This article provides a detailed overview of the responsibilities of the Federal Maritime Commission (FMC) in the United States and its significance in ocean transportation. It emphasizes how the FMC ensures fair competition through regulation and discusses how Flexport maintains compliance and service quality within the FMC's framework.
According to the Association of American Railroads, June showed positive growth in U.S. rail freight volume, although cross-border freight experienced a decline. This trend reflects the complex changes in the economic environment, with a year-on-year increase in total load during the first half of the year. Future market dynamics will depend on fluctuations in global supply chains and consumer demand.
This report analyzes the key players in the global shipping industry and their financial performance, including companies in container, dry bulk, liquefied gas, and port services. It also looks ahead to the industry's future prospects, highlighting challenges posed by policy changes and environmental protection, as well as strategies for investors to respond.
Choosing the best transportation method is crucial. For goods weighing 200 kilograms, freight should be considered over express delivery. It's important to weigh options such as Full Container Load (FCL), Less than Container Load (LCL), and air freight to meet business needs while minimizing costs.
The express bill of lading is a paperless transportation method that simplifies procedures by omitting the issuance of original bills of lading, thus enhancing the efficiency of goods delivery. It is suitable for situations where importers have made payments or established credit relationships with suppliers, providing a convenient and secure option for international trade.
BAF (Bunker Adjustment Factor) is a fee established by shipping companies to address fluctuations in fuel prices. By dynamically adjusting this fee, companies can manage cost changes. Combined with the IMO's low-sulfur fuel policy, BAF impacts logistics costs on shipping routes. Flexport has incorporated BAF into its rates to provide clients with a more transparent fee structure and better budget management.
GRI (General Rate Increase) is a pricing adjustment mechanism used by ocean shipping companies that must be announced 30 days in advance according to U.S. regulations. The amount and implementation of GRI vary with market changes, significantly impacting transportation costs for businesses. Understanding the GRI mechanism can help companies better manage their shipping expenses.
Pre-pull transportation is a method of retrieving FCL goods from the port in advance and storing them in the carrier's warehouse, aimed at avoiding demurrage fees and increasing delivery flexibility. With this service, customers can ensure the safety of their goods while reasonably arranging delivery times, thereby reducing transportation costs.
The Port Maintenance Fee (HMF) is a charge imposed by U.S. Customs on ocean imports, calculated at 0.125% of the declared value of goods. This fee does not apply if goods are routed through Canada to the U.S. Businesses need to fully understand the implications of this fee and plan their shipping strategies effectively to reduce overall costs and enhance competitiveness.
The Emergency Bunker Surcharge (EBS) is a fee established by shipping companies to address the surge in fuel prices, aiming to protect their profits. This fee varies based on each carrier and route. Flexport clearly outlines this fee in its freight charges to assist customers in managing their transportation costs.
