“Freight forwarding is a service used by companies that deal in international or multi-national import and export. While the freight forwarder doesn’t actually move the freight itself, it acts as an intermediary between the client and various transportation services. Sending products from one international destination to another can involve a multitude of carriers, requirements and legalities. A freight forwarding service handles the considerable logistics of this task for the client, relieving what would otherwise be a formidable burden.
Freight forwarding services guarantee that products will get to the proper destination by an agreed upon date, and in good condition. The freight forwarding service utilizes established relationships with carriers of all kinds, from air freighters and trucking companies, to rail freighters and ocean liners. Freight forwarding services negotiate the best possible price to move the product along the most economical route by working out various bids and choosing the one that best balances speed, cost and reliability.
A freight forwarding service generally provides one or more estimates to the client along with advisement, when necessary. Considerations that effect price will range from origin and destination to special requirements, such as refrigeration or, for example, transport of potentially hazardous materials. Assuming the client accepts the forwarder’s bid, the freight is readied for shipping. The freight forwarding service then undertakes the responsibility of arranging the transport from point of origin to destination.
One of the many advantages of using freight forwarding is that it handles ancillary services that are a part of the international shipping business. Insurance and customs documentation and clearance are some examples. As a consolidator, a freight forwarding service might also provide Non-Vessel Operating Common Carrier (NVOCC) documentation, or bills of lading. Warehousing, risk assessment and management, and methods of international payment are also commonly provided to the client by the freight forwarding service.
A good freight forwarding service can save the client untold time and potential headaches while providing reliable transportation of products at competitive rates. A freight forwarding service is an asset to almost any company dealing in international transportation of goods, and is especially helpful when in-house resources are not versed in international shipping procedures.”
“While there are several factors involved, the primary is market demand. Traditionally from Dec through April for imports, especially from Asia to the U.S., it is called the “”slow season.”” Because the retail market slows down after Christmas. However from mid January through early February there is an upsurge of cargo moving to beat the Chinese New Year deadline whereby factories all over China shut down for weeks. This usually keeps rates high as there is always space problems for cargo getting on vessels. From May through November this would be the “”peak season”” where there is a big demand for cargo moving into the U.S., so the Carriers raise the rates during this period, with the GRI (general rate increase), and PSS (peak season surcharge).
Another factor is fuel, or what is called the Bunker Fuel factor. This is a floating surcharge that the Carrier’s can change when oil prices rise or fall. It is called the BAF.
Another factor is when the Carrier has increases in costs such as when Terminal costs rise, especially with Unions, congestion problems, etc. Or when the U.S Rail costs increase for similar reasons. This is where the Carriers can add in new surcharges which have happened in the past and eventually get absorbed into the “”all in “” rate quoted.
Most recently the primary reason for rate increases, was a knee jerk response to the tremendous downturn in traffic and volume as a result of the current U.S. recession since ’08. This downturn caused many carriers to lose about 50% of their previous volume and while their costs remained the same or higher, and their revenue all but disappeared, they found themselves the beginning of this year looking at an average of $500, 000,000 in losses per Carrier. So from late ’09 until May of ’10, most Carriers put a large portion of their fleet out of commission off the coast of Singapore. Thereby creating a vessel shortage, or a false space problem. This gave them all excuse to raise their rates again, in order to salvage their businesses. This type of thing is not normal.
When it comes to international shipping, ATC Logistics provides a gateway to a private global network of offices around the world that can assist you in providing door-to-door service for your shipments. One of the strongest international shipping advantages we provide is that of a privately owned international forwarding company with an established global presence and local expertise in key centers around the world. We continually invest in the latest technology and training for our staff enabling us to provide cargo visibility, order execution and data management resulting in supply chain process improvement for our customers. We will analyze your international shipping requirements and determine the type of equipment required to handle your cargo and then negotiate competitive freight rates with one of our experienced certified partners. We will then prepare all necessary international shipping documentation (ie. customs certificates, bank drafts, and negotiate letters of credit) and advise you on how to protect your receivables. And, if required, we can also set up marine cargo insurance. ATC Logistics offers a complete logistics solution to your international shipping program and we’ll manage your cargo with a very high level of customer service
To be able to give you a quoted rate, we will need the origin city of your shipment with the zip code and the destination city with the zip code. Do we need to have a forklift for delivery or pick up? Is there a dock on either end? What is the weight and dimensions of the shipment. Are there any time constraints ? This will help the Freight Agent determine the mode of transportation to meet your deadlines. There might be documents needed from the consignor, we can let you know if that is necessary. You will also need to let us know how many pieces are in the shipment and the type of packaging. All of this information gives us the ability to quote you a rate that will make our commitment to you a success. Contact ATC Logistics and speak to a Freight Agent to help with any other specific information you will need.
Most freight payments are done with a Company check. However you can also pay with wire transfer or credit card (subject to administrative fee). Payment is sent right around the time the freight is ready to be shipped.
Through our branches and partners, there are a number of overseas shipping services that ATC Logistics offers. We can first evaluate the type of equipment required to move your cargo. We can arrange 20’ standard containers, 40’ standards or 40’ high cube containers. And if your overseas shipping needs specialized equipment, we can arrange a variety of containers as required such as flat racks and open top containers. We can also arrange refrigerated equipment for more delicate cargo that needs temperature control for overseas shipping. Services can also be arranged if you have large, heavy or oversized project cargo. We can furnish any heavy haul equipment or machines that might be required to handle special cargo via break bulk. If needed, we can also supply Ro/Ro service, which utilizes specialized roll on, roll off ships. These special vessels allow vehicles and heavy machinery to be driven on and off for overseas shipping. Services requiring any special permits to move your cargo to the port, would be obtained by the carrier who we would contract to ship your goods. When needed, ATC Logistics can arrange to have your cargo loaded and secured by a professional packer who would ensure your load would not shift to help eliminate the possibility of damages. We partner with a number of LCL (Less Than Container Load) consolidators for smaller cargo. Price, service and your delivery needs are taken into consideration when deciding which consolidator to use. Overseas shipping services such as export packing and container loading can be arranged. If your overseas shipping entails the movement of hazardous cargo, we negotiate on your behalf with the SS shipping line to confirm their acceptance of your cargo. In order to determine this, you would need to supply us with the UN#, the Class# and the IMDG Code and Packing Group. In the case of hazardous shipments, the shipper is responsible by law to complete a Hazardous Declaration.
In bond shipment refers to import or export shipment which has not been cleared by customs and is transported, stored, or handled with security to the government provided by indemnity bonds. In the U.S., in-bond shipments have long been an essential part of trade. Generally, in-bond shipments to and within the U.S. are shipments not intended to enter the U.S. commerce. Hence, permits issued for movement of an in bond shipment will be considered as a separate shipment and must be accompanied by bill of lading and shipping order.
A customs surety bond is a contract used for guaranteeing that a specific obligation will be fulfilled between customs and an importer for any given import transaction. The main purpose of a customs bond is to ensure that the payment of import duties, taxes and fees owe to the federal government will be paid.
If you are importing merchandise into the United States, (U.S.) for commercial purposes that are valued over $2,500, or a commodity subject to other federal agencies requirements (i.e. firearms or food), you must post a Customs bond.
If you use a Customs broker to clear your goods through CBP, the broker’s bond may be used to secure your transaction. You have the option of obtaining a “single entry” or “continuous bond”. The type of bond you elect to obtain ultimately depends on how often you import into the U.S. For instance, if you only import on occasion, the single entry bond is recommended. If you import frequently and through various ports of entry, the continuous bond is beneficial and economically the best choice.
If you are an international carrier and you transport cargo or passengers via air, vessel or vehicle from a foreign destination to the United States or a domestic carrier that merely wants to transport imported cargo “IN BOND” from one state to another, you will also have to obtain a Customs bond.
If you are a warehouse or facility operator and want to become a Customs bonded facility with the ability to store or secure imported or exported goods, you must obtain a Customs bond. In addition, you must apply with the port director and determine the type of warehouse you wish to establish. Please visit our website for more information on Bonded Warehouse.
If you want to perform some activity in a secure CBP area, i.e. cartage, or serve as a Customs Broker or as an approved gauger or laboratory, you must obtain a Customs Bond.
Customs bonds can be obtained through a surety licensed by U.S. Department of Treasury. The most current list of Treasury authorized companies is found on Bureau of Fiscal Service. Customs brokers can work as agents for the sureties and sell bonds, the following link is a list of customs brokers at the Port of Entry in your state.
Be aware some brokers will not issue you a bond without you giving them power of attorney to file your entry or entries on your behalf. In lieu of purchasing a bond from a licensed – or corporate – surety, you may pledge cash.
For information on how to determine the appropriate bond amount for the types of bond required for your circumstance, please reference Monetary Guidelines for Setting Bond Amounts.
A continous bond application must be submitted to the Entry office at the port through which your goods are imported or where the majority of your goods are imported. The application package should include CBP Form 301, issued by the surety, a letter on company letterhead stating your intent (i.e. type of bond (i.e. international carrier bond, cartage bond, import bond, etc.), description of merchandise being imported (if applicable), amount of duties and taxes paid to CBP the preceding year (if you have not paid duty previously, then the amount of duties and taxes you expect to pay in the current year), and a CBP Form 5106 if your address or telephone number has changed from a previous application.
Customs Trade Partnership Against Terrorism (CTPAT) is but one layer in U.S. Customs and Border Protection’s (CBP) multi-layered cargo enforcement strategy. Through this program, CBP works with the trade community to strengthen international supply chains and improve United States border security. CTPAT is a voluntary public-private sector partnership program which recognizes that CBP can provide the highest level of cargo security only through close cooperation with the principle stakeholders of the international supply chain such as importers, carriers, consolidators, licensed customs brokers, and manufacturers. The Security and Accountability for Every Port Act of 2006 provided a statutory framework for the CTPAT program and imposed strict program oversight requirements.
A Growing Partnership
From its inception in November 2001, CTPAT continued to grow. Today, more than 11,400 certified partners spanning the gamut of the trade community, have been accepted into the program. The partners include U.S. importers/exporters, U.S./Canada highway carriers; U.S./Mexico highway carriers; rail and sea carriers; licensed U.S. Customs brokers; U.S. marine port authority/terminal operators; U.S. freight consolidators; ocean transportation intermediaries and non‐operating common carriers; Mexican and Canadian manufacturers; and Mexican long‐haul carriers, all of whom account for over 52 percent (by value) of cargo imported into the U.S.
How CTPAT works
When an entity joins CTPAT, an agreement is made to work with CBP to protect the supply chain, identify security gaps, and implement specific security measures and best practices. Applicants must address a broad range of security topics and present security profiles that list action plans to align security throughout the supply chain.
CTPAT members are considered to be of low risk, and are therefore less likely to be examined at a U.S. port of entry.
CTPAT Benefits
CTPAT Partners enjoy a variety of benefits, including taking an active role in working closer with the U.S. Government in its war against terrorism. As they do this, Partners are able to better identify their own security vulnerabilities and take corrective actions to mitigate risks. Some of the benefits of the program include:
- Reduced number of CBP examinations
- Front of the line inspections
- Possible exemption from Stratified Exams
- Shorter wait times at the border
- Assignment of a Supply Chain Security Specialist to the company
- Access to the Free and Secure Trade (FAST) Lanes at the land borders
- Access to the CTPAT web-based Portal system and a library of training materials
- Possibility of enjoying additional benefits by being recognized as a trusted trade Partner by foreign Customs administrations that have signed Mutual Recognition with the United States
- Eligibility for other U.S. Government pilot programs, such as the Food and Drug Administration’s Secure Supply Chain program
- Business resumption priority following a natural disaster or terrorist attack
- Importer eligibility to participate in the Importer Self-Assessment Program (ISA)
- Priority consideration at CBP’s industry-focused Centers of Excellence and Expertise
How Do I Become a Partner?
Participation in CTPAT is voluntary and there are no costs associated with joining the program. Moreover, a company does not need an intermediary in order to apply to the program and work with CBP; the application process is easy and it is done online. The first step is for the company to review the CTPAT Minimum Security Criteria for their business entity to determine eligibility for the program. The second step is for the company to submit a basic application via the CTPAT Portal system and to agree to voluntarily participate. The third step is for the company to complete a supply chain security profile. The security profile explains how the company is meeting CTPAT’s minimum security criteria. In order to do this, the company should have already conducted a risk assessment. Upon satisfactory completion of the application and supply chain security profile, the applicant company is assigned a CTPAT Supply Chain Security Specialist to review the submitted materials and to provide program guidance on an on-going basis. The CTPAT program will then have up to 90 days to certify the company into the program or to reject the application. If certified, the company will be validated within a year of certification.
If you have CTPAT issues or questions, please contact your Supply Chain Security Specialist or one of the six CTPAT Field Offices by email at:
- Buffalo, New York ctpatfieldofficebuffalo@cbp.dhs.gov
- Houston, Texas ctpatfieldofficehouston@cbp.dhs.gov
- Los Angeles, California ctpatfieldofficelosangeles@cbp.dhs.gov
- Miami, Florida ctpatfieldofficemiami@cbp.dhs.gov
- New York, New York ctpatfieldofficenewyork@cbp.dhs.gov
- Newark, New Jersey c-tpatfieldoffice-newark@cbp.dhs.gov
Note: Technical issues should be reported via telephone to the national Help Desk at 1-800-927-8729 or via email to ctpathelpdesk@cbp.dhs.gov.
Visit www.cbp.gov/CTPAT for instructions to complete annual reviews, and to view training materials related to common CTPAT processes. Also information on new features will be posted to the CTPAT Public Library.
The Duty Officer of the Day is also available by email at industry.partnership@dhs.gov or by phone at (202) 344‐1180. Be advised that the Duty Officer cannot reset your password for you, they assist with general inquiries and questions.