Import Export Business Course for Complete Beginners

1. Introduction of Import Export course for Beginner: Hi everyone. My name is Vi. I have over ten years of experience in the import export industry, working directly with international partners. Most recently, I was a key account manager at a seafood export company with annual sales of hundreds million US dollar. I understand how confusing it can be at the beginning, not knowing where to start when learning about import export. In this course, you'll learn the step by step process of handling an import export shipment from start to finish. We'll explain essential English terms used in the import export industry to help you feel confident when communicating with international customers. You'll also understand the roles of shipping lines, freight forwarders, and the types of containers used in logistics. We'll walk you through key costs in an import export transaction. Including ocean freight, local charges, and how to avoid unexpected expenses. Whether you want to start a export business, get a job in international logistics, or just understand global trade better, this course is for you. Let's get started. 2. Import-export shipment procedure (step by step): We'll start with Chapter one, overview of import and export. Lesson one, the process of an import and export shipment. In this section, we will primarily focus on the process of an import and export shipment transported by sea. In Country A, there will be a seller, also known as the exporter. In Country B, there will be a buyer, also known as the importer. The seller will sign a sales contract with the buyer. In this contract, it will be stipulated that the seller will produce and deliver goods to the buyer. Conversely, the buyer will need to make a deposit if required and pay for the goods to the seller. On both sides of the ocean, there will be ports. VOL, port of loading bill of lading, also known as the export port and pod, port of discharge, also known as the import port. The vessel will be provided by the shipping line to transport container goods from the export port to the import port. Near the port on land, there will be customs departments for the exporting country and also for the importing country IcaurmsT perform the tasks of supervising import and export goods, combating smuggling and managing taxes. In small companies that do not handle customs procedures or booking vessels directly with shipping lines, there will be the involvement of forwarding companies denoted as FEW, one and two, specializing in providing services, including booking vessel, customs declaration and domestic trucking. Once the goods are ready, the vessel booking will begin. At this point, the sender is referred to as the shipper, and the receiver is called the consigner. The goods will be transported to the port, trucked, and customs procedures will be carried out either directly or through a forwarder. After that, the goods will be loaded onto the ship and transported from the export port to the import port. The ship can travel directly or transit through another vessel before reaching the import port. When the goods arrive at the import port, they will undergo import customs clearance and be transported to the customer's warehouse, possibly through a forwarder company too. Additionally, there will be the role of two banks or the banks of the exporter and the importer to carry out payment transactions such as TT, LC and TP so that the money will transfer from the buyer through the bank. To cellular. In this import export, you will learn in detail about these components as well as the steps involved. Thank you for listening. 3. 30 common english terms in Import and export: Lesson two, 30 common English terms in import and export. In this lesson, I will share with you the terms that are frequently used in the field of import and export. Once you grasp these terms, you can confidently work with clients as well as related departments in your import and export industry. Okay, let's get straight to the main part. Here there is a table that includes columns such as the English column, column full terms, which means the complete term written in English and finally, the V or the meaning, if you will. Now, the first three terms were already mentioned in Lesson one of Chapter one. I will reiterate here, for example, shipper means the sender. Consigne means the receiver. Forwarder is also known as a freight forwarding company. In some logistics companies, they abbreviate it to FVW for forwarding. Alright. Then term number four is FCL. Also known as full container load. Full container load. In contrast to full container load, it will be LCL less than container load, which means partial load or less than a container. I will open the illustration for you to see. All right? The image on the screen, you can see on the left side of the screen that is blog. This entire container belongs to one shipper. It's all red. Can you see that? This means the goods fill up an entire container. On the contrary, on the right side, we have LCL. It will combine or gather goods from different shippers. For example, this red color represents one shipper then the blue color. This dark blue color represents another shipper, and these three brown blocks are from another shipper, and the two tall blocks are from yet another shipper. This means LCL goods do not fill an entire container. All right. Is that clear? Let's continue with term number six, which is CY, container yard, also known as more, the container yard. I will show you an image of a container yard to help you visualize it better. Here on the screen is a container yard. It's the place where containers are gathered for transporting goods. Usually before exporting as described in Lesson one, goods are transported from the exporter's location, from the factory to the yard. So where will the container be concentrated when transported to the yard? It will be concentrated in this container yard, also known as CY. There will be many containers arranged in a certain way. Relatively neatly. Containers are stacked on top of each other, but the port will manage the position of these containers. For example, they manage the position of each container and what goods it contains. Now let's return to our list of terms. Number seven is VFS, also known as container freight station, which in Vietnamese can be roughly translated as a warehouse for handling less than container load LCL cargo. What does it look like? On the screen, you can see a warehouse for handling LCL cargo. There will also be a warehouse at the origin, meaning at the export port and Dan CFS, meaning the warehouse at the import port. There are two types. If it's at the export port, this warehouse is used for consolidating cargo. Here, you can see a truck carrying these yellow colored goods, bringing them to this warehouse. Then there will be other trucks from different shippers carrying green colored goods to this warehouse and black colored goods to this warehouse. And the purpose of this warehouse is to consolidate such loose cargo. It will gather enough to form a container on the right side here, to consolidate it into a container so it can be transported or loaded onto a ship. Section below is the warehouse for consolidating loose cargo at the port. Which is the destination port? Here, it does not perform the task of consolidating goods, but rather the task of distributing loose cargo. At this point, when the container goods arrive at the import port, they will come as a whole unit like this and will be delivered to this warehouse. The task of this warehouse is to divide the goods into smaller parts for those who need them, for example, a small business might only take a portion. Only the yellow goods and another small business might only take the black parts. This warehouse will sort and divide these goods according to the specific needs of each small business, especially in cases where these shipments are loose cargo date, rather than full container loads. Next, we have Pol Port of bill of lading is the port of loading. This terms was already mentioned in Lesson one, P D. Port of discharge means the port of discharge. O or F, often called ocean freight refers to C freight charges. Corresponding to this ocean freight, you will also know two terms prepay and collect. Prepay, means the C freight charges are paid in advance and collect the C freight charges are paid later. When we get to the lesson on the bill of lading, you will delve deeper into this part. All right. Let's continue. Number 11 is TT, transit time. You might confuse this with the term TT transit in the payment section. But here it is limited to the term we use in logistics, right? We often use the term TT as transit time, which means transportation time. All right? Next is frequency, abbreviated as FRC, which refers to the frequency of the shipping schedule, for example, one. That ship has one trip per week, then the frequency is one per week, or if the ship has a frequency of two trips per week, it will be two frequencies per week. Next is line, also known as shipping line. In some places, they just abbreviate it as line, meaning the shipping company. Booking is essentially reserving a spot on that ship. I will open a sample for you to see. Now, on the screen, there is a booking from the shipping company one. On the left side, you will see this logo. This is the shipping line one. In this booking, it will have complete information about the first thing, which is the shipper and forwarder, which is the company MS Kip. All right. It will also have booking number. This number is used for us. We use it for the contract as well. Alright. It will also include the estimated sailing date on Tau December 30, and the port the port of Bill of Lading is the KaimePort in Barria Vong tau. Port of discharge is the import port in Vancouver, Canada. Then it also includes information about the equipment type, which is the type of container. Here it's high cube, refrigerated high cube. When we get to the container section, well understand these terms better. And here it will also have the estimated weight, which is the weight of the cargo. Here it is 27.5 tons. That's it. That's all there is. Booking section. Moving on. Local charge. Local charge refers to the local fees at the port. Then the term ETD stands for estimated time of departure, meaning the expected time of shipment. The expected time of shipment means when the ship will depart, not when our goods leave the factory. Our goods are loaded onto the ship and the day that ship leaves the export port is what is referred to as ETD. Then ETA is the estimated time of arrival, which means the expected time of arrival. On this booking, you will see a section for ETD, which is the expected departure date and ETA, which is the arrival date. I will go back to the booking to make it easier for you. Where is the ETD located? The ETD is here on December 30. Now, where is the ETA? ETA is when the ship is expected to arrive, which is on January 29. There the ETA is located next is the closing time, also known as the cut off time. Which is the deadline? If you work in customs, you often hear about what time or which day the cutoff is. That is the closing time. Usually, the cutoff time is the deadline by which your goods must be at the port. Typically, this is two to three days before the ATD date. Let's open the booking again. You will see this at the cut off dot. It's the document cutoff time. The document cutoff is on December 27 at 10:00. And what is the port cut off? The port cutoff is on December 28 at 9:00. So the documents are different. The port is for the goods, and the arrival notice is the notification of goods arrival. Do stands for delivery order, which means the delivery instruction. Free time refers to the free storage period. Meaning during this time, you won't need to pay for storage fees. Contract means contract. Commercial invoice is the commercial invoice, everyone. Payment term is payment terms. Delivery wa incoterms means the delivery terms. PI means performing invoice. Performer invoice, this word is a bit strange to translate into Vietnamese. But when I looked it up, you'll see that people still use the term Hua Jon Bancheo Li online. In fact, this performing invoice is quite similar to a contract. Everyone. It's not much different. It just replaces the word contract with performing invoice. On this performing invoice, it will have complete information about the total value of that shipment. Usually, in smaller companies, they use the performing invoice as a contract itself. In larger companies, they use the performing invoice to execute payment orders. For example, when they issue LC, the bank will require in some countries that a performing invoice must be provided. Now, LC stands for letter of credit, which means a credit letter, everyone. We will have a separate lesson on this credit letter. Here in this second lesson, we are just focusing on the terminology. In the most general way, then we will delve into the details in the subsequent lessons. Shipping documents refer to export documents everyone. Bill of lading is a bill of lading. Specifically, this bill of lading refers to a CY bill. CO, also known as certificate of origin, it is a certification of the origin of goods. We will have a separate lesson on CO to help you understand more about the different types of CO and their uses. Alright, so we have covered the 30 most common English terms in the import export industry. Thank you for listening. 4. Everything you should know about Shipping Lines, Forwarders, and Containers: Welcome everyone to Lesson three, shipping line, forwarder and container. In this lesson, we will distinguish between what is shipping line and the forwarder the top 25 most famous shipping lines in the world. Next, we will learn about containers. What types of containers are there. Then, what are the container sizes? We will learn how to read the symbols on a container, and what container transportation means. Let's start today's lesson right away. The first part is about shipping lines, forwarders. How do we distinguish between these two entities? On the left side, you can see that. It's the shipping line. Owns and manages the Cardo ships, and the main role of the shipping line is to transport goods via sea routes. So why about the forward? The forwarder does not own ships or cargo transportation vehicles, but it has good relationships with shipping companies and shipping lines. Therefore, they can rent space on shipping lines, to sell services to clients. Their main role is to act as an intermediary between the shipper and the carriers providing transportation services. Besides transportation, they also offer other services such as consulting, trucking, customs clearance, and, of course, sea freight as well. When they do this, they receive information from the shipper and then book with the shipping line. Next, we will explore the top 25 largest shipping lines in the world. On your screen, you will see four columns. The first column is the serial number. The second is the name of the shipping line. The third is the Country GOR, the head office of that shipping line, and finally, the logo. So when you see these shipping line logos on a shipping document or on a ship, you can identify. Which shipping line? It is from top to bottom. They are arranged by market capitalization. For example, the largest company among the shipping lines is Mersk. Some Vietnamese companies often refer to it as SMAC, but the correct pronunciation is Mersk as it is a shipping line from Denmark. Currently, they have offices in all countries around the world. The logo is the full name of the company. The second is MSC, which is a shipping shipping company from Switzerland. The logo looks like this. The third is CMA CGM, which is a shipping line company from France. It has a logo with two, also the company's name with two marks above and below in red, like this. The fourth is Costco, which is a company from China. The fifth is Hapag loid. It is a C, a shipping line from Germany. The sixth is one which is a shipping line from Japan. This one has a very distinctive color which is pink and it looks quite cute. Then number seven is evergreen, which is from Taiwan. Number eight is HMM, a shipping line from South Korea. Actually, HMM is an abbreviation for Hange merchant, Marine, the full term, this down here, the ninth company, this Yang Ming from Taiwan. The Kenth company is Sim from Israel. In fact, each shipping line is strong in a specific route. There are some routes where this shipping line offers very good prices and conversely, on other routes, different shipping lines offer better prices. Continuing on number 11 is the shipping line BL from Singapore. Number 12 is one high from Taiwan. Number 13 is UASC from NA United Arab Emirates UAE. Number 14 is SITC from China. Number 15 is TS nine from Taiwan. Number 16 is the shipping line, CNCL from China. Number 17 is the shipping line, KNTC from South Korea. Number 18 is Sinoca also from South Korea. Number 19 is Fresco from Russia. Number 20 is the shipping line, APL from Singapore. Next, number 21 is the shipping line and YK from Japan. Number 22 is the shipping line MOL also from Japan. Fd Dong hin Shipping Company from Korea. Number 24 is the shipping line, OOCL from Hong Kong. This shipping line has a rather distinctive logo with a flower in the middle. And finally, number 25 is the shipping line Nan sung from South Korea. Then there are other shipping lines not mentioned here, but when you can go online and search, for example, when you check the freight, you can find out if they are a shipping line or a forwarder by knowing that. If they are not a shipping line, they are a forwarder. Usually, the shipping lines you search for most of the ones, we've shared here our major shipping lines, and you should choose these major lines because they are safer compared to smaller ones, Gad said, it doesn't mean that smaller shipping lines don't have their advantages because smaller shipping lines have certain routes where they are strong. However, in terms of safety, major shipping lines have better systems and they provide better services. In the next section, we will explore containers. Let's see what types of containers there are. First, is DC also known as dry container. Some units or places still refer to it as GP GR general purpose. This DC or GP container is also called a dry container or a regular container. On the screen, that is a dry container. Why do they call it a dry container? It's because it carries dry goods at normal temperature, so it's called a dry container. Next, HC, also known as high cube. In Vietnamese, we call it a tall container or high container. Because there is only a 40 foot high container, only 40 C, there is no 20 HC high container. 20 here means 20 feet and 40 here means 40 feet. On the left side, you can see that the high container and the image in the middle next to it is a regular container, so we can look and compare the high container has the same width as the regular container. It only differs in height everyone. A regular 40 foot container is 7.5 feet tall while a high 40 foot container is 9.5 feet tall. On the right side, there's a comparison image between this red high container and the regular gray container. In reality, there will be a difference like this everyone. The reason people use high containers is so they can load more goods and stack palettes higher. Besides that, there are other special containers commonly used. For example, to transport frozen goods, we use RF or refrigerator containers, which are refrigerated containers. These containers are used to transport goods that need to be kept cold. As you can see below, a refrigerated container will have a cooling unit here and a generator here. The purpose is to provide cold air and lower the internal temperature. Typically, the minimum temperature required for a refrigerated container is -18 degrees Celsius. One feature of this Coga is that you can see the cold air will move to all positions inside. When closing the container, they move a space at the top so that the cold air can circulate from the front to the back of the container. Then the fourth type of container is the flexi tank, and ISO tank, which are containers specifically used for transporting liquids or gases. On the left side, you can see the flexi tank, which has a tank here and the ISO tank which doesn't have four sides enclosed but is open like this with a tank in the middle. As for the flexi tank, it has a bag in the middle a bag used to transport gases or liquids. Next, another type of container is the open top container. This is a type of container where the top is open, also known as an open top container. This container is specifically used for goods that can withstand rain and wind and are taller than regular container sizes. For example, wheels like these can't fit into a regular container, so they have to be placed in an open top container, also known as OT. Then there's another type of container called the stack rack, this container, this used to transport oversize and heavy goods. For example, on the right side here, you can see a concrete mixing tank, which is very bulky, then heavy. Regular containers won't suffice and they have to use this stack rack. In the next section, we will discuss container sizes, focusing mainly on the three common types, the 20 foot container, the 40 foot container, and the 40 foot high container, high cube container to make it easier to remember, you can convert feet to meters. Why is it easy to remember feet? Because it's directly reflected in the name of the container. For example, a 20 foot container means the container is 20 feet long. Then 1 ft is equal to 0.304 8 meters. So when you multiply 20 by 0.3 048, the length of a 20 foot container is approximately 6 meters. To make it thio remember, just remember it's about 6 meters. Continuing with the width, it is about eight feet, and the height is about 8.6 feet. If we convert these 2 meters, it becomes 6 meters by 2.4 meters by 2.6 meters. Next is the 40 foot container. The length of this container is 40 feet measured by its length. And when converted to meters, it's about 12 meters. The width will also be the same as the 20 foot container, which is about eight feet or 2.4 meters, and the height is also 8.6 feet or 2.6 meters. As for the high container, its length and width are exactly the same as the regular 40 foot container. However, the height will increase by one more foot. Normally, a regular container is 2.6 meters and the high container increases to 2.9 meters. Is that clear? All right, here we have an additional concept called TU Gua 20 feet equivalent unit. It is the standard measurement unit in container shipping. In maritime or container transport, they specify that a 20 foot container equals one TU and a 40 foot container equals two TUS. The purpose of this is so that when shipping companies or holders talk about TEU, you know whether it's a 20 foot container or a 40 foot container. Speaking of storage dimensions, we will move on to the next section, which is understanding the symbols. On a container on the screen, you can see that there are 12 pipes. This is a container, and they are showing the front side, the typical front of a container. We will go from top to bottom. Number one here is the container number. It consists of four letters and six digits to form a container number. What is the purpose of this container number? The purpose is similar to an identification number. For example, just like each person has an ID number, a container has something similar. It also has a number to distinguish one container from another. That's all there is to it, folks. Now, number two here, the separate number seven is right here. That is the check digit. According to International Conventions, there is a method to calculate and verify this number. The formula is quite complex, so we won't delve deeply into this check digit. Part three, all this container tight code. This means that by looking here, we can know what type of container it is. All right. The first letter indicates the container's length. The number two here represents the container's length. The number two means 20 feet folks, if it's the number four here, then it would be 40 feet. Okay. The next letter is still the number two. It represents the converted height. For example, the number two here corresponds to 8.6 feet and the number five corresponds to 9.6 feet. So when you see the number two here, you know it's a standard container. And when you see the number five, you know it's a high container, right? Next is the type of container. Here, it's the letter G. The letter G is the symbol for general purpose more commonly known as standard. If instead of the letter G, it's the letter R here, then it would be a refrigerated container referred to as refer. If it's the letter U, it would be an open top container, which is a container with an open top and finally, if it's the letter P, then it's a ten container. Continuing, the last digit is usually zero GR one. If it's zero, then this container can be opened at one or both ends. As for the number one, it means there is a vent at the top. In this example, it's the number one, meaning the container has a vent at the top. Let's continue. Number four. Here, you can see the letters NGwWnW. This refers to the total weight of the cargo and the container itself. Here on the first line at the top, you can see they wrote 30.4 G Kg H, which means the total weight of the cargo and the container, shell, the maximum weight of the cargo inside the container and the outer shell of the container. The maximum is 30 tons 0.400 dv kilograms. All right. From this kilogram number, we can convert it to the row below, which is pounds. LBS means pounds. For countries like the United States, Canada, and some South American countries, they use pounds as the unit instead of kilograms. So here they just convert it. One, pound is equal to 0.454 kilograms. All right. Moving on. Number five. Section number five, tear tear means the weight of the packaging, everyone. So here, tacking the anti packaging, this green one here, the entire container will weigh two point, 180 kilos, which is about two and one tons. Converted to pounds, it's about 4.8 thousand pounds. Then continuing, NFT is the max load capacity. Here, because the formula is very simple, you take the maximum total weight of the cargo and the shell 30.48, then subtract this tear number, which is the weight of the shell, and you'll get the maximum total weight of cargo you can load. So take 30.48 -2.18, and it will be 28.3, meaning the maximum total weight of cargo we can load is 28 tons, three. Then below, we similarly convert it to pounds. But in reality, we can never actually load this maximum everyone. Usually we will load less because some ports or some countries have regulations that that maximum total weight of the container carrying goods that can be transported in. That locality or port must not exceed a certain number of tons. Therefore, most of the time, we will not load to the maximum because if we load to this maximum, it will become unsafe. It won't be safe anymore folks and the risk the risk will be very high because the container cannot withstand such a heavy, overly heavy total weight. All right, the seventh item here is CU, also known as cubic folks. As for volume, the volume is 33 points per cubic meter, or they will convert it to cubic feet here, 1.17 cubic feet. All right. It's just the volume, folks. Number eight, gear the symbol. Dx represents the owner of this container, Shell, which is a company named text. All right, number nine is a triangular sign. It is the safety and repair guide for this container. Number ten has a logo here. This logo is the logo of the organization inspecting the container, like for us humans, for example, during the COVID times, we needed something called a COVID passport. The container is similar. It also needs periodic inspections, and it will have certification to be able to travel to different countries. All right, number 11 is the CSC, which is the approval certificate for the container, and it records information about production, the production date of the container, inspection dates of the container, and some other related information. Here. And number 12 here is the spot where we attach the seal or what we call the lead seal folks. We attach it here. What is this lead seal for? The purpose is to seal the container. For example, when our goods are inside, we use the lead seal to seal it, preventing others from opening it to avoid situations like losing goods or having them altered or swapped inside our container. Then the final part is the container transport truck. So usually we use this type of truck, which consists of two parts. The first part is the tractor unit. This part here. And the second part is the semi trailer. This semi trailer can be attached and detached from the tractor unit and uses its own license plate. That means the tractor unit will have its own license plate, and the semi trailer will have its own license plate, as well. And in cases where there is a shortage of tractor units, when we pull the semi trailer down the port from the port operation unit, we pull the empty container down to the factory to load goods. Then this tractor unit can be detached right at the semi trailer to turn around and transport another semi trailer down. This means the connection between the tractor unit and the semi trailer is very flexible. You can completely detach or attach it, use a different semi trailer to attach to this tractor unit or use a different tractor unit, to attach to this semi trailer. It can be done completely. So we have finished lesson number three, exploring shipping lines, forwarders, basic information about containers as well as specialized types of containers. Thank you for taking the time to watch, and we hope you found the information useful in today's lesson. 5. Breakdown the costs in an Import Export Shipment: Welcome to Lesson four costs incurred for an import export shipment. In this lesson, let's explore the basic costs of an import export shipment together. From here, it will help you calculate the price of a shipment and be able to quote prices to customers. At the same time, from these costs, we can also calculate the profit of an import export shipment when we sell to customers. Okay. On the screen, you can see that is the process diagram of an export type that we learned in the first lesson, spanning from the seller, the seller, the exporter to the final buyer, what costs arise. In total, we will have two main costs at both ends, including the cost at the export end, from the seller exporter to the export port. The two cost is at the import end, from the pod, which is the import port to the buyer or importer. And there is a cost in between from the export port to the import port, which is the ocean freight, also known as sea freight charges. Now, let's explore what the export end costs include. The export costs, of course, must include the cost of goods. This is the capital cost of the goods which may be produced by the exporter, or if it's a trading company, then it's the cost price at which we purchase, right? Next, there is trucking. Trucking means that after the goods are handled by the seller, right? And after the buyer and seller have agreed on the contract plan, then we will produce and have the goods, then we will start booking the ship. Once the ship is booked, we will proceed to take the empty container from the port. After that, we transport the empty container back to the seller's warehouse. What do we do that for to load the goods. So the first cost is the trucking cost, which is for taking the empty container from the port to the warehouse. Then at the seller's warehouse, we will load and unload the goods onto the truck. There will be a fee for loading and unloading goods at the shippers warehouse. Next, we will have the cost of transporting the container from the factory. We transport it to the port everyone. Here, transporting the container from the factory, back to the port at the CY Yard. C Y stands for container yard. We have already learned this in the previous lesson. It is the container yard. Then at this export port, we will have additional customs procedure fees. At the same time, the exporter will have to pay export taxes. These export taxes, usually for most export products in Vi, the tax fees will be zero, except for national resources that the government does not encourage exporting, they will impose taxes on those. But for most products, the export tax is zero. You can delve deeper into this in the tax lesson. Next, there will be local charges incurred at the Pol port. What does this local charge include? It includes THC, THC, CIC, SEL fee, dog fee, text fee, and handling fee. The details of these fees will be covered in the next lesson. In this lesson, you just need to understand that there will be a local track fee. Next, the ocean frame is the Sea freight charge. The sea freight charge depends on the delivery terms. Whether the seller or the buyer will pay will be covered in the lesson on delivery terms, which is the lesson on incoterms. Moving on, we have the import costs. The import costs include firstly the local charge. Also known as local charges at the pod port, which is the import port. It includes THC, CAC, due sanitation, handling, and lifting fees. These costs are called local charges at the import port. Next, once the goods arrive at the import port, we need to carry out the import customs procedures. This is where the import customs procedures take place. After that, additional taxes will arise, including import tax, VAT, and special consumption tax. For products subject to special consumption tax, only then do we need to pay this fee? In most cases, we will pay the import tax and VAT. Then we will incur pre transportation fees from the port to the container warehouse. That is after we complete the customs procedures, the container will be at the port, and we will need to transport it to the buyer's warehouse. Then at the buyer's warehouse, there will be a storage fee. This means that once the goods arrive, we will unload them. After that, there will be a fee for returning the empty container back to the port. That means after the goods are unloaded from the container, the empty container will be returned to the port. And there will be an additional fee called the cleaning and repair fee for the container if applicable. The cleaning and repair of the container, if needed, is included here. Additionally, there will be another fee. This is called DEM debt or Demag Detention. This fee Demag refers to storing goods at the yard. And Detention. Refers to storing goods at the warehouse. In cases where shipping companies provide us with free time, which is the period we can use the container, storing it at the warehouse or yard for a certain number of days. And if we exceed this but free time limit, the port or the shipping company will charge us a fee. This is where the demurrage or debt fee arises if you exceed the free time period. All right. So we have just completed the lesson on the costs associated with a type of import export goods. I hope that you will grasp the basic costs, and we will delve into the details in the upcoming lessons. 6. How to read the Freight Quotation and Local Charges: Welcome to Lesson five, shipping fees and Local Charges. In this lesson, we will understand how the shipping fee quotation works, n. What local charges include, specifically the fees at both the departure and arrival ports. As shared in the previous lesson, each shipping company or forwarder will have its own strengths. For example, shipping companies in China are strong in routes to China. Or shipping companies in Taiwan, like Yen Ming or TSL are strong in the Taiwan Route. And other shipping companies such as Merc Line or MSC, are strong in European and American routes, for instance, in our shipping fee quotation, it will consist of a total of two main parts. The first part is ocean freight, also known as sea freight charges. And the P two will include local charges. For those companies that have been in the business for a long time, they will already know the local charges, which are local surcharges, and they will know exactly how much is charged. And these local charges usually do not vary too much between different shipping lines. Now, I will provide a specific example of ocean freight. On the screen, you can see on the left side that is the sea freight quotation. Go in to Amberg Germany. Germany is in Europe, and you can see here 29505550 HPL valid until January 31. The word TH you, your stands for Thursday, which is the fifth day of the week. Then transit 27. With free time for them for that includes blood, and we will explore the meaning of each piece of information line by line. First, 29 50 to 5,550. Gear means they are quoting according to the companies freight rates, 40 means the freight rate for a two foot container is $2,950 per two foot container. And for a 40 foot container, it will be $5,550 per 40 foot container. Here, it is being shipped with the carrier HPL, and rate this freight rate will have validity. The schedule is valid until January 31. The year isn't specified, but since we're studying in 2024, well, assume this is January 31, 2024. Typically, the freight rate sheet is updated monthly. This means that they want quote prices too far in advance, only within a range of 15 to 30 days. Some shipping lines will start quoting from the first of the month while others will quote from the 15th of the month. Next, the word Thursday means the two fifth day of the week. This ship has a weekly departure every Thursday. Transit 27 days. Transit means the time it takes to transport from Vi to the port of Hamburg in Germany, which is 27 days. Free time, as mentioned in the lesson on English terminology used in import export, refers to the period allowed for storage and warehousing without incurring fees. For example, here it might state four nights plus four days, four nights means four days of warehousing, while four days means four days of storage. That is a total of four days of warehousing and four days of storage. Now this is because we're using an example for refrigerated containers, so they will include the term include blood. Blood here refers to the electricity supply fee. For refrigerated containers, there is an electricity fee, whereas for dry containers, this electricity fee is not needed. All right. That's the first example of ocean freight to Europe. Let's read another example going to Taichung, Taiwan, which means Taiwan everyone, 450 for the vehicle 550 Ts line valid until January 31. Here, similar to the first example, 450 here is the freight rate for a 20 foot container, two, and 550 is the freight rate for a 40 foot container. So you can see that the freight rate for a 40 foot container is not always double that of a two foot container. In this case, the freight rate for a 40 foot container is just slightly higher than that of a 20 foot container, too. Here, the shipping line being mentioned is TS line, and this price list is valid until January 31, just like before. In this slide, there is one trip each week on Thursday with TH indicating Thursday, which means every Thursday and the journey takes three days. They also offer a free time of four nights and five days, which means four days of yard storage and five days of warehouse storage. Some shipping lines will offer a term called Combine, for example, they provide nine days of free time combined, which means they will. Add the demurrage and detention together, totaling nine days. It doesn't necessarily have to be four days of demurrage and five days of detention. You can choose three days of demurrage and six days of detention depending on the shipping lines regulations. The next part is about local charges, which we will look into later to see what fees are included at the port of departure. We have that THC terminal handling charge, which is the handling surcharge at the port. The reason for this fee is that when your container goes out to the port, it will use the port services. For example, on the screen, you can see the yellow cranes and the spreaders used to lift. Arrange containers in the container yard. They will use forklifts, reach stackers, to lift up and down, and forklifts to load and unload goods. For example, in the case where your goods need to be inspected, you will have to open the container and then unload a few boxes to check the goods. This will require the use of forklifts to unload the goods. And when moving the container within the port, you will also need to use a reach stacker for internal transportation within the port. These services incur a terminal handling charge, which is an additional fee for handling goods at the port. Is this term applicable at both the departure and arrival ports? In the moment, we will look at the local charges at the arrival port, which also include this fee. Next, the second fee is the seal fee is essentially the fee for sealing. The guides, once you have finished, you pack the goods in the container, and then we use a seal, often referred to as a seal to secure it. The purpose is to lock the container door and prevent theft. Similar to sealing, it's to ensure. There are no changes or losses of goods in the container. All right. The third fee is the Doc fee, also known as the documentation fee. In large companies, there will be a department dedicated to handling documentation. As for smaller companies, they will hire forwarding companies, forwarding units to handle this documentation for them. So it's also called the documentation fee TLX fee, the TLX fee, if applicable in cases where we use it or a bill, surrender, there will be an additional Lax fee. This is referred to as the electronic delivery fee, everyone. And we will discuss this part in more detail in the Bill of Lading section. All right. Additionally, it may include other fees. For example, charge declaration charge. MS or ENS fees are the additional fees for cargo declaration. Then which stands for container imbalance charge is the additional fee for container imbalance. That is for imbalance. Why is there an imbalance? For example, for instance, if there is a large amount of goods being exported from Vi to Qingdao, China. And when there are many exports like that, in contrast, there isn't much cargo to export from in Dao back to VY leading to a shortage of containers. This means there will be a lack of empty containers in Vi and that's when the fee called Container imbalance charge comes into play. At that point, they have to bring empty containers from Ching Dao. They transport them on ships without cargo, meaning the ships carry only empty containers, i to Vietnam. So there are empty containers available to load goods for further export. That's when this surcharge arises. Continuing on well move to the section on surcharges at the destination port. Now, similar to the surcharges at the departure port, the local charges at the departure port, there will also be fees at the destination port. HC, is terminal handling charge, which is the handling fee at the port. The fee two is the due fee or the delivery order fee, which in English is called delivery order. We will also study this in detail in the Bill of Lading lesson. All right. Regarding the cleaning fee, why is there this fee? After unloading the goods at the consignee warehouse, once the unloading is complete, you have to return the empty container back to the port, and the empty container, after the goods have been unloaded, might not be clean. During the transportation and unloading process, some of the goods might spill inside the container, causing the container floor to become dirty. The shipping company has to clean it, and when they do, they will charge this fee then there's the handling fee. This fee is usually charged by forwarding companies. For example, they might charge for customs declaration fees or fees for going to the port to inspect goods, among other things. They still consider these as handling fees, and sometimes the profit margin of the forwarding companies is also included in this handling fee. Similar to the fees at the departure port, at the arrival port, we will also have other fees such as the CIC, which is the container and balance charge, as I explained in the departure section. Additionally, there will be demurrage and detention fees, which I mentioned earlier. When you rent a container and it arrives at the port, if you don't handle or complete customs procedures in time, and the container stays at the port for too long or after completing customs procedures, you take the container to the customer's warehouse and don't unload it within the designated free time. This will incur demurrage and detention fees. On the screen is an example of local charges to help you visualize it more easily. You can see that the first one is THC, which stands for terminal handling charge term. Here we will present the RH container, which is a high reefer container, a 40 foot high reefer. So one, THC fee for this 40 foot refer container is approximately $265 per container, too. Then for a 20 foot container, it's only $170 per 20 foot container. This is the handling surcharge at the port. For this local charge, when they quote you, they want include VAT. After completing the service, they will issue an invoice and add an additional 10%. This price only includes VAT. Next is the fee. Or sometimes in certain places, they will translate it as origin documentation fee, which is the fee for the original documents. This is calculated per unit, meaning per shipment, and it will be around $50. What do they do for this fee? It includes preparing the documents for you, preparing the forms needed for you. The shipping company generates and issues the documents for you. Sometimes the folder units might also prepare the invoice or packing list for you, including all related documents, and they will add it to this fee. This fee can sometimes fluctuate depending on the company. Different companies offer different quotes. Next is the super fee. The super fee is the fee for maintenance. As we learned earlier, it falls around $12 per unit too. All right, the surcharge here is also listed as a surcharge. Declaration cargo, which is the cargo Declaration surcharge. In certain special countries, they require us to declare the cargo before we export it or before the ship arrives at their port. This surcharge is approximately $45 per shipment. And here finally is the Lax release fee. The LAX release is the electronic delivery fee. This fee is also $45 per shipment. Then we have the DEM debt fee. This is for storage and yard fees, and they usually charge us on a daily basis. For example, the shipping company might give us for nights, for days, which means four days of storage at the yard and four days of storage at the warehouse. If we store it longer than this time, for example, if the goods arrive and our documentation is incomplete and we can't declare customs in time and our container stays at the port for too long, exceeding the allowed time, longer than the shipping company permits. For example, currently, the shipping company allows four days, but if we take longer than that, say it takes us until the fifth or sixth day to complete, then we have to pay two. For the extra days, the container stays at the yard exceeding the free time, the shipping company will charge this fee on a daily basis. Some shipping companies charge several tens of dollars per day, while other shipping companies charge up to $100 per day. It depends. All right, so we've finished the lesson on shipping rates and local charges.