[ولمرت] اخترع ثانية اللبن علبة - يكيّف يعبّئ إلى زيادة فعالية

[ولمرتس] جديدة لبن إبريق

كتب [سورسجويس] مؤخّرا مادة 4 يزيد طرق أن يقاتل الصين سعر دون يرفع سعرات إلى زبونتك . كان رقم 1 على قائمت ميلان إلى جانبنا `يكيّف ك يعبّئ حجم, لون و [متريلس]'. بينما هذا يمكن بدات واضحة على السطح, مثال أخيرة يوقن أن يبرهن النقطة… أنّ حقّا يعيد منتوجك يعبّئ يستطيع زدت فعالية وخفّضت إنتاج وتسليم تكاليف.

المثال ال 1 جالون لبن إبريق والقوات خلف التغير [ولمرت] و [كستك]. ال 1 جالون لبن إبريق منتوج أنّ كلّ شخص, على الأقلّ في الولايات المتّحدة الأمريكيّة, يكون [فميلير ويث]. نحن قد نمانا فوق مع هو. فكّر كثير الناس على الأرجح لم يتلقّى في أيّ وقت حول يغيّر هو. [مسّ برودوس] ولكن مع لبن ل ال [موش برت] وقايض مئات أو آلاف الأميال إلى غايته نهائيّة, اللبن إبريق حقّا ليس المثاليّة يعبّئ. هكذا ماذا يكون التغيرات تماما?

أفضل كلّ الشركة مسؤولة ل يصمّم الإبريق جديدة وقد وضع هم معا مخططة ممتازة يفسّر [ألّ ث] فوائد من الجديدة لبن إبريق يقارن إلى القديمة واحدة. طقطقت المخططة أدناه أن يجعل هو كبيرة.

قديمة [فس.] جديدة [ولمرت] لبن إبريق

يكون كلّ شخص يحبّ الجديدة يعبّئ? [أف كورس] لا. يدّعي بعض الناس أنّ هو يستعصي أن يصبّ. أخرى يحبّ الإبريق جديدة, بشكل خاصّ كيف هو يلائم في الباب لون من [رفيرجرتورس] حديثة. إمّا طريق, مع الإبريق جديدة بشكل تقريريّ ينقذ حوالي 20 سنون لكلّ جالون اللبن, هم بعيد احتمال أن يكون ذهبت بعيدا [أنتيم] قريبا.

قال "هذا إستراتيجية أساسيّة كممر إلى الأمام," [أنّ] جونسون, المديرة من القابل للمحافظة يعبّئ إئتلاف, مشروع من المجموعة غيرساع للربح [غرينبلو]. "[ر-إكسمينينغ], `ماذا يكون ال [متريلس] نحن يكون نستعمل? كيف يكون نحن نستعملهم? وحيث هم يذهبون أخيرا?' "

هكذا ماذا يكون أنت تتمّ أن يعيد ك يعبّئ?!?

يونيو - حزيران 30, 2008 | يصنّف دون يفاوض & إستراتيجية | 1 تعليق

يؤسّس [سورسنغ] ذاتية في الصين

يدمج في الصين

الصين في دولة ثابتة تدفق, وال جائز ليس بيئة بالتّأكيد محصّنة إلى هذا حقيقة. بما أنّ أجنبية تصرفك يكون غالبا تفحّصت أكثر من يحتاج فرع محلّيّ لذلك أنت أن باستمرار كنت مدركة من ال جائز قفز تحت أيّ أنت وعملك تشغل. This article attempts to provide an overview of typical legal set-up options for a sourcing company in China, including RO (Representative Office), WFOE (Wholly Foreign Owned Enterprise) and FICE (Foreign Invested Commercial Enterprise).

Choosing the proper set-up

The overall objectives of your operation are the most significant aspect to consider when establishing an entity in China. What are your short and long term goals? What types of products do you want to source? Do you want to distribute, assemble, or manufacture products domestically? Do you plan on employing local staff? The answers to these and other questions will help define your objectives so that you can formulate a legal strategy that best serves them.

It is important to note, that no one legal solution exists to accommodate all of your unique conditions. Therefore, the more detailed your understanding of your objectives, the better equipped you are to make good decisions. Further supplementing your understanding with proper due diligence is always important when making decisions of such lasting consequence. Let us now take a look at typical legal set-ups for trading companies.

Representative Office (RO)

This formation is popular because (1) the registration process is shorter in duration and usually easier to complete, and (2) there is no minimum level of capital investment required. An RO will be suitable if its planned functions are simply liaison, market promotion or research. For sourcing companies, it will mean you have to give up a significant amount of control over your operations. All transactions must originate from abroad, and you are required by Chinese laws to heavily rely on 3rd party services providers, such as an Import/Export agent, Logistics provider, and HR outsourcing agent.

International Trading Wholly Foreign-Owned Enterprise (WFOE)

With official minimum registered capital of RMB 100,000 for a single shareholder company (but closer to USD 60,000 to 70,000 in practice), an International Trading WFOE allows added control over your business operations. However, the enterprise must be located in a Free Trade Zone (FTZ) and it is usually limited to export activities. Those that wish to distribute within China must either use a 3rd party distributor or apply for a separate import/export license (which essentially qualifies them as a FICE in a FTZ).

Foreign-Invested Commercial Enterprise (FICE)

Unlike the Trading WFOE, a FICE has the ability to import and locally distribute on top of export activities and may also qualify for retail activities. Both have the same level of required minimum investment, but in practice the FICE necessitates substantially higher levels (about USD140,000). The registration process is also more complex compared to that of a trading WFOE. A major issue to consider when evaluating the advantages of a FICE is location. Specifically, operating inside or outside of a Free Trade Zone significantly alters the investors options.

FICE inside a Free Trade Zone

A FICE operating inside a FTZ enjoys freedom in its business scope, but at a price. The FICE is unlimited in terms of what can be traded so long as it does not belong to a prohibited trade category according to the Chinese laws. A major drawback from operating inside the FTZ is that VAT invoices can only be issued through the relevant governing authority, creating a fair bit of logistical hassle. Additionally, you will undoubtedly pay a premium to exist in the FTZ - costs of services, talent, office space, etc tend to be higher. Finally, it will be more difficult to establish branch offices in other locations.

FICE outside a Free Trade Zone

Outside a FTZ, a FICE’s trade activities are limited to those relevant to its stated business scope. But it also enjoys some advantages. Unlike operating in a FTZ, the FICE is able to issue its own VAT invoices, operational costs may be significantly less, and branch offices can be set up more flexibly.

Manufacturing + FICE

Enterprises looking to incorporate manufacturing activities with its trading business can explore setting up a Manufacturing entity with an extended FICE status. However, such entities must maintain an above-50% revenue stream through its manufacturing activities. Historically, this requirement acts as a measure to prevent enterprises from abusing such entity status to access preferential tax policies granted to manufacturing enterprises. Even though the new corporate tax law has scrapped most of such preferential treatment, the authorities may still scrutinize enterprises enjoying tax incentives due to their encouraged status (eg. High and New Tech Enterprises).

Business registration is a complex process that involves navigating China’s far-reaching bureaucracy. While it is not compulsory, using a specialist service that understands not only the legal environment, but also the objectives of your business is highly recommended. Selecting the optimal legal entity from the beginning is crucial to your success in China. Don’t proceed without a thorough understanding of the legal implications of your actions.

For regular news and updates about China’s business environment, check out and subscribe to JLJ’s monthly newsletter here.

For more information on establishing a sourcing entity in China, please contact:
Ms Lynn Ng
Manager, The JLJ Group
Email: lynn.ng@jljgroup.com
Tel: +86 21 5211 0068 ext 821

This article is contributed by The JLJ Group – a one-stop service provider assisting foreign companies to enter and grow in China. Over the past ten years, JLJ has assisted more than 400 international clients with their China entry and growth projects. Their client base includes Multinational Companies, Small & Medium Enterprises, Government Organizations as well as individual investors from more than 30 countries in Americas, Europe and Asia-Pacific.

June 23, 2008 | Filed Under Negotiating & Strategy | 2 Comments

Importing a Pet into China via Hong Kong

Importing your dog into China

Moving can be stressful at times especially when you decide to move to a new country. You have placed things in storage and — OOPS! what about the family pet?!? Can’t live without Fido or Fluffy! The process of getting your pet to a new country is very tedious and can be quite costly.

There are many steps in getting a four-legged friend to a new country (your new home). Be prepared to allocate time and money in both the origin and destination countries. It is smart to have a person on both sides (current pets home and new pets home) to work through the process, making it all happen.

Selecting Your Airline Carrier

One of the main obstacles is to locate airlines that service your destination country. Many countries restrict pet cargo to only airlines with headquarters in their country. For this reason, Cathay-Pacific airlines is one of the few passenger carriers that can bring in pets. Within the last 45 days, Delta was unable to service a flight from Atlanta to Hong Kong. Delta’s suggestion was to call their sister airline, Korean Air (who were also unable to service HK). While some countries will allow you to bring the pet with you in the cabin, Hong Kong flights require pets to be booked only as air cargo. It is important to note that not all airlines have a cargo terminal in every city (even though there is a passenger terminal). If there is not a cargo terminal in your city, you will have to fly the pet to a different city and send them out from there.

Here is a short-list of airlines that service pets to Hong Kong (I used China Airlines)

Check with one of the above carriers for pricing and scheduling. As of 45 days ago, Cathay was shipping pet cargo at $19.36 per kilo. Continental is a little pricier. Make sure that they can move your pet when you need. There are restrictions on times of the year because pets cannot fly when the temperature will be too hot (above 85 degrees F) in the cargo hold. Beware that they charge by kilogram (there is some kind of formula: dog+crate weight X volume?), but do not starve your pet before the flight (there are other ways to save money on shipping fluffy).

Here are some good Pet-for-Thoughts:

Ok – so you have selected your airline - this can be an enormous task and you have now completed 10% of the process that will bring your pet to China.

Origin City Side

To complete all the tasks required to export your pet, you will need at least 2 weeks lead time (do not schedule your pet’s flight any earlier). Once you found a reputable cargo company, next you need to get your paperwork in order. You need a valid health certificate from your vet. I would suggest calling your vet before you show up for your appointment and verify that they have this certificate on hand. Also check with the USDA pet department and make sure you have all the necessary shots given before you go.

Our pet had these shots

Vaccine list for dogs

Once the vet has filled out the necessary certificate make sure you do not mess it up in any way shape or form or you will have some problems down the road with customs. Next you are going to have to go to have the USDA veterinarian approve it. You will need to make an appointment and have them review the health certificate and they will provide their embossed stamp of approval.

It is important to note that on each side of the equation (city the pet is in and the pets new home) there are companies that can facilitate all the processes for you. These companies can be worth their weight in gold. Due to the mounting costs associated with bringing the dog to China, we handled the Atlanta side ourselves.

On the US side, here are some companies local to the Atlanta area:
Animal Land, Inc.
Atlanta, Georgia (GA), United States
Office Phone :+1 404-812-1555
Fax :+1 404-812-1588
Toll Free :+1 877-379-8625
http://www.petmovers.com

Lucky Dog! LLC
Atlanta, Georgia (GA), United States
Office Phone :+1 404-551-5028
Fax :+1 866-373-4819
Toll Free :1 888-575-5025
http://www.luckydogtravels.com

Now you have your documents for your animal. Make sure you have filled out all the necessary paper work for the cargo company you have chosen and make sure they understand that it is a live animal you are sending. When you fax your copy of the health certificate make sure you use the carbon copy underneath and rub in on the embossed stamp or it will not show up. You also need to fax a copy of your animal’s current vaccinations and dates and you need to give an original copy to the cargo company as well.

Airline Liability Letter

Shipping dog via China Airlines

Shipper’s Letter of Instructions

Shipping dog letter of instructions

Shipper’s Certificate for Live Animals

Shipping dog live animal certificate

Once the cargo company has received the documents they can then begin to process their paper work as well. In the meantime make sure you have an animal crate that is airplane approved. Usually it will be indicated on the crate if it is or not. Look first and make sure your pet can fit comfortably inside and can turn around inside with the door shut. There are some great pads you can place inside of it that provide comfort as well as absorption in case the pet has an accident (you know what I mean, the dog can’t leave the crate for 20 hours). Beware your pet will need a bath when you finally get it to its new home. About 30 minutes before boarding the plane, my vet suggested giving my dog 2 Benedryl tablets. It is not advisable to sedate your animal unless your vet says otherwise. It can be quite traumatic for your animal to be sedated. Bendryl is best. Even through an 18 hour flight its OK.

Hong Kong Side

This is where it gets a little hazy – there is so much that goes into allowing the dog into the airport, out of the airport and into China. If you make any mistakes at this stage it will cost a lot of money to fix them (export the dog, reimport the dog, etc). I solely recommend using a Pet Import company like:

Pet Movers Hong Kong
Tel: (852) 3404 0061 / (852) 9198 4543
Fax: (852) 3404 0062
www.petmovershk.com

From the HK side, you must obtain a transit permit for the dog to legally be in Hong Kong. The transmit permit must then be sent to the cargo airline carrier back in the US before the dog can leave. Also ensure that ALL THE DOCUMENTATION that you have been working with are available in Hong Kong. If the documents were processed in the US, attach them to the doggy crate. All original documents are required for customs at the border to mainland China.

Import Special Permit

Import dog into China

Entry Into China - Why it’s best to hire an agent!

  1. Go to airline air cargo terminal (get there before noon, everyone goes to lunch and you will have to wait until after 2:00PM to pick up your pet).
  2. See your best friend in the crate and have the Hong Kong customs agent examine the dog for contraband hidden inside the dog. Do not touch the dog or get near the crate – looks suspicious!
  3. Pack the dog into the van that will take you to the Hong Kong border.
  4. Switch vans as the old van does not have double license plates to enter into China.
  5. Meet up with the Agriculture and Fisheries agent that will escort the dog into China.
  6. Take the dog through customs (bring 20 RMB for processing fees) and hope that everything is in order. If there is a problem at this stage, a dog can only legally stay in Hong Kong for 24 hours before it goes into mandatory quarantine or deportation.

And finally if all goes well…

Dog arrives in China

Amanda Blankenship

June 18, 2008 | Filed Under Logistics | 2 Comments

Contacting a Factory Online; Lessons Learned from the Field

Request for quote strategy

Contacting a factory online is very common, especially with the growth on online directories such as Global Sources and Alibaba. However when most buyers contact a factory online using these websites, they are often frustrated by their experience.

Many buyers complain that the factories don’t respond to requests for information or requests for quotes quickly, if at all. Other buyers complain that when they do receive a response, the emails are very brief, don’t include the requested price quotes, don’t answer the questions that were asked, and in general don’t inspire confidence that the factory can meet the buyer’s requirements.

On a clear bright day in the spring of 2005, we made a decision to look East to procure building materials. At the time, real estate development in the United States was growing very fast as an industry. In particular, converting apartment buildings into condominiums was big business. We decided to launch Parkview Industries, which would help to increase our profit margins by importing building materials from China by acting as a distributor to our existing real estate development business.

Our top 5 qualifications when evaluating a potential factory were

  1. They had to have unique products.
  2. Specific models we were interested in needed to be available.
  3. The price had to be low. (After all, it always comes down to this in the end!)
  4. Ability to accommodate all export/logistics for the shipment was important to us as we didn’t have previous experience.
  5. Future capability for private label opportunities was important to us because we were considering starting our own brands.
  6. References needed to be available for review.

We learned very quickly that in fact we were not only qualifying factories but also that the factories were qualifying us as buyers. The factories we took the time to develop a relationship with were much more forthcoming with information and price quotes. The factories that were not convinced in our ability to put containers on the ocean were much less helpful.

At first we thought ‘well if a factory doesn’t want us as a buyer, then that’s their problem’. However in fact, the reality is that these are sometimes the better factories, and they are nervous that you might be a competitor just trying to get their pricing information.

When making initial contact with a factory online, keep in mind the following

  1. You are not only qualifying the factory; the factory is also qualifying you as a buyer. Validating your company in the minds of the supplier is of the utmost importance.
  2. The initial communication, preferably through email, should include a brief introduction to your company, your position within the company, and include a statement of adequate buying power resources.
  3. Showcase your company with a polished website illustrating your industry and experience. The site should generate a logical understanding, in the mind of the reader, of why your company would be interested in manufacturing in China.
  4. Ensure the email asks for the specific information you require. For example, you may ask, “May I please have a price quote for item …” or “What is your sample availability and process?”
  5. Include the specific item or model numbers you are interested in, attach pictures from the factory’s website or other sources, and in general be as specific as possible with your requests.
  6. Indicate available contact methods for further communication (MSN, Skype, email, phone). In addition to email, most Chinese factories are on Skype and MSN and this sometimes is better than email because the “back and forth” is quicker, once an initial relationship is already developed.

Given the experiences we have had with sourcing over the internet, there’s a lot more to each point we have made here in this article. We will expand on the key lessons presented here in an upcoming article that provides detail on what we learned and how it helped find us both good and bad suppliers. Stay tuned and thanks for visiting.

June 15, 2008 | Filed Under Negotiating & Strategy | 2 Comments

Green Technology from China to World – Electric Bikes from Kinakontakten

green technology, e-bikes, china

As oil prices rise to new heights and the price of fuel for cars to trucks jump each day in the USA and Europe, many are considering the challenges and promises of alternative fuels. Additionally, many countries to organizations are promoting Green Technology and environmentally friendly alternatives to transportation. Bicycles have long been used around the world as an efficient and cost effective way to get from one place to another. In the last few decades and more recently, the evolution of electric bikes (e-bikes) have provided new ways for the public to acquire a cost effective solution for transportation.

For those of you who have been to China, you will recognize the picture above as something you see on the streets by the thousands. In China this technology is not generally considered green technology or environmentally friendly but rather a cheaper solution than gas or fuel powered alternatives like mopeds, scooters, and motorcycles. However, to the countries in Europe to North and South America, the need for such electric bicycles is booming and is seen as both an environmentally friendly option as well as a solution that makes financial sense. SourceJuice recently met up with the team from a Shanghai based exporter and buyer agent called Kinakontakten. The principals of Kinakontakten are Mats and Jens – two great guys who know much about electric bikes and a few other areas where they support medium to large European importers in the textiles and clothing area to sanitary products.

What Mats and Jens noted to SourceJuice was that in many of the European countries they serve, there is a great and growing demand for electric bikes due to the high cost of fuels and the concern by citizens of those countries for their environment and air quality. These citizens want green technology and want environmentally friendly solutions for transportation. That is why Kinakontakten got into the business. Being in China for half a decade with a variety of experiences coupled with the ability to converse and read, the team at Kinakontaken seized on the opportunity and is now supplying a variety of companies and retailers in Europe with electric bikes manufactured by them and their partners. Just how big is the electric market and what is driving it? Last year, the International Herald Tribune (which is the global edition of the New York Times) wrote a story on how electric bikes are growing in demand. In the Herald’s story “Electric bikes are taking off” it is written that…

From California to China, “e-bikes” are taking off as an alternate means of transportation, after years of being overshadowed by their muscle- powered cousins.

Propelled by a perfect tailwind of technology, high oil prices and the vogue for all things green, global sales of bikes driven by battery-powered electric motors have climbed nearly 20 percent since 2005, a trend projected to accelerate especially in developing countries, where the middle class is rising.

“E-bikes have been under the radar,” said Ed Benjamin, president of Cycle Electric, a multinational consultancy based in Fort Myers, Florida. “Now 20 million units a year sell. The business is young and growing crazy fast.”

How well are electric bikes (e-bikes) being accepted…well thank China again for promoting the adoption of them and whether it was directly intended by China or not, they actually promoted the export of green technology. Some call this clean technology, others call it green tech, but the interesting point is that it is from China. Out of all the places in the world, one wouldn’t expect green technology exports from China, but the facts are that China wants green as much as any other country if not more. We are not going to even go into the depths of the efforts China is undertaking to move towards environmentally sustainable solutions but for electric bikes look how it happened – read below from the International Herald Tribune story again.

But sales, especially in the United States, still fell far short of the 100 million pedal bikes made globally a year: Commuters just couldn’t figure e-bikes out.

As gas-guzzling SUVs became fashionable, U.S. e-bike sellers, finding little profit in the niche, started to abandon the industry.

That lull began to subside after China decided to get into the game.

Buoyed by a newly minted middle class and engine bans in some cities, China was producing about 10 million electric bicycles in 2005 for use in domestic and foreign markets, a figure expected to climb to 25 million by 2009, according to Cycle Electric.

Since then, others have sought to grab a piece of the market. Taiwan’s top two bike makers, Giant and Merida Manufacturing, are public and growing their e-bike businesses. (Giant plans about one million e-bikes a year by 2011).

Bangkok Cycle, Thailand’s biggest e-bike and bike maker, which sells bicycles to Wal-Mart and Toys “R” Us, is expanding in Southeast Asia, and may list too.

But it is China that now leads the world in electric bike production and sales. And many of its 450 million bike riders are increasingly trading up to electric.

In the United States, consumers are also migrating in greater numbers to e-bikes, drawn in part by lighter and more powerful batteries and practical aids like bike lanes and lockers. E- bike sales are forecast to double by 2009 to 200,000 from 100,000 in 2005.

Further afield, e-bike sales are up in Vietnam, Thailand, South Africa, Australia and Eastern Europe. And in bike-friendly Holland, cyclists in their 60s are opting for e-bikes to stay in shape with less strain.

And some more info from an article Tim Johnson of McClatchy Newspapers that should add some more context.

SHANGHAI, China—A lot of riders in the bicycle lanes of China’s cities and towns have given up pedaling and are zipping along on silent electric bicycles.

Sales have skyrocketed, and China is now the global leader in this inexpensive form of motorized transportation. At least 1,000 companies have sprung up to meet the demand.

Sales have almost doubled every year, said Ma Qingyi, the vice general manager of Shanghai Cranes Electric Vehicle Co., a major manufacturer.

Last year, Chinese bought 16 million to 18 million electric bicycles, up from 10 million the year before. Some see sales hitting 25 million to 30 million this year. But so far, the diandong zixingche, as the bike is called here, is a unique Chinese phenomenon, with limited export appeal.

“`Booming’ is maybe too mild a word,” said Ed Benjamin, the president of Cycle Electric, an international consulting group based in Fort Myers, Fla. “It’s a product that really suits the needs of the Chinese consumer.”

In many major cities, electric bicycles now make up 10 to 20 percent of all two-wheeled vehicles on the roads, a trend that could have an impact on the nation’s rising greenhouse-gas emissions and poor air quality.

Many Chinese cities, including Shanghai, with its population of 20 million, have banned motorcycles and motor scooters as dangerous and polluting, giving a huge sales boost to what the bike trade has dubbed e-bikes.

Rising gasoline prices, crowded public buses and congested roadways have contributed to the surge in electric bicycles, as has the emergence of a consumer class with climbing income that’s still unable to afford cars. The e-bikes enable people to commute longer distances, allowing them more freedom in where they choose to live.

A simple electric bicycle has a battery that can power a rider along for 25 to 30 miles before needing a recharge. Recharging the battery requires eight hours.

Riders find they can recover the outlay for electric bicycles over a year.

“They spend less than 2,000 yuan (about $260) to buy an electric bike, and they don’t have to pay for public transportation,” Ma said. “Some people pay 10 yuan (about $1.30) a day in public transportation. An e-bike costs just a few cents a day.”

Experts say e-bikes can run 30 miles on 5 cents’ worth of electricity, a rate of energy consumption that makes them even more efficient than fully occupied buses.

Mats and Jens could tell you a lot more about this industry, the variety of electric bikes and a few things about textiles in China that will having you realize you don’t know much until you deal with experts like these guys. Soon they are launching their new website to support their growing business for electric bikes. Judging from their character, good spirit, and upstanding professionalism, SourceJuice thinks these guys are in the right market.

Check out their site, contact them if you are in electric bikes to textiles and a few other things these guys have mastered – they are worth your time. Finally, SourceJuice was in no way paid for talking about these guys and their business. We contacted them after some research on housing goods to textiles and the men of Kinakontaken took their time to educate us – they shared their insight first and we are happy to know them and share them with our readers. Thanks to Jens and Mats and we look forward to sharing more news about them and some insights they have on China in an upcoming article about China prices how the Euro is getting to be the payment standard now.

Mats_Anderson_Jens_Christensen.jpg

1st picture is Mats Andersson
2nd picture (on right) is Jens Christensen

http://kinakontakten.com/
KinaKontakten – “China In Touch” in Swedish.

Stockholm, Sweden (headquarters)
Kinakontakten AB
Långrevsgatan 31
133 43 Saltsjöbaden
Sweden
Tel: +46 (0) 8 5592 1811
Mobile: +46 (0) 708 433 158
Fax: +46 (0) 8 717 43 42
Mail: info@kinakontakten.com

Shanghai, China (office)
Kinakontakten AB
No.182, Lian Hua Nan Road
Min Hang District,
200237, Shanghai
China
Tel: +86 (0) 21 5481 6311
Tel Mobile: +86 (1) 363 654 0552
Fax: +86 (0) 21 5481 6691
Mail: info@kinakontakten.com

June 12, 2008 | Filed Under Green Tech | 7 Comments

CY (Container Yard) vs. CFS (Container Freight Station)

Container Freight Service

When working with a freight forwarder, there are a number of different container service options that you need to be familiar with to ensure you get the service you expect. To do this, there are 2 terms you should familiarize yourself with: CY and CFS. CY means Container Yard and CFS means Container Freight Station.

When a freight forwarder is giving you a quote, they will typically want to know if you want “door to door” service or if you want the goods to arrive at the destination port only, where you would be responsible to move the goods from the port to your final location.

CY/CY (CY to CY) Container Service
This is considered “door to door” service. The container is packed at the shipper’s location (factory) and sometimes at the actual freight forwarder’s location, depending on your agreement. The shipper in is the consignor and you are the consignee. The same container, not having been unpacked or modified in any way during the voyage, will be delivered to your final destination. Naturally this is the most expensive, but least hassle service.

CY/CFS (CY to CFS) Container Service
This is considered “door to port” service. Just like CY to CY, your container is packed at the shipper’s location and sometimes at the actual freight forwarder’s location, depending on your agreement. However, at the destination side, your container is emptied at the carrier’s container freight station. It is your responsibility as the consignee to take this loose cargo and move it from the destination port to your final location, whether that be a warehouse, distribution center, retail location, etc.

CFS/CY (CFS to CY) Container Service
This is considered “port to door” service. You would use this service if your factory will deliver loose cargo, or cargo in a container that is not the final shipping container to the port. Your freight forwarder will then pack the goods into the shipping container. At the destination side, your cargo will be delivered in that container to your final location.

CFS/CFS (CFS to CFS) Container Service
This is considered “port to port” service. In this case, cargo will be delivered loose to the shipping port, packed into the container by the freight forwarder, and unpacked at the destination port. The consignee (you) are responsible for arranging pickup of the cargo at the destination port and moving it to your final location.

Understanding these services will go a long way to ensuring you receive the service you are expecting. Many companies that are new to importing do not always understand their responsibilities at the destination port. In particular, if you’re using a CY/CFS or CFS/CFS container service, you need to understand how long you have at the destination port to pickup your cargo before fees begin to accumulate. You also need to make sure you know what it will take to physically take ownership of your cargo to make sure you have the right equipment prepared.

June 8, 2008 | Filed Under Logistics | 1 Comment