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Shipping Rates Between Asia and Europe Going Up, Way Up! – GRI (General Rate Increase) from 1st March 2012

Some of you may not have heard about the GRI from 1st March 2012 from almost all shipping carriers yet. But you will likely feel the pinch when you notice shipping prices for containers almost doubling after 1st of March. Here is what is happening and what we’re being told:   Where & What? The increases will be applied as follows: Origin Range: From All Asian ports (including Japan, South East Asia, Colombo...

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2012 1st QTR Manufacturing Outlook – The Effects of ‘Stagflation’ and Migration

As we read and see more and more in the news that Chinese exports to ‘developed’ countries are considerably reducing it is a time to be very wary about quality. While there is still strong growth from ‘emerging’ markets such as Africa and South America, the reduction in exports from the larger Western markets creates a pressure and strain on all the factories that rely on these orders to maintain their budgeted and normal...

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Incoterms at a glance

The Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. A series of three-letter trade terms related to common sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The...

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Suppliers going back on their word (Part 2)

(Have you read Part 1 of this article?) By this point, the overseas purchaser has been let down dreadfully by the supplier and had to compromise their margins in order to have their goods released. But it got worse. When the CI (Original Paper Commercial Invoice) and COO (Certificate of Origin) were requested from the supplier, they refused to do even this stating that it would cost yet more money to produce these documents and therefore...

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Suppliers going back on their word (Part 1)

Recently I was contacted to assist in a case whereby a Chinese supplier had decided to change their mind about delivery terms on an order. This was post-production and while it was held at a 3rd party shipping agent. Initially, a quote was supplied to a European purchaser that was priced for FOB, Chinese port. These terms were accepted and the ordered processed. Somewhere between ordering and before loading onto the vessel at the port, the...

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Ordering from China for the first time

Sourcing from China for the first time can be a daunting experience. There are many cultural and language differences as well as huge differences in business mindsets. These combined issues can put you on the back foot from the start and put the supplier at a much more advantageous position. This can easily negatively affect the result of your negotiations, both in terms of price and product quality. Consider appointing an agent for you in...

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