Tuesday 21 July 2015

What does a Ship’s Agent do?

t ward shipping is a full service ships agency that offers a wide range of services to help clients import, export and transport their cargos with as little fuss as possible. As ship’s agents, we aim to get things moving quickly and make sure that vessels spend as little time in port as possible, which helps to maximize the ship’s profitability.

As soon as we know the time of the ship’s arrival, we get the arrangements in place, and we ensure that everything runs smoothly from arrival to the next departure.

Our ships agency services cover all of the posts in the Firth of Forth ports:

 Leith
 Rosyth
 Babcock, Rosyth
 Grangemouth
 Methil
 Burntisland
 Kirkcaldy


We also serve:

 Hunterston
 Glasgow KG5
 Ayr
 Greenock
 Stranraer 

And other Scottish ports.

What is a ship’s agent?


So, what does our service actually cover? Well, we are on hand to act as your local representative, making the most of our local knowledge and expertise, plus our connections in the area, to get cargos moved as swiftly and efficiently as possible.

We’re expected to stay up to date with all the relevant regulations in any country to which we operate, and to know the rules and regulations applying to every port we serve. We’re your point of contact for anything to do with your cargo.

Before arrival, we start planning ahead. We pay particular attention to making arrangements for off-loading the cargo and organising any cranes or pump-out facilities. We make sure that everyone knows when the ship is due in port and when the cargo will be discharged, and arrange for personnel to board the ship to advise the captain on conditions and local requirements.  We also make sure that arrangements for docking and undocking are in place, arranging tugs if needed.

Once the cargo is in, we notify customs and arrange services from longshoremen to help with unloading cargo and book any trucks to move containerised freight to its final destination.We’ll make sure that any inspections or certifications are taken care of, and notify any authorities. If there are any repairs needed, we can arrange those too.

When it’s time to reload the ship, we make sure the cargo is there and ready to be loaded up, check that it’s in a good condition and make sure the arrangements are in place for transportation. We’ll also inform the parties and port of the projected date of arrival.

When the cargo is loaded, we liaise with the ship's master to arrange for departure and make all the necessary arrangements. If there have been any inspections while the ship has been docked, we pass the results on.

Once the ship has left port, we collect any payments due from consignees who received freight and any penalties from the ship management company for damage or late delivery.

We’ve had many years’ experience in the ports agency – over 80 years in fact – so when it comes to making sure all the arrangements for your cargo are in place and ensuring the process goes as smoothly as it can, we’re the people to talk to!

Monday 6 July 2015

Helping businesses understand imports

The eBay and Amazon success stories have led to a surge in small businesses importing goods for sale in the UK, and opportunistic sellers looking for ways to make money have been getting their hands on anything from textiles to e-cigs, cables and packaging supplies at low cost and selling them on through online businesses.

It’s such a popular way to make money, possibly because there’s no need for a dedicated website, you can just set up your own shop on Amazon or eBay and off you go! Because it’s working out so much cheaper to import from abroad, we’re receiving many more enquiries from customers about the legal requirements and procedures, including INCOTERMS; and most first time importers don’t know the difference between Cost, Insurance & Freight (CIF) and Free on Board (FOB.)

Incoterms® are a set of rules internationally recognised rules which are used worldwide in international and domestic contracts for the sale of goods – they make life easier for international businesses by giving them a set of internationally accepted definitions and rules of interpretation for most common commercial terms.



So – what’s the difference between a CIF shipment and an FOB shipment? And which is best for you?

In the case of CIF, the cost of sea transport and insurance are included with the purchase price.  The only costs not included are Destination Terminal Handling, Customs Clearance Import vat & duty and any other fixed fees the arrival warehouse charges for shipments arriving on CIF terms (these warehouse charges can vary depending on the particular warehouse)
 
With a CIF agreement your supplier will choose the carrier that meets your needs for the cheapest possible price, which sounds great until you want a specific route or a faster transit time. Longer transit times can affect your profits and cash flow as you’re forced to wait longer for your goods to arrive.

Even worse; when you’re quoted for a CIF shipment, the Destination Handling Charge (DTHC) isn’t included in the quote, so you don’t always know the total cost of getting your goods transported from A to B. The DHTC charges are often artificially hiked up to well above market rates, and as a first time importer, you wouldn’t know that.

Neither would you know that your cargo suppliers insurance doesn’t fully protect you as an importer, it protects the supplier of the goods. If your cargo is lost or damaged, the supplier gets a pay-out but you don’t. You have to rely on the goodwill of the supplier to get a refund or any kind of redress. You could also find that you will still have to fork out for customs entry, import duties and transport inland, even if the goods are lost/damaged.

The other option is a Free on Board (FOB) shipment, which puts you in control of your cargo and gives you the total costs up front. With an FOB shipment you choose the vessel upon which your goods are transported, and the agreement stipulates that the obligations to deliver them are only fulfilled when the goods have passed over the ship's rail.

If you’d like advice on importing goods, INCOTERMS and different types of shipment, talk to the experts! We have many, many years’ experience with helping people with large and small cargos, and we’ll be delighted to help you find the best options for your business.