Category: Logistics News

General Process and Key Nodes for FBA Air Freight to Europe

If you want to sell products in Europe, Amazon FBA is definitely an unavoidable choice. However, how to safely and quickly deliver goods to Amazon’s European warehouses has become a headache for many sellers. Although sea freight is cheaper, it takes too long and often misses the peak sales season. At this time, FBA air freight has become the first choice for many sellers. But FBA air freight is not something that can be done by simply finding a logistics company. The process is complex and there are many pitfalls. Today, we will have a good chat about the general process of FBA air freight to Europe and the important nodes in it, hoping to help you avoid the pitfalls and successfully deliver the goods. If you want your products to enter the European market quickly and take full advantage of Amazon FBA, choosing the right air freight strategy is crucial.

What is FBA Air Freight?

FBA stands for Fulfillment by Amazon, which is Amazon’s logistics. Simply put, you hand over the goods to Amazon, and they will help you with warehousing, packaging, shipping, and even after-sales service. FBA air freight is the use of air freight to transport your goods to Amazon’s warehouses in Europe.

Compared with sea freight, the biggest advantage of FBA air freight is its speed. For those products that need to be replenished quickly or have strong seasonality, air freight allows you to enter the European market faster, seize business opportunities, and increase product turnover. Some high-value goods with high timeliness requirements, such as electronic products and light luxury goods, are also very suitable for choosing FBA air freight. Through FBA, you can focus on product sales and marketing, and leave the complexity of logistics to Amazon. Moreover, using FBA can also improve the ranking of your product listing on Amazon.

Detailed Explanation of the General Process of FBA Air Freight to Europe

The process of FBA air freight to Europe is relatively complex, involving multiple links, which requires close cooperation between sellers and freight forwarding companies. Below, we will analyze the entire process step by step in detail:

• Step 1: Power of Attorney

First, you need to provide a power of attorney to your freight forwarding company. The power of attorney is equivalent to an “authorization letter,” authorizing the freight forwarding company to handle subsequent transportation matters for you. The information that needs to be included in the power of attorney is very detailed, including:

• Shipper (your company or personal information)
• Consignee (address information of Amazon’s European warehouse)
• Port of Departure (the airport from which your goods are shipped)
• Port of Destination (the European airport where the goods arrive)
• Cargo Information (product name, quantity, weight, dimensions, etc.)
• Declared Value (the value of the goods, related to insurance and tariffs)
• Special Requirements (such as whether to palletize, whether to use special packaging, etc.)

Be sure to carefully check all the information on the power of attorney to ensure it is accurate. Once there is an error, subsequent customs declaration and clearance will be affected. When using FBA air freight services, ensuring all documents are accurate is critical.

• Step 2: Commodity Inspection

Not all goods require commodity inspection. Generally speaking, some goods involving safety, hygiene, and environmental protection, such as food, cosmetics, and some electronic products, may require commodity inspection. You need to consult your freight forwarding company in advance to confirm whether your goods require commodity inspection. If commodity inspection is required, you need to cooperate with the freight forwarding company to provide relevant materials and samples, and pay the corresponding fees.

• Step 3: Booking

Booking is to reserve space with the airline. The freight forwarding company will select the appropriate route and carrier based on your cargo information, destination, time requirements, etc., and reserve space with the airline. Choosing the right route is very important, which is directly related to transportation time and freight. Different airlines may also have different freight rates and services. Therefore, you need to compare multiple parties to strive for a reasonable freight rate. When considering using FBA air freight, planning ahead can help you find better prices.

When booking, you need to provide detailed cargo information, including product name, quantity, weight, dimensions, etc. This information will be used to calculate freight and arrange space.

• Step 4: Receiving Goods

There are two ways to hand over the goods to the freight forwarding company:

• A: Shipper delivers the goods themselves: If your factory or warehouse is relatively close to the airport, you can choose to deliver the goods yourself. You need to make an appointment with the freight forwarding company in advance for the delivery time, and provide contact person, address, telephone and other information. When delivering the goods, be sure to bring all relevant documents, such as packing list, invoice, etc.
• B: Freight forwarder picks up the goods: If it is not convenient for you to deliver the goods yourself, you can choose to have the freight forwarding company pick up the goods at your door. You need to provide accurate pick-up address, contact person, telephone and other information to ensure that the freight forwarding company can pick up the goods in time.
• Step 5: Goods Enter the Airport

After the goods enter the airport, they will go through a series of operating procedures:

• Tallying: Classifying and sorting goods according to different destinations and flights.
• Weighing: Weighing the actual weight of the goods for calculating freight.
• Printing List: Printing the air waybill.
• Auditing Documents: Auditing the relevant documents of the goods to ensure they meet the requirements.
• Filling in the Waybill: Filling in the air waybill, including cargo information, consignor and consignee information, flight information, etc.
• Receiving Goods: Confirming that the goods are intact.
• Marking and Labeling: Pasting relevant marks and labels on the goods for easy identification and management.

In each link, ensure the safety of the goods to avoid loss or damage.

• Step 6: European Air Freight Export Customs Declaration

Export customs declaration is a necessary link for the legal shipment of goods. The process of export customs declaration is relatively complex, and is generally operated by professional customs brokers. You need to provide relevant customs declaration documents, including:

• Customs Declaration Form
• Packing List
• Invoice
• Contract
• Power of Attorney for Customs Declaration
• Other Required Documents

The customs declaration process mainly includes:

• Computer Pre-entry: Entering customs declaration information into the customs system.
• Stamping the Customs Declaration Seal: Stamping the official seal of the customs declaration unit on the customs declaration form.
• Preparing Customs Declaration Documents: Preparing complete customs declaration documents.
• Declaring to Customs: Submitting customs declaration documents to customs.
• Customs Review: Customs reviews customs declaration documents and verifies cargo information.
• Stamping the Release Seal: After the customs review passes, the customs stamps the release seal on the customs declaration form, allowing the goods to be shipped.

The preparation of customs declaration documents is very important. Once a problem occurs, it may lead to the goods being unable to pass customs smoothly.

• Step 7: Signing the Bill

Signing the bill refers to signing the air waybill after customs release. Signing the bill is the guarantee for the legal shipment of goods.

• Step 8: Handover and Shipment

After the goods complete customs declaration procedures, they can be handed over to the airline for shipment. The handover and shipment process includes:

• Submitting Documents: Submitting relevant documents to the airline.
• Delivering Goods: Delivering the goods to the airline.
• Pasting Cargo Labels: Pasting relevant cargo labels on the goods.
• Counting and Verifying Goods: Counting and verifying the quantity and information of the goods.
• Filling in the Cargo Handover List: Filling in the cargo handover list to record the handover situation.
• Step 9: Flight Tracking

After the goods are shipped, you can use the flight tracking number provided by the airline or freight forwarding company to keep track of the transportation status of the goods at any time.

• Step 10: Arrival

After the goods arrive at the European airport, they need to be cleared through customs. After customs clearance is completed, the goods can be delivered by Amazon’s logistics team, or the consignee can be notified to pick up the goods. Choosing FBA air freight means you need to closely monitor the customs clearance process and ensure all documents meet European standards.

Important Nodes and Precautions for FBA Air Freight to Europe

In the process of FBA air freight to Europe, there are several important nodes that need special attention:

• Customs Clearance Issues: Different countries have different customs clearance policies. You need to understand the customs clearance policies of the target country in advance to avoid problems. Common customs clearance problems include: incomplete documents, false declarations, and goods that do not meet standards.
• Tariff Issues: All European countries have tariffs. You need to understand how tariffs are calculated and reasonably declare the value of the goods to reduce tariff costs.
• Label Issues: FBA labels are very important and must be pasted according to Amazon’s requirements. Unclear labels and incorrect information may lead to the goods being unable to be put into storage.
• Packaging Issues: The packaging should be strong and able to withstand the bumps of long-distance transportation. Amazon also has specific requirements for packaging, such as outer box size and weight.
• Choosing the Right Freight Forwarder: Choosing an experienced freight forwarder familiar with the FBA process is very important. They can help you deal with various problems and ensure that the goods arrive smoothly.

An experienced FBA freight forwarder can help you avoid many potential pitfalls and ensure your goods comply with all relevant regulations. When using FBA air freight services, be sure to carefully check all the details.

How to Choose a Suitable FBA Air Freight Service Provider?

Choosing a reliable FBA air freight service provider can save you a lot of trouble. So, how to choose?

• Qualification Certification: Check whether the service provider has relevant qualification certifications, such as the Non-Vessel Operating Common Carrier (NVOCC) qualification certificate.
• Service Experience: Understand the service provider’s experience in the field of FBA air freight, and whether there are successful cases.
• Service Network: Confirm whether the service provider has a complete service network covering Europe and can provide door-to-door service.
• Price Transparency: Choose a service provider with open and transparent pricing to avoid hidden costs.
• After-Sales Service: Investigate the quality of the service provider’s after-sales service to ensure that problems can be resolved in a timely manner.

Choosing the right FBA air freight service provider is crucial to ensuring that your goods arrive at Amazon’s European warehouses in a timely and safe manner. A good service provider will provide comprehensive FBA support, including customs clearance, transportation, and warehousing.

Summary

The process of FBA air freight to Europe is indeed relatively complex, but as long as you understand the key links and choose a reliable freight forwarding company, you can successfully send your products to Amazon’s European warehouses and expand your European market. I hope this article can help you better understand FBA air freight and make full preparations. I wish you a prosperous business! When you consider using FBA, remember to plan ahead and choose the service that best suits your business needs.

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.