up to the FOB.
The buyer is responsible for unloading from the ship, duties and taxes, and local delivery to the destination and marine insurance from the FOB.

CIF – Cost Insurance Freight. Same as CFR (above), but the seller arranges and pays for the marine insurance up to the buyer’s door.

We can offer all levels of service, from arranging every single aspect for you (e.g. door to door delivery, insurance, customs clearance, VAT & Duty payments, and so on), or just one part of your shipment for you, for example the ocean freight.

If this has left you baffled and you’re not sure what to do next, then give us a call to discuss your shipment. We’d be happy to help you make sense of this and assist you with arranging your import into the UK – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.

 

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