Informative

September 30, 2020 Informative 460

Incoterms 2020 CIP

In order to import goods, one should be familiar with the Incoterms rules. International Trade Rules are divided into several groups, which indicate the means of transport as well as the division of risk and costs. In group C, the basic costs of transport and insurance are paid by the seller.

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September 26, 2020 Informative 406

Startup Funding Rounds

Phase 1 – Starting the Company

  • Pre-seed/friends and family funding: The usual step before angel funding or VCs, where the founder or founders just have a set of skills and an idea to begin their company, and either themselves or close friends and family fund it.
  • Incorporation/Corporation: Allows the founders and the investor to agree on the terms of ownership and decision-making. It provides a layer of protection, for example, in case the company gets sued. A Delaware C-Corporation is the most standard type of legal structure you can use, and most investors in the US will want that.
  • Shares: This is what corporations are made of. Company ownership is represented in an integer number of shares. People own a given amount of shares of the business, which therefore represents a percentage of the total shares the company has issued.
  • Valuation: This is how much the business is worth. If the startup just has an idea or a code, the valuation is an agreement on something that feels fair to the investor and the founders.
  • Vesting: An agreement that says that each founder will only own their assigned shares after a certain period of time.

Phase 2 – Seed Round

  • Seed funding/capital/round: The first funding (outside friends and family) a startup obtains to create its business and make it grow enough. Angel investors, accelerators, incubators, and even some venture capital firms could act here.
  • Angel investor: A -very rich- individual, usually outside of the friends and family circles, who normally funds a startup in the early stages.
  • Convertible notes: If founders and investors have no way of agreeing in valuation, they can use a convertible note to hold off on the decision of how much the business is worth. With a convertible note, investors can come in, the company can grow, and the conversion to stock occurs later. A convertible note works much like a loan, except that it’s designed to be paid back in stock instead of cash. They are also known as bridge funding.
  • Stock option pool: In the startup world, it’s quite common to offer shares of stock to the first employees in the company; this is done with a stock option pool. It is a defined amount of shares that are ‘set aside’ to be issued to employees. The shares on the stock option pool are not given to employees because of tax purposes.

Phase 3 – Series A Funding

  • Series A Funding: After gaining enough traction, a startup can go to a venture capital firm and apply for a Series A round. This normally involves negotiations in terms of the company’s valuation and the position of the investors in the board of directors.
  • Board: The board of directors has control over crucial company aspects. It abides by the company bylaws, which is a sort of rulebook. The board makes most company decisions with a simple majority.
  • Preferred shares: Investors will also want to protect themselves in case the company goes down. If things don’t go right, it might file for bankruptcy or it might be acquired/absorbed for a small amount. In that case, investors might request that if that happens, they get paid first. Special rules like that make what we call ‘preferred stock.’
September 23, 2020 Informative 31,592

IMO Classes for Dangerous Goods

The Carriage of dangerous goods and marine pollutants in sea-going ships is respectively regulated in the International Convention for the Safety of the Life at Sea (SOLAS) and the International Convention for the Prevention of pollution from Ships (MARPOL).

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September 13, 2020 Informative 1,444

Apple: Revenue by Product 2007-2012

Had made this chart 8 years ago, it pretty much sums up Apple Inc and the revolution it led after 2007 and how it became the first $2 trillion company from the verge of bankruptcy.

 

August 21, 2020 Informative 1,445

Major Exports of Pakistan

  • Textiles and worn clothing: US$4.1 billion (17.1% of total exports)
  • Cotton: $3.5 billion (14.9%)
  • Knitted or crocheted clothing and accessories: $2.9 billion (12%)
  • Clothing accessories: $2.6 billion (10.9%)
  • Cereals: $2.4 billion (9.9%)
  • Leather/animal gut articles: $662.7 million (2.8%)
  •  Sugar and manufactured products: $519 million (2.2%)
  • Mineral fuels including oil: $499.5 million (2.1%)
  • Beverages, spirits, vinegar: $453.1 million (1.9%)
  •  Salt, sulfur, stone, cement: $445.4 million (1.9%)
  • Fish and poultry: $422 million (1.8%)

Note: Above statistics are for the fiscal year 2018.

May 12, 2020 Informative 540

10 of History's Deadliest Construction Projects

Project
Location
Death Toll
Panama Canal
Panama
30,609
Burma-Siam Railway
Thailand
12,399
Sea-Baltic Canal
Russia
12,000
Karakoram Highway
Pakistan
892
Aswan Dam
Egypt
500
Hawks Nest Tunnel
United States
109
Hoover Dam
United States
96
Los Angeles Aqueduct
United States
43
New York City Third Water Tunnel
United States
24
St. Gotthard Road Tunnel
Switzerland
8
March 15, 2020 Informative 742

How deadly is the coronavirus?

Comparing the 🦠coronavirus to Ebola and MERS is reassuring. But that doesn’t mean we can discount Covid-19 as being just like the flu. The current 3.4% mortality rate is 34x deadlier than the seasonal flu. Even the estimate of 1%, which takes into consideration unreported mild cases, means the virus is 10x more deadly. Could the coronavirus spread as widely as the flu? Yes, if it’s allowed to.

Mortality might be lower than the others, however the rate of transmission is so high which makes it more alarming, it will over exhaust supplies and doctors. And if that happened, more people might die due to the lack of health support and the mortality rate may exceed many other viruses 🦠

Credits: BloombergOpinion IG

October 26, 2019 Informative 303

What is the difference between a Freight Forwarder and Customs Broker

So let’s first begin with customs broker. A customs broker is licensed by the Government to handle the customs clearance of goods for their customers, it involves preparing goods declaration, paying duties and taxes according to tariff of that product on behalf of their customers, and finally getting it released from the customs and delivering the shipment to the customer.

On the other hand a freight forwarder or more precisely an international freight forwarder undertakes the job of handling international transportation of the goods from one country to another, using various modes of transport such as by land, by sea and by air. They are also responsible for preparing shipping documents such as Bill of Lading or Airway bill. Moreover, when requested by the customer, they also arrange the cargo insurance of the goods.

Normally both of these services are offered by a single company, nevertheless both are very different and specialised jobs, so therefore, some companies may only be offering either of these services.

Hope this would explain you the basic difference between a freight forwarder and customs broker.