Are you enjoying the cheap, reduced rates that are now in the market?

It is still the case that passenger flights are still few and far between. The way that the majority of the world’s air cargo used to moved was in passenger planes. This method lowered the cost of air freight, as the cargo was subsidised by paying passengers.

There are still very few dedicated cargo planes in operation, which was the original cause of the rate spike in March. Rates started to fall as dedicated ‘passenger freighters’ – passenger planes with the seats taken out – were rushed into service.

June 2020 Air freight Prices

Thankfully as of June 2020, air freight rates became cheap and continued to fall as passenger flights have been taking to the air again and in fact there are enough in service now that the ‘passenger freighters’ are starting to have their seats put back in place as normal service slowly starts to resume.

K&L Freight are monitoring the prices of air freight daily and are on top of the very latest developments.

Other freight options for PPE

The demand for PPE, masks and gloves especially is clearly going to continue and most probably increase in the coming months, especially as there are now UK regulations in place for masks to worn by the general public – on public transport in particular.

So the question is then how is all the PPE moving from China and the Far East now?

We are seeing some PPE is moving by sea and the cost of sea freight is a fraction of airfreight and per mask is in fact almost immeasurable!

It is important to bear in mind though that with the airfreight price reducing recently the price by air is typically 3-4 pence per item if sent in bulk. So it begs the question that if sea freight relies on sending in bulk, hundreds of thousands or even millions of items at a time, is it sensible to have this level of stock in transit for at least a month, maybe more?

It is not just about cash being tied up in stock that is in transit, as Chinese suppliers invariably never give credit so want payments made up front. What happens if a big order is hooked, only for the customer to be told that there is an extended lead time whilst items come into stock?

Freight by train

We are also receiving many enquiries regarding using train services from China as this is seen as some sort of magic bullet, nearly as quick as air freight and almost as cheap as sea freight.

The rail service is far cheaper than sending by air, this is true, but it is not a ‘bit’ more expensive than sending by ship, it is in fact about three / four times the price.

Looking at transit times the rail service is not a ‘bit’ slower then sending by air. The transit time is about 20 days. Furthermore, the train leaves from the middle of China, not the coastal region where most factories are.

Trains from China then normally terminate in Germany, as there is no direct service to the UK meaning UK destined containers have to be forwarded on and this takes a number of days.

The real world door/door transit time for a container sent by train, compared to one sent by sea can be as little as two days difference, though it does vary depending on the location of your supplier.

If you are interested in the train option from China or want to know how each mode of transport compares in terms of transit time versus price K&L Freight are here to advise.

Contact our team of air freight experts to discuss the best way to get your imports to your selected destination. We have been working with our clients for many years and have the solutions to import PPE in a timely, cost effective manner.

The post Cheap PPE Freight Prices appeared first on K&L Freight.

If you have been trying to get PPE into the UK you may have already discovered the complexities and issues surrounding this process. There is an obvious massive demand for PPE equipment – masks, face shields, gloves, protective equipment etc in the UK at the moment with a lack of supplies.

With social distancing being common place and retail shops and industry starting up again in June, this demand is going to increase. This will create a marketplace opportunity for traders to import PPE to distribute across the UK.

Whether you are experienced in importing from China, or you are new to the market, there may be questions that you have about the process.

Some of the questions that you may be asking are:

• Where can I source PPE?
• How do I get it here?
• What taxes will I have to pay?
• Will I have to deal with customs in the UK and China?
• Should I do air freight or sea freight?

China is a huge place, with many different ports and manufacturing locations. ‘Shipping from China’ is quite a generic term and without knowing the port locations or requirements of different authorities in the different areas of China you may end up with longer wait times, incorrect documents, fines, or even seizure of goods.

PPE Disposable Gloves

Gloves are a major part of a persons PPE equipment and proper usage of gloves dictates they are used once for only a short period of time, then disposed of, never to be used again. The current situation has made demand skyrocket.

“Based on WHO modelling, an estimated 89 million medical masks are required for the COVID-19 response each month. For examination gloves, that figure goes up to 76 million, while international demand for goggles stands at 1.6 million per month.”

Source: World Health Organisation website

Imports of PPE gloves are coming from all over the far east including China and Thailand which is helping to create competition in the supply chain, keeping prices affordable to importers.

K&L Freight have the expertise, knowledge and contacts to help source and import PPE gloves from all over the far east, helping you identify the best locations and shipping methods for your PPE imports.

Rules and regulations regarding importing PPE from China

K&L freight have dealt with these issues for many years and know all the rules, regulations and best practices for all factors involved in dealing with shipping goods from China and the far east to the UK.

All PPE equipment (masks, gloves, gowns, medical equipment etc) from China will be thoroughly inspected by Chinese authorities in the search for faulty, sub-standard, fake or mis-declared items. If you are found to have ordered these items that are sub-standard they won’t be shipped. This means that you will lose your investment! Buying your products from a reputable supplier that you trust is vital to prevent yourself falling victim to this.

Due to our history, experience and expertise in importing PPE from China we know we can help import the correct products from the correct place. We can also negotiate with customs procedures for you to avoid falling foul of Chinese of British customs. For example, we have in-depth product knowledge about different face masks – medical and non-medical face masks, N95, KN95, FFP2, FFP3 etc. If these are unknown to you, talk to us before making a major purchase.

Our expertise with PPE products means that we deliver from Chinese factories & ports to UK addresses seamlessly. We deal with all customs documents, inspections, various duty and VAT rebate schemes available and are very familiar with shipping to the UK by air freight, charter freight or sea freight.

Trade routes from China to the UK

Air freight

Importing from China using air freight is the fastest, but most costly method to import PPE products into the UK. With the current COVID-19 pandemic most aeroplanes are still grounded.

Cargo planes are still in action, but as most airlines send cargo in the hold of passenger planes, which lowers the price of cargo freight, they are an expensive option to import goods as there is no cross-subsidy from paying passengers. Costs for air freight increased by around 500% since January 2020, but with recent demand, the good news is that prices are reducing on a weekly basis and (as of June 2020) are less than half of the price they were in March 2020.

At this moment in time, booking imports via air freight is feasible again after being un-economical only two months ago. As you can imagine, the industry is changing rapidly as it responds to global events. We are monitoring the situation and pricing on a daily basis in order to offer up-to-date information to our clients, sp please speak to our import / export team for the most current details.

Sea Freight

Another knock on effect of the COVID-19 pandemic is the lack of demand for fuel. This has driven prices down to record levels.

This means sending freight by sea is more cost effective than ever.

You may of heard bad news regarding how COVID-19 has badly affected the transport industry, but sea freight had been a benefactor with great sea freight rates and lots of space availability.

For all enquiries regarding importing PPE from China, speak to our experts. We have been dealing with mass amounts of imported PPE since the pandemic first broke in China and there isn’t a situation we haven’t dealt with. Call us on 01606 272 880 or email our support team through the website or on sales@klfreight.com.

The post Importing Masks & Gloves Into The UK appeared first on K&L Freight.

It is becoming clear that there will be an ongoing need for all PPE products through most of this year and maybe beyond.

Whilst there is a big push on UK production of these items, with the vast need caused by the changing of PPE multiple times per day and the run-down of the UK’s manufacturing ability, it’s clearly obvious that there will be an ongoing requirement to import these items for the foreseeable future.

In this article we aim to provide some clarity regarding the background, process and procedure to import PPE from China especially, but it is also applicable to any of the world’s main manufacturing countries.

Firstly, we will assume that you have agreed to buy your PPE from a supplier you trust, terms have been agreed and all the necessary standards and approvals are in place and have been met.

For Masks, gowns, medical equipment and similar in connection with Corona / Covid 19 virus, Chinese customs will thoroughly inspect every export from China as they search for sub-standard, fake or miss-declared items, which is why it is so important all items are approved and to standard.

Air Freight From china

If you plan to airfreight from China, it is important to note that in normal times, most cargo travels in the holds of passenger aircraft where the price is cross-subsidised, as passengers pay for most of the plane’s operating costs.

As there are hardly any passenger flights at the present time, only the world’s small fleet of cargo aircraft are available. Along with some passenger planes that are moving cargo only, there’s no cross subsidy from passenger revenue.

Add into the mix that (from China especially) there are huge volumes of PPE being booked and it will come as no surprise that rates have shot up – by about 500% since January.

Furthermore all larger PPE shipments are being treated as ‘part charters’ where a charter plane is booked especially to move a set number of larger shipments. This is an important distinction for importers who have been used to importing by air from China in normal times. Previously if your shipment didn’t make it to the airport in time for the booking we had made, it just went on the next flight with no penalties.

With a part charter, the cancellation fee is 100% of the freight charge – as the plane will just leave part empty.

Planning is clearly everything and K&L Freight can guide you so that you do not end up in this unfortunate situation.

PPE By Sea Freight

If you are booking PPE by sea freight from China, it is rather more straightforward and it is very much business as usual.

K&L Freight can offer you both full load and part load sea freight import options from all the main ports in China.

Bear in mind though, that the customs examination of all PPE exports still applies to sea freight bookings.

Also note that sea freight is suffering the opposite problem from airfreight – too many ships operating and not enough bookings.

Shipping lines are countering this by cancelling some services, so it is important that what you have purchased is booked on a priority service with a shipping line that has got ships departing when their schedule says they will.

It sounds obvious but shipping lines will accept bookings for ships that they know they are going to cancel so that they have stock loaded containers ready for the next sailing in a week or two’s time, in order they can be sure it will be fully loaded.

Again, K&L Freight will ensure you get the best possible and therefore quickest routing door to door.

Importing Sanitizer

Importing Sanitizer is a different proposition. You may be tempted to consider airfreight, though enquires have tailed off, as our customers (and potential customers) begin to understand what is possible and what is practical.

Sanitizer is normally around 70% alcohol and therefore treated as flammable. Many tonnes of flammable product on a plane is not normally a great idea.

Whilst in theory it is possible, by the time special packing is applied in accordance with IATA regulations and the weight of sanitizer itself means it is normally cost prohibitive.

Importing by sea is a much more straightforward proposition – though note it is still classed as dangerous goods.

To import sanitizer we will need dangerous goods information from your supplier including a data sheet known as an MSDS.

Without this information we cannot confirm the booking on a ship which is not only industry practice, but is covered by legally binding regulation.

If you want to talk in more detail about importing PPE from China please contact us at K&L Freight via the instant chat on this page, by email, or by phone on 01606 ​272​ 880.

The post Importing PPE From China appeared first on K&L Freight.

This is a great way to cost effectively sell on line and make some money. However, there are some hidden costs to sourcing your products from Alibaba as we will explain below.

Minimum Order Quantity

When you see the prices on Alibaba you may be shocked at the low cost of the items listed, without seeing that there is a minimum order amount to buy to get the items at that price.

Known as the MOQ, if this is set to 1000, it means that you have to purchase 1000 of that amount per order. If you see an item that you think would sell really well in the UK, that for example costs £5 per item, you would have to buy 1000 at a total cost of £5000 so you would have to invest in the product and be confident you can sell all you buy.

If you want to buy individual items at less risk, but more cost, Alibaba has a retail site called AliExpress that doesn’t have a minimum order amount, however the cost is higher than you would have seen at the Alibaba wholesale site. You would therefore sacrifice much, if not all of your margin so we think AliExpress is a non-starter for business.

Shipping Costs

If you are new to shipping in quantity from overseas, the process may be unknown to you! Many people would assume it is the same as ordering something from Amazon with a fixed price delivery fee. However, buying in larger quantities (freight) is a longer process involving many different aspects if you are doing it by yourself, these include registering yourself and getting an EORI number to be able to import into the country.

The easiest way around this is to contact a Freight Forwarder (such as ourselves at K&L Freight) who can take care of your shipments and all paperwork to ensure the process runs smoothly.

The shipping type you will want to use will most probably depend on the quantity of goods you have ordered. If you are ordering a small amount of items ie. a box of goods, a courier service may be well suited to you, as it will be picked up and dropped off at your desired location. However, this service is not cheap at a per item level so with a larger number of items you would be better with a freight service.

Freight is designed with larger quantities in mind and there are two main types of freight – Sea Freight and Air Freight. We don’t recommend using the postal service incidentally as you will not know when your shipment will arrive and sometimes they don’t arrive at all.

Sea Freight From China

To ship via Sea freight is much cheaper for large quantities but can take much longer in transit. You will probably be wondering what is the transit time by sea from China? The answer is that it varies as China is a big country.

Ships from the top of China, from ports such as Dalian can take 6 weeks. Those from the huge manufacturing area of the Pearl Delta in the South on the other hand (the area that surrounds Hong Kong) typically take 24 days or so.

Air Freight From China

Air freight is much more expensive than Sea Freight, but your goods arrive much quicker. At K&L Freight we can even split orders, initially sending a small amount of goods by Air to arrive quicker a followed up by the rest of the stock arriving a few weeks later via Sea Freight.

Taxes & Duty

Depending on the type of goods you are importing into the UK, you may have to pay duty on your goods as well as 20% VAT on the entire process of buying, shipping and insuring your goods. Again, a good freight forwarder will be able to help you with your with tax and duty responsibilities so that you don’t pay more than you need to and at the same time are compliant with the rules and regulations enforced by HM Revenue & Customs.

You would be amazed how many companies pay more duty and tax than they need to, just through lack of knowledge of import procedures. K&L Freight have years of experience in importing from China so fully understand all tax, duty and compliance requirements that will be needed and are in a fantastic position to work with importers to ensure a smooth end to end process.

Is Alibaba Worth It?

Alibaba is a great place to find and source products, however it is not as cheap as you may initially think. Using the site properly will mean that you have some extra work to do, much of which you could outsource to K&L Freight who will work with you to calculate the optimum way of sending what you order. To use Alibaba on your own will leave you with a high start up cost as well as dealing with Shipping and Taxes to sort out.

If you have any questions about Importing from China, please feel free to get in touch with us via the contact form on our website.

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Schedule reliability fell almost four percentage points from 75.6% in June to 71.6%.

July’s schedule reliability is based on a record number of vessel calls, with as many as 10,966 arrivals recorded.

In terms of individual carriers, Maersk Line, Hamburg Süd and Hanjin were again the three most reliable among the top 20 carriers in July, as in June, posting performance levels of 85.2%, 79.3% and 75.4%, respectively.

The report also shows that Hyundai Merchant Marine, MOL, NYK, all operating under the G6 Alliance, ranked in the bottom three of the world’s top 20 shipping lines.

The global decline in performance was evident nearly across the board, United Arab Shipping Co becoming the only top 20 carrier to improve its vessels’ schedule reliability.

The fast growing Dubai-based shipping line improved its monthly performance by 0.9 percentage points.

Schedule reliability also fell on all three of the major trade lanes, according to the SeaIntel report, with performance on the transpacific eastbound, Asia-Mediterranean and Asia-north Europe routes declining by 1, 4 and 6 percentage points.

The decline in vessel reliability between Asian and north European ports in July means that reliability on this route is as much as 20 percentage points down as the same period a year ago, said the consultants.

SeaIntel chief operating officer Alan Murphy said carriers had been hit hard by congestion in Rotterdam and Hamburg in Europe and by service disruption at several ports on the west coast of the US, including Long Beach, Los Angeles and Vancouver.

“The congestion has had a negative impact on schedule reliability and container delivery in July, as vessel turnaround times have increased with delays spreading to inland distribution of containers,” Mr Murphy said.

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