Even though there are distinct differences between demurrage, detention and port charges, many are still oblivious to these differences and there have been several questions on this blog relating to these charges..
Let me explain how demurrage, detention and port charges work..
Trade Finance and Transport are intricately linked in the process of global trade..
In Part 3 of the Trade Finance series, we take a look at how these two are linked and how it impacts on global trade as a whole.. We discuss the strategy to be used, the risks and how to mitigate them, how to secure and execute your transactions and how to drive your business profits..
Smart Computers, Smart Phones, Smart Cars and now Smart Bill of lading..!!!!
Shipping documentation in its current form has been around for many decades and has been working quite well..
There are several factors that are involved in the preparation, checking, transmission, hand over, payment and many of the intrinsic activities involved in the process of a bill of lading..
When I first heard of the Blockchain based Smart Bill of Lading by CargoX, I was a bit unsure as to how this new technology will replace all of the above as there are several such products trying to break into the shipping and freight industry in the name of innovation, digitisation, IoT, SaaS etc..
So, when CargoX asked me to have a look at how this blockchain based bill of lading system and process actually works, I proceeded to have a look with a tad bit of skepticism..
But before I share the details of my review, experience, impression and opinion, let’s take a quick look at what is a bill of lading, what is a blockchain and how these work together and fit in the process of a shipment..
The collateral obligations, repayment terms and risk thresholds of conventional lenders can make finance difficult to access for firms looking to begin or expand international trade ventures.
Trade finance enables firms to undertake such ventures, generating revenue growth and securing higher profits for firms operating in various industries.
Moreover, by providing trade-specific financial products overseen by industry expertise, trade financiers help firms overcome the challenges inherent in international trade. In doing so, trade finance offers three major advantages to these firms.
Currently the bunker fuels used in all modern commercial ships have a high content of sulphur which is quite harmful to the environment..
The current global limit for sulphur content of ships fuel oil is 3.50% m/m (mass by mass)..
The IMO has been working to reduce harmful impacts of shipping on the environment since the 1960’s and as from 1st of Jan 2020, has implemented regulations that sets the new global limit on the sulphur content at 0.50% m/m..
IMO has advised several methods through which ships can meet lower sulphur emission standards, which obviously comes at a cost.. Read and share your comments on how these new costs may affect you..
Many businesses rely on lending to finance new ventures, reduce their financial exposure or manage their cash flow..
Trade financiers provide or identify sources of capital for firms seeking to invest in international trade and create structures for them to access it.. But what exactly is Trade Finance and how does it all work..??
This article is part of an introductory series about trade finance, where we look at the advantages of trade finance, the ways trade finance can be structured, and the products underpinning import and export transactions..
Profitability in sea freight shipment is not a myth or a unicorn.. It is very possible.. Read how..
It is not a secret that ocean transportation and logistics is currently confronting immense change in terms of new technology, new markets, rising customer expectations, and new business models..
There have been a few articles on this blog about these advances like Blockchain based Bill of Lading, and other technologies that are shaking up the freight industry .. There are many ways the industry could develop to meet existing and new challenges, some of which are evolutionary and others are more revolutionary..
While cargo transportation is generally a complex business, in some cases it could be straightforward as well depending on how you manage it.. It is also a fact that in this high paced business environment it is not easy to follow every market trend and find answers on how to tackle the prevailing challenges easily..
Each customer and each shipment has its own issues, peculiarities, problems and characteristics.. But the main question that several shippers and services providers ask is “How to ensure profitability in sea freight shipment”..
More often than not, exporters, importers, carriers and logistics service providers experience loss due to poor planning, decision making and implementation..
A lot of people get into the industry sometimes without knowing even the basics relating to the business, the specifics relating to the business, the requirements and some of the vital information that can make or break the business.. I have even written a Beginner’s Guide to Importing for those who wanted to get into the importing business but didn’t know how..
Here are 11 steps you can follow to ensure profitability in sea freight shipment..