Abandoned cargo could be quite stressful for shipping lines, shippers, port authorities and forwarders alike and is considered to be a big headache for everyone concerned..
When a cargo is abandoned it causes severe financial losses to all parties concerned – seller, buyer, shipping line, freight forwarder, transporters, banks, Government etc etc..
It could also cause a rift in business relationships between a shipping line and their customer – whether it is an importer or a freight forwarder because it could create a blemish in the customer’s record with the shipping line..
When is a cargo considered to be Abandoned Cargo..??
Executive Insights is a series by Shipping and Freight Resource that provides ongoing insights and thoughtful analysis enriching the knowledge of the readers with what is happening in the shipping, freight, maritime, logistics and supply chain industry..
Executive Insights is also a chance to pick the brains of industry veterans, leaders and enablers..
In this edition of Executive Insights, we caught up with Saskia Groen In’t Woud – CEO of Damco, one of the leading global freight forwarders in the world..
China opened up for global trade around 1980 and became an economic superpower in the 2000’s achieving some dramatic growth in the last 30 odd years. China has grown into one of the significant financial and economic muscles on the planet.
Chinese goods have received a broad acceptance globally and many businesses are keen on importing goods from China.
However, the most painstaking obstacle that many face is how to go about shipping from China successfully. This might be a difficult task, especially for newbies and sometimes even the professionals.
I am sure that you wouldn’t like getting trapped by unnecessary delays, high delivery costs, and unreliable suppliers like many have.
Sunny Sun, the co-founder of BanSar, a professional freight forwarder in China has provided some tips on how to make shipping from China easier.
Previously I wrote that apart from dealing with digital shipping lines, digital freight forwarders will also need to contend with traditional freight forwarders, not just from a service perspective but from a digital perspective as well.
DB Schenker recently joined the ranks of traditional freight forwarders now offering digital solutions with the launch of their connect 4.0 platform.
In a recent interview with Jeff Barrie, CEO of DB Schenker US, we had an opportunity to discuss the launch of the company’s connect 4.0 platform and why the company believes it will define success in freight forwarding and global shipping.
China, often termed as “the world’s factory” is unavoidable when it comes to global trade. As of 2017, China accounted for 15% of the world’s GDP. China’s GDP is 64% of that of USA thereby making it the second largest economy in the world.
For majority of the countries around the world, when importing Chinese products, international freight movement is required and you will definitely deal with a variety of freight forwarding companies.
Unverified statistics indicate that in the city of Shanghai China alone, there are more than 10,000 freight forwarders registered. It is conceivable that the total number in China is even more astronomical.
Chinese freight forwarders have also had a bad rap due to a few of them perpetuating fraud and other illegal activities which are affecting many of the legitimate Chinese freight forwarders.
“How can I choose a qualified freight forwarder in China from such a large number?” is a question that might be on the minds of many people.
David Fan gives you some guidance through different perspectives based on many years of industry experience.
While traditional freight forwarder networks creates transparency, better connections and safe collaborations, the business model has not been a breakthrough by any means.. The way members conduct their businesses has remained the same, and the industry has been labelled antiquated and outdated..
If one looks at it objectively, it is easy to understand that it is the Freight Forwarder’s lack of digital resources and technological capability that has been restraining competitive growth in this volatile and digital market conditions..
Naturally, this has been noticed and the industry is seen by innovators in the technology space as a prime candidate for disruption.. They say that a paradigm shift is required if a freight forwarder aims to remain relevant, competitive and achieve greater efficiency..
The activity of Freight Forwarding has been around for many years and there has been a recent resurgence of the forwarder especially in the form of a digital freight forwarder. Unfortunately fraudulent freight forwarders have permeated this industry as well.
Like any industry, freight forwarding has its good and bad sides and it is quite easy to become a victim of fraud and most of the time, freight forwarders are not associated with the crime or fraud and they may be co-victims just like you.
Here are some of the ways of fraudulent freight forwarders and their scams.