Author: Michele Marinelli

Shipping for Beginners: Basic Notions/Terminology/Abbreviations to Make Your Shipping Life Easier

Many people think that shipping containers is as simple as moving an object from point A to B. Within the shipping industry, most people know that this is most definitely not true. Behind the scenes in the shipping industry, which literally has changed global economies (imagine the U.S. and China without container trading,) there are so many variables, alternatives, and opportunities, all contributing to the increasing complexity of the world of shipping. One of the biggest challenges for anyone entering the shipping industry for the first time is to have access to all of the industry’s basic and specific...

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Exporting Vehicles: Some Useful Guidelines to Move this Commodity from the U.S. to Other Countries

In today’s global market, exporting vehicles is becoming increasingly difficult. One of the most clear reasons is that the United States is actively involved in fighting the illegal market of stolen cars. The Freight Forwarding Market has responded to the red tape involved in shipping vehicles, by designating specific departments to handle this commodity. In fact, there are numerous Freight Forwarders who specialize only in the shipping of vehicles. This growing shift in the industry is due to strict customs requirements. If these requirements are not fulfilled, there can be a compromise of the shipment. In the worst cases,...

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Storage, Demurrage, Per Diem, Detention – Do We Speak the Same Language?

Importers/Exporters are often confused by charges from various clearance delays. The terms “storage”, “demurrage”, “detention”, and “per diem” are often used interchangeably, but when used correctly, they each refer to charges incurred under specific circumstances. It’s time to clarify how to use this terminology correctly, and be sure we all speak the same “shipping” language. In the USA, these terms are used, according to the below definitions: DEMURRAGE Definition: “the charge applicable for the use of the space at the terminal, after the free time expires.” In export, if the container is returned at the terminal within the receiving window...

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E-Commerce and Logistics: The War between the Titans

The fact that Amazon is implementing an Uber-like app for Trucking (“Uber for Trucking”) is not a surprise. But there’s more: the founder of Alibaba, Jack Ma, announced earlier this year that the Chinese giant will invest nearly 16 billion dollars in logistics over the next 5-8 years. Not long ago, Uber themselves also mentioned the possibility to launch a variation of its app, “Uber for Trucking.” This means only one thing: the high-tech companies that have focused on e-commerce are expanding along the entire supply chain, leveraging their large availability of capital to expand their business. Some of the reasons for...

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The Contribution of Shipping to Globalization and its Deep Crisis

Globalization is under attack, world trade slows down, and the weakest rings of this delicate and complex chain begin to break (the South Korean shipping line Hanjin has been the most evident example.) This is just a taste of the new world, with an asphyxiated growth, that lies ahead. The shipping industry is in pain. For the past 10 years, the steamship lines have been building ever larger vessels, forecasting the booming of the global market with an exponential growth. It didn’t happen, and the bubble has burst. Since 2009, over-construction of ships has continued contributing to drastically-decreasing margins of the...

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