October 3, 2020 Informative 1,018

Global Trade Terms

Trade Term
Definition
Abandonment
The refusal of merchandise by the designated consignee
About
A letter of credit term meaning plus or minus 10% of whatever immediately follows. The terms approximately and circa are synonymous
Abrogation
The cancellation of the part of a contract that has not yet been performed. For example, if parties agree to several deliveries of goods, but after the first delivery, war is declared in the buyer´s country and no further goods can be delivered, the buyer must pay the first delivery, but the contract is abrogated for the remaining ones. See force majeure clause; war risk.
Absolute advantage
In the theory of international trade an absolute advantage occurs when a country or company is more efficient (using fewer resources) at producing the same good or service than another country or company. This theory was first suggested by British economist Adam Smith in the 18th century. See also comparative advantage.
Acceptance
The act of formally acknowledging a debt by signing a financial instrument called a draft. When done by a non-bank party, a trade acceptance is created. When done by a bank, a banker´s acceptance is created. See banker´s acceptance.
Acceptance date
The date on which a draft was signed. For drafts drawn at “X days from sight”, the acceptance dates begins the time period toward maturity.
Acceptance letter of credit
A letter of credit, which requires, amongst the documents stipulated, provision of a term bill of exchange. The bill is then generally accepted by the bank on which it is drawn or discount. The practical result is that the beneficiary is paid promptly at a discount.
Accessions
Goods that are affixed to and become part if other goods. Examples includes semiconductors that are inserted into computers, parts that are added onto vehicles, or dials that are used in watches.
Accessorial charges
In shipping, charges made for additional, special or supplemental services, normally over and above the line haul services. Common accessorial charges include: congestion surcharges, currency adjustment factors (CAF) and terminal handling charges (THC). Also called surcharge.
Accord and satisfaction
A discharge of a contract or cause of action pursuant to which the parties agree (the accord) to alter their obligations and to perform new obligations (the satisfaction). For example, a seller who cannot obtain red fabric to meet the contract specifications may enter into an accord and satisfaction to provide the buyer with blue fabric for a slightly lower price.
Acknowledgement
1. Confirmation of receipt of a purchase order. 2. Confirmation sent by a bank confirming receipt of a collection. ACP Countries. African, Caribbean and Pacific countries is a group of countries with preferential trading relations with the EU under the former Lomé Treaty now called the Cotonou Agreement. This agreement is aimed at the reduction and eventual eradication of poverty while contributing to sustainable development to permit the gradual integration of ACP countries into the world economy.
ACP Countries
African, Caribbean and Pacific countries is a group of countries with preferential trading relations with the EU under the former Lomé Treaty now called the Cotonou Agreement. This agreement is aimed at the reduction and eventual eradication of poverty while contributing to sustainable development to permit the gradual integration of ACP countries into the world economy.
Act of God
The operation of uncontrollable natural forces. This expression is used in force majeure contract clauses that excuses a party who breaches the contract when performance is prevented by the occurrence of certain events. See force majeure clause.
Ad valorem duty
Latin expression that means according to the value. Import duties or taxes expressed as a percentage of value. For example, the import duty for a product classified under Harmonized System 220421 is 4.5 per cent of the customs valuation. Its acronym is A.V. or Ad Val. See tariff.
Adhesion contract
Contract with standard, often printed terms of sale of goods or services offered to consumers who usually cannot negotiate any of the terms and cannot acquire the product unless they agree to the terms.
Advance payment
Paying or part-paying a supplier before goods or services are delivered. Advance payments may be used to negotiate a reduced price or to cover initial supply costs.
Advance payment guarantee
A guarantee that advance payments will be returned if the party that received such payments does not perform its part of the contract.
Advice of shipment
A notice sent to a local or foreign buyer advising that shipment has gone forward and containing details of packing, routing, etc. A copy of the invoice is often enclosed and, if desired, a copy of the bill of lading.
Advised letter of credit L/C
A letter of credit whose terms and conditions have been confirmed by a bank. See letter of credit.
Advising bank
The bank that notifies the exporter of the opening of a letter of credit in his or her favour. The advising bank, usually located in the exporter´s country, fully informs the exporter of the conditions of the letter of credit without itself making a payment commitment. See letter of credit.
Advisory capacity
A term indicating that an agent or representative is not empowered to make definite decisions or adjustments without approval of the principal represented. This is the opposite of without reserve.
Affidavit
A statement sworn under oath before an authorized official.
Affiliate company
A Company that is less than 50% owned by a parent company; the parents acts as minority shareholders. More loosely, this term is sometimes used to refer to companies that are related to each other in some way. In recent years, the concept of the affiliated company has also come to be applied to businesses that are affiliated with the same industry, and choose to forge an ongoing business relationship and sharing of resources to the mutual benefit of both entities. See also subsidiary.
Affreightment
A contract between a shipper and a carrier, setting forth their respective transportation obligations. Its is a synonym for charter.
Afloat
Refers to a shipment of cargo that is currently onboard a vessel between ports, as opposed to on land.
After date
In banking, a notation used on financial instruments (such as drafts or bill of exchange) to fix the maturity date as fixed number of days past the date if drawing of the draft. For example, if a draft stipulates “30 days after date”, it means that the draft is due (payable) 30 days after the date it was drawn. This has the effect of fixing the date of maturity of the draft, independent of the date of acceptance of the draft. See acceptance date; after sight; bill of exchange; drawee.
After sight
In banking, a notation on a draft that indicates that the payment is due a fixed number of days after the draft has been presented to the drawee. For example, “60 days after sight” means that the drawee has 30 days from the date of presentation of the draft to make payment. See acceptance date; after date; bill of exchange; drawee.
After-sale service
A collective term for attention to a transaction that normally takes place after the sale (and often after delivery) is accomplished. Typical after sale service functions include: installation, training, warranty-related repair and replacement part support. After-sale service is an extremely important consideration because of the normally greater distances between sellers and buyers in international trade. Some international contracts as distribution contracts include a clause of after-sales services and maintenance: The Distributor undertakes to carry out with its own staff and means, and assume the costs of, and adequate after-sales and maintenance service for all Products sold within the Territory. The Supplier shall provide the Distributor with the spare parts and other means required to service the warranty conditions of the Products. See also maintenance.
Agent
An independent person or legal entity, which acts on behalf of another (“Principal”). In international transactions, this term normally refers to a sales representative who prospects on behalf of a foreign principal, earning a commission on sales eventually concluded between the principal and the ultimate client. This is distinguished from sales through employees and subsidiaries – that are not independent – or through distributor´s buying and reselling in his or her own name. Sales Agents should also be distinguished from buying agents, as their respective rights and obligations are quite different. In international trade, relationships between agents and their clients (principals) are regulated through a Model of International Agency Contract.
Agio
The extra amount over and above the market price which is paid in counter trade transactions and results from the particular costs of countertrade.
Air freight
A service providing for the air transport of goods. The volume of air freight has been increased dramatically due to: decreasing shipping time: greater inventory control for just in-time manufacturing and stocking, generally superior condition of goods upon arrival, and, for certain commodities, lower prices.
Air freight consolidator
A company that obtains a low freight-of-all-kinds freight rate from air carrier in return for volume, and consolidates small shipments, often to fill air freight containers. Such companies often perform forwarding tasks and issue their own “house” air waybills to each shipper, backed up by “master” air waybills issued by the undercarrier for the consolidated shipment. See also consolidation.
Air freight forwarder
A freight forwarder for shipments by air. In many respects, air freight forwarder perform the same functions as air freight consolidators, except that smaller forwarders may co-load with others rather that actually perform their own consolidations. To the airlines, the air freight forwarder is a shipper. An air freight forwarder is ordinarily classed as an indirect air carrier; however, many air freight forwarders operate their own aircraft. See also freight forwarder.
Air waybill (AWB)
Transport document issued by a carrier for air transportation. If issued by the actual carrier, it is a master air waybill. If issued by an air freight consolidator or forwarder it is a house air waybill. The document is issued in three originals and is not negotiable so it cannot be issued to the order; it is always nominative and non-endorsable. Since it is not negotiable, and it does not evidence title to the goods, in order to maintain some control of goods not paid for by cash in advance, sellers often consign air shipments to their sales agents, or freight forwarders’ agents in the buyer’s country. The standard form was designed to enhance the application of computerized systems to air freight processing for both the carrier and the shipper.
Aircraft pallet
A platform or pallet (in air freight usually from 3/4″ to 2″ thick) upon which a unitized shipment tests or on which goods are assembled and secured before being loaded as a unit onto aircraft. Most carriers offer container discounts for palletized loads. See also pallet.
Airport-to-airport
The main carriage transportation movement from departure airport on the seller´s side to the arrival airport on the buyer´s side.
ALADI
The Latin American Integration Association is an international and regional scope organization created in Latin America in 1980. Currently, it has 13 member countries, and any of the Latin American states may apply for accession. Website.
All risks (AR)
The broadest type of standard marine insurance coverage generally available and offered by the London Institute of Underwriters “A” Clauses. The name is misleading, as “all risks” does not include coverage for the perils of war risk, strike, riot and civil commotion. These additional coverages are available for most markets, usually at modest additional premiums. in the market. Since there is no worldwide standard nomenclature for all risks coverage, traders should determine exactly what is/is not covered, and arrange for any additional coverage they deem necessary.
Allowance
An amount paid or credited by a seller as a refund or reimbursement due to any one of a number of causes including: faulty packaging, shipment of good which do not meet buyer´s specifications, a late shipment, etc.
Alongside
A phrase referring to the side of a vessel: goods to be delivered “alongside” are to be placed on the dock or lighter within reach of the transport ship´s tackle so that they can be loaded aboard the vessel.
Alternative Dispute Resolution (ADR)
A general term for a variety of dispute resolution mechanism that may be used as alternatives to traditional litigation before governmental courts or tribunals. This term includes such techniques as conciliation, mediation and negotiation. Some experts also consider arbitration as an alternative dispute resolution mechanism.
Amendment
In law, an addition, deletion, or change in a legal document. In a letter of credit, a change in terms and conditions of the letter (e.g., extension of the letter of credit´s validity period, shipment deadline, etc.) usually to meet the needs of the seller. The seller requests an amendment of the buyer, who, if he agrees, instructs his bank (the issuing bank) to issue the amendment. The issuing bank informs the seller´s bank (the advising bank) who then notifies the seller of the amendment. In the case of irrevocable letters, amendments may only be made with the agreement of all parties to the transaction. See letter of credit.
American Foreign Trade Definitions
A set of sales terms published in 1941 that have become obsolete in favour of the current version of the ICC International Chamber of Commerce Incoterms. Buyers and sellers of US shall use the current Incoterms version and clearly indicate this
American option
A foreign exchange type of contract containing a provision to the effect that it can be exercised at any time between the date of writing and the expiration date. See currency option; European option.
American pallet
A type of pallet used in North America. The most commonly used is the GMA (Grocery Manufacturers Association) pallet that has deck boards of 40 inches and stringers of 48 inches. Its dimensions are 1016 mm by 1219 mm. This is equal to a pallet 40 inches wide and 48 inches long.
Andean Community
Community of four Latin America countries (Bolivia, Colombia, Ecuador and Peru), that decided voluntarily to join together for the purpose of achieving more rapid, better balanced and more autonomous development through Andean, South American and Latin American integration. Website.
Annex
A document attached to a contract or agreement. For example, a document entitled Exhibit A listing product specifications attached to a supply contract. Also called exhibit or schedule
Antidumping
Laws enacted to remedy dumping, which is defined as the sale of goods to a foreign market at less that fair value. Antidumping duty is an additional tax to normal import duty that is assessed on an imported good to raise its cost price value. See dumping.
APEC
The Asia-Pacific Economic Cooperation is a forum of 21 Pacific Rim countries (including United States, Canada, Mexico, Japan and Australia) that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region. Website.

September 23, 2020 Statistics 4,699

Top 25 NVOCC Freight Forwarders by US Imports from Asia 2020

US Import from Asia, Jan-Aug 2020

The JOC Top 25 Non-Vessel-Operating Common Carriers (NVOs) in the eastbound trans-Pacific trade handled 49.4 percent of the nearly 4.73 million TEU in US imports from Asia transported by NVOs during the first eight months of 2020.

Rank
NVOCC
TEU Jan-Aug 2020
1
Apex Group
238,940
2
Expeditors International
220,255
3
C.H. Robinson
210,180
4
OEC Group
185,148
5
Honour Lane Shipping
166,254
6
Kuehne + Nagel International
160,886
7
The Topocean Group
128,664
8
Hecny Shipping
106,177
9
DHL
75,675
10
China International Freight Co
69,447
11
De Well
69,290
12
Orient Star Transport International Ltd.
67,796
13
SeaMaster Logistics, Inc.
65,902
14
MCL Multi Container Line
60,898
15
UPS Supply Chain Solutions Inc.
58,795
16
Flexport
55,808
17
DT Logistics (Hong Kong) Ltd
55,168
18
DB Schenker
54,839
19
Safround logistics
48,448
20
DFDS Group
44,868
21
Pudong Prime International Logistics
39,981
22
Cohesion Freight (H.K.)
39,195
23
Translink Shipping
38,702
24
FedEx Trade Networks
38,454
25
Joosung Sea & Air Co.
37,115
JOC Rankings: Top 25 Asia-US import NVOs www.joc.com

 


September 23, 2020 Informative 31,900

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).

Continue…



April 28, 2020 General 780

Import General Manifest and Outbound Inbound Marketing

I rather find it strange that in US import air and sea manifest isn’t available publicly online1, in Pakistan every single import by air and sea is available online by Pakistan Customs. It’s a very crowded portal all FFs / Customs Brokers and their Tele Reps are busy calling customers right away the shipment lands into Pakistan by collecting data from there.. importers here are overwhelmed by phone calls and emails., its called import general manifest IGM and portal is updated on an hourly basis.

Exports data is tricky. It’s not available online. Having said that both imp-exp data ain’t so helpful. As it may seem.

As outbound marketing has lost its mojo long ago due to spam. It’s all about Inbound now. 90% customers we had acquired in the past 2 years were entirely through SERP organic ranking., and AdWords.

Even our 50k subscribers strong newsletter doesn’t help much. We now only send once a month at maximum just to keep the list from being stalled and avoid too many bounce back due to inactive email addresses. That doesn’t go well with anyone. Either MailChimp or SES.

A lot of email addresses become invalid due to people leaving etc even in a month., and if you don’t email in 2-4 months it easily breaches the allowed hard bounce limit of 0.5%  and risks account suspension.


1. The US Customs however provides the manifest data to Commercial Software Companies, who would sell it online for a subscription ranging from $100 to $250 per month.


April 11, 2020 Statistics 35,728

Top Air Freight Forwarders Ranking 2020 By Metric Tons Volume

Rank
Company
Headquarters
Metric Tons
1
DHL Supply Chain
Germany
2,051,000
2
Kuehne + Nagel
Switzerland
1,643,000
3
DB Schenker USA
Germany
1,162,000
4
DSV Air & Sea Ltd.
Denmark
1,071,266
5
UPS Supply Chain Solutions
United States
965,700
6
Expeditors International of Washington
United States
955,391
7
Nippon Express
Japan
752,942
8
Bollore Logistics
France
634,000
9
Kintetsu World Express
Japan
600,849
10
Hellmann Worldwide Logistics
Germany
586,670
11
Hitachi Transport System
Japan
538,000
12
Sinotrans Ltd.
China
530,100
13
Apex Logistics International
United States
520,000
14
Ceva Logistics
Switzerland
476,600
15
Kerry Logistics Network
Hong Kong
453,000
16
Agility Logistics
Kuwait
415,000
17
Yusen Logistics
Japan
380,000
18
Geodis
France
363,451
19
Dachser
Germany
344,900
20
Crane Worldwide Logistics
United States
337,300
21
FedEx Logistics
United States
276,400
22
NNR Global Logistics
Japan
260,029
23
Pilot Freight Services
United States
230,000
24
Dimerco Express Group
Taiwan
213,200
25
C.H. Robinson Worldwide
United States
210,000
26
EFL
Sri Lanka
188,264
27
Logwin Logistics
Luxembourg
180,000
28
Cargo-Partner
Austria
173,247
29
Trinity Logistics USA
United States
164,000
30
Damco International
The Netherlands
158,405
31
AWOT Global Logistics Group
China
158,343
32
Mainfreight Ltd.
New Zealand
127,418
33
Toll Group
Australia
113,000
34
Beijing Harmony Shipping & Forwarding Agent
China
100,000
35
Seko Logistics
United States
90,000
36
Worldwide Logistics Group
China
87,549
37
TransGroup Global Logistics
United States
86,000
38
Nissin Corp.
Japan
85,000
39
APL Logistics
Singapore
82,554
40
BDP International
United States
76,000
41
OIA Global
United States
75,000
42
XPO Logistics
United States
70,200
43
Gebruder Weiss
Austria
61,000
44
Noatum Logistics
Spain
53,800
45
Imperial Logistics
South Africa
53,660
46
Mallory Alexander International Logistics
United States
50,000
46
BEL International Logistics
Hong Kong
50,000
48
CJ Logistics
South Korea
43,954
49
Scanwell Logistics
United States
40,000
50
Shanghai Hengrong International Transportation
China
40,000

April 11, 2020 Statistics 62,299

Top 50 Freight Forwarders NVOCC 2020

Rank
Company
Headquarters
TEUs
1
Kuehne + Nagel
Switzerland
4,861,000
2
Sinotrans Ltd.
China
3,740,000
3
DHL Global Forwarding
Germany
3,207,000
4
DB Schenker USA
Germany
2,260,000
5
DSV Panalpina A/S
Denmark
1,907,126
6
Kerry Logistics Network
Hong Kong
1,325,000
7
Expeditors International of Washington
United States
1,125,137
8
C.H. Robinson Worldwide
United States
1,000,000
9
Hellmann Worldwide Logistics
Germany
955,800
10
Fr. Meyer’s Sohn
Germany
850,000
11
Bollore Logistics
France
839,000
12
Yusen Logistics/NYK Logistics
Japan
815,000
13
Geodis
France
798,137
14
Ceva Logistics
Switzerland
786,600
15
Agility Logistics
Kuwait
740,000
16
Nippon Express
Japan
703,061
17
Kintetsu World Express
Japan
700,043
18
Logwin Logistics
Luxembourg
690,000
19
Flexport Inc
USA
687,000
20
OOCL Logistics
Hong Kong
650,000
21
Leschaco
Germany
636,000
22
Worldwide Logistics Group
China
630,218
23
UPS Supply Chain Solutions
United States
620,000
24
Damco/Maersk Logistics
The Netherlands
577,084
25
Cargo Services Far East
Hong Kong
556,000
26
Dachser
Germany
536,900
27
Toll Group
Australia
533,600
28
China Resources Logistics (Group)
Hong Kong
500,000
28
LF Logistics
Hong Kong
500,000
30
Honour Lane Shipping
Hong Kong
418,630
31
Kingway Transportation Company
China
400,000
31
Mallory Alexander International Logistics
United States
400,000
33
Mainfreight Ltd.
New Zealand
342,741
34
Cargo-Partner
Austria
314,067
35
CJ Logistics
South Korea
309,851
36
BDP International
United States
302,000
37
Chinatrans International Logistics
China
300,000
38
Noatum Logistics
Spain
289,100
39
Hitachi Transport System
Japan
260,000
40
Zhejiang Jiulong International Logistics
China
250,000
41
Nissin Corp.
Japan
230,000
42
Dimerco Express Group
Taiwan
225,800
43
De Well Group
China
210,000
44
EFL
Sri Lanka
201,958
45
Odyssey Logistics & Technology
United States
200,000
46
Horizon Air Freight
United States
200,000
47
Asia Shipping Transportes Internacionais
Brazil
195,000
48
Sino-Ocean Group
China
192,000
49
OC Lines
Israel
180,000
50
CWT Ltd.
Singapore
170,000

April 10, 2020 Statistics 1,957

COVID-19 STATS. Cases Vs Deaths Vs Deaths %

Among the most affected countries, Germany has done quite well. Total Cases: 113,296 with only 2% Death Ratio. Russia has the lowest Death %., and France the highest. (As of 10th April 2020.)

HIGHEST NUMBER OF DEATHS
COUNTRY CASES DEATHS DEATHS %
Italy 139,422 17,669 12.7%
Spain 152,446 15,238 10.0%
United States 434,861 14,814 3.4%
France 82,048 10,869 13.2%
United Kingdom 60,733 7,097 11.7%
Iran 67,286 4,110 6.1%
China 81,865 3,335 4.1%
Belgium 24,983 2,523 10.1%
Netherlands 21,762 2,396 11.0%
Germany 113,296 2,280 2.0%
Switzerland 23,529 913 3.9%
Brazil 16,238 824 5.1%
Turkey 38,226 812 2.1%
Sweden 9,233 807 8.7%
Canada 19,277 435 2.3%
Portugal 13,956 409 2.9%
Austria 13,105 295 2.3%
Ireland 6,074 235 3.9%
South Korea 10,423 204 2.0%
India 5,865 169 2.9%
Norway 6,085 105 1.7%
Israel 9,755 79 0.8%
Russia 10,131 76 0.8%
Pakistan 4,414 63 1.4%
Australia 6,109 51 0.8%
HIGHEST NUMBER OF DEATHS %
COUNTRY CASES DEATHS DEATHS %
France 82,048 10,869 13.2%
Italy 139,422 17,669 12.7%
United Kingdom 60,733 7,097 11.7%
Netherlands 21,762 2,396 11.0%
Belgium 24,983 2,523 10.1%
Spain 152,446 15,238 10.0%
Sweden 9,233 807 8.7%
Iran 67,286 4,110 6.1%
Brazil 16,238 824 5.1%
China 81,865 3,335 4.1%
Switzerland 23,529 913 3.9%
Ireland 6,074 235 3.9%
United States 434,861 14,814 3.4%
Portugal 13,956 409 2.9%
India 5,865 169 2.9%
Canada 19,277 435 2.3%
Austria 13,105 295 2.3%
Turkey 38,226 812 2.1%
Germany 113,296 2,280 2.0%
South Korea 10,423 204 2.0%
Norway 6,085 105 1.7%
Pakistan 4,414 63 1.4%
Australia 6,109 51 0.8%
Israel 9,755 79 0.8%
Russia 10,131 76 0.8%
HIGHEST NUMBER OF CASES
COUNTRY CASES DEATHS DEATHS %
United States 434,861 14,814 3.4%
Spain 152,446 15,238 10.0%
Italy 139,422 17,669 12.7%
Germany 113,296 2,280 2.0%
France 82,048 10,869 13.2%
China 81,865 3,335 4.1%
Iran 67,286 4,110 6.1%
United Kingdom 60,733 7,097 11.7%
Turkey 38,226 812 2.1%
Belgium 24,983 2,523 10.1%
Switzerland 23,529 913 3.9%
Netherlands 21,762 2,396 11.0%
Canada 19,277 435 2.3%
Brazil 16,238 824 5.1%
Portugal 13,956 409 2.9%
Austria 13,105 295 2.3%
South Korea 10,423 204 2.0%
Russia 10,131 76 0.8%
Israel 9,755 79 0.8%
Sweden 9,233 807 8.7%
Australia 6,109 51 0.8%
Norway 6,085 105 1.7%
Ireland 6,074 235 3.9%
India 5,865 169 2.9%
Pakistan 4,414 63 1.4%