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5 common reasons for logistics delays!

Source: Feidu Logistics (Thailand) Co., Ltd. Release time: November 17, 2018

Why are there so many logistics delays? Especially for logistics from foreign countries to China or from China to foreign countries, it usually takes a long time or is delayed. So why do our logistics experience delays? Today it's up to youGuangzhou to Thailand Freight Dedicated Line CompanyLet's analyze the reasons!

1、 Containers that cannot return to the liner by the deadline

For Full Container Load (FCL), the container is usually loaded at the supplier's site and then sent back to the container yard at the port. Every time you book a space on the ship, the shipping company will issue a "deadline", which is the date when the loaded container should be returned at the port. Due to various reasons, the container cannot be returned on time, resulting in the loss of the scheduled vessel.

In the case of LCL shipment, the goods are sent to the warehouse of the grouping company (in simpler terms, a large transporter), where they are "grouped" into several groupsLCLShip them and merge them into one container, then send them to the port as above.

This may be the most common reason for delays in maritime transportation. The following will introduce some reasons why the deadline was not met, but this may also be due to many other reasons, such as problems encountered in domestic truck transportation, issues discovered during loading inspections that require negotiation or rework with suppliers, and so on.

Suggestion: In most cases, this is an appropriate plan that can be avoided. This should include picking up containers on time, planning for domestic logistics (when purchasing EXW), and if purchasingFOBContact the supplier very clearly before the deadline.

2、 Due to incorrect documents, Chinese customs have experienced delays

From my experience, this is the second most common issue of shipping delays in China. Customs documents are usually straightforward, but due to incorrect or problematic documents, delays may occur at both the loading port and the destination port. Many Chinese suppliers receive export tax rebates from the government, ranging from 0% to17%Don't wait. These rebates sometimes account for a larger proportion of profit margins than direct sales profits. Some manufacturers claim that it is incorrectHSCode to maximize their rebate income, this is a form of tax refund fraud.

In other cases, unintentional input errors may also occur due to uncertainty about the correct HS code or simple data input errorsHScode. There are other issues related to paperwork that may cause delays in customs clearance for your shipment from China, such as the lack of correct documentation for battery products.

Ensure that you are working with the factory used for the 'export' process. If you are working in a factory without experience in international trade, please find a reliable freight forwarder who is very familiar with your processes and has extensive experience in your products.

3、 Customs inspection

Customs selects a certain proportion of containers for inspection at the "loading port" and "destination port". Each customs has its own policy to select the containers to be inspected, but this is usually based on factors such as the risk profile of the given product or the exporter's history, but can also be random.

It is difficult to know the exact standards, and countries are different from each other. This is commonly referred to as' random customs inspection '. Unfortunately, when this happens, not only do you miss the 'deadline', in most cases, but you also have to pay customs fees to give your container inspection privileges. Most importantly, you often have to pay container rent and demurrage fees.

Generally speaking, the customs of the importing country are more concerned about the incoming goods than the customs of the exporting country. However, the percentage of containers selected for inspection may vary greatly depending on several factors, such as a country's import and export policies and risk management. Otolaryngology system and priorities, etc.

The intensity of random inspections also depends on the "key events" of the importing and exporting countries, which may require strengthened monitoring of goods due to security risks. Customs inspections also aim to prevent intellectual property issues, such as exporting or importing trademark or patented products. There is nothing to prevent this from happening, but if you follow the above advice and have solid paperwork, your product is quite standard and the probability of it happening is low.

4、 Port/Terminal congestion

Due to resource constraints or other factors, this situation usually occurs when a port has more containers than it can handle. In China, this situation usually occurs before the Spring Festival or around October, which is the expected Christmas sales.

5、 Ship delays caused by weather conditions

Due to adverse weather conditions, ship delays often occur. They affect scheduling in two ways: when ships have to skip ports of call due to adverse weather conditions; When the ship is in port but cannot leave due to bad weather, pray and hope for the best.

Although some of the above issues can be avoided through appropriate planning and occur less frequently with the accumulation of experience, best practices always add at least one week more than the quoted sea transit time as emergency time.

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