Archive for November, 2009

Shipping from China, Part I: Basics and a guide to timing and cost

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Part I: Basics and a guide to timing and cost
With thousands of containers shipped out daily, Chinese ports rank among the highest in the world in terms of global shipping volume. In this series of blogs, we’ll tackle the basics of international shipping, as well as secure packing and handling.
First, we’ll discuss the basics.

Basic Shipping Knowledge-Buying Terms
First, decide by what terms you wish to have the goods delivered. A long list of internationally accepted terms for commercial shipping defining the roles of buyer and seller (Incoterms) are available. Here are the most commonly used:

FOB – (Free On Board) Title and risk pass to the buyer including payment of all transportation, insurance cost, customs clearance and import duty once items are delivered on board the ship by the seller at the port of origin.

CIF – (Cost, Insurance and Freight) Title and risk pass to the buyer when items are delivered on board the ship by the seller who pays transportation and insurance cost to destination port.

DDP – (Delivered Duty Paid) Title and risk pass to the buyer when the seller delivers goods to named destination point, usually the final location, having cleared customs and with all import duties settled.
For a complete list of terms, please click here!

Tips:
You can often save money by buying FOB China or CIF at the local port of call and controlling the importing yourself. For moderately experienced importers, this is a good way to go. However, this you must manage customs clearance and local delivery. Be sure to research the product’s Harmonized Tariff Schedule (HTS) number in advance to evaluate potential import duties, and secure the assistance of a highly competent customs agent.
Click here for a HTS on-line reference tool.

Be sure that you receive all required documents, as you won’t be able to import the goods without them. In addition to the standard set of Commercial Invoice, Bill of Lading and Packing list, you may need additional documentation such as pallet fumigation or Country of Origin Certification, depending on the details of your shipment and country. US buyers must pay close attention to the new “10+2 Filing Rule,” which goes into effect in January 2010.

For more information, please click the links below:
- CBP Issues Interim Final Rule on “10+2″ Requirements
- Security Filing “10 + 2”

Timing and Cost
Before shipping, you’ll need to plan your shipping time and cost. Here are some rules of thumb, based on CIF cost:

Country Estimate Shipping Time Estimate Cost (US$) for Full Container loads by Ocean (20’/40’/40H’)
North America 25-30 days for East Coast
15-20 days for West Coast
$1300/ 1700/ 1800
South America 25-32 days $1500/ 1800/ 1900
Australia 13-15 days $1100/ 1500/ 1700
Europe 25-30 days $900/ 1300/ 1500
Japan 3-7 days $200/ 300/ 400

*Costs shown are rates to port, do not include customs clearance or local delivery and are highly subject to change according to fuel costs and current market rates.

Tips
• Insurance—Make sure the total value of your shipment is insured, not just the ‘salvage costs.’
• Always allow additional time for potential customs delays, particularly in USA and South America. It is difficult to predict which shipments might be pulled for inspection, but when it happens it will delay deliveries anywhere from 2 days to a week

Why it’s worth your effort and time.

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Recently, we made changes to our quarterly Town Hall format. Each quarter, we gather for an hour to hear from our CEO about the company, recognize associate anniversaries, and learn about upcoming projects/initiatives. The format was working well, but we felt it was time to change it and make it more interactive. Instead of following a regiment of topics, we decided to have the CEO and another VP discuss issues generated from employee questions. Associates could submit questions while at the event, by text, or e-mail. We also introduced an Emcee, who was responsible for keeping topics on track, asking follow-up questions where necessary, and, most importantly, ensuring the meeting only lasted one hour (we’re all very busy around here).

We wanted to draw attention to these changes in an informative and engaging way. So, we decided to keep the Emcee’s identity a secret, and use a microsite to help Associates discover who he or she was. Microsites are smaller, more focused websites (you could argue all sites should follow this pattern, but then we wouldn’t have Facebook). We wanted the site to be so engaging that associates would return daily. So, we created the “Who Stole the Mic” game.

Each day, Associates would visit the site and receive direction about where they could find “clues” that would help them discover the Emcee’s identity (the site has a distinct, mid ‘20s detective vibe; visitors were often referred to as “Gumshoe”). Associates would then search our websites (the mothership, Facebook, and Ivie Cares) for “clues,” which they would enter into the microsite. Each time Associates entered the correct clue, they would learn something new about the mystery Emcee. There was a new clue every day, so each day we had to change the dialogue, both the information about the clue’s whereabouts and “pass” and “fail” messages. It was an addition to our hectic workload, but ultimately a fun, mostly rewarding experience.

I say “mostly” because there were naysayers; ironically, often the same people that were advocating more employee involvement and engagement. Our site did this. It allowed Associates in both our home office and offsite to participate in a fun game. It was also directly tied to another event that is aimed solely at keeping Associates engaged, our Town Hall. Nonetheless, there were detractors; some saw it as a waste of time, others saw it as an unnecessary distraction (we were particularly sensitive to this claim; so “clues” were very easy to find; we made sure no “clue” required more than 5 minutes to locate).

Despite this reaction, the site was widely considered a success. We had roughly 150 different Associates visit the site and many of them continued to visit daily. This showed us that while there are detractors and the work behind an endeavor can be trying, it’s better to press on. While social media and digital solutions for employee engagement will be panned by critics, they are essential and should not be ignored or sacrificed in the name of expediency or busy schedules. Without them, those same critics will be complaining about the lack of employee engagement months later.

Have you done something to engage coworkers and received a mixed reaction? How did you handle the negative press?

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