HL Tidbits

Welcome to HL Tidbits, your go-to source for all things related to shipping and logistics. Whether you're interested in learning about shipping terms or the specific services we offer, you'll find valuable information here.

Understanding Shipping Terms

Special Shipping Lines to Key Cities in China

• DOOR to DOOR
• LOW SHIPPING RATES
• CUSTOMS CLEARANCE
• TAX AND DOCUMENTATION
• PAYMENT ASSISTANCE
• CHINA-BASED FILIPINO SUPPORT TEAM (English, Tagalog, Visaya, Mandarin and Bicol Speaking team)
• NO MINIMUM SIZE REQUIRED
• SHIP NOW PAY LATER

Customer Concerns About Shipping

At HL Express, we understand that our customers want to ensure the safety of their packages and know the estimated time of arrival (ETA). Rest assured, we take every precaution to ensure the safe delivery of your items, and our team is dedicated to providing timely updates on your shipment's progress.

• ✅DOOR to DOOR
• ✅LOW SHIPPING RATES
• ✅CUSTOMS CLEARANCE
• ✅TAX AND DOCUMENTATION
• ✅PAYMENT ASSISTANCE
• ✅CHINA-BASED FILIPINO SUPPORT TEAM (English, Tagalog, Visaya, Mandarin and Bicol Speaking team)
• ✅NO MINIMUM SIZE REQUIRED
• ✅SHIP NOW PAY LATER

KEY TAKEAWAYS

Most companies shipping internationally prefer buying through Free on Board (FOB) and selling by Cost, Insurance, and Freight (CIF).
FOB agreements require the buyer to manage a majority of the delivery process, which appeals to those who have experience in international shipping.
CIF is preferred more widely by those less familiar with international freight or who ship small amounts of cargo.
For CIF, the seller takes care of everything up to delivery at the buyer’s destination port.
For FOB, the goods are considered delivered once they are cleared for export and loaded onto the shipping vessel.

Each company shipping internationally has different needs, so each might have reasons for preferring one or another of the other 10 agreement types.1 For example, those relatively unfamiliar with international trade or those who are shipping a small amount of cargo may choose to pay the seller to take care of everything, especially if the other party is a company with extensive size and experience. These shipping firms generally have the contacts and know-how to speed shipments along and get better prices.

Cost, Insurance, and Freight (CIF)
With CIF, the seller is the party responsible for transporting the goods, making shipping more convenient for the buyer. The seller's responsibilities include loading the goods onto the ship, ensuring the goods get to the buyer's designated port, and covering all costs associated with delivery. The seller is also the one on the hook for insuring the goods during transit.2
The buyer comes into the picture once the cargo is delivered to the destination port. From that point, the buyer assumes responsibility for bringing the goods to their final destination, including handling import clearance procedures, as well as covering any associated fees, such as duties and taxes.3

CIF is often preferred when commerce involves bulky or oversized goods and when the seller has more experience in international shipping.2 The seller's expertise can allow for more competitive rates in transportation and insurance.

Advantages and Disadvantages of CIF
CIF often comes with a higher cost. The seller handles a large chunk of the shipment, and the price charged for this privilege might not always represent the best deal. For this reason, some buyers prefer handling this to keep costs down or ensure the goods arrive more quickly or safely. 

A lot depends on the experience of the buyer. If it’s a company with lots of expertise and contacts in international shipping that can negotiate cheaper insurance rates, the firm will likely not favor the CIF option. These companies probably already have industry contacts who can handle the job, perhaps at less cost.

Meanwhile, a company is more likely to pay more for CIF if it’s new to international trading, shipping only a few goods, or receiving cargo from a country whose customs system or language is unfamiliar. In addition, sometimes it’s better to have the predictability of paying upfront rather than dealing with the hassle of handling it themselves. Plus, in the end, there’s no guarantee buyers save money by taking care of the shipments themselves.
CIF thus offers the advantages of a simplified process, less risk for buyers, and more predictable costs. The disadvantages include less control over logistics, potentially more costly expenses, liability for the transfer of goods at the port, less transparency about what’s happening in transit, and fewer details about the fees and charges involved.

Free on Board (FOB)
In FOB trading, sellers assume much less responsibility. The term refers to the point at which liability passes from the seller to the buyer. They only need to get the goods to the nearest port and load them onto the vessel. Once past the ship's rail and cleared for export, the responsibility shifts to the buyer.2 At that point, the buyer foots the bill for transport, insurance, and anything else that might arise.3

Advantages and Disadvantages of FOB
FOB is generally more favorable to buyers with a background in international shipping. The term is also widely used across diverse modes of transport, including sea, air, and inland waterways.

Buyers' views on FOB largely depend on their familiarity with shipping, an intimidating process for novices. FOB affords advantages frequently regarded by experienced buyers as worth the extra effort and responsibility since it allows them more control over the shipping process, from selecting the carrier to negotiating shipping and insurance costs.
In theory, though not always in practice, FOB also offers buyers a far more precise picture of the status of their goods in transit, and they can also itemize costs

This offers buyers a more accurate accounting of their charges, including what expenses might be reduced next time. Buyers with FOB can also set their level of risk, choosing the level of insurance for their comfort level.3
This extra control is likely not very appealing to those unfamiliar with international shipping. The disadvantages include greater complexity for buyers, who assume the responsibility for all aspects of shipping, which is often complicated and time-consuming. The buyer also takes the risk of hidden or unforeseeable costs, such as demurrage or storage charges and increased insurance premiums.2 Organizing the majority of the delivery, without the expertise required, means potentially wasting time and effort getting the goods to where they are needed and still getting less of a deal than had the buyer chosen CIF.
Which Is Cheaper, FOB or CIF?

CIF often comes with a higher cost. You’ll often be quoted a lower price for FOB since the shipping requires you, not the seller, to handle more legwork. However, whether it works out to be less expensive in the end depends on the rates you secure. Sellers who are major handlers of international cargo can often negotiate competitive rates. If sellers don’t slap a hefty markup on the CIF price, you might end up paying more in time, stress, and money doing it yourself through FOB.
Should I Buy CIF or FOB?

The answer depends on how comfortable you are managing freight transportation over water. If you have the background to do it, FOB may be a better option since it offers you more control at a potentially lower cost. For its part, CIF appeals to newcomers and buyers of smaller cargo who’d prefer to assume the least responsibility possible for transporting goods, even if they end up paying more than if they organized everything themselves.
Does CIF Include Customs Clearance?
With CIF, the seller handles all the documentation for exporting the goods, and the buyer takes over once it has reached its port. The buyer is thus responsible for clearing the cargo once it arrives and paying any import duties and charges.

The Bottom Line
The main difference between CIF and FOB concerns who takes much of the responsibility for shipping costs and risks. With CIF, the seller does most of the legwork, taking responsibility for the goods all the way to the buyer’s port. Alternatively, with FOB, the buyer assumes full liability for all costs and risks as soon as the cargo is loaded onto the ship.

Under the Delivered Duty Paid (DDP) Incoterm rules, the seller assumes all responsibilities and costs for delivering the goods to the named place of destination. The seller must pay both export and import formalities, fees, duties and taxes.
The seller is not obligated to insure the goods for pre-carriage or main carriage.
The buyer is free of any risk or cost until the goods are unloaded from the vehicle at the named place of destination, usually the buyer’s place of business.
DDP is the only Incoterms rule that places responsibility for import clearance and payment of taxes and/or import duty on the seller.
These last requirements can be problematic for the seller. In countries with complex or bureaucratic import clearance procedures a seller with local knowledge may prefer to take on these responsibilities.
 The seller is responsible for all costs and risk until the goods are unloaded.

Less-than-Container Load (LCL) is one of two main types of containerized transportation services. The other is Full-Container Load (FCL). LCL is optimal when you don't fill up an entire container. LCL allows transportation of small cargo volumes without paying for the whole container.

GUIDE TO SHIPPING & LOGISTICS

Accessorial: An extra fee charged by carriers for additional services rendered,
which can include detention and fuel surcharges.

Asset-based: A transportation company that owns its own equipment, usually
trucks or containers.

Bill of Lading (BOL): A transportation document that acts as a contract between
a shipper and receiver and includes details specific to the shipment.

Blanket rates: Lower, contracted rates you can obtain from LTL carriers if you
have enough shipping volume.

Blocking and bracing: A method of securing cargo to prevent shifting during
transportation.

Bulk cargo: A cargo commodity that is transported unpackaged in large
quantities. For example, coal and gravel.

Capacity: The availability of carriers and equipment to haul freight.
Cargo: Goods or product being shipped.

Carrier: A person or business that transports goods, usually used
interchangeably with “trucking company.”

Certificate of Insurance: A document noting that insurance has been secured to
cover loss or damage to a shipment while in transit.

Claim: A charge made against a carrier by a shipper or consignee due to loss,
damage, or delay to the shipment.

Commodity: The type of goods you are shipping.

Consignee: The receiver of a shipment.

Container: A box or trailer used for shipping goods.

Council of Supply Chain Management Professionals (CSCMP): A professional
association dedicated to the advancement of the logistics and supply chain
industries.

Cross docking: The process of unloading inbound freight and immediately
loading it onto a different outbound method of transportation, often across the
same dock.

Customs broker: A firm that represents importers and exporters in dealing with
customs in international shipments and is responsible for gathering all necessary
documents to do so legally.

Deadhead: A truck traveling without freight in order to pick up its next load.

Dead on Arrival (DOA): When a product is delivered in a non-functional
condition.

Declared value: The value of freight in a shipment as noted by the shipper on a
bill of lading.

Density rates: LTL shipping rates that are based on the shipment’s density and
size, rather than on their freight class.

Department of Transportation (DOT): A federal organization designed to
manage the country’s transportation system and functions.

Detention: Additional shipping costs charged by a carrier if they must wait
beyond the specified loading and unloading times.

Dispatch: A job function of the carrier to arrange drivers, tracing of drivers, and
equipment for specified shipments.

Door to door: A shipment arranged by a single transportation provider that
travels directly from the shipper to the consignee.

Door to port: A shipment arranged by a single transportation provider that
travels directly from the shipper to a port.

Drayage: The transport of ocean or rail containers to and from ports or rail yards.

Drop trailer: A type of shipment when a carrier drops off their trailer at a facility
for an extended period of time.

Enroute: When a shipment is in the middle of its transport.

Expedited shipping: A form of transportation that involves shipments being
moved at a faster rate than usual.

Federal Motor Carrier Safety Administration (FMCSA): A federal organization
whose primary mission is to reduce crashes, injuries and fatalities involving large
trucks and buses.

Freight All Kinds (FAK): Refers to a negotiated LTL rate based on the combined

freight class of multiple commodities.

Flatbed: A type of trailer that has a long floor, but is not enclosed. This is often
used to ship large products, like equipment or pipes, that wouldn’t ordinarily fit
in the confines of a normal trailer.

Freight: Goods being transported from one place to another.

Freight class: A classification of LTL shipments based on the freight’s weight,
length, height, density, ease of handling, and value.

Freight forwarder: A company that specializes in the arranging and storage of
foreign shipments.

Freight quote: Estimated pricing from a carrier or 3PL for the arrangement and
shipping of specific freight on a specific lane.
Goods: Another term for freight or product.

Hazmat: A type of specialty shipment that involves the transport of hazardous
materials.

Hotshot: A specialty LTL shipment that has a single customer’s freight on board
without multiple stops.

Heavy haul: A specialty shipment for goods heavier than normal truckload will
allow for.

Insurance certificate: An official document issued to the consignee that outlines
the insurance provided to cover potential loss or damage of freight while it’s in
transit.

Intermodal: A shipping mode that involves multiple modes of transportation.
Most commonly, this refers to utilizing the rail in addition to trucks.

International shipping: Transportation of goods into or out of foreign countries.


Just in Time (JIT): A specialty transportation service that is based on the
material flow of manufacturing companies. Products are delivered only when
they are needed to cut down on required storage space.

Lane: The commercial route between the origin and the destination of your
shipment. For example, “Miami to Chicago is a great lane for this carrier.”

Layover: Extra charges from a carrier for the extra time (a day or more) spent
waiting to load or unload at a shipper or receiver.

Less-Than-Truckload (LTL): A mode of transportation for freight that would not
fill a full truckload trailer.

Liftgate: A mechanical platform on the back of a vehicle that can be raised
during loading and unloading of heavy cargo. This is used when the shipper or
consignee do not have a loading dock on site to load or unload the freight.

Logistics: The coordination of activities and transportation needed to bring
goods to market.

LTL Terminal: Where LTL carriers load and unload freight that needs to switch
trucks on the way to its final destination.

Lumper: Additional fee charged to the carrier when a shipper utilizes a third
party worker, called a lumper, to help load or unload trailer contents.
Mileage: The distance a carrier travels for a shipment, which is a determining
factor in shipping costs.

Mode: A term used to distinguish different methods of transportation. For
example, truckload, LTL, and intermodal.

Motor carrier: A private company that provides the transportation of goods by
means of a commercial motor vehicle.

National Motor Freight Transportation Association: The organization who
puts together the NMFC (National Motor Freight Classification) guidelines.

National Motor Freight Classification: The guidelines that determine the
freight class of your shipment.

NMFC number: Different from freight class, this is a very specific number that
corresponds to your commodity and how it is packaged. This number is used to
determine your freight class.

Over-the-Road (OTR): A mode of travel that involves transportation of goods over
public roadways.

Overdimensional and oversized: A specialty form of transportation for freight
that cannot fit in the confines of a trailer due to its odd dimensions or size and isn’t
legally able to be transported without a special permit.

Owner/Operator: A truck driver that both owns a truck as well as operates it.
P and D: Pickup and delivery.

Pallet: A flat platform, typically made out of wood or plastic, that a shipment is
placed upon (and usually shrink-wrapped to). This makes your shipment easier to
lift, transport, and stack.

Parcel Shipment: Small shipments that are often for personal use versus
commercial freight. These are typically sent via the postal service, or companies
like UPS or FedEx.

Picking: The process of pulling products from storage to complete an order
or shipment.

Port: A harbor where cargo ships anchor to load and unload.

Power only: Shipments that only require the use of a truck, as the customer
provides a trailer.

Proof of Delivery (POD): An official document supplied to the consignee by the
carrier that outlines the person who signed for the shipment and the time and date
of delivery.

Quick pay: An expedited means for carriers to get paid by a 3PL or freight broker.
Rail shipping: Another term for intermodal shipping, or transportation using trains.
Receiver: A consignee of a shipment, or the party receiving the shipment.

Reefer: A refrigerated or temperature-controlled trailer.

Refrigerated LTL: Temperature-controlled less-than-truckload shipping.

Responsible Care: A certification that represents the good standing of chemical
shipping companies and companies that serve the chemical industry in the areas
of health, safety, and environmental performance standards.

Route: A shipping lane from pickup to delivery.

Shipper: The party in a shipment that sends goods.

Spot market: A quick, one-time quote provided by a carrier for particular lane
often without much notice before pickup.

Straight truck: A truck that has a trailer built onto it, acting as a single unit.

Step deck trailer: A platform trailer with no sides or roof and two deck levels.

Supply chain: The process of getting a product to market, from acquiring raw
materials all the way to the delivery of the final product to the customer.

Tanker: A truck that is capable of carrying liquids in bulk quantities.

Temperature-controlled: A trailer capable of maintaining a specific temperature
range as to not damage a product.

Third Party Logistics Provider (3PL): A company that provides outsourced
logistics services, often including freight shipping arrangement and
warehousing.

Tracing: The process of tracking a carrier or shipment while it’s in transit.

Trailer: The container attached to a truck that hauls goods.

Transit time: The time it takes to transport a shipment from pickup to delivery.

Transportation Management Software (TMS): A software designed to manage
and optimize logistics processes.

Truckload: Shipments that occupy the space in a standard trailer, often weighing
around 40,000 pounds.

Van: The most common type of freight trailer hauled by commercial motor
carriers, often between 26 and 53 feet.

Volume LTL: A larger LTL shipment that is more than 6 pallets or 5,000lbs (but
less than 10,000lbs); takes up part of a trailer, but not all of it.

Warehousing: The process of using a facility to store products.

White glove: A specialty freight service for high-value freight to ensure extra
protection and care during transit.

How Long Is Shipping from China to the world?

Channel Type:

Types of Shipping

On-time Delivery of 95% Express Air Freight:  8 working days

EConomic Sea Freight A: 15 to 21 days

Economic Sea Freight  B: 30 to 50 working days

Economic Courier Service  (e.g., DHL, FedEx, SF Express) 1 to 2 weeks

Express Courier Service  (e.g., DHL, FedEx, UPS, FedEx adn SF Express) 3 to 5 working days

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