Category: Logistics News

Common Cargo Release Methods in Maritime Transport and Their Differences

In international trade, sea freight, also known as maritime transport or water transportation, plays a crucial role. Once the cargo safely arrives at the destination port, efficient and convenient cargo release procedures are vital for both buyers and sellers. Different cargo release methods have their own advantages and disadvantages. Choosing the appropriate method can effectively control risks and improve transaction efficiency. This article will detail several common by the sea cargo release methods in maritime transport (water transportation) and analyze their differences, helping you better understand and choose the right one for your needs.

1. Telex Release (TELEX RELEASE)

Telex release is one of the fastest cargo release methods available. The shipping company sends the bill of lading information to the destination port agent via electronic message or email. The consignee does not need the original bill of lading. Instead, they only need to provide a telex release copy of the bill of lading with a telex release stamp and a telex release guarantee to complete the document exchange and cargo pick-up procedures. This is especially helpful for those utilizing sea freight and needing quick access to their goods.

• Advantages: Fast and convenient, significantly shortening the cargo pick-up time; avoids the risk of loss or delay that may occur during the mailing of the original bill of lading, especially suitable for time-sensitive cargo transported by the sea.
• Disadvantages: The shipper loses control of the cargo rights. Once the telex release is issued, the cargo rights are transferred to the consignee, which poses certain risks, especially when the payment has not been fully settled. Therefore, it is generally recommended to process the telex release only after receiving full payment. This is an important consideration when using sea freight for valuable goods.

2. Original Bill of Lading (OCEAN BILL OF LADING, B/L)

The original bill of lading is a document of title issued by the shipping company and is one of the most important documents in international trade, especially for sea freight and other forms of maritime transport. The consignee must hold the original bill of lading to claim the cargo. The bill of lading can be transferred by endorsement, facilitating the transfer of cargo rights during the trade process. Typically, the shipper (SHIPPER) sends the original bill of lading to the consignee (CNEE), who then exchanges the original bill of lading for a delivery order to pick up the cargo. This method is commonly used for water transportation and other forms of by the sea shipping.

• Advantages: For the shipper, holding the original bill of lading means owning the cargo rights, allowing them to control the cargo if the payment has not been settled; for the consignee, the original bill of lading is a necessary document for picking up the cargo, protecting their rights. This is especially crucial when dealing with sea freight and complex international transactions.
• Disadvantages: Mailing the bill of lading takes time, which may delay cargo pick-up and increase mailing costs. There is also a risk of the bill of lading being lost. This can be a significant concern when relying on maritime transport for timely delivery.

3. Sea Waybill (SEA WAYBILL, SWB)

A sea waybill is similar to a telex release but with some differences. Once a sea waybill is issued, the cargo rights are transferred from the shipper to the consignee. The consignee can directly pick up the cargo without needing an original bill of lading or paying a telex release fee. This method is suitable for long-term partners with mutual trust or for cargo transport within multinational companies. It’s a convenient option for frequent users of maritime transport and water transportation services.

• Advantages: Fast document issuance, fast cargo pick-up, simple procedures, saving time and costs. This is particularly beneficial for businesses utilizing sea freight regularly.
• Disadvantages: The sea waybill does not function as a document of title and cannot be transferred by endorsement. Once issued, the shipper loses control over the cargo rights and cannot control the cargo as they would with an original bill of lading, such as stopping the release of cargo mid-transit. Therefore, there is a certain risk in using a sea waybill when the payment has not been fully received. This should be carefully considered when using sea freight or other water transportation methods.

4. Destination Port Release

Destination port release refers to releasing the cargo directly at the destination port. This usually requires the shipper to provide a letter of guarantee to the shipping company or agent, instructing them to release the cargo to the consignee. This method is less common and mainly used in special circumstances, such as loss of or delay in the bill of lading. It’s a solution that can be helpful when unexpected issues arise with sea freight shipments.

5. Summary and Comparison

Choosing the appropriate by the sea cargo release method for maritime transport (water transportation) requires comprehensive consideration of the specific transaction circumstances and the level of trust between the parties. Under the premise of ensuring payment security, choosing an efficient and convenient release method can effectively improve trade efficiency and reduce transaction costs. We hope this introduction will help you better understand the various release methods and make informed choices. Remember to factor in the specific needs of your sea freight when making a decision.

Finally, it is important to note that the cargo release methods and related regulations in international trade are complex. It is recommended to consult with professional freight forwarders or legal advisors in practice to ensure safe and smooth transactions when engaging in by the sea shipping and other forms of maritime transport.

Marine Insurance: Definition and Claim Process

In international trade, the safe transportation of goods is paramount. Marine transport, while a primary method of shipping, carries inherent risks. To safeguard goods and mitigate these risks, marine insurance plays a vital role. This article provides a comprehensive overview of marine insurance, its definition, types of losses covered, and the process of obtaining compensation.

What is Marine Insurance?

Marine insurance is a contract where an insurer, for a premium, undertakes to indemnify the insured against losses arising from maritime perils or external risks during the ocean transit of goods. Simply put, it’s a way to transfer the risks associated with sea transport to an insurance company by paying a fee. Marine insurance protects against a wide range of potential issues during a voyage.

Types of Risks Covered by Marine Insurance

Risks in marine transportation are diverse and can be broadly classified as “maritime perils” and “extraneous risks.” Maritime perils primarily refer to natural disasters and accidents, such as storms, reefs, collisions, etc., leading to losses known as “general average” and “particular average” in marine insurance. Extraneous risks encompass theft, robbery, war, and other similar incidents, resulting in losses categorized as “other losses.”

Categories of Losses in Marine Insurance

Losses under marine insurance are categorized as “total loss” and “partial loss.”

Total Loss

Total loss refers to the complete loss of cargo during sea transport. It’s further divided into “actual total loss” and “constructive total loss.”

• Actual Total Loss: This occurs when the goods are completely destroyed or irretrievably lost, such as sinking to the seabed, being hijacked by pirates, or becoming commercially worthless due to seawater damage or mold. A vessel missing for a significant period, considering the voyage and area, can also be deemed an actual total loss.
• Constructive Total Loss: This happens when the cost of salvaging, repairing, or forwarding the damaged goods to their destination exceeds their value at the destination, or when an actual total loss is inevitable. For example, if the repair cost of severely damaged goods surpasses their repaired value, or if the cost of recovering the goods exceeds their value.

Partial Loss

Partial loss refers to any loss that is not an actual or constructive total loss. It’s further classified into “general average” and “particular average.”

• General Average: This refers to losses or expenses incurred deliberately and reasonably for the common safety of the vessel, cargo, and other involved parties. For example, if a ship runs aground, and the captain orders some cargo to be jettisoned to refloat the vessel, or if a ship malfunctions and a tugboat is hired for safe arrival at the port, these expenses fall under general average. General average is characterized by a real danger to common safety, reasonable measures taken intentionally, losses directly resulting from those measures, extra expenses incurred, and shared responsibility among all stakeholders.
• Particular Average: This encompasses losses caused solely by accidents and affecting only the shipowner or cargo owner’s interests, such as damage due to collisions, rain, or moisture during transit. The cargo insurance policyholder bears the responsibility for particular average losses.

How to Obtain Compensation for Marine Insurance Claims

To receive compensation after a marine loss, follow these steps:

1. Prompt Notification: Immediately inform the insurance company and relevant carriers about the loss and take necessary measures to mitigate further damage.
2. Evidence Collection: Gather all relevant evidence related to the loss, including the bill of lading, insurance policy, accident reports, survey reports, and photographs. This evidence is crucial for substantiating the loss and its extent.
3. Claim Submission: With all evidence assembled, formally submit a claim to the insurance company, detailing the circumstances of the loss and providing supporting documentation.
4. Claim Review: The insurance company will review the claim, verifying the loss and assessing the claimed amount.
5. Compensation Payment: Upon successful claim approval, the insurance company will disburse the compensation according to the insurance policy terms.

Conclusion

Marine insurance is an essential aspect of international trade, effectively transferring risk and protecting the interests of cargo owners. Understanding marine insurance definitions, loss types, and the claims process is crucial. Choosing the right insurance plan and diligently maintaining relevant documentation are essential for safeguarding your interests in case of unforeseen events. This information should equip you with a better understanding of marine insurance for practical application. When selecting marine insurance, consult with a qualified insurance broker or company. Tailor your coverage to your specific cargo type, route, and risk profile, ensuring maximum protection.

DDP Shipping Risks & Sensitive Cargo

In international freight forwarding, many shippers misunderstand the concept of DDP (Delivered Duty Paid). They believe that once a contract is signed with the freight forwarder and the cargo is handed over, all they need to do is wait for the goods to be safely delivered. However, the reality is far more complicated.

DDP Is Not “Set and Forget” — Key Documents Are Often Withheld

Under the DDP shipping model, some forwarders refuse to provide critical shipping documents such as the Master Bill of Lading (MBL) or customs declarations, citing “consolidated shipping” as the reason. Even when some provide their own House Bill of Lading (HBL), these documents often contain incomplete or incorrect information, making it impossible to track cargo status or safeguard the shipper’s rights in the event of a dispute.

If the forwarder subcontracts the cargo multiple times without proper oversight, the shipping status becomes uncontrollable. The originally agreed shipping method and lead time may not be honored. Once issues arise, identifying who is responsible becomes difficult, leaving the shipper with no clear route for recourse.

Consolidated Shipping Is a Major Hidden Risk in DDP

It’s important to note that DDP shipping is not the industry norm. Many suppliers prefer DDP because their shipments involve sensitive cargo. Freight forwarders, aware of the risks, accept such orders with the same mindset.

To reduce the likelihood of customs inspection, some forwarders mix sensitive goods with regular goods in the same container. If customs flags the shipment, not only will the sensitive cargo be detained or destroyed, but the general goods in the same container may also be penalized.

Cheap DDP Shipping Can Be a Price Trap

Some small-scale freight forwarders attract clients with unusually low shipping rates. Once they receive the goods, they may suddenly raise prices, or worse—disappear after collecting both the cargo and shipping fees, leaving the goods stranded and untraceable.

Shippers who use DDP often do not wish to expose their identity or the nature of their cargo, giving unethical freight forwarders the opportunity to take advantage.

How GeeseNest Handles DDP and Sensitive Cargo Logistics Professionally

As a trusted international logistics service provider, GeeseNest offers professional and secure handling of DDP shipping and sensitive cargo. Our approach includes:

Complete and Transparent Documentation
GeeseNest guarantees legitimate bills of lading, transport records, and customs clearance certificates for each shipment, ensuring full cargo visibility and traceability for shippers.

Dedicated Sensitive Goods Solutions
For items like cosmetics, magnetic products, battery-powered goods, or liquid/cream-based items, GeeseNest uses dedicated channels or carefully grouped sensitive cargo shipments. All items are pre-declared to minimize customs risk.

Controlled Logistics Chain
We maintain full control over the logistics chain with no subcontracting layers. All operations are handled by GeeseNest’s in-house team or certified global partners, ensuring every shipment is secure and traceable.

Transparent Pricing, No Hidden Fees
GeeseNest applies a fully transparent pricing policy. No mid-shipment upcharges or surprise costs—shippers understand the full cost before dispatch.

What Shippers Should Do: Stay Informed, Stay in Control

Even when using DDP, shippers must not rely entirely on the freight forwarder. You should proactively manage key steps:

• Retain All Handover Documents: Include booking orders, invoices, and packing lists. Make sure declared values are accurate and clearly documented.
• Get Container and Carrier Information: Knowing the container number and voyage details helps in tracking the shipment.
• Follow Up and Archive: Communicate regularly with your forwarder, document all transport records and handover logs as proof in case of future disputes.

Conclusion

DDP shipping may appear convenient on the surface, but it hides many risks. This is especially true when dealing with sensitive cargo or working with forwarders offering unusually cheap DDP shipping.

To truly achieve “door-to-door, hassle-free customs clearance,” risk management must start at the source—choosing a reliable freight forwarder. With years of expertise in handling sensitive cargo and compliant DDP logistics, GeeseNest ensures professional, transparent, and secure freight solutions from origin to destination.

DDP vs. Shuang Qing Bao Shui: Cheapest Shipping to US

In the world of international logistics, the term “Shuang Qing Bao Shui”, or “double clearance and duty paid,” is commonly mentioned. While it is often compared to DDP (Delivered Duty Paid), there are important differences in execution and responsibility. This guide will help you understand what Shuang Qing Bao Shui really means, when to use it, and how it compares with standard DDP services.

What Is “Shuang Qing Bao Shui”?

“Shuang Qing Bao Shui” refers to a logistics service where the freight forwarder offers an all-in-one flat rate, which includes:

• Export customs clearance from the origin country;
• Import customs clearance in the destination country;
• All import taxes and duties;
• Required customs documentation throughout the journey.

The term “Shuang Qing” refers to dual customs clearance (export + import), and “Bao Shui” means all import taxes are included. Therefore, “Shuang Qing Bao Shui to Door” essentially functions as a DDP shipping service.

Key Differences Between DDP and Shuang Qing Bao Shui

While both services seem similar on the surface (door-to-door delivery with taxes and duties paid), the responsibilities and legal implications are different:

When to Use Shuang Qing Bao Shui?

This method is best suited for situations where:

• Importing sensitive or restricted goods;
• Buyer cannot provide licenses or certificates;
• Clearing customs through standard procedures is too complex or expensive;
• Goods are being shipped to an overseas warehouse or FBA center without buyer’s tax number.

Risks of Using Shuang Qing Bao Shui

While convenient, this service carries hidden risks:

1. Tax & Ownership Issues

• If sellers use an agent’s VAT/TAX/EORI number, they cannot claim legal ownership over the goods.
• Multiple sellers using one EORI number can result in detentions or customs blacklisting.

2. Invoicing Problems

• If the buyer requests an invoice with official VAT but the seller cannot provide it, this may result in payment disputes or non-payment.

3. Regulatory Liability

• Goods cleared without a traceable VAT history may face retroactive customs audits.
• Mixed containers (“LCL shipments”) using Shuang Qing may be collectively penalized if even one shipment fails inspection.

Case Study: Shuang Qing Bao Shui to the U.S.

A compliant DDP shipment to the U.S. typically involves:

• IOR (Importer of Record): A foreign entity registration with U.S. Customs, which gives you an EIN (tax ID). This is a one-time registration for all future imports.
• BOND: An import guarantee filed with U.S. Customs to ensure duties are paid even if the importer defaults.

Skipping these steps and relying on “Shuang Qing” clearance can trigger investigations and back taxes in the future.

GeeseNest Shipping Reminder

GeeseNest recommends sellers carefully assess whether using Shuang Qing Bao Shui suits their business model. For long-term operations:

• Apply for your own VAT/TAX/EORI numbers;
• Partner with experienced and compliant freight forwarders;
• Choose formal DDP shipping when transparency is required.

For customized door-to-door delivery with taxes paid, insurance included, and real-time tracking, GeeseNest offers reliable air freight from China to Italy, the U.S., Southeast Asia, and more.

Contact GeeseNest to learn about our cheapest shipping to Italy with all-inclusive DDP service.

DDP Trade Terms Explained: Risks and Solutions for Exporters

In international trade, when using DDP (Delivered Duty Paid) terms, there are typically two payment methods: 100% T/T in advance or open account. Common arrangements such as 30% deposit and 70% balance upon presentation of the B/L copy are not applicable under DDP. This is because the final bill of lading is still needed by the seller’s destination agent for customs clearance and delivery.

This highlights a core difference between DDP and CIF. In simple terms, DDP requires the seller to arrange delivery to the buyer’s warehouse overseas. All associated costs, procedures, customs clearance, and shipping risks are borne by the seller.

Therefore, if it’s your first time doing DDP with a buyer, it is strongly recommended to request full prepayment to mitigate risk.

Common DDP Destinations & Application Scenarios

1. Popular DDP Countries: The U.S., France, and other European countries—as well as Russia—are frequently handled under DDP by GeeseNest. French customers especially prefer DDP. Russia is a unique case due to a history of gray customs clearance methods.
2. Why Customers Choose DDP Terms:
   • New importers may lack experience in logistics and customs, relying on the exporter for full delivery.
   • Some buyers (especially in France) prefer to avoid handling logistics details.
   • For sensitive goods or those subject to import restrictions or high tariffs, DDP helps buyers shift risks to the exporter.

Risks for Exporters Under DDP Terms

1. Longer Risk Exposure: Unlike FOB or CIF, where risk transfers once cargo is loaded onto the vessel, DDP keeps the seller liable until the goods reach the buyer’s hands. Exporters should always consider warehouse-to-warehouse cargo insurance to minimize transport risks.
2. Import Country Compliance: Sellers must understand the destination country’s import policies, certifications, and duties. For example, food shipments to the U.S. require FDA compliance in addition to U.S. customs regulations.
3. Complex Cost Estimation: DDP involves many variables. Overlooking costs like customs inspection fees, storage fees, or other charges at destination may impact profit. It’s wise to build in a pricing buffer.

How Exporters Can Mitigate DDP Risks

• Purchase full-route cargo insurance.
• Work with experienced freight forwarders familiar with DDP requirements.
• When requesting a quote, clearly provide:
  • Product names (in Chinese & English), materials, use, and model numbers
  • Harmonized Code (first 6 digits)
  • Destination address and postal code
  • FOB value, dimensions, and packaging details

About GeeseNest Freight Forwarder

GeeseNest is a professional freight forwarder specializing in cross-border e-commerce and global trade logistics. We operate extensively across key routes such as China–US, China–Europe, Japan–Korea, and Southeast Asia. Our strengths include handling sensitive goods, providing door-to-door DDP services, and delivering integrated air-sea transport solutions.

Key Advantages:

• Expert DDP operations across the U.S., Europe, and ASEAN
• Proficiency in shipping sensitive goods: branded products, battery items, cosmetics, liquids, and powders
• Self-developed Shipping Calculator for instant and accurate freight quotes
• End-to-end tracking and multilingual customer service support

At GeeseNest, we deliver safe, reliable, and flexible shipping solutions tailored for cross-border sellers, factory traders, and SMEs. Whether you’re new to DDP exports or seeking a long-term logistics partner, our solutions ensure high cost-efficiency and professional execution.

To request a quote, check shipping lines, or customize your logistics plan, visit our official website or contact our customer service to start your professional cross-border shipping journey today.

Real Cases of Trade Fraud in Exports from China to Uganda

As international trade continues to expand, more Chinese enterprises are entering overseas markets—particularly Africa. However, fraudulent schemes targeting Chinese exporters are increasingly common, especially in the China-Uganda trade corridor. These scams exploit gaps in international logistics and payment systems, leading to cargo losses, port detentions, and significant financial damage.

This article presents real-life fraud cases and outlines common tactics used by scammers. It also offers actionable strategies to help businesses reduce the risks involved in international logistics and cross-border trade with Uganda.

Common Fraud Tactics in the Uganda Trade Route

1. Registering Fake Intermediaries Using Reputable Names

Scammers often register companies in Uganda under the name of well-known foreign or local enterprises. They forge documents, seals, and employee identities to deceive Chinese exporters and sign fake contracts.

2. Encouraging High-Risk Payment Methods (e.g., O/A)

Fraudsters exploit exporters’ eagerness to enter new markets by suggesting open account (O/A) payment terms, where payment is delayed until after goods are received. Once the goods arrive, the buyer disappears without paying.

How Chinese Exporters Can Prevent International Trade Fraud

To protect against such scams, businesses should:

• Use secure payment methods, such as letters of credit or advance payments;
• Verify buyer credentials via multiple channels, including direct contact with the company’s headquarters;
• Investigate intermediaries thoroughly before shipping;
• Collaborate with Chinese embassies or commercial offices abroad to verify suspicious transactions;
• Act quickly in case of fraud and retain transaction records for legal recourse.

Case Studies (Provided by GoNest Logistics)

Case 1: $530,000 Shipment Held Due to Forged Contract

Company A signed a $530,000 sodium hydroxide deal via Ugandan intermediary SAT with “AGCA South Africa.” Payment was O/A 30 days. After delivery, the buyer disappeared. Nineteen containers were moved to Uganda, and nine were detained at Mombasa port. AGCA later confirmed no factory or personnel in Uganda—SAT was a fake intermediary.

Case 2: Suspicious Account Change Prevents Fraud

Company B signed a $136,000 deal with UFM via intermediary CAL. After delivery, the intermediary requested changes to the bank account on the bill of lading. This raised red flags. Official UFM denied the transaction—proving it was fraud.

Case 3: Embassy Investigation Uncovers Fake Buyers

Company C requested verification of UFM and AE buyers via the Chinese embassy in Uganda before shipment. Both addresses were invalid or frequently changed. UFM later confirmed the contract was forged.

Case 4: Impersonation of a Real Company for Scam

Company D signed a $134,000 paraffin wax deal with MIL via BL. Two months later, MIL’s real manager contacted D, saying they had never signed a contract. All documents were forged.

Case 5: Forged Signatures and Identity Theft

Company E signed a contract with a supposed African customer from THEL. Upon suspicion, E contacted the real THEL headquarters, which confirmed it had no branch in Uganda and never authorized the transaction.

Conclusion: Strengthening Controls in International Logistics

International trade, especially in emerging markets like Uganda, presents both opportunities and risks. Chinese exporters must adopt comprehensive risk control strategies—from vetting partners and verifying contracts to choosing safe payment options and managing China-to-Uganda shipping logistics. Proactive measures can reduce the risk of trade fraud, helping businesses grow safely on the global stage.