Household Goods Shipping Problems

The Federal Maritime Commission voted unanimously June 23 to star a major investigation into complaints from several people who have shipped  household goods and personal property in U.S. to foreign countries via Ocean Freight. This investigation is about the nature, scope and frequency of the problem of potentially unfair, unlawful or deceptive practices of several Shipping Companies and to make recommendations for possible FMC action. An interim report is due no later than Nov. 15 and a final report is due no later than Feb. 15, 2011.

Apparently between 2005 and 2009 the FMC received over 2,500 consumer complaints related to household goods moving companies that were shipping personal effects and vehicles between various locations in the U.S. to various foreign destinations.

Among the complaints were a failure to deliver the cargo and refusal to return the pre-paid ocean freight charges, loss of cargo,  delays in delivery, charges to the customer for marine insurance that was never obtained, wrong information as to the whereabouts of the goods, over pricing, and after some shipments were delivered there have been threats to withhold the shipment unless the increased charges were paid that were not pre-quoted, in some cases the Forwarder refused to pay the common carrier engaged by the company as the intermediary, which resulted in the customer having to pay double for freight. Another problem was that some individuals and companies had falsely represented themselves to perform ocean transportation and accept responsibility for the movement of these shipments without obtaining an ocean transportation intermediary (O.T.I) license which also provides the required proof of financial responsibility.

So in short, BUYER BEWARE.   If you are thinking of shipping your personal goods anywhere from the U.S. to a Foreign country, do your due diligence, as there are sharks out there looking to take advantage of your naivety.  Make sure the Company has references, they are licensed with a good track record.

Or to make things easier just use Universal Cargo Management.

16% increase in Container Imports to US Ports expected for July

The Global Port Tracker is reporting that shipping container imports to the 10 busiest US ports are expected to increase 16% compared to the prevous year. This follows a 20% year-over-year increase in shipping container volume seen in May and an expected 22% year-over-year increase for June. This growth in shipping imports is being felt as shipping ports are dealing with tight vessel capacity and congestion problems.These double digit increases are not expected to continue into the Fall.

Part of the increases seen in the first half of 2010 can be attributed to the fact that the 2009 numbers make for an easy comparison, however some of this is coming from real growth seen in the economy and consumer demand and spending. Retailers are continuing to be cautious though as they watch the numbers for employment, housing and the availability of credit. Better growth in those areas will be needed to continue on this positive trend in shipping imports through the year. 

Source: Container Imports to Rise 16 Percent in July, Hellenic Shipping

Spotlight: Vietnam – Up and Coming Air and Ocean Cargo Shipping Hub

Key Points:

• Vietnam’s economy has experienced rapid growth since the 1986 economic reforms and growth in international exports to Europe and the United States has accelerated in the past 5 years.
• Exports and imports have grown multi-fold and while there is a trade deficit, this gap is expected to narrow as export industries continue to grow.
• Containerized volumes have grown every year by almost 20%. However port and infrastructure improvements will need to continue to keep up with the growth trend.
• 24 of Vietnam’s 126 ports handle ocean cargo shipping however the country currently lacks deep water port facilities and can currently only handle small feeder ships. Development of deep-water ports are planned and should lead to large improvements in international cargo shipping activity.
• Vietnam’s logistic industry is still being developed and the country currently lacks in key infrastructure including warehousing and depot facilities to match with demand. Logistic costs can be a significant contributor to the high cost of doing business in Vietnam. Improvements over the past 10 years have brought down these costs significantly and these should continue to drop as Vietnam continues to invest in new infrastructure and technology to meet international shipping standards.
• Various companies (including companies in China) are now producing their commodities in Vietnam...the main question is can Vietnam handle the growing exports?

Ocean and Air Port Information:

Ho Chi Mihn city serves as the key port for both ocean and air imports and exports. More than 70% of Vietnam’s transport containers pass through this port.  Due to recent growth, congestion has become and will continue to be a problem as container volume growth exceeds port capacity expansion plans.

Alternate ports near Ho Chi Mihn are being developed as well as new international ports at Van Phong Bay (near Nha Trang) and Cai Lan in Quang Ninh providence.

Three international airports serving Hanoi, Danang and Ho Chi Mihn City handle international air cargo shipping. To meet the increased demand in passenger and freight traffic, the government has plans to develop an additional 3 international airports by 2015.

Key Products:

• Major exporter of seafood, rubber, rice and coffee
• Agricultural and aqua-products sector contributes to 30% of GDP

In Summary:

Vietnam has good potential to develop into a major air and ocean cargo shipping hub in Asia. As improvements are made to the ports, infrastructure and the logistics industry opportunities for shipping to and from Vietnam will continue to expand.

The Future of Your Business Could Be International Shipping

Recently we have seen China come out and say that they will  "further reform the RMB exchange rate regime and enhance the RMB exchange rate flexibility"

We all know that CHINA has undervalued their currency for the greater part of the past decade where they have been the hub of manufacturing for all developed countries in the world. The Chinese government  has had the goal of their  export manufacturing being the engine for economic growth and job creation in China for the past 25 years. The strategy has largely worked, with China putting up better than 10% annual GDP growth for the past 30 years.  By announcing their plans to reform their fixed-rate system, China is finally signaling a willingness to allow supply and demand to determine the value of its currency.  They are following in the vision implemented by Deng Xiao Peng over 20 years ago when they opened up Shenzen and Guangzhou as their “experiment” with FREE ENTERPRISE.   Interesting that it came about the time the Berlin wall was coming down and the whole world had seen not only  that communism doesn’t work, it is a destructive force with Tsunami power in demolishing societies, as it tragically did with China from 1949 until the early ‘90’s when China started to wake up and smell the coffee brewing over in West.

So now if you walk down a major street in Shanghai, you will see at least 3 Starbucks within one block radius.  You first have to pass  a KFC, McDonalds and a few Malls the size of a small town (underground up to 5 floors high) and you would swear you were in Manhattan.

 Given China's trade surplus and all of that foreign investment cash  flowing into China, the consensus is that China's currency should appreciate quite a bit -- with some experts suggesting that their exchange rate will strengthen  to 4 or 5 RMB to the dollar rather than the current 6.8 RMB to the dollar , 25% increase, coming soon !!!

So if you are an average American that has a home filled with about 75% of goods made in China, or worse yet, your business is directly related to imports from China; Importer, Wholesaler, Logistics, Transportation, retail, etc, you have to see the writing on the wall that the U.S. dollar is only going to get weaker.   Besides the China factor, history has proven that recessions always follow with inflation.  

So money will continue to be tight, consumer costs will continue to rise, and let’s not forget about the hidden inflations ; TAXES,( thank you Democrats) ILLEGAL IMMIGRATION (Thank you Ted Kennedy ’64), INTEREST on our National debt, soon 40% of tax revenue to the U.S, Treasury will go towards servicing the debt, and who really pays for this ? (Thank you Progressive movement), the U.S. Bogus system of calculating actual inflation, cooked books (Thank you past Administrations going back 20 years) and then we have the brand new one courtesy of Mr. Obama, the HEALTH CARE BILL.  Health insurance will go up dramatically, forcing employers to pay more in premiums and taxes which will be passed on in the rising costs of goods and services to the public and further increased unemployment.

What we are left with in the coming decade is among other more dire circumstances, which I will not delve into, but one of great significance. That is the U.S. will have to become an economy dependent upon exports.  Not just of Cotton, Lumber, Scrap, waste paper, Agriculture, Rawhide, etc, but actual consumer manufactured goods.

Most people don’t realize that with all the ballyhoo about our trade deficit with China being so huge, is that the U.S. economy is still at least 4- 5 times larger than China’s and our exports still outnumber those of China.  It is mind boggling I know, but now that you see our dollar destined for another WEIMAR REPUBLIC, together with CHINA’s growing middle class (more than the population of the U.S.) with an RMB at 4 or 5 per USD, it doesn’t take a Rocket Scientist to deduce that China as well as other healthy economies (wherever they are) can afford to buy goods made in the Good old YOO ESS OF AYE.

So if you are wondering “ where is the future of my business”….now is a good time to seriously evaluate how manufacturing and exports can fit into the picture.

I would also like to add that it has become “In” and trendy in China to buy goods made in the USA now.  In fact the “Yuppies” of China are willing to pay higher prices for higher end merchandise and anything that reflects the American way of life.   The real truth is that people in China are in love with America and want to emulate our lifestyles.  This is the future. (that and our children better start learning mandarin)

Devin T. Burke
CEO, Universal Cargo

5 Tips for 1st Time Cargo and Container Shipping Exporters

Tip #1: Save container transport cost by preparing to load your container in less less than 2 hrs.

When the driver shows up to your site, the first 2 hours are included in your fees. We recommend staffing up and preparing in advance to load the container as quickly as possible to avoid overtime charges.

Tip #2: Prepare Shipping Container Contents for Extremes

Containers are subject to extreme conditions. There are wild swings in temperature and humidity inside the container - they go througth the Panama Canal and sometimes around the Cape. Containers are subjected to triple digit heat and humidity to sub-zero temperatures while in storage or in transport.

Tip #3: Carefully Declare ANY Organic Cargo

Plants, Edible Plants, Vegetables and Fruit are all treated differently depending on the origin and destination of the shipment. If customs finds any undeclared organic cargo, the can quarantine your container and charge you daily holding fees.

Tip #4: Properly Insure Your Cargo 

Plan for “attrition”. All of the contents don’t always make it all of the time.
There will be some "attrition" - containers get inspected, sometimes by unscrupulous dock/deck hands...this isn't REALLY considered stealing, as the items in transit, technically are the property of the shipping company.

Tip #5: Understand that Freight Forwarding both an art and a science.

Many companies and handlers are involved in moving your container, here are just a few possible examples: Trucking company(ies) outbound (your door to the port of origin or train yard), Crane Operations transferring container from truck to train, and train to ship. that's just to get the container to the ship, then the reverse happens on the other side...it's a REALLY rough ride, even in good weather.

Why Universal Cargo Management, Inc.

By contracting with Universal Cargo Management, Inc. you directly benefit from the relationships and reputation for integrity that we have developed trusted relationships with our international shipping, air freight, ocean freight, and logistics service providers over the past 25-years. You benefit from our experience in keeping the freight forwarding process efficient an effective because we know the ropes as well, if not better than anyone.

Tips for Business Travel To Asia

Same International Shipping Issues, Different Day

- U.S. and China Continue to Arm Wrestle

Recently U.S. govt and Chinese govt officials met for the Strategic and Economic Dialogue (S&ED) talks for another round with the indigenous innovation issues.This involves China’s desire to develop and export more “High end” technology and compete with the U.S. WHERE WE RULE and will hopefully continue if our education system ever gets back on track, but I digress. While China's government continues to drag their feet in making it harder for copycats to steal our technologies. However score this round to the U.S. for not only getting China to be more flexible about this issue, but they are now willing to “rewrite” the contract for being in the WTO when they all sit down next month.

The other issue would be on what exactly does China plan to do with their currency evaluation? 

If you are in the business if import or international shipping you are most likely crossing your fingers and telling the Obama administration to “shut the hell up”, or if you are an exporter, or a U.S. manufacturer you are screaming at the top of your lungs “ADJUST THE YUAN EXCHANGE RATE to reflect the Market” so America can rebuild it’s competitiveness on the World market for it’s goods and services. Either way, it appears as China is not only becoming a consumer market on the world’s stage, but also slowly moving towards a higher end technology (like what happened to Japan in the ‘80’s and Taiwan in the ‘90’s) they realize that it is inevitable that the RMB strengthens another 10-15% in the coming year.  China is just biding their time, while the U.S. keeps nudging them along.  So America, it’s time to get your thinking cap on and get back to the workshop and innovate. (That and maybe buy a few RMB along the way maybe)