First Point Freight Ltd.

Canada A Valuable Trade Partner For The UK

First Point Freight Ltd — Thu, 22 Dec 2011 10:54:27 +0000

As the second largest country, Canada boasts having 10 provinces and 3 territories with its capital city being Ottawa in the province of Ontario. To really understand the size of Canada, its has 6 time zones! With a population of over 33 million people and 2 main languages of English and French, Canada has a fantastic quality of life – where it has been reported that the country ranks fourth globally for its standard of living.

From a business perspective, Canada remains an important trade partner for the UK, with companies of all sizes – both large and small – having business partnerships with companies in Canada. Being one of the most developed and richest countries, Canada ranks within the major 10 industrial powers.
Even with the recent global recession and economic downturn, Canada has remained strong and continues to be a highly desirable country for British businesses. With many opportunities available, Canada presents some fantastic and financially rewarding challenges to a wide range of industry sectors including:

Aerospace
Automotive
Energy and Power
Media
Pharmaceuticals / Healthcare
Biotechnology
Financial Services
Defence / Security
Oil Related

With many similarities between the UK and Canada, such as cultural ties, along with legal and political arrangements, the United Kingdom is now the main European trading partner to Canada. During 2008 there were reports published that exports reached over GBP £3.2 billion pounds, making Canada the UK’s 16th largest export market. It is no surprise then, that after the United States, the United Kingdom was the second largest foreign investor directly in Canada.

Shipping To Canada?

First Point Freight provides both export and import shipping services by sea freight and air freight, between the UK and Canada. For further information on shipping to Canada, please call our office today on 0843 289 2747 or contact us via our website.

Why Using A Small Independent Freight Forwarder Can Be Good For Your Business

First Point Freight Ltd — Tue, 04 Oct 2011 16:17:15 +0000

The freight forwarding business is a massive industry earning literally billions of pounds every year; DHL post revenues of nearly £12bn annually. That being said, how should you choose your freight forwarding company? Should you essentially ‘go with the flow’ and choose one of the larger, global companies that we see all over the place or should you choose a smaller, more independent freight forwarder?

The decision to go with a smaller freight company has several benefits not least because they have the advantage of lower overheads and expenditure. Why is this a good reason to choose them? Well, for a start they could very well be in a position to undercut the larger corporations and offer a discount. Because the bigger and more globalised businesses generally only operate at fixed rates so as to cover their costs and to consistently appear to be making a profit, the smaller companies are not so superficially conscious and therefore can often do the same job at a lower rate while not sacrificing any of their profits (due to the smaller overheads that we mentioned) or quality of service.

Secondly, a smaller freight forwarding company will no doubt offer much more of a personalized service. The worst thing about using a massive corporation is that you often just feel like another statistic; you never get the compassion and tailored service that you do with independent freight forwarders. If something were to go wrong it is far more likely that the smaller freight company will do everything in their power to rectify it as soon as possible whereas the larger corporation would probably have several problems going on at once and therefore it would take longer to fix the issue.

Indeed, you can find that you will have much more choice when it comes to using a less well known freight forwarding company. Many of the bigger household names have links with just a couple of airlines or shipping lines and routes and therefore it will have to be those that you use; however with a smaller freight forwarder you will, more often than not, have the choice of which airline of shipping route to take based on your preference. Whereas you may get a slight discount with a bigger company based on their links with a few select haulers, you will be able to select the route that you need with an independent freight company and this frequently means that you will receive your goods quicker and more efficiently.

The smaller freight companies out there can sometimes have a tough time of it however by using them you will be ensuring that you are given a more personal experience, often at a better price and certainly more choice when it comes to the way in which your products are delivered.

The Purpose Of A Customs Clearance Agent

First Point Freight Ltd — Tue, 04 Oct 2011 16:11:44 +0000

Since the world has developed into a global economy, lots of companies – both big and small – are importing goods from abroad into the UK. It is a fact that having your goods produced in a foreign country – Asia for example has become the place to have goods manufactured and then shipped to the UK – can result in huge savings and therefore a bigger margin of profit; however why do you need a customs clearance agent and what is there job in getting your goods into Britain?

Everything that comes from outside the EU has to go through customs first before it is deemed acceptable to enter the country, much in the same way that you have to go through passport control at the airport. This is where a custom clearance service comes in. For sure, you could look into doing the customs aspect yourself but surely hiring a qualified professional is a much better option? For instance, consider the amount of paperwork that is associated with customs clearance and bringing products into the UK, especially if they are in bulk. On top of everything else you have to do, is a mountain of paperwork really necessary? Indeed, how do you know what forms to fill in and what specific information to give?

In addition, how do you know if your goods are susceptible to any tariff or duty charges especially if they are coming from Asia? Using a custom clearance service can prevent any legal problems further down the line or thwart a hold up of getting your products into the country. If you have ordered in bulk and paid a lot of money to have these commodities manufactured and shipped from abroad then the last thing you need is for them to be held up by UK customs because you have failed to complete the necessary paperwork or paid the right duty on them; a custom clearance agent can sort all of this out before it becomes an issue.

Indeed, customs clearance also assists in the transportation of your goods. Your insurance may not cover your merchandise from damage if they are not packaged correctly during shipment and you could potentially incur a massive loss should anything happen; by using a custom clearance service you can prevent this as they assist in getting the right mode of transportation and making sure the right packaging is available to ensure that your products arrive to the UK and make it through customs safely and securely.

Hiring a custom clearance service, to inexperienced importers, may seem like an unnecessary expense however if something should go wrong then you will soon find out how important their job is. By using a custom clearance agent you will be making sure that your cargo not only reaches the UK in one piece, but also makes it through the tangled web of UK customs.

Importing Goods From Hong Kong, Why You Should Choose A UK Freight Forwarder

First Point Freight Ltd — Tue, 04 Oct 2011 16:05:13 +0000

Having your goods manufactured and then shipped to the UK from a foreign country always carries a risk. How do you know they are being made and packaged properly in a country that is thousands of miles away? Indeed, how do you know that you have got the best deal? This is all part of business however what you can do to reduce the risk of shipping from Hong Kong is using a UK based freight forwarder when having your goods delivered.

Whereas China is now the country that specializes in the manufacture and exportation of goods worldwide, Hong Kong is still highly desirable given that it is a wedge between east and west trade and offers no state intervention in private deals; therefore your products are not bundled down with any tariffs or duty. Indeed, some 6m containers pass through Hong Kong’s bustling port every year so why should you use a UK based freight forwarder?

Firstly, a UK based freight company will know the best way to get your goods from Hong Kong to the UK and then through the British customs control. While in Hong Kong you do not need to pay any duty on goods, that is not always the case when it comes to Britain and by using a Hong Kong freight forwarder who is not as experienced in UK customs control, you could find a hefty fee added on to the overall cost of your imports from Hong Kong. Indeed, shipping from Hong Kong and using a Hong Kong based freight company could mean that your products end up sitting in a container over there for a sustained period of time whereas a UK freight forwarder is more likely to have them shipped over at the first available opportunity given that you will be able to contact them easier. Communication is key in this instance.

Shipping from Hong Kong to the UK is not as difficult a prospect as you may think. Thousands do it and Hong Kong is one of the largest and most efficient ports in the world; that being said, why carry any unnecessary risk? By using a UK freight forwarder you will be ensuring that you can keep in constant contact with the company to track your goods as they are imported from Hong Kong and also ensure that there will be no hidden charges or preventable issues along the way.

How Shipping From China Can Be Beneficial To Your Business

First Point Freight Ltd — Tue, 04 Oct 2011 16:00:05 +0000

Given that China can now boast to having the fastest growing economy on the planet, it is only reasonable that so many companies are looking to the Asian superpower to produce their goods. Indeed, shipping from China has grown considerably over the last decade or so and some 26% of all containers worldwide can trace their origins back to the country giving a clear indication of its immense economic might and potential.

However, how can importing from China help your business? For a start, competition over there is extremely healthy as more and more manufacturers are trying to entice western companies to use their service and in some cases businesses can have their products made for 30% less by using Chinese manufacturing companies. Examples are evident and plenty; of all the microwaves sold in Europe, nearly 50% are produced in China and the same goes with washing machines where 25% of the market share in production originates in Asia. Even smaller items like cigarette lighters can trace their origins back to China’s massive manufacturing base.

Furthermore, shipping from china has never been easier and most UK freight companies offer very competitive rates to get your goods over to Britain with little hassle. While you could argue that having your goods produced from with the EU – or even inside the UK itself – would eradicate any potential shipping and freight fees that you might experience by shipping from China, you have to consider the massive potential savings in having your goods manufactured in Asia; and that is after you factor in the cost of importing from China.

Imports from China are currently third on the list of UK importation overall (only coming behind the United States and Germany) and it amounts to around £5bn per annum. Even given that wages in China have increased fairly rapidly over the past 2 decades – they are currently about 4 times as high as they were in the late 1980’s – this hasn’t had a massive effect on manufacturing costs and it still makes having your goods made and then importing from China far more efficient and economical then doing the same from, say, Europe or America.

The massive manufacturing and industrial base that China currently has at its disposal as well as its immense and committed workforce make it an extremely attractive prospect for many foreign businesses. It is this gigantic base and numerically colossal workforce that is its own benefit as competition is huge meaning that, if you search around you will find the right price to have your goods manufactured and sent over to the UK. As long as you are using a UK based freight company – many of the Chinese ones and those that are endorsed by Chinese manufacturing companies are often more expensive than their UK counterparts – then importing from China could be an extremely shrew move for your businesses future.

Container Shipping From China

First Point Freight Ltd — Tue, 04 Oct 2011 15:54:22 +0000

Around 90% of all cargo over the globe is transported via container shipping and a massive 26% of this comes from China. Indeed, given its massive manufacturing base and overflowing workforce, China has become the place for foreign companies to have their goods produced and then shipped over and shipping from China itself has never looked a more promising and appealing option.

That being said, if you are going to be shipping from China then a brief introduction to the different containers that will be used is necessary. Essentially there are 3 main sizes of containers; 20 foot, 40 foot and 40 foot high-cube. As it suggests, the number is representative of the length of the container itself and they are all around 8 foot in width.

It is important, however, to note the capacity of these containers if you are going to be shipping from China. The 20 foot container can hold a weight of around 24,250 Kilos (53,460 lbs) and the 40 foot and 40 foot high cube are similar in their weight bearing capacities: 28,800 Kilos (63,491 lbs) and 28,570 Kilos (62,984 lbs) respectively. Indeed, it is the 20 foot and regular 40 foot that are the most popular or container sizes given that they can be easily and quickly packed onto transport and they are both frequently used for the importation of cars. The high cube container, that we mentioned, can be slightly more difficult to load and unload however that is only down to its added height so they are definitely more useful for taller items.

However, how can using a container shipping service from China help your business? For a start, competition is vast in Asia and therefore the opportunity is there to haggle and achieve the best price possible for shipping from China. Furthermore, China shipping also benefits from having 3 of the 5 largest ports in the world in regard to container shipping. Since China joined the WTO in 2001 and has began to open up its economy and utilise its massive manufacturing and production facilities, the prospect of using Chinese logistics to have your goods delivered from Asia to the UK is becoming increasingly attractive and even more so given the huge strides forward in infrastructure building that the country has taken in recent years.

Container shipping from China has grown steadily from the end of the last century and it doesn’t show any signs of stopping any time soon given that the Chinese economy is currently the fastest growing in the world and it has a gigantic amount of domestic resources to call upon. Using a container shipping service from China can really boost the profits your business makes by driving down its expenditure on importing from China. The global economy is fast moving eastwards and it would be wise to get in on the act now while the going is strong.

The Importance of Trade Between China And The United Kingdom

First Point Freight Ltd — Mon, 22 Aug 2011 10:53:21 +0000

The trade relationships established between China and the United Kingdom will stand as one of the most important such relationships in the Twenty-First century. Trade between China and the United Kingdom is beneficial for both countries. Relations between the two countries have been relatively stable since the end of the Cold War, which is in marked contrast to the relationship between China and the United States. That relationship has witnessed multiple ups and downs over the past years with notable diplomatic tensions.

In 2010, the trade relationship between China and the United Kingdom reached a record high; $40.2 billion in exchanged goods. This is phenomenal news for both countries. China has also emerged as one of the largest foreign investors in the United Kingdom, it is the second largest foreign investor in the country. Likewise, the United Kingdom is the sixth largest foreign investor in China. This dual partnership keeps both country’s economies running, a vital fact for any nation.

China and the United Kingdom can only grow in their special trade relationship. In recent years, tourism visits between the two countries has expanded greatly. Not only does each nation benefit from the visitors to their lands, tourism fosters cultural ties. This exchange of values and ideas crosses proverbial bridges between two countries with differing political systems. Fostering a unique trade relationship between China and the United Kingdom makes the world a more peaceful, less volatile place.

The trade relationship between China and the United Kingdom bridge the gap between East and West, and it is an example to be followed by the rest of the world. The history of the relationship between China and the United Kingdom has not been an easy one. In fact, it has been marked by imperialism by the United Kingdom’s former colonial presence in East Asia, as well as the multiple Opium Wars. For much of the Twentieth Century, the relationship was marked by the Cold War, as each nation found itself on different sides. In the past thirty years, since China’s opening to the world, the relationship between China and the United Kingdom has set an example for the rest of the world to follow.

There are so many aspects to a successful trade relationship, from number figures of money exchanged, to the peace the ultimately ensues from cultural understanding forged through tourism. China and the United Kingdom only have room to expand in their emerging relationship as trade partners.

Importing From China – 5 Things To Consider First

First Point Freight Ltd — Tue, 16 Aug 2011 13:19:59 +0000

Deciding to import goods from China is all good and well, but if you do not know the answers to the following 5 important points, then you could find the whole process of importing goods from China to be complex, time consuming and expensive. Without doubt it is essential that you consider the following points and ensure you know the differences and how they could affect your business financially. Assuming you know the product(s) you want to import into the United Kingdom, consider the following points when contacting any potential suppliers in China.

What quantity of product(s) do I require?

You should consider the product quantity required and discuss with the supplier the costs to supply your chosen quantity and also what difference there is when increasing or decreasing the order quantity. For example if you are looking to place an order of 100 items, what is the difference in cost if you ordered 125 items, 150 items or 200 items for example.

Do you also bear in mind that at this stage of discussing possible orders with Chinese suppliers, you should also ask for confirmation of the overall weight and volume of the shipment, so that your freight forwarder can provide you with a shipping quotation. Any freight company will need this information, in order to be able to provide you with an accurate quotation for the shipping of the goods. A supplier in China will be very use to giving this information and many automatically include it, when providing written quotations to potential clients.

Under what terms am I purchasing the goods?

When purchasing and selling goods internationally, there are certain terms used for the shipping of goods which identifies what terms the goods have been sold under. Referred to as incoterms, there are a wide range of varying terms, meaning differing responsibility and liability between the buyer and the seller. You should make yourself familiar with incoterms and ensure you are purchasing goods under the terms that suit your business best. Whilst this is not an exhaustive list, many of the main incoterms used are FOB, EXW, CFR, CIF, DDP and DDU.

FOB – Free On Board

EXW – Ex-Works

CFR – Cost & Freight

CIF – Cost, Insurance & Freight

DDP – Delivered Duty Paid

DDU – Delivered Duty Unpaid

Example:
If you are purchasing the goods FOB, then your supplier will be responsible for getting the goods from their warehouse/factory to the port/warehouse of departure. So if you purchased the goods FOB Shanghai for example, the supplier would be responsible for getting the goods from their warehouse/factory to Shanghai airport/seaport, depending on the mode of transport being used. The supplier is responsible for the costs involved in doing this, including local airline handling or terminal handling charges.

How long will it take for my goods to arrive from China?

The factor that determines this is whether you are using an air freight or sea freight service. Naturally air freight offers faster transit times, but this comes at a premium, whereas sea freight is slower, but generally a more economical way of importing goods from China. As a guide you can expect a standard air freight services to take anywhere between 4 to 6 days and sea freight from 23 to 29 days, depending on the port the goods are sailing from.

Sometimes you will find that for smaller shipments, anywhere up to 200 Kilos, it could be more cost effective to send on an air freight service, due to minimum charges imposed by shipping lines.

Cost Vs Transit Time

As with any business costs are very important and no more so, when it comes to dealing with the importation of goods from overseas. You want to know exactly what it is going to cost your business to import a particular product(s). The problem is that wanting the cheapest price possible with the best possible shipping price does not work. You need to remember that air freight and sea freight are two completely different shipping services hence the difference in price. Hoping to achieve air freight transit times at sea freight prices is not going to happen!

Bear in mind that with air freight, most freight forwarders should be able to offer you a couple of options, such as a direct service and indirect service. With a direct air freight service the shipment will travel directly from the airport of origin (Shanghai for example) to the destination airport (London Heathrow). With an indirect service the shipment will transit 1 or more hubs, prior to arriving at the airport of destination. Depending on which indirect service is being used, will determine the transit hub(s) applicable. The difference in price can be quite a lot, when comparing a direct service against an indirect service and if you are desperate for the goods then a saving of 1-2+ days can be made using a direct service.

Import Duty & Import VAT

One vital aspect to consider when importing goods is the matter of import Duty and import VAT, as well as the legalities on the importation of the goods you are looking to bring into the United Kingdom. After all as an importer, you are responsible for checking if the product(s) you are importing are allowed into the UK, along with checking on any specific import documentation that is required to customs clear the goods into the UK, such as an import licence.

Failure to ensure that you have the correct permission and documentation to import the goods, could result in your freight forwarder not being able to customs clear the goods until such time that the correct documentation is available. This could mean you incurring very substantial storage charges from the airline or shipping line.

This is a brief overview of 5 important things to consider when importing goods from China or any other overseas origin. For further information or assistance please contact First Point Freight Limited on 0843 289 2747.

A Guide To Finding Your Supplier In China

First Point Freight Ltd — Wed, 10 Aug 2011 13:03:26 +0000

So you have decided to import goods from China and believe to have found a niche that is going to be profitable for you. The first step is to source a Chinese supplier whom can supply you with the right goods at the right price.

China is full of companies that can manufacturer and supply a whole host of goods and products. Literally any product you can think of can usually be sourced in China and locating suppliers is a lot easier than you might think. With the help of the internet, there are many online business directories packed full of Chinese suppliers whom are offering their services to British businesses. As well as online directories, trade journals and visiting exhibitions may also be a useful way of finding suppliers in China. Try to find a good selection of suppliers and enter in dialogue with all of them. Remember you are in business to make money and therefore don’t be tempted with the first supplier that gives you the product you require at the best possible price. Negotiate with the suppliers, request samples of the products they produce and be sure that you are 100% happy, before placing an order.

You should also discuss the shipping process with your Chinese supplier, I would personally always recommend buying goods FOB from China and this is purely because I know that sometimes when purchasing CIF or C&F, this can become an expensive way of importing goods from China, once they arrive at UK port. Remember you are paying for these goods and you are therefore entitled to use whichever shipping company you like. Don’t be persuaded to use the shipping company recommended by your supplier, as this can turn out to be a very expensive lesson. Don’t be tempted by “cheap shipping” prices quoted by the supplier, it is not uncommon for some suppliers to quote very cheap shipping prices and on certain occasions even “free shipping” for large orders. If it seems too good to be true, then usually it is! Any savings that you believe you are making by shipping from China using your supplier, can turn out to be a nightmare once the goods arrive in the UK and will cause endless headache to you and your business. It could even mean that the whole shipping process, has wiped out any potential profitability you had on the goods.

Before placing an order with the supplier, ask for samples to be sent to you, so you can see the quality of the products and work they do. Whilst some suppliers may send you samples free of charge, others may ask for a small fee to be paid, maybe just to cover the cost of shipping the samples to you.

Once you are happy and ready to place your order, most suppliers will ask for a 30% deposit at the time you place the order with the remaining 70% due at the time the goods are finished and ready to be shipped. As I mentioned earlier, you should purchase the goods FOB (Free On Board) meaning that the supplier will be responsible for getting the goods to a named port by you, usually either the local port to the supplier or the shipping companies’ warehouse in the same location. Remember if you are purchasing the goods FOB, you will need to appoint a freight forwarder who is experienced in the shipping process from China. You will want to work with a company that understands the process of importing from China from start to finish.

For further information on shipping from China, contact First Point Freight Limited today on 0843 289 2747.

Understanding The Importance of Shipping FOB from China

First Point Freight Ltd — Tue, 26 Jul 2011 10:46:51 +0000

There really is no denying that China’s manufacturing sector is indeed a thing to reckon with for the business sectors from other countries worldwide. Apart from the fact that most products from China are cheap, the importance of shipping FOB from China also spells the big difference. Hence, more and more countries are now enticed to import different products from China for obvious reasons of having them at real affordable prices.

Before deciding to import any products from China, there are a lot of things that you definitely need to consider to make the business endeavor a lot favorable and really worth the effort. Deciding on the kind of product to import from this country should be one of your first major concerns along with understanding the importance of shipping FOB from China. Apart from scrutinizing the product that you need to import from this country it is also really important for new importers to understand free on board or FOB for hassle-free shipping of the goods that are imported from China.

The importance of shipping FOB from China is a thing that a new importer should fully gasps especially when asking for price quotations before making actual importation. You need to understand that it is really important to conduct some sort of research on hundreds of manufacturers in China. You need to narrow down your search results to only at least three manufacturing companies where you think you can get the best importation for a particular product that you have chosen to import.

When searching for wholesalers from China, make sure that you take into consideration the price quotation that these manufacturers will provide you. It should include a concrete listing of prices and a well-stipulated international commercial term including a detailed free on board or FOB. The importance of shipping FOB from China should be your first concern especially if you are a first time importer of goods from China. You need to realize the essence of this incoterm to minimize the cost and risks of every shipment of imported goods specifically from China.

It is really important for first time importers to know the importance of shipping FOB from China. It will not only lessen the cost shipment but also lessens the risks relative to the shipment of imported goods from that Country. Hence, before making actual importation you need to come up with a concrete and well stipulated FOB stating detailed shipment instructions wherein the seller is obliged to ship your imported goods to a specific shipment mode you have preferred and stipulated.