DAP Incoterms: Delivered at Place

22.07.2024

Let’s delve into one of Incoterms 2020, the rules for domestic and international commercial transactions in terms of ownership, payment and delivery: today we are talking about DAP, or “Delivered at Place,” which is often associated with DDP, “Delivered Duty Paid.” What do they mean and how do they differ? What are the advantages? 

DAP: what does Delivered at Place mean? 

The DAP incoterm is a “Delivery at Place” clause, meaning that the seller makes the goods available to the consignee at an agreed location, but without taking care of the unloading of the vehicle: therefore, he retains responsibility for the goods shipped up to that point.  

It is therefore the seller who is obliged to take care of customs clearance for export and bear all the risks associated with delivering the goods to the agreed point, such as:  

  • Theft. 
  • Loss. 
  • Damage. 
  • Destruction. 

Should any of these events occur, or in the case of any other default, the seller remains liable to the buyer. 

When a shipment crosses several countries, with DAP surrender it is the seller who will also take care of the formalities that may be necessary in any of the transit countries. 

The buyer, on the other hand, must take care of: 

  • Import customs clearance. 
  • Post-delivery transit. 
  • Possible post-delivery transportation through third countries. 

DAP Incoterms: who pays for transportation? 

As we also mentioned in this article, the DAP Incoterms 2020 clause, as well as DPU and DDP, belongs to group D: this group of clauses stipulates that regardless of the means of transportation used and the number of transports required, the seller will bear the costs and risks until delivery at the destination of the goods. 

On the dedicated page of the CTI website, you can see a summary table showing which costs are chargeable to the seller and which to the buyer. In the row corresponding to the DAP, you will find that the seller is entitled to the costs up to unloading: 

  • Freight to delivery/destination. 
  • Export customs clearance. 
  • Delivery of transport documents. 
  • Control of goods at export. 
  • Unloading costs, if stipulated in the transport contract (in exceptional cases). 

Once the cargo has arrived at its destination, responsibility passes to the consignee who will also take care of any other import-related expenses: 

  • Importation. 
  • Customs clearance at destination. 
  • Possible storage at the destination. 
  • Unloading at warehouse. 
  • Any other post-delivery transportation. 

Incoterms: DDP vs. DAP 

The DAP incoterm is often equated with DDP, another Group D incoterm, which means “Delivered Duty Paid“. This clause is the one that carries the highest level of obligations for the seller. The major difference between DDPs concerns the responsibility for import customs clearance. 

Both clauses provide that the seller is responsible for the goods until arrival at the point of destination, with no obligation to unload the means. In the case of DDP, however, it is always the seller who has the burden, and thus the expense, of customs clearance not only on export, but also for import and all customs formalities. 

They will also always be borne by the seller, VAT or other similar taxes for import unless otherwise agreed in the sales contract. 

If you need more information we are at your disposal: please contact us! 

Pharmaceutical logistics: guarantee of safe and reliable shipments

05.02.2024

In the constant development of pharmaceutical logistics, ensuring reliability and safety in shipping methods has become an essential prerogative.

The traceability of the pharmaceutical products’ journey, preservation measures, and quality control are just a few of the key elements of the correct distribution chain, which in the pharmaceutical sector is strictly regulated.

The role of logistics in the pharmaceutical sector

Pharmaceutical logistics plays a very important role in the management of drug transportation. This complex coordination system is responsible for ensuring utmost care in the movement of drugs along the entire distribution network.

The preservation and management of pharmaceutical goods involve a series of responsibilities that require not only advanced skills in logistics management but also the rigorous adherence to high standards of quality and safety. These standards are crucial to preserve the properties of the medicine from the beginning of its journey to its destination.

Challenges and solutions in pharmaceutical logistics

The pharmaceutical logistics sector faces complex challenges related to regulatory integration, traceability, and temperature management of goods during transport.

The need to integrate quality control systems into shipping methods highlights the importance of adhering to strict regulations that impose complex management of operations systems. Additionally, the traceability of pharmaceutical products throughout the supply chain is fundamental to monitor the goods in detail, respecting deadlines and avoiding economic waste.

Ensuring the preservation of drugs at controlled temperatures during transport is also a growing priority. The increasingly personalized nature of medicines and the spread of temperature-controlled biopharmaceutical products necessitate the adoption of specific technological systems and vehicles equipped with special equipment to cope with thermal variations.

Best practices for shipping in the pharmaceutical sector

In the pharmaceutical sector, the effectiveness of shipments is crucial to ensure safety and compliance with regulations. One aspect to consider is the use of specialized packaging designed to protect drugs during transport. The materials of these packages must comply with the regulations of good distribution practice of drugs to ensure product stability.

It is also important that shipments are equipped with advanced systems for recording and monitoring environmental conditions to ensure that drugs remain within the required temperature limits throughout the entire distribution chain.

Moreover, the implementation of robust security procedures, such as operator authentication and risk management, contributes to preventing counterfeiting and ensuring product quality.

Traceability in drug transportation

Drug traceability is another element that facilitates identification and recording to track the drug’s journey throughout its entire route.

Let’s look specifically at the most commonly used traceability systems in pharmaceutical logistics:

  • Barcode and RFID (Radio-Frequency Identification): The use of barcodes and RFID tags allows for quick and accurate identification of products during all stages of the distribution chain. These systems facilitate traceability and enable precise inventory control.
  • Order and Inventory Management Systems: Advanced software platforms that provide real-time visibility on order status, product availability data, facilitating stock management.
  • Blockchain: This technology offers a decentralized and secure solution for recording transactions along the pharmaceutical supply chain. Blockchain provides immutable traceability, reducing the risk of fraud and counterfeiting.
  • Serial Tracking Systems: Some pharmaceutical products require detailed serial tracking to monitor each individual item. These systems provide a very high level of detail in product traceability.

Regulations and compliance in the transportation of pharmaceutical products

Pharmaceutical companies must adhere to GxP (Good Practices) regulations. These are a set of rules that establish high standards for the production, management, transportation, and distribution of drugs.

GxP regulations include:

  • Good Manufacturing Practices (GMP)
  • Good Distribution Practices (GDP)
  • Good Clinical Practices (GCP)

Temperature management is therefore particularly critical, and regulations often require the use of thermal packaging and temperature monitoring systems during transport.

Compliance with regulations is therefore crucial to avoid legal sanctions and ensure consumer trust: relying on specialized and certified logistics partners is an additional guarantee for safe pharmaceutical transport.

Need a quote or looking for a reliable partner for your pharmaceutical shipments? Contact us for more information about our transportation services.

Logistics in the transportation of perishable goods

05.02.2024

In the complex universe of transporting perishable goods, ensuring a quality service to preserve the original characteristics of the goods in transit is essential. This responsibility requires, in logistics management, a precise combination of organization and attention to detail.

Rigorous control during transportation is crucial to protect the goods not only from potential errors in managing the storage temperature but also from inadequate temporal and environmental factors. Let’s look specifically at the aspects that should not be underestimated in the logistics of transportation.

 

Shipping perishable goods

Maintaining controlled temperature throughout the entire logistics journey is fundamental to preserve the quality of the goods. Moreover, minimizing the exposure time of goods to suboptimal conditions is important to prevent premature deterioration. Therefore, managing transit time is essential to maintain the freshness of the goods, especially in international shipments, where the journey might involve different modes of transport.

C.T.I., as a company also specialized in international freight transport, ensures that each phase of the transport process is managed with the utmost precision and timeliness, offering a continuous and efficient exchange of information regarding the status of the goods and the shipment.

Only through careful supervision of every variable is it possible to ensure that perishable goods reach their destination in optimal conditions, without undergoing changes or damage, and without releasing toxic and harmful substances into the environment.

 

International regulations for the transportation of perishable goods

The international regulations for the transportation of perishable goods are governed by the European Agreement known as the “ATP Agreement“. This agreement was developed in the context of the United Nations Economic Commission for Europe (UNECE) and aims to establish uniform standards for the transportation of perishable goods across international borders.

In addition to the ATP Agreement, there may be specific regulations in force in individual countries or regions. Operators in the field must comply with relevant local and international regulations to ensure legal compliance and the safety of transporting perishable goods.

 

ATP: essential certification for the transportation of perishable goods

The main objective of the ATP Agreement is to ensure that vehicles are equipped with adequate equipment to maintain the required temperature during the transportation of food products, pharmaceuticals, or other goods subject to deterioration due to thermal variations.

The ATP regulation provides a specific classification of vehicles, indicating 4 types of specific transport means:

  1. Isothermal: equipped with thermally insulating walls that limit heat exchange between inside and outside;
  2. Refrigerating: with the aid of a cold source, they maintain the necessary temperature inside the empty body;
  3. Refrigerators: equipped with a cooling system that allows lowering the temperature inside the body, keeping it constant when the external temperature is too high;
  4. Heaters: equipped with a heating device that allows raising the temperature inside the body, keeping it active for at least 12 hours. The internal body temperature is never below 12°.

Technologies for monitoring perishable goods

The joint implementation of advanced technologies allows logistics operators to create a controlled and safe transportation environment for perishable goods even during the longest journeys. Let’s look at some of these technologies:

  • Temperature sensors: allow constant measurement and recording of thermal variations, providing operators with real-time information on the internal temperature of the cargo;
  • Temperature recorders: in addition to measuring the cargo’s temperature, they monitor critical factors such as humidity, pressure, and geographic position, providing precise data on the condition of the goods;
  • Remote monitoring systems: thanks to IoT (Internet of Things), they allow remote control of cargo conditions;
  • RFID and GPS tracking: the use of RFID (Radio-Frequency Identification) technologies and GPS tracking devices helps maintain control over the position and status of goods during transport;
  • Humidity control system: designed to maintain optimal levels of humidity and prevent condensation formation.

Customized logistics for perishable goods

Customized logistics refers to the design of tailor-made logistic solutions to meet the specific needs of each type of perishable good. The ultimate goal of customized logistics is to ensure the maintenance of the highest quality and safety of perishable goods through the use of specific technologies and optimal transportation methods.

Request a quote or contact us here for more information about our services.

 

Flat Rack container for the transport of bulky goods

15.01.2024

Flat Rack containers are specialized solutions for transporting voluminous and out-of-shape goods. With an open structure and variable dimensions, they offer versatility in adapting to complex loads, ensuring efficient and safe transportation both on the road and via sea or rail.

 

 

Introduction to Flat Rack Containers: Versatility and Advantages

As previously mentioned, Flat Rack containers represent a very intelligent solution for transporting bulky or out-of-shape goods, offering numerous significant advantages in the field of international shipments. These specialized containers stand out for their open structure, providing a flexible platform for bulky loads. But what makes them so crucial for the logistics sector?

 

 

Features and Specifications of Flat Rack Containers

Flat Rack containers have features and technical specifications that make them suitable for a wide range of particularly bulky loads. Their dimensions vary, allowing the handling of goods of different shapes. The robust metal structure, often equipped with foldable walls, offers flexibility in loading and unloading goods, simplifying the logistics process.

The load capacity varies depending on the container’s size, enabling the handling of heavy and voluminous goods. These containers can be used to transport goods by road, rail, or sea, offering a comprehensive solution for international shipping needs.

 

 

Mafi Containers

Mafi containers are a specific type of container used in Flat Rack logistics. Unlike standard containers, Mafi containers are designed for transporting goods that cannot be easily loaded or unloaded with traditional cranes.

These containers have an open structure on all four sides, making them particularly suitable for transporting large or irregularly shaped goods. The open structure essentially facilitates access to the goods by lifting equipment, such as port cranes or shipboard cranes.

 

 

Out-of-Shape Flat Rack: Tailor-Made Solutions for Special Loads

For loads of unconventional sizes and shapes, out-of-shape Flat Rack containers represent the best solution. These containers are custom designed to fit the specific dimensions of the most complex loads. Their flexibility allows for the transportation of goods that might otherwise pose significant logistical challenges.

This tailored option offers an unprecedented level of adaptability in the field of international shipments, ensuring that even uniquely shaped goods are transported safely and efficiently.

 

 

Advantages of Using Flat Rack Containers

The use of Flat Rack containers offers numerous practical advantages. Their open structure simplifies the loading and unloading process, improving overall logistical efficiency. The ability to secure goods directly onto the platform also reduces the risk of damage during transportation, ensuring greater safety.

Finally, the versatility of Flat Rack containers makes them suitable for a variety of industries, including industrial, automotive, and construction. The ability to transport large-sized goods contributes to optimizing the supply chain, reducing delivery times, and overall logistic costs.

 

 

Safety and Regulations in the Use of Flat Rack Containers

In the transportation of voluminous goods, safety is a priority. For this reason, Flat Rack containers are constantly subject to rigorous international regulations to ensure safe loading and the protection of goods during transportation. Companies must follow recommended procedures to ensure proper securing of goods and comply with loading and transportation regulations.

 

C.T.I. also handles shipments with Flat Rack containers. If you want a customized quote or simply want to contact us for more information, write to us now!

Management and prevention of goods transportation damages

15.01.2024

In the realm of transportation and logistics, the secure management of goods is an absolutely crucial aspect, if not the most relevant, to ensure the success and reputation of a company.

In this article, we will explore the challenges related to transportation damages, analyzing the causes, adopted safety procedures, and presenting cutting-edge technological solutions to reduce their impact. The protection of goods during the transportation process is a fundamental element for us at C.T.I., as we aim to ensure maximum safety and integrity of products for our clients.

 

 

Analysis of Causes: Why Do Damages Occur During Transportation?

Goods damage during transportation can be attributed to various causes. A critical element is inadequate packaging, where incorrect choices in material selection or packaging techniques can expose the goods to significant risks. The lack of proper support and cushioning can make them susceptible to shocks, vibrations, and pressures, thereby increasing the risk of damages.

In addition to packaging, logistical issues should also be considered. Unforeseen delays, route deviations, or improper handling during loading and unloading operations can trigger situations that jeopardize the safety of the goods. It is essential to understand the chain of events that can contribute to damages, addressing gaps in logistical processes and implementing targeted preventive measures.

Another critical aspect not to forget is the variability of environmental conditions. Sudden changes in temperature, humidity, and other meteorological factors can negatively impact sensitive products. Accurate analysis of these variables becomes a fundamental step in preventing damages during transportation.

 

 

Safety Procedures to Avoid Goods Damages

Preventing goods damages during transportation is an aspect that can resolve many more situations than one might think. As we have already seen regarding packaging, it is important to understand that simple external protection is not sufficient. The use of suitable and customized materials based on the type of goods is essential. The use of advanced techniques can also work in favor, such as strategic padding and the use of tailor-made containers, contributing to minimizing negative impacts from shocks or abrupt movements.

Operational procedures during loading and unloading phases are equally crucial. Training the involved personnel is useful to ensure safe and careful handling. The adoption of specialized equipment and the implementation of specific protocols help reduce the risk of damages during these critical transport phases.

 

 

How to Manage Damaged Goods

In the event of goods being damaged during transportation, prompt action is required. Firstly, practical advice should be provided to customers on how to handle these situations, including timely reporting of damages and procedures for requesting compensation. Relying on C.T.I. also means having a serious and transparent partner actively supporting clients in these situations, ensuring efficient management of issues related to damages.

 

 

Economic Impact of Transportation Damages on Companies

The economic impacts resulting from damages during transportation can extend well beyond the direct cost of the damaged goods. Firstly, there is an immediate expense to replace or repair the damaged goods, representing only the tip of the iceberg. These costs can exponentially grow when considering additional expenses related to extraordinary shipments, urgent work, and potential service disruption to customers due to delays or missed deliveries.

However, the economic impact is not limited to these tangible costs. Corporate reputation is another asset to consider, and damages during transportation can seriously undermine it. Dissatisfied customers, negative reviews, and the spread of news about damaged products can harm the brand’s image, compromising the trust of existing customers and discouraging new business.

The impact is also reflected in refund procedures and dispute management. Compensation claims, as we know, can sometimes become a long and complex challenge, requiring significant resources to resolve disputes and maintain customer trust. The long-term effect is evident in customer loyalty, which can decrease drastically if damages during transportation become a constant.

 

 

Technological Solutions for Reducing Damages During Transportation

To effectively address the challenge of damages during transportation, cutting-edge technological solutions can be employed. Advanced monitoring sensors, for example, allow constant surveillance of environmental conditions and any impacts suffered by the goods. This real-time monitoring enables immediate interventions to mitigate risks.

Alternatively, artificial intelligence (AI) can be employed to analyze large amounts of data, identifying patterns and trends that may indicate potential risks during transportation. This predictive capability allows for more accurate planning and proactive prevention of situations that could compromise the integrity of the goods.

Furthermore, advanced packaging systems designed to adapt to the specific needs of each type of goods can be integrated. These systems combine innovative materials with customized designs to ensure maximum protection during transportation.

If you are looking for a reliable partner for shipments, contact us now. We are here to offer customized solutions that protect goods and contribute to the success of your business.

Optimizing transportation with goods traceability

19.12.2023

Goods traceability is undoubtedly the cornerstone on which modern shipping operations rest. From the accurate management of information to the security of sensitive data, every step counts to ensure a reliable and efficient service for the customer. Investing in advanced traceability systems is more than an option: it is a necessity for those, like us, who want to take part in the future of shipping.

 

 

The importance of goods traceability

Goods traceability, as mentioned earlier, is a fundamental pillar in our field of shippers because it is a practice that ensures transparency and control at every stage of transportation. This practice not only improves efficiency but also strengthens the overall security of shipping operations. Successfully implementing a traceable transportation system is crucial for companies that want to remain competitive and provide a reliable service.

 

 

The goods receipt monitoring sheet simplifies the goods reception process

At the heart of efficient transportation management is the goods receipt monitoring sheet. This tool simplifies the process of recording and tracking incoming goods, contributing to more accurate information management, and improving overall operational efficiency. The clarity provided by this sheet is crucial to maintaining an optimal workflow and ensuring seamless traceability.

 

 

Checkpoints and the flow of information

The essential nature of the flow of information between checkpoints is evidence of precision in goods traceability. Each checkpoint represents an opportunity to identify potential issues, anomalies in the transportation process, or risks of loss or damage to goods. This practice not only improves the transparency and visibility of the supply chain but also emphasizes the importance of appropriate security protocols to protect sensitive data and prevent manipulations or intrusions.

 

 

Advantages of traceable transportation

The tangible benefits of a traceable transportation system are numerous. Reduced delivery times, optimized stock management, and improved customer experience are just a few of the positive outcomes. Precision in traceability not only enhances operational efficiency but also contributes to creating a context where customer trust becomes a fundamental and solid element.

 

 

Advanced technologies for increasingly effective logistics

Talking about goods traceability inevitably leads us to consider advanced technologies that are playing a not insignificant role in redefining the shipping landscape. From the digitization of documents to geolocation and the use of sensors and real-time monitoring systems, technological innovation is the engine driving a more efficient and reliable shipping service. Embracing these technologies is crucial to remain competitive and ensure traceability that exceeds customer expectations.

At CTI, we also offer an effective system for tracking shipments. Thanks to the container tracking service, you can trace any container using the tracking code and obtain all the information about its current status and location.

If you have questions, doubts, or would like more information, contact us immediately – we are at your complete disposal.

Dangerous goods transportation: the complete guide

09.11.2023

The transportation of dangerous goods is an essential practice in many industries, but it requires in-depth knowledge and the adoption of rigorous safety regulations.

In this comprehensive guide, we will explore the fundamentals of dangerous goods transportation, focusing on the importance of Kemler codes, the ADR table, and the key regulations that govern their management. Furthermore, we will provide valuable tips on how to handle dangerous goods safely and responsibly.

 

 

Understanding Kemler codes

In the transportation of dangerous goods, safety is an absolute priority. In this context, Kemler codes – internationally known as UN codes – represent the fundamental element to successfully achieve maximum safety.

These codes are a classification system for dangerous goods, in which each harmful substance or material is assigned a specific Kemler code that identifies its characteristics and the necessary precautions for safe transportation. For example, the first number of the code indicates the main danger class of the substance, while the second number represents the sub-danger class. The third number provides additional information, such as storage conditions and safety measures.

This type of code is essential, especially to allow anyone involved in the supply chain to immediately understand the type of risk posed by the cargo. It is, in fact, crucial, to ensure safety during transportation, that Kemler codes are correctly applied to dangerous goods. This implies that labeling is correct and clearly visible, documentation is accurate, and all transport regulations, including packaging requirements and emergency procedures, are adhered to.

 

 

The ADR table: regulations for safe transportation

The ADR (European Agreement concerning the International Carriage of Dangerous Goods by Road) is a multilateral agreement developed by the United Nations that establishes safety standards to be respected by all signatory countries, ensuring a uniform basis for the safe transportation of dangerous goods throughout Europe.

Specifically, the ADR table, a key tool within this agreement, is the official reference document that provides a series of mandatory guidelines, regulations, and detailed requirements to ensure extreme safety in cargo transportation.

The table, divided into various sections, addresses specific aspects of transportation, including labeling, packaging, classification of goods, documentation, emergency procedures, and much more.

Knowledge of the ADR table is essential for anyone involved in the transportation of dangerous goods, in order to ensure the safety of operations and compliance with regulations. Adhering to ADR provisions requires training, constant awareness, and the adoption of practices that conform to the various provisions.

 

 

List of main dangerous goods codes

The world of dangerous goods transportation is characterized by a wide range of substances and materials, each with its own risks and specific safety measures.

Knowing the most common Kemler codes and the key precautions to be taken during their transportation is of fundamental importance to avoid accidents and hazardous situations.

  • Kemler Code 3 – Flammable Liquids. Precautions include the use of special containers, transportation in fire-prevention vehicles, and adherence to distances from heat sources.
  • Kemler Code 6 Toxic and Infectious Substances (for human health). Precautions include correct labeling, the use of personal protective equipment, and rigorous procedures to prevent contamination.
  • Kemler Code 8 – Corrosive Materials. Precautions involve the use of corrosion-resistant containers, isolation from other goods, and measures to prevent leaks and skin contact.

 

Regulations and Safety in Transportation

Compliance with regulations related to the transportation of dangerous goods is essential to ensure the safety of operators, the surrounding environment, and the involved communities.

In this process, freight forwarders play a crucial role: they are responsible for planning, organizing, and executing transportation operations, including the classification of goods, packaging and loading, documentation, and driver training.

Similarly, drivers play a key role in the practical application of regulations and precautions. They must be adequately prepared to handle unforeseen situations – such as leaks, fires, or exposures – and ensure the safety of operations.

 

 

How to handle dangerous goods

Managing dangerous goods is a complex task that requires attention to detail and strict adherence to safety regulations and procedures. Practical guidelines for handling them correctly encompass all critical phases of the operation: from packaging to labeling, from secure loading to proper transportation, to emergency procedures.

Do you want to transport dangerous goods but don’t know who to turn to? Contact CTI, our team of experts will be at your complete disposal to ensure maximum safety and regulatory compliance. Safety begins with knowledge, and we are here to help you ensure it in all transportation operations.

Transportation and shipments for events and trade shows

08.11.2023

Trade shows and exhibitions represent a crucial moment for many companies, offering the opportunity to promote their products and services to a wide audience. However, organizing participation in a trade show is not simple and, in fact, it requires detailed planning.

One of the most critical aspects of this planning is also the logistics of transportation and shipments. A reliable and customized shipping service becomes essential to ensure the presence of products, machinery, and materials at a trade show, thus contributing to the company’s success.

 

 

The role of shipments for trade shows

It may not be immediately apparent, but companies participating in trade shows must face significant logistical challenges. Often, the products to be displayed are fragile and valuable, making careful handling and safe transportation essential. Moreover, timing is tight as the goods must be delivered and ready for booth setup. Delays in delivery or damage to products could have disastrous consequences for the company’s image and reputation.

 

 

Customized Transportation for Events

Transportation methods dedicated to events differ from standard ones. Every detail must be customized to meet not only the specific needs of the company but also the requirements sometimes imposed by the event organizer. These shipments, therefore, require a tailored approach that includes:

Precise Timing

Timing is crucial. Merchandise must always be picked up, transported, and delivered promptly to ensure that everything is ready before the event begins. Planning is a fundamental element, with minimal margin for error.

Special Packaging

Packaging must be designed to protect products or machinery during transportation. Sturdy and customized packaging materials are often the only solution to ensure the integrity of the goods.

Customized Deliveries

Deliveries should be coordinated to meet the specific times and locations of the event. This may involve delivery to locations outside of normal delivery routes or during unconventional hours.

 

 

Planning Trade Show Shipments

To successfully handle trade show shipments, precise planning is essential. It may be useful to keep in mind and follow a checklist of actions to have a reference guide with the goal of ensuring that everything is organized in the best possible way:

  1. Identification of products to be transported

List all products to be displayed and establish priorities based on their importance or fragility.

  1. Choice of Shipping Service

Choose a company with experience in trade show shipments and the ability to handle special loads.

  1. Proper Packaging

Ensure that all products are adequately packaged to withstand transportation. Consider using customized packaging materials, as mentioned earlier.

  1. Timing Planning

Coordinate with the shipping company to establish precise timing for merchandise pickup, transportation, and delivery.

  1. Real-Time Monitoring

Use monitoring tools to track shipment progress in real-time and respond promptly to any unforeseen events.

  1. Reserve Additional Resources

Prepare to deal with unforeseen events, such as flight delays, customs issues, or road accidents, by booking additional resources in advance.

 

 

Event Logistics

Event logistics involve several key phases, each with its own challenges and solutions. First, merchandise pickup must be carefully planned to ensure that all products are available in time for transportation. The company should also verify that all products are in perfect condition and correctly packaged.

Next comes transportation, which requires the use of appropriate vehicles and experienced drivers. The merchandise should also be constantly monitored during transportation to ensure its safety. Finally, delivery to the event location must be punctual and follow a quick and efficient unloading procedure. It goes without saying that coordination with event staff is absolutely essential in this last phase.

If you are looking for a reliable partner for your trade show shipments, you can contact us immediately. We guarantee precise planning, attention to detail, and extreme cooperation.

Luxury logistics and high-value shipments

13.10.2023

In the captivating world of luxury, every detail matters, and not even the most hidden or unimaginable dynamics surrounding this sector should be left to chance. From works of art to high-class jewelry, from exclusive range products to precious goods, logistics, and shipments play a crucial role in ensuring that these marvelous items reach destinations around the world in impeccable but, above all, secure conditions.

 

Luxury on the move: managing precious goods

Let’s explore how a leading company in the shipping and logistics industry must commit to managing and transporting valuable goods safely, and reliably, by offering tailored solutions based on various types of cargo or customer requests.

 

Customized shipping solutions for luxury

Security is a primary concern when it comes to shipping luxury goods. Protecting these precious cargoes is essential to prevent financial losses and irreparable damage. Companies specialized in the shipping industry, such as CTI, are aware of this responsibility and have developed a series of measures for the benefit of customers to ensure maximum security throughout the shipping process.

Safety as a priority: transporting high-value products

There are numerous formulas to ensure effective and secure transportation of luxury goods. Vehicles and storage facilities are typically equipped with advanced security systems, including 24/7 video surveillance, controlled access, and intrusion alarms. Moreover, drivers are always trained to handle valuable cargo with extreme care, following rigorous procedures to ensure that each shipment reaches its destination in perfect condition.

But security doesn’t stop there. Increasingly, companies engaged in import and export also offer specialized insurance services to further protect valuable goods during transportation. This additional coverage provides peace of mind to customers, ensuring that their precious assets are safe from any unforeseen events.

Freight brokers: key facilitators

A crucial element in the management of luxury shipments is the role of the freight broker. In this regard, CTI serves as a reliable collaborator, bridging the gap between the customer and transport carriers, ensuring that every aspect of the shipment is planned and executed with the utmost efficiency.

We need to work closely with customers to understand their specific needs. This understanding allows us to create customized shipping solutions that optimize delivery times and costs, ensuring that every luxury shipment is handled with the utmost attention to detail.

Furthermore, a truly reliable broker is one who, thanks to a global network of partners and transport carriers, can offer competitive rates and flexible shipping options. The goal is to ensure that every luxury shipment is managed efficiently and professionally, always considering the specific needs of the customer.

Innovative technology for goods tracking

Technology is an aspect that cannot be overlooked in the management of luxury shipments. Thanks to innovative technology and systems, it is possible to use advanced tracking methods to constantly monitor the location and status of precious goods throughout the transportation process. With these solutions, customers can, for example, access real-time information about their shipment through secure online platforms. This transparency allows them to track the shipped precious items and have the assurance that everything is proceeding as planned.

In addition, some systems leverage innovative technologies to ensure efficient shipment management, such as automated systems, to name one: they enable optimal coordination of transport, reducing waiting times and ensuring timely delivery.

In a world where luxury demands extraordinary attention, CTI could be your ideal partner for managing the shipment of precious goods. Our experience in the industry and our absolute dedication to security invite our customers to trust us with the management of valuable cargo.

First and foremost, we prioritize the peace of mind of our customers, and then we ensure that every shipment proceeds and concludes successfully. Contact us to discover how we can meet your luxury logistics needs and provide you with customized shipping solutions.

Post-Brexit logistics and transportation in the United Kingdom

13.10.2023

The United Kingdom’s decision to exit the European Union, widely known as Brexit, has had a significant impact on various sectors of the country, including logistics and transportation, since 2020. But what are the concrete new regulations and challenges that businesses still face when it comes to importing and exporting to and from the United Kingdom?

 

Brexit and the new transport regulations: an overview

With the UK’s departure from the European Union, many new regulations were introduced, and substantial changes were made in the transportation sector. One of the most significant changes concerned customs procedures. Before Brexit, the UK was part of the EU’s single market and customs union, which meant that the transport of goods between the UK and the EU occurred without the need for complex customs procedures. However, after Brexit, new customs rules, documentation, and border checks were introduced, significantly affecting logistics flows and timelines.

 

The complexity of post-Brexit logistics: challenges and solutions

Businesses in the logistics sector, as well as others, suddenly found themselves having to adapt their operations to the new import/export regulations imposed by Brexit.

Delays in transportation, additional costs, and administrative complexities were just some of the side effects of this maneuver. Border delays, for instance, became one of the most pressing issues, causing long truck queues and disruptions in the supply chain. Furthermore, businesses had to navigate new import and export procedures and comply with health and phytosanitary regulations.

During this period, CTI consultancy played a fundamental role in helping companies navigate through these diverse complexities, both from a logistical and administrative perspective, providing comprehensive support to ensure full transport compliance.

 

Transportation in England: the impact of Brexit on trade routes

Brexit directly impacted trade routes in the UK and consequently its four constituent nations: England, Scotland, Wales, and Northern Ireland.

England, for example, has been a gateway to and from the EU for centuries, but in this context, many companies had to reconsider and adapt their transportation routes due to new regulations and ongoing disruptions caused by changes in customs procedures.

The primary goal of the transportation sector remained to minimize delays and ensure efficient delivery of goods, with flexibility and adaptability becoming crucial characteristics in this continuously evolving landscape, even though more than three years have passed.

 

The key role of freight brokers in the post-Brexit era

In the post-Brexit era, freight brokers, professionals, or companies specialized in facilitating and managing the organization and execution of transportation and shipment operations, have taken on a crucial role in supporting businesses facing the new challenges imposed on the logistics and transportation sector.

In this context, CTI acts as a trusted partner for all forwarding, logistics, and customer support activities, both for import and export operations to and from the United Kingdom. Our experts work closely with companies to plan efficient routes, manage customs procedures, and ensure timely delivery of goods, offering comprehensive support in the management of post-Brexit operations.

Do you want to ship to the United Kingdom but don’t know where to start? Don’t hesitate to contact us; we are at your complete disposal!

Goods storage: what it is and how it works

09.06.2023

Everything you need to know about the storage of goods, from the beginning of the process to how it works.

Goods storage is a fundamental activity for the management of supply and distribution within a company’s warehouse. Its main objectives include ensuring the protection of goods from damage, theft, or loss, facilitating the picking and dispatch of goods, and finally, minimising warehouse management costs.

So let’s look in detail at what goods storage is and how it works.

What is goods storage?

Goods storage is the process of managing and storing goods in a warehouse or other storage location. This process involves the professional organisation and storage of goods for a specific period of time to ensure their integrity and availability for sale or distribution.

Goods, depending on their nature, may be stored in warehouses, containers, trucks, refrigerated warehouses, and other appropriate storage locations.

The storage of goods is essential for efficient business operations and for controlling production and logistics costs. It also enables companies to have greater control over the flow of goods and to avoid loss or damage of goods.

How goods are stored

The storage of goods takes place in various ways depending on the type of goods and the needs of the warehouse or the company handling them.

Generally, however, storage involves the following steps:

  • Receipt: the goods are received from the supplier and checked for expected quantity and quality. Any damage occurring during transport is also checked at this stage.
  • Identification: each unit of goods is labelled so that it can be easily identified during storage.
  • Classification: goods are classified according to their characteristics, such as fragility, size, weight, required temperature and so on.
  • Packing: the goods are packed appropriately in order to prevent damage during storage.
  • Actual storage: the goods are placed in storage in order to maximise space and minimise the risk of damage or degradation.
  • Control: the goods are periodically checked for anomalies and to keep the inventory up-to-date.
  • Order preparation: following an order, the goods are taken from the warehouse and packed in order to prepare them for shipment.
  • Shipment and monitoring: the goods are loaded onto the means of transport, shipped to the final consignee and monitored throughout the journey until they are delivered.

Goods storage systems

There are different storage systems, and one of the most common and widely used is the shelving system: in this case, goods are placed on special shelf structures, made of various materials and sizes, depending on the type of goods to be stored. Shelving can be fixed or mobile and can be arranged on the floor or suspended, with the aim of optimising space.

 

Other forms of storage may involve the use of specific containers, such as crates, bins or pallets. In this case, goods are placed inside the containers, which can then be stacked or placed on trolleys or pallet trucks to facilitate movement within the warehouse.

 

In other cases, especially for large goods or goods of a special nature, dedicated storage areas, such as warehouses or open warehouses, can be used.

 

Generally speaking, each storage system has its own characteristics, so the choice of the most suitable system depends on several factors such as the specific requirements of the goods, the size of the warehouse and the budget available to the company.

 

If you have any doubts or questions about this, you can refer to us: contact us without obligation!

The Fifo and Lifo methods: meaning and differences

09.06.2023

A guide to understanding how the two most frequently used methods of goods flow management in warehouses and companies work

The Fifo and Lifo methods are two goods flow management systems that are widely used in warehouses and companies. Both methods are used to keep track of the order in which goods arrive and leave, but the approaches differ in the order in which they are taken into consideration.

In this article, we will explain in detail what Fifo and Lifo are and how they differ.

The Fifo method

Il metodo Fifo, letteralmente First In, First Out (ovvero “primo ad entrare, primo ad uscire”), è un sistema di gestione dei flussi e permette che le merci che entrano per prime nel magazzino siano anche le prime ad essere prese in considerazione per la vendita. Pertanto, le merci che sono state in magazzino più a lungo vengono vendute per prime, ottenendo così una buona rotazione delle scorte. Questo sistema, che tiene conto dell’ordine cronologico di arrivo della merce, è particolarmente indicato per prodotti alimentari e per merci soggette a scadenze, come ad esempio farmaci o cosmetici.

The Fifo method, literally First In, First Out, is a flow management system and allows the goods that enter the warehouse first to be also the first to be considered for sale. Therefore, the goods that have been in the warehouse the longest are sold first, thus achieving good stock rotation. This system, which takes into account the chronological order of arrival of goods, is particularly suitable for foodstuffs and goods subject to expiry dates, such as medicines or cosmetics.

Advantages and disadvantages of the Fifo method

The advantages and disadvantages of the Fifo method include:

Advantages

  • Assesses inventory accurately. This method accurately evaluates the costs of the goods sold and the remaining stock.
  • Avoids expiry of goods. Goods are sold in a chronological order, so the oldest goods are sold first and the risk of goods expiring is avoided.
  • Reduces losses. Due to this method, the oldest goods are used first, thus avoiding the risk of unsold goods.

 

Disadvantages

  • Increases the cost of goods. The cost of goods sold is calculated on the basis of the cost of the oldest goods, which may be higher than the cost of the newest goods.
  • May cause a distortion of results. The Fifo method could lead to a distortion of results in case of fluctuations in the price of goods.
  • It has a medium to high management difficulty. In order to avoid errors in the valuation of goods, this method requires very careful management of inventories and stock movements.

 

The Lifo method

The Lifo method, literally Last In, First Out, in contrast to the Fifo method, holds that the goods that enter the warehouse last are then the first to be considered for sale. This method can be advantageous when product prices tend to decrease over time, as the cost of goods remaining in the warehouse will be priced lower, which will have a positive impact on the company’s profits. The system is particularly suitable for clothes or electronic products, which have a value that decreases rapidly over time.

Advantages and disadvantages of the Lifo method

The advantages and disadvantages of the Lifo method include:

Advantages

  • It allows a reduction in taxation. This method can reduce the company’s taxable income and consequently the taxes to be paid.
  • It has an effective correspondence between cost and revenue. The Lifo system more accurately reflects the trend in the cost of goods over time, since the latest is always the one with the highest cost (due to inflation or price changes).

Disadvantages

  • The value of inventories is distorted. This happens because, with the Lifo method, goods remain in stock for a long time, resulting in a loss of value.
  • It has a high accounting complexity. The constant monitoring of inventories and costs can create accounting complexity for the company, especially when there are a lot of movements.
  • It is not available for all types of business. In the case of businesses that offer services and do not have a stock of goods, the Lifo method may not be applicable.

 

What are the main differences between Fifo and Lifo?

Both the Fifo and the Lifo method can have a significant effect on the valuation of inventory and the determination of the cost of goods sold.

In general, the Fifo method tends to increase the inventory value and reduce the cost of goods sold, while the Lifo method tends to have the opposite effect. Therefore, it is essential to choose the method best suited to the company’s needs and keep it constant over time to ensure proper management of goods.

Examples of calculation of the Fifo and Lifo methods

A practical calculation example is the best way to understand the meaning and differences between the two methods.

Let us assume that a company purchases:

  • Lot A on 01/01/2023: 200 pieces at EUR 2 each;
  • Lot B on 01/02/2023: 200 pieces at EUR 3 each;
  • Lot C on 01/03/2023: 200 pieces at 4 euros each.

Out of a total of 600 pieces, it is assumed that 400 pieces were sold. The stock is therefore reduced to 200 pieces.

Is it possible to determine the value of the remaining pieces, taking into account the various costs incurred by the company?

Using the Fifo method, the remainder is valued with the prices of the lots that arrived last, in this case 4 euros.

Inventory value = 4 x 200 = 800 euros

Using the Lifo method, on the other hand, the remainder is valued with the oldest prices, those of the first purchases of the year, in this case 2 euros.

Inventory value = 2 x 200 = 400 euros

 

In this particular case, prices have trended upwards over time, so the Lifo method leads to an underestimation of inventories. The Fifo method, on the other hand, leads to an inventory calculation closer to the last costs.

 

Do you have doubts, questions, or simply wish to receive more information? Contact us, and we will be at your complete disposal.

CTI official partner of WelfareCare for breast cancer prevention

25.05.2023

We have chosen to join the initiative proposed by @WelfareCare dedicated to the prevention of breast cancer.

 

Women who live in the municipality where the event will be held and who meet the necessary requirements, will be able to have free mammograms and ultrasounds with immediate communication of the report.

 

The initiative is dedicated to women not included in screening programmes* and allows for free diagnostic tests.

 

Reservations will be available on the welfarecare.org website closer to the date of the event.

The official date will be announced shortly.

 

Find out more about the initiative on welfarecare.org and on their social channels!

 

*Age ranges may vary according to regional health guidelines.

 

#welfarecare #prevention #socialinitiatives #healthandwellness #breastcancer #womenpower #supportwomen

#breastcancerprevention

Cross Docking: Meaning and Method

05.05.2023

Cross docking is a supply chain technique to improve warehouse logistics management. This distribution strategy involves the immediate processing and distribution of goods as soon as they arrive from the supplier, without them being handled and stored in the warehouse. In other words, the goods are unloaded from the means of transport and, instead of being stored, are immediately sorted to another vehicle prepared for transport to the point of sale or directly to the end customer. The warehouse thus becomes a mere transit point.

 

The cross docking logistics method, therefore, exists to improve the efficiency of the supply chains and eliminate temporary storage: goods are transferred from the point of departure directly to the shipping point without the need to go through intermediate storage. This process reduces inventory management costs and accelerates the speed of procurement. In addition, the cross docking technique makes it possible to reduce the risk of damage to goods and increase the quality of the service offered to the end customer, also thanks to the speed of product delivery.

 

This logistics system is mainly used in the large-scale organised distribution of goods, such as the food and e-commerce sectors, where speed of delivery and cost reduction are key aspects of a company’s success.

 

Cross Docking and Logistics

Logistics – a set of activities aimed at the strategic and operational management of material, information and service flows – also deals with all activities related to supply chain management, including transport, warehousing, order processing, inventory management, distribution and after-sales.

 

As cross docking is a logistics technique that minimises the time taken to handle goods and thus the associated costs, it is also part of the lean logistics strategy, the supply chain management philosophy that aims to eliminate waste and improve the efficiency of the entire process. This strategy focuses on identifying problems, on removing unnecessary activities, and on creating smoother and more integrated workflows.

 

To apply lean logistics to cross docking, it is thus necessary to optimise workflows through targeted planning and coordination. This includes effective management of vehicle routes, careful planning of transfer times and the setting up of a storage and retrieval system capable of reducing product waiting times.

 

Furthermore, lean logistics requires the reduction of waste at every stage of the cross docking process, such as the elimination of excess inventory or the reduction of waiting times for trucks. This helps to ensure a consistent and efficient workflow that maximises resource utilisation and minimises downtime.

 

The Cross Docking System

The cross docking system, as we have seen, can be an effective and optimal tool, but it can only work at its best if the steps of the optimisation process are followed in detail.

Generally, the cross docking steps are as follows:

  1. Collection of goods: goods from different suppliers are collected and transported to the collection centre (warehouse).
  2. Sorting and checking: incoming products must first be sorted according to their destination, and then be checked to ensure that they have no anomalies and correspond to the order description.
  3. Order preparation: depending on the different requirements, the outgoing order is prepared (picking) for the arrival of the means of transport.
  4. Order loading: depending on the destination, the goods are loaded onto the various means of transport.
  5. Truck departure: the trucks leave the central warehouse and drive to the final destination.

 

These steps may vary slightly depending on the type of cross docking system used and the type of goods transported.

 

Example of Cross Docking

A concrete example of cross docking could be that of a large clothing company that receives orders from its shops located in different parts of the country. In this case, the goods are delivered to the company’s central warehouse, where they are sorted and divided according to the needs of the individual shops that require them. The goods are therefore not stored long-term in the collection centre, but they are moved immediately by truck or van to the requesting shops.

 

Find out how cross docking could help you improve your supply chain. Click here to contact one of our operators: we are at your disposal.

Incoterms CPT: what does it mean?

05.05.2023

CPT, literally “Carriage Paid To” is one of the clauses in international sales contracts and is intended to specify that the seller is solely responsible for the shipment of the goods and their transportation.

 

By “transportation” the term CPT means the journey from the place of departure to the carrier – a third party contractually obliged to move things or people from one place to another – who is responsible for transporting the goods to the destination agreed with the buyer.

 

Developed by the International Chamber of Commerce (ICC), the organisation that represents an international business, the CPT contract term is part of the ICC Incoterms, a set of international transport rules that define the obligations and rights of parties to an agreement for the international sale and purchase of goods.

 

CPT yield: who pays?

The CPT clause, as we have seen before, indicates the seller’s obligation to pay the cost of transportation to the destination agreed with the buyer. However, once the carrier receives the goods, the risks and liability for any damage or loss automatically pass to the buyer.

 

The clause generally covers the main transport costs but does not include additional expenses such as insurance fees or import taxes. Nevertheless, these additional expenses can be included in advance in the negotiation between buyer and seller.

 

Obligations of seller and buyer

Now let’s look in detail at the specific obligations of the seller and the buyer. Over the years, the International Chamber of Commerce has developed rules and guidelines for the international sale and purchase of movable goods, known as the ICC Rules for the International Sale and Purchase of Goods (ICC Incoterms), which were updated in 2020 and entered into force on 1 January of the same year.

 

The Incoterms Rules, which contain the CPT Incoterms within them, are used to standardise international trade and to minimise possible disputes between the parties involved. That is why the CPT Incoterms establish unambiguous perimeters as to which obligations are the sellers’ and which are the buyers’.

 

Seller’s Obligations:

  • Conclusion of the contract of carriage of the goods to the place of destination;
  • delivery of the goods to the designated carrier or freight forwarder by bearing all costs necessary to transport the goods to the agreed place of destination;
  • bearing the risk of loss of or damage to the goods until the carrier or forwarder receives them;
  • export customs clearance (where applicable) at the buyer’s own expense;
  • updates the buyer on the status of delivery of the goods to the carrier or forwarding agent;
  • provides the buyer with the transport document for commercial usage and, if required, with the information necessary to insure the goods.

 

Obligations of the buyer:

  • Taking delivery of the goods at the agreed place of destination and bearing the risks from the moment the carrier or forwarder receives the goods;
  • payment of the costs of unloading the goods at the place of destination if they are not part of the cost of transport paid by the seller;
  • compliance with customs formalities for importation, bearing the relevant and possible costs.

 

Which are the differences between CPT and DAP?

DAP, literally Delivered At Place, is also, like CPT, a term used in international trade to define a mode of delivery of goods.

The main difference between CPT and DAP lies in the degree of responsibility of the seller and the buyer during the transport of the goods.

 

Unlike in the CPT clause, where the seller is responsible for the delivery of the goods until the agreed destination carrier receives them, in the DAP clause, the seller is responsible for the delivery of the goods to the agreed final destination and is obliged to cover all transport costs, including import and customs fees.

 

Do you have questions, doubts or would like more information? Contact us now: we are at your disposal.

The difference between free port and assigned port

15.03.2023

“Free port” and “assigned port” are terms easily encountered in the world of trade and shipping. But what is their meaning? What are the differences between one and the other? In this article, we investigate all the basic aspects related to these two terms and the implications they have for your shipping.

What does assigned port mean?

The term “free port” refers to a shipment in which the seller is responsible for paying shipping costs until the goods arrive at their destination. If we are talking about international shipments, we can refer to Incoterms 2020 and link this wording to the DDP (Delivered Duty Paid) clause.

In other words, the seller assumes all the risks and costs associated with shipping the goods:

– arranging the transportation of the goods

– verifying that the packaging of the goods is adequate and correct for transportation

– paying all costs associated with the transportation itself (including insurance costs).

Once the goods arrive at their destination, responsibility shifts to the consignee, who is responsible for any damage or loss that occurs after the goods have been delivered to his or her address.

What does assigned port mean?

Instead, “assigned port” refers to a type of shipment in which the consignee must assume responsibility for the goods. He or she will therefore have to assume all the risks and pay all the shipping costs, from departure to arrival at the destination.

In this case, the buyer will then have to:

– arrange for the transportation of the goods

– pay all costs associated with the transportation itself

– ensure that the goods are properly packed for transport.

If one moves in the dimension of international trade one must refer to the Incoterm EXW (Ex Work).

Who pays for the transportation?

Who pays for the transportation is precisely the differentiating issue between free port and assigned port, in the world of logistics. In the case of free port, it is the seller who bears the costs associated with shipping the goods, while in the case of assigned port, it is the buyer’s burden. In any case, this type of choice always depends on the agreements between the parties.

Ordinary shipping and COD shipping

For those outside the industry, it is more common to encounter the terms “ordinary shipping” and “COD shipping.” In ordinary shipping, payment is made before the goods are shipped, while in COD shipping, payment is made upon delivery. However, these two terms are not assimilated with the terms being discussed in this article.

For this reason, it is important for sellers and buyers to be aware of the implications of these terms before agreeing to a transaction. Making sure you have a clear understanding of shipping terms can help avoid confusion or problems during the shipping process.

If you have any concerns or questions about this, you can refer to us: contact us!

Bill Of Lading: what it is and how to fill it out

13.02.2023

What is the Bill of Lading?

The Bill of Lading (B/L) is a basic document of the transportation industry, used in domestic and international shipping.

The Bill of Lading certifies:

  • The boarding of the goods in a specific ship at a specific port.
  • The carrier taking over of the shipment of that cargo to a predetermined destination port.

The carrier takes responsibility for delivering the cargo in good condition.

According to the Navigation Code, the Bill of Lading, signed by both parties, is a binding contract with obligations and conditions stated on the back of the document, which has several functions:

  • It constitutes proof of the agreement between the parties: carrier and shipper.
  • It is valid as a cargo receipt.
  • It guarantees the existence and nature of the goods described in the contract of carriage.
  • It gives the person in possession of the original bill of lading also possession of the goods and thus the right to collect them at destination and the possibility of disposing of them for transfer to third parties by endorsement.
  • It allows goods to be sent to multiple recipients by creating as many delivery orders as there are recipients.

The Bill of Lading is, therefore, a negotiable, representative of the goods and fractionable title.

Bill of Lading: who issues it?

The Bill of Lading is issued by the shipping company, in three originals, normally distributed as follows:

  • One copy remains with the shipper as proof of carriage or in case of dispute.
  • One copy to the carrier for handling the cargo during transport.
  • One copy to the consignee to collect the goods at the port of arrival.

The B/L therefore is sent by the company (or the issuer) to the rightful claimant (sender), who will in turn forward it to the consignee of the goods only once the consignee has proceeded with payment.

There are cases, however, where a full set (3/3 originals) is required for a bank negotiation or at the express request of the supplier of the goods, and in special cases a larger number may be issued.

The bill of lading can be:

  • Nominative: the name of the person who will collect the goods at the port of destination is indicated in the document.
  • Bearer: the document does not identify the owner of the goods transported.

In both cases, therefore, the goods can be picked up only upon delivery of the bill of lading, and if the original is lost, the recipient may be denied delivery. Once one of the originals is used, the remaining two lose their validity (except for special constraints).

How to fill out a Bill of Lading

The bill of lading must be completed in its entirety, mandatorily including:

  • Name and address of the shipper (or forwarder), i.e., the sender of the goods.
  • Name and address of the carrier, i.e., the person in charge of the transport.
  • Name of the recipient of the goods if the B/L is nominative.
  • Description of the goods:
    • Nature, quality, and quantity of the items sent.
    • Number of packages and weight.
    • Value and conditions of return.
  • Name of the ship on which the goods are loaded.
  • Exact indication of the port of departure.
  • Exact indication of the port of arrival.
  • Indication of any ports of transshipment (transhipment).
  • Date of departure of the ship (day, month, and year).

Another fundamental element that must be present on the Bill of Lading is the annotation “goods on board” dated and signed by the captain of the ship. If not, the document would have no value as a bill of lading but would become a simple receipt.

Bill of Lading: some typologies

In this area of mandatory documents, there are many details and shades that bring with them specific terminologies. Let us look at the main ones together.

Master Bill of Lading

The Master Bill of Lading (MBL) is a document used in maritime transport issued by the carrier, i.e. the shipping company, to the person who entrusted it with the cargo:

  • To the exporter: the sender, who also organises the forwarding.
  • To the shipper: if the exporter has entrusted the shipment to an intermediary who takes care of it on his behalf.

The purpose of the Master Bill of Lading is therefore to certify the taking-over of goods pertaining to multiple shipments. This document can be issued for shipments:

  • FCL (Full Container Load): when the container is filled by a single shipper or loaded with goods all for the same consignee.
  • LCL (Less than Container Load): in the case where a container contains several loads from different shippers with several consignees.

This transport document is not significant for either the exporter or the recipient, as both will refer to the bill of lading for the specific shipment, issued for them by the shipper.

House Bill of Lading

The House Bill of Lading (HBL), therefore, is always consequential to the Master Bill of Lading, or rather, to the presence of a figure intermediating the forwarding, the shipper. This document, in fact, is issued by the shipper for the benefit of the exporter as a receipt for taking charge of the goods and usually contains:

  • Exporter’s details.
  • Recipient’s details.
  • Shipped cargo.
  • Terms of payment.
  • Shipper’s contact details.

Clean Bill of Lading

This is a characteristic of any bill of lading: it must be clean, meaning that it must not contain reservations, indications about the condition of the goods such as damage to packaging, goods, seals, etc.

Telex Release

In this case, the 3 original copies of the Bill of Lading are printed and stored in the home office of the shipping company. With the approval of all parties, the shipper authorizes the shipping company to “destroy” the set of originals and do a so-called “telex release” with a digital copy of the policy. This saves the cost of the express courier to physically send the original policies to the recipient, and most importantly, there is no risk of losing the originals.

Express Release

Once the Bill of Lading is confirmed in all its details by the shipper, the printing of the set of 3 originals is not done, as is usually the case, but only copies with also digital validity are produced. Obviously in this case there must be maximum trust between the parties, as there is no possibility of having control over the release of the goods at destination. The advantage is that it saves both the cost of printing the original set and sending it by express courier.

Through Bill of Lading

“Through Bill of Lading” means a direct or cumulative policy and is no longer used; it could be issued in the case of a transport performed by different modes by several carriers or when the place of pick-up or drop-off of the goods was different from the port of destination. In this case each ocean carrier took responsibility only for the section under its jurisdiction.

Importing/exporting to China: how to ship goods to and from China

19.01.2023

Import and export regulations in China and the customs procedures required can cause problems for Italian companies that have decided to trade goods with the Chinese market. Let’s take a look at some useful information for shipping to and from China.

Exporting to China: Certifications and Customs Clearance

Exporting goods to China involves complex bureaucracy. First of all, before exporting to the Chinese territory, you must verify if the product in question belongs to either of the two categories that require specific certifications managed by the CNCA (Certification and Accreditation Administration of the People’s Republic of China):

  • Voluntary certification, not compulsory for authorization to sell
  • Compulsory Certification (CCC – China Compulsory Certification), mandatory for products to be marketed in China

At the same time, for customs clearance paperwork, companies exporting to China must rely on a local partner in possession of Foreign Trade Rights, i.e. the Foreign Trade License issued by the Chinese Ministry of Foreign Trade. These files are submitted to the General Administration of Customs (GAC) office, which classifies goods into categories:

  • Prohibited, goods whose import/export is prohibited
  • Restricted, goods subject to quotas or licenses
  • Fully traded, goods with no special restrictions.

All Documentation Required for Export to China

Goods being exported to China must have a customs declaration (SAD) and the following documentation must be submitted:

  • Commercial invoice, drawn up in English
  • Certificate of Origin, certifying the origin of the goods
  • Phytosanitary certificate, required for export of cultivated products
  • Certificate or declaration of free sale of cosmetics, to certify that the products comply with Regulation (EC) No. 1223/2009

Moreover, the relevant transportation documents must be presented:

  • Air Waybill, which is the document for transporting goods by air
  • International waybill, which certifies that the shipment has been accepted for delivery
  • Packing list, with information on volumes and exact quantities of packages
  • Labels, the requirements of which vary depending on the goods, but must contain the product’s name and origin, and the contact details of the importer

Importing goods from China: formalities and documents

In order to import products and goods from China to EU member states, it is necessary to:

  • File a customs declaration in the country you are importing into
  • File a customs declaration to prove payment of duties and VAT.

Regarding documents, however, it is mandatory to be in possession of:

  • Commercial Invoice, which is essential for import transactions from China. It must contain details of the producer, the buyer, the products and the economic value of the goods
  • Packing List, containing all necessary cargo data
  • Bill of Lading, certifying the conclusion of the transportation contract and granting the right to obtain the goods
  • Certificate of Origin, which states the country of origin where the goods were manufactured or assembled.

Shipping to and from China: how much does it cost?

When importing or exporting goods to and from China, three taxes have to be considered:

  • Customs duties, calculated on the basis of rates that vary depending on the type of goods and the origin of the exported goods
  • VAT, whose rates are 9% or 13% depending on the category of the product. For imports into Italy, on the other hand, VAT is 22%
  • Consumption tax, which varies from 1% to 40% depending on the type of goods. This tax applies to health-damaging products, such as alcohol and tobacco, luxury goods, cosmetics and high-end products, such as cars and motorbikes.

Shipping costs must be added to these taxes, which naturally vary depending on the type and quantity of goods shipped and the means of transportation used.

C.T.I.: experts in extra-European shipments

Importing/exporting to and from China requires attention and in-depth bureaucratic knowledge, which is why we recommend relying on expert forwarders for a seamless and simplified experience. We have specialized in the transport of goods to non-European countries and China for years now at C.T.I. International Forwarders, using our passion, care, and above all, experience and professionalism to provide complete and secure services for shipping containers to China.

Incoterms: what they are and what they mean

19.01.2023

Have you ever heard of Incoterms? In international trade, it is essential to establish agreements between the parties to clearly identify the time and place of delivery and to agree on the costs of transporting the goods. For this reason, the International Chamber of Commerce has officially recognized Incoterms: contractual clauses that precisely identify the division of responsibilities between seller and buyer as well as costs related to transport. Let’s see what Incoterms are in detail and what they are used for.

 

Incoterms: Unambiguous Rules for International Trade

Incoterms, short for International Commercial Terms, were defined in 1936 by the International Chamber of Commerce with the aim of facilitating international trade after the First World War. The multitude of contractual terms required harmonization and identification of shared rules to make trade between countries easier.

Over the years, the diversification of modes of transport and the increase in the number of countries involved in trade have made it necessary to continuously update Incoterms. Although the previous editions are still valid and applicable – as long as they are made explicit in the contract – today reference is made to the latest revision that came into effect on January 1st, 2020.

 

What are Incoterms rules?

Incoterms are a set of contractual rules used in the field of importing/exporting, which unambiguously define the rights and obligations of the parties involved in the transaction. Specifically, these rules regulate who amongst the parties must:

  • Stipulate the contract for the transportation of the goods and any required insurance up to the place of arrival;
  • Take responsibility for the duties related to customs clearance.

Furthermore, Incoterms identify:

  • The time and place in which the delivery takes place;
  • The moment in which the risk of loss or damage is transferred from seller to buyer;
  • The costs related to the delivery of the goods.

 

How many Incoterms are there and how are they classified?

The Incoterms 2020 include 11 terms, which are classified into 4 macro-groups based on the obligations that fall to the seller and the buyer:

  • Group E: obligations fall predominantly on the buyer (EXW yield);
  • Group F: main transportation is the buyer’s responsibility (FCA, FAS and FOB yields);
  • Group C: transportation is the seller’s responsibility and the risks are the buyer’s responsibility (CPT, CIP, CFR and CIF yields);
  • Group D: both transportation and risks are the seller’s responsibility (DAP, DPU and DDP).

Another classification of contract terms is also made according to the mode of transport:

  • Incoterms applicable to all types of transport, i.e. EXW, FCA, CPT, CIP, DAP, DPU and DDP;
  • Incoterms applicable only to maritime transport, i.e. FAS, FOB, CFR and CIF.

 

The importance of Incoterms in a sales contract

The use of Incoterms is optional, but they are now an essential element in commerce as they provide basic guidelines for importers, exporters, transporters, lawyers, and insurers involved in international trade.

If the parties choose to adopt these rules, it is good to remember that they must be referred to within the contract, stating the chosen term, the agreed location and the reference edition.

Ex Works: meaning and risks of the term EXW

19.01.2023

Ex Works is one of the terms codified in the Incoterms, i.e. international trade terms. These terms identify the rights and duties of the parties involved in the import/export, the division of transport costs between buyer and seller, as well as any risks of damage to or loss of goods. According to the International Chamber of Commerce, what is meant by Ex Works and what are the characteristics of this contractual clause? Let’s take a detailed look at all the relevant information.

Ex Works surrender term: what does it mean?

Ex Works (EXW) is the return term that minimizes the seller’s obligations, risks, and costs. Therefore, all obligations are borne by the buyer, who assumes all possible risks and bears all transport costs. That is why it is one of the most appreciated and used Incoterms in international buying and selling.

Ex Works o Franco Fabbrica: significato e rischi del termine EXW

Ex Works: the Seller’s Obligations

Ex Works is therefore the most advantageous term of delivery for the seller, as they only have to comply with the following obligations:

  • Provide the goods and the commercial invoice to the buyer
  • Deliver the goods to the named place, without loading them onto the means of transport
  • Provide the necessary documents and all information relevant to the movement of the goods

Moreover, only if explicitly requested is the seller responsible for assisting the buyer in obtaining the export license or other authorizations. Furthermore, sellers are not responsible for drawing up the transport contract, taking out the insurance or providing the delivery documents to the buyer.

Ex Works: The Buyer’s Obligations

If EXW is advantageous for the seller, it is less so for the buyer on whom most of the obligations fall. The buyer, in fact, must:

  • Pay transport costs
  • Obtain import/export licenses or other possible authorizations
  • Take delivery of the goods
  • Communicate the date and exact point of delivery of the goods
  • Provide the seller with proof of taking delivery.

What are the risks and costs of the EXW term?

So far, we have seen how the obligations of the EXW term are divided, but what does this clause state in regards to costs and risks? Ex Works return term foresees that the seller bears any risk of damage to or loss of the goods up to the moment of delivery. Thereafter, it is the buyer who bears all risks.

On the other hand, as far as costs go, the seller is obliged to bear the costs of the goods up to the time of delivery, including those related to quality control, measuring, and counting. Meanwhile, the buyer bears all costs from the time of delivery onwards, including any inspection costs for import/export.

Critical issues related to Ex-works

The term “Ex-works” exerts a good impression on operators, however, especially sellers, should not underestimate some problematic aspects that may arise. In fact, it entails a loss of control over the formalities related to customs operations, increasing the risk of non-declaration of goods or difficulties in finding export customs documents. Moreover, the absence of a direct relationship between seller and carrier means that it is impossible to monitor the shipment.

For this reason, before choosing between the different Incoterms yields, it is a good idea to get properly informed. We at C.T.I. International Forwarder are always available to advise you on the best transport solution and assist you at every stage of import/export.

Electronic Data Interchange: what is an EDI system?

19.01.2023

No more paper, technology is advancing even in the business sector: thanks to EDI (electronic data interchange), communication between all actors in the supply chain becomes smoother and more innovative. If you need to digitize the exchange of invoices, delivery notes, orders and transport documents, EDI is a valuable ally for companies working in the shipping industry. But what is it, how does it work, and what benefits could it bring to your business? Read on and we will provide you with all the relevant information.

 

What does electronic data interchange mean?

EDI -an acronym for Electronic Data Interchange– is an electronic system that enables the exchange of standardized data, automating inter-company communication processes. Indeed, in an increasingly digital world, commerce not only has to digitize buying and selling activities, but also make all related activities, such as the exchange of information and documents, more efficient. And in this context EDI is becoming increasingly established.

Thanks to this technology, small and large companies can share with customers and/or suppliers, in an immediate and dematerialized way, a wide range of information including:

  • Purchase orders
  • Invoices
  • Bills
  • Transport documents
  • Payment confirmations
  • Inventories
  • Requests for quotations.

Here EDI takes on a key role within the supply chain, making communication faster, safer and up to date with the digitization of the industry.

 

How does EDI work?

Today, many companies use EDI to exchange business documents. But how does this process work? First, there are two types of EDI transmission:

  • Point-to-point, i.e. via an Internet connection between two computers or systems;
  • Value-added network (VAN), which involves the use of a third-party network that handles the data transmission.

Underlying both these modes of interchange are EDI standards, common languages for the creation of electronic documents that can be elaborated by the computer systems of any trading partner. Let us see in detail what these are.

What are EDI standards?

EDI standards define the rules for sending and interpreting various business transactions, such as the order in which information is to be presented and the mandatory data to be entered. It is therefore the standardized language that must be used to generate the documents to be exchanged between the parties involved.

There are different types of EDI standards, from the most generic and widespread to more specific ones, used for particular companies. Among the most common ones are:

  • ANSI ASC X12, widespread in Canada and the USA;
  • ODETTE, mainly used in Europe for the automotive sector;
  • TRADACOMS, predominant in English distribution;
  • UBL, the standard used by European PAs.

 

The benefits of electronic data interchange

EDI is a valuable ally in business management, as automating the exchange of documents brings a wide range of benefits to companies:

  • High time savings;
  • Reduction of management costs by up to 90 per cent;
  • Reallocation of human resources to non-time-spending activities;
  • Optimisation of commercial and administrative departments;
  • Reduction of errors and increased security;
  • Real-time alignment of the business situation between partners.

The use of EDI is becoming increasingly widespread, especially by companies that develop many regular transactions with several trading partners. This is why we at C.T.I. International Forwarder have also adopted this technology, so that we are always up to date with the technological innovations related to our sector.

REX system: what it is and how to become a registered exporter

22.12.2022

Customs procedures, as we have also seen in an article on import/export to the article on import/export to the UK, are not so simple. The European Union has therefore decided to intervene to facilitate some of these operations. As of 1 January 2017, a new way of certifying preferential origin was introduced: the Registered Exporters (REX) system. Let’s see what this system is and how the registration procedure works.

What is the REX system?

The REX system is the new certification system used to manage the origin of goods, and consists of a mandatory document that must be attached to the commercial document. In a more specific way, this new system is a specific case of invoice declaration, which is based on the principle of self-certification by traders.

This system was introduced by the European Union on 1 January 2017, as part of the Generalised System of Preferences (GSP) and in line with preferential trade agreements between countries. The intention of this change was to bring a significant advantage within trade: with this process, traders can provide their personal details only once and obtain the REX code, an identification value that allows them to benefit from preferential treatment.

You should know that the REX system does not affect the rules for determining the origin of goods, but concerns the method used to obtain that declaration.

 

How to register in the REX system as an approved exporter?

The first step in issuing a certificate of preferential origin using the REX system is to become an approved exporter. The procedure is simple: apply to the competent territorial office, filling in the form that can be downloaded directly online from the REX Portal, of which we will talk about later.

You must indicate the following data on the application form:

  • Name
  • Address
  • Exporter’s identification number
  • Any additional contact details.

In addition, if you are a trader, or a manufacturer, you will have to list the goods intended to be exported.

Customs offices then proceed with the registration in the database and provide operators with an identification number to be applied on the origin declaration, which must be attached to the commercial document.

Registration through the REX Portal

Since 25 January 2021, the technical services of the European Commission have made available the Operator Portal for the REX system. This site allows the digital submission of the registration request to the database.

To access this service, economic operators must possess:

  • An EORI (Economic Operator Registration and Identification) code, which is the unique registration and identification code of the operator.
  • A consultative or executive authorisation, requested through MAU, the Single Authorisation Model.

 

Which countries apply the REX system?

In 2017, when the new REX model came into force, the use of this system was limited to countries benefiting from the Generalised System of Preferences (GSP), but it was soon progressively extended to all preferential trade agreements between the European Union and other countries.

If you need to ship your goods to countries that apply the REX system and need help, don’t hesitate to contact us. We at C.T.I. are at your side to guarantee you an efficient goods transport service in line with all your needs.

 

Environmental labeling of packaging: guidelines and obligations

07.12.2022

In an increasingly eco-conscious world, packaging waste management is a relevant issue. Hence, environmental labeling of packaging has been introduced-an important tool for providing customers with increasingly comprehensive information about a given product. In particular, this labeling is used to identify the materials of which the packaging is made and consequently the disposal directions. Let’s take a look together at the guidelines, obligations and what is new under the law.

Environmental labeling of packaging: what it is and what information it contains

How often does it happen that you don’t know where to throw away the packaging of a product? The consumer receives very little information regarding the proper disposal of packaging, and that’s where the environmental labeling of packaging intervenes. This is a label that is applied to packaging placed on the Italian market to facilitate collection and encourage recovery and recycling. The label, in fact, provides information on the exact composition of the packaging and its destination, so that disposal can be properly managed.

The environmental labeling of packaging, in fact, provides information about the packaging so as to properly manage disposal. Specifically, the following information is provided to the consumer:

  • Type of packaging, indicated with a graphic or description
  • Identification of the material used, indicated by a code established by Decision 97/129/EC
  • Family to which the reference material belongs and indications of the type of collection.

Where should environmental labeling be placed?

Environmental labeling must be made on all packaging that can be separated manually. Accordingly, it should be on:

  • Individual manually separable components, such as caps
  • On the main body of the packaging
  • On the component that already bears the label.

What happens when the size of the packaging does not allow for the inclusion of these markings? Fortunately, nowadays technology comes to our rescue with QR codes or applications aimed at providing all the necessary information.

Is environmental labeling mandatory? What the new legislation provides

If you are a producer, you should know that Legislative Decree 152/2006, containing the information of the packaging waste management activity, was amended by Legislative Decree of September 3, 2020, No. 116, introducing a number of new features. The two main ones concern:

  • The obligation of environmental labeling of packaging, in the manner prescribed by UNI technical standards and in accordance with the determinations adopted by the EU
  • The obligation on the part of producers to indicate the nature of the materials used for packaging in accordance with the provisions of Decision 97/129/EC (European reference legislation)

However, provision is made for the possibility of marketing, while stocks last, products without the labeling requirements, provided that they are already on the market or already provided with a label.

Environmental labeling of packaging: the CONAI guidelines.

However, the new provisions have raised some doubts and uncertainties. For this reason, CONAI (National Packaging Consortium) has provided guidelines and a tool (e-labeling) to provide companies with answers on interpretative doubts related to the new regulations and to guide operators toward the correct implementation.

The document thus represents a clarification regarding:

  • The components on which environmental labeling is required
  • The applicable UNI technical standards
  • The mandatory and optional contents

 

If you have doubts, do not risk putting on the market a product that is not in line with the regulations, but consult the official CONAI Guidelines.

Milk run logistics: what it is and how it works

24.11.2022

In logistics, the milk run system is a method of shipping goods used to transport stocks and raw materials from different suppliers to a single destination. It is an efficient logistics process, a real strategic tool for managing deliveries, and a great ally of warehouses that will never be overstocked or understocked.

Let’s see together what the term “milk run” means and how the application of this method works in logistics.

What does milk run mean? The “milk run” in contemporary logistics

Nowadays, in a world increasingly focused on production and consumption, the cost of transportation cannot be neglected. For this reason, it is crucial to optimize shipments by organizing trips in such a way as to fully load the vehicle. As a result, more and more companies are working by following the philosophy of full-truck shipping, but without understanding its limitations: on the one hand, the customer may be oversizing his supply needs, and on the other hand, the supplier may only be interested in filling the vehicle.

It is in this context that the milk run, a strategic alternative for replenishment logistics, is developed. To understand what this is all about, however, we need to take a trip back in time, more specifically to the 1960s in the United States. Families used to leave empty milk bottles outside the door, which were promptly refilled with fresh milk so that they would never be without or overstocked. This is the rationale behind the milk run: managing raw materials according to a useful method that allows the real needs of the stock to be met and delivery to be organized from a Just in Time perspective.

How the milk run process works in logistics

The milk run method in logistics allows companies specializing in transportation to make multiple pickups and deliveries to different suppliers. But how does such a process work?

First, to make transportation efficient and avoid loaded vehicles, milk run logistics requires planning that takes into consideration the route to be taken, different intermediate stops, and delivery times. This will help to assess the most efficient route, greatly reducing transportation costs.

Once the planning is defined, the milk run process comes into motion: the vehicle travels to the suppliers’ warehouses to pick up the load, which will then be transported to the various destination areas, according to the defined route and within the established delivery time.

What are the benefits of the milk run system?

The main goal of milk run logistics is to carry out a lean production process that keeps the number of inventories low, limiting waste. Not only that, with this system the benefits are many:

  • It improves stock logistics, as having only the right amount of goods on hand saves space and optimizes storage;
  • Involves a reduction in transportation costs because it is planned in such a way that one vehicle can pick up different loads and deposit them at the same end point, without each supplier shipping the goods on their own;
  • Environmentally friendly because optimizing transportation has a major impact on reducing CO2 emissions.

 

For a business, therefore, implementing milk run management could bring several advantages in terms of economics and coordination of production resources, greatly improving its performance. If you think your business might require such an approach, contact us; we at C.T.I. International Forwarder are available to provide you with the most effective transportation solutions in line with your business.