Search Results For "method of transport"

 What is the best freight method to transfer goods from Vietnam to USA?

Ocean freight between USA and Vietnam

A quick overview of the American ports infrastructures

The USA is one of the greatest countries in the world, in terms of geography, population and economy. Located in the Northern part of the American continent, its territory is entirely crossing it. It explains why the US have great coastlines on the Pacific Ocean, the Atlantic Ocean, and on the Gulf of Mexico. The country is home to the 5 biggest ports in America according to the American Association of Port Authorities (AAPA). It enables the US to receive great volume of goods from overseas, but also to export its tremendous production to foreign countries. Thereby, maritime freight is the most used method to import goods from Vietnam into the USA.

 Shipping companies operating between Vietnam and the US

 Port of Los Angeles

The port of Los Angeles is the busiest port in the United States and in northern America. In 2017, the port managed 198 million of tons in total, and 9.34 million of TEUs. Amongst it, 14 million were bulk cargo. For container shipping, it is a growth of 5.5% compared to the previous year. It is also a growth of 8.2% in terms of other cargo.

 Port of Long Beach

The port of Long Beach is the second port of Los Angeles, and also the second busiest port of North America. They administered 8.1 million of TEUs in 2018 which is a progression of 6.6% compared to 2017. 140,3 million of tons of cargo went through this port in 2018, which is a slight growth of 3.28% compared to the previous year.

 Port of New York/New Jersey

In this ports network, 6.7 million of container TEUs where handled in 2017, which corresponds to a growth of 7.3% compared to the previous year. In terms of cargo tonnage, 80 million of tons where managed there during the year 2016, which is a growth of 6.2% compared to the year 2015. All these quantities are making PONYANJ one of the 3 biggest ports in America and in the USA.

 Port of Savannah

The port of Savannah is the 4th biggest port in northern America. Its total tonnage was of 35 million of tons in 2017 which is a growth of 12.1% compared to the year 2016. 4.05 million of TEUs were handled there during the year 2017, which is corresponding to a growth of 11% compared to the previous year.

Port of Houston

The port of Houston is the 6th biggest American port in terms of TEUs and the second port in terms of cargo tonnage in 2017. It handled 2.4 million of TEUs and 173 million of tonnes of cargo during that same year. It is the most important port on the Gulf of Mexico.

What is the most adapted solution between LCL and a whole container between Vietnam and the USA?

 What is LCL?

LCL, meaning “Less than a container load” is one of the two methods to manage space inside a container. It is used when your shipment isn’t very voluminous, so a full container is not advantageous to use. Thereby, your shipment will be added to other small shipments from other consignees in order to fulfil greatly the container. It is financially advantageous, because each consignee will only have to pay for the space used by his shipment.

 What is FCL?

FCL is the second method to manage space inside a container. It stands for “Full container” load. In this case an entire container is booked because your shipment is big enough to fulfil it completely, or to be financially interesting to rent the whole container.

 When is it advised to use FCL?

Usually, FCL is more economic for shipments greater than 15 CBMs. Below, it is advised to choose LCL.

 LCL or FCL, what should I choose?

You still don’t know which method is the most appropriate? This table below will provide you arguments to help you choose:

 What are the transit times for sea ship travelling between Vietnam and the US?

The following table is detailing the necessary transit times to join the American ports, departing from Vietnam.

*For further precisions, you can email or call our consultants.

 What is the price of sea freight between Vietnam and the USA?

*Sea freight is privileged by the US importers, because compared to the other methods, it is more economic for great shipments.

It is also the reason explaining why ocean freight is the most common solution to transfer goods between Vietnam and the US. For big shipments, air freight is generally way more expensive. Thereby, ocean freight is the best solution for voluminous and regular transfers through time.

Special sea freight services

 Reefer container between Vietnam and the US

Reefer container is one of the favourite methods of chemical and food companies. It enables to transfer perishable or sensitive goods, in a totally mastered environment. Indeed, humidity and temperature inside a container are always controlled. Between Vietnam and the US, FNM can book for you a reefer container freight.

 Roro / Bulk / OOG freight from Vietnam to USA

Like ferries, Roro vessels are built with a retractable ramp in their back. This ramp enables to load an important quantity of goods on trailers, or all sorts of vehicles. That’s how vehicles are transferred through the world.

If you’re aiming to transfer raw materials in great quantities, bulk cargo is the solution you need. Bulk cargoes are enabling to transfer great quantities of liquid (oil, gas…) or solid bulk (cereals, minerals, tar…) in their large tanks.

OOG shipments, which stands for Out Of Gauge, is designating all sorts of goods that can’t be transported by bulk or containers, because they are too voluminous or elaborated. Usually loaded on trailers or platforms, they are transferred inside Roro vessels or on the last stage of container vessels. The inherent handling process must be realized with care.

Air freight between Vietnam and USA

Overview of classic air freight and express air freight

Express air freight is differing from classic air freight because of the necessary times to transfer goods. Indeed, for an express transfer, around 4 days at most are required to transport your goods, while for classic air freight, a week is necessary. This transfer delay is explained because the customs clearance is an automated process through express companies. Through classic air freight the customs clearance is requiring a few hours or a day.

 What should I choose between classic and express air freight?

If your goods are measuring less than 2 CBM and weighing less than 150 kgs, air freight is more advantageous than sea freight. Between the two air methods, express is usually employed for shipments smaller than 0.5 CBMs and 20 kgs. It is becoming more expensive for rates above.

What is the difference between gross weight and volumetric weight?

*To consider the density of your shipment, two methods are used to sort out the chargeable weight of your goods.

These two calculation methods are gross and volumetric weight. Thereby, you can determinate two results, and the highest will be used to rate your freight. The two pictures below are enabling to understand better the two methods:

 Classic air freight from Vietnam to USA

 Airlines operating between Vietnam and USA

 How much time is necessary to transfer goods between Vietnam and the US?

Departing from Vietnam, you can count on more or less 20 hours for your goods to be transferred on door-to-door.

 How much does it cost to send a freight from Vietnam to the US?

Air freight, like any other freight solution, is requiring numerous information to be evaluated. We can send you a tailored quote, because we’re rating each demand individually. Thereby, our consultants will answer your demand within 24 hours, do not hesitate to reach them.

Express air freight between Vietnam and USA

 Express, the ideal solution for small shipments

For important volumes, express isn’t advised because it will be too expensive. On the other hand, if your shipment is weighing around 30 kgs or less, it can be an interesting solution. It is also good to remind that it is the fastest freight solution ever. Of course, we can book express freight transfer for all size of shipment, if you require it.

 What is the transit time to transfer goods by air from Vietnam to USA?

From your Vietnamese supplier to your address in the US, it takes at most 4 days to deliver your goods. This method is fast because the customs clearance of your goods is made inside the courier company’s facilities.

What is the price of Express delivery from Vietnam to the US?

*To quote your express shipment, a different method than gross and volumetric weight is applied. For express freight, you must consider that 1 CBM = 200 kgs.  

Because we’re evaluating each request individually, we don’t have a pricing list for this method. We will transmit you a detailed price once we have enough details about your request. Thanks to the business volume we’re bringing them, we have competitive prices for their services. You will not have similar rates if you’re asking them on your own.

 Major freight airports in the US

 Memphis International Airport

It is the busiest American airport in terms of freight/cargo handled. It’s interesting because it isn’t one of the 15^th busiest airports in the US in terms of passenger traffic. In 2017, it handled 24 million of tonnes of lbs if we’re counting commercial goods and mail, which was a slight increase of 0.35% compared to the previous year.

Ted Stevens Anchorage International Airport

It is the second biggest air freight hub in the United States, and the most important on the west coast. Located in Alaska, this airport managed 17.3 million of tonnes of lbs in cargo in 2017, which is an increase of 2.79% compared to the previous year. Also, it is not on the 15 busiest US passenger airport list.

 Louisville International Airport

The Airport of Louisville is the third biggest US Airport in terms of freight, and isn’t one of the busiest in terms of passengers also, like Memphis and Anchorage. 13.4 million of tonnes of lbs were administered in Louisville through the year 2017. It represents a growth of 2.79% compared to the previous year.

 Chicago O’Hare International Airport

The Chicago Airport is the fourth largest in terms of freight handled, and the third largest in the US in terms of passengers managed. In 2017, 10.3 million of tonnes of lbs of goods were handled, and almost 80 million passengers were managed. For the cargo, it is a growth of 10,84% compared to the previous year.

 Miami International Airport

Miami international Airport is the 5th airport in the US in terms of volume of freight managed. It is also the 12^th most frequented airport in the US with 44 million of visitors in 2017. Still in terms of passengers, it is the second largest airport in Florida, just after Orlando International Airport. It handled almost 8 million of tonnes of lbs of cargo during the year 2017, which shows a growth of 0.82% compared to the previous year.

 Los Angeles International Airport

Los Angeles International Airport is the 6th biggest airport in the US in terms of cargo, with 7.2 million of tonnes of lbs handled in 2017. It is a growth of 3.85% of its cargo traffic compared to 2016. It is the second most important airport in the US, just after Atlanta international Airport in terms of passenger managed, with 84.5 million of passengers handled in 2017.

 Door-to-door transfer from Vietnam to the US

 Door-to-door method overview

Door-to-door, also called “All-in” is the transport service that will give you the greatest peace of mind. Indeed, we will make the complete execution of your transfer, including the warehousing, the customs clearance, the main transport, and all the secondary trucking transfers… Until we deliver your goods. We’re responsible of each phase of your transfer, which provides you the biggest quietude possible. You can use the time saved to achieve other activities where you are fully proficient. The comfort provided with this service is greatly appreciated by our customers.

 How door-to-door services are helpful?

Door-to-door enables to ensure the fluidity of your transfer from A to Z. Indeed, our collaborators in Vietnam and in the US will cooperate to avoid all delays or added costs due to communication mistakes between all the entities responsible for your freight. Hence, phases like the customs clearance will totally be under control, thanks to the proficiency of our collaborators with the US and Vietnamese customs.

 Customs clearance of Vietnamese goods in the US

 How much will cost the customs clearance?

Before all import procedures, you must be able to precisely estimate the freight and customs cost in the US. USA and Vietnam, as all the other members of the World Trade Organization, are using the Harmonized Commodity Description and Coding System. Thanks to this system, articles that you need to buy have the same ID code worldwide. This ID, also called the “HS Code” is composed of 6 numbers.

How to sort out the import taxes on Vietnamese goods with the HS code?

For instance, pineapple is designated with the HS code 08043010, the picture below is describing its signification:

If you don’t know what the HS code of your goods is, the website of the US International Trade Commission is providing a great tool to determine it. Let’s take the example of a pineapple again. If you’re typing pineapple in the search bar, you will find the corresponding HS Code:

You can also determine the import taxes on the same page. Because Vietnam doesn’t have any FTA with the US yet, taxes for bulk pineapples produced in Vietnam are as high as 0.51 cents per kg. For pineapple, import taxes are specific tariffs, because they are based on the quantity you’re importing, and not on the total value of your import.

For all other goods, do the same process, determine the HS Code on the USITC website, and read the applicable rates as described.

 VAT, GST  and sales tax in the US

There are no GST or VAT in the US. Instead, each state has its own Sales tax, which means it is varying from a state to another.

The sales tax is only perceived by the seller when he sells his goods. Contrary to the VAT and GST the sales tax is only imposed on retail, which means that you will not have to pay it to customs for an import of Vietnamese goods. Also, the purchase of goods for subsequent transformation or for reselling is exempted of sales tax. What you have to understand is that only the final consumer will have to pay this tax, which is applied depending on the type of goods and the state of purchase. All intermediaries aren’t dutiable for this tax.

Also, a broad number of necessary products like machineries for agriculture, medicine… are generally exempted of sales tax in most of the states.

The map below is showing the average sales tax rates for each state:

You can determine precisely which rates are imposed on the goods your aiming to sell on the chapter “By jurisdiction” of the Wikipedia page, Sales taxes in the US.

 The excise tax in the US

The Excise tax in the US is mostly levied on 5 categories of products; Highways (fuels), Tobacco, aviation (flight tickets), alcohol and health:

Highway taxes – Taxes on gasoline 18.4 c/gal and on diesel 24.4 c/gal are composing more than 90% of this category, other goods imposed are other fuels, trucks, trailers and tires.

Tobacco – Depending on the product, the tax is calculated per 1000 cigars or cigarettes or per pound. For cigarettes, the tax equals 1$ per pack of cigarettes.

Alcohol – Different rates are applied depending on the type of alcoholic beverage. Usually tax rates are of 13.50$/proof gal. Wine rates are varying between 1.07$/gal for wines with 14% or less of alcohol, to 3.40$/gal for sparkling wines. Generally, beer is taxed at 0.58$/gal.

Aviation – The majority of the aviation taxes are coming from passenger airfares. It is great to know for importers that no excise taxes are applied on international cargoes, which means that air freight between Vietnam and the US is not subject to this kind of taxes.

Health – Was aiming to fund the Affordable Care Act, or “Obamacare”. But it doesn’t concern international trades.

 How to be exempted of import taxes in the US?

In the US, depending on the product type and the country of importation, you can benefit from a total or partial exemption of import taxes. It is concerning:

• Most important and used products like food products
• The countries of the Generalized System of Preference (GSP), like Vietnam.
• All countries having a FTA with the United States, you can consult the list on the USTR website.

 The Generalized System of Preference (GSP)

The United States, like all the members of the World Trade Organization (WTO), are encouraging the developing countries in their social and economic development. It comes out with the GSP, which is a decrease or elimination of tariffs on goods produced in developing countries.

Most products made in Vietnam can benefit of the GSP, but certain categories of products which are too competitive, like textiles, cannot benefit from this global policy.

The condition for you to benefit of the GSP, is to provide a Certificate of Origin of your goods to the USCBP. Indeed, no other documents is proving officially that your goods where made in Vietnam.

 Is FNM Vietnam charging the customs representation?

No, our customs commissioner services will not be charged to you. To prove it, you will receive all the documents produced by the US Customs, during the customs clearance of your goods. Only the import taxes and other taxes will be obviously at your charge.

 How is the customs clearance going in the US?

 The arrival and the customs clearance of your goods, step by step

Here are the steps you will follow to import goods into the US:

• First, you should do the Arrangement with the CBP at the port or airport of entry. This arrangement must be done before your goods arrive in the US territory. You will have to pay duties and also send all the documents (possibly electronically) at this office.
• After the arrangement, you will have to declare your goods once they enter in the port or airport. You will have to declare the purpose, for consumption, re-export…
• Once the cargo arrived, you or the customs broker have to send the Cargo release to the CBP within 15 days. Ideally, do it in the following days of the arrival to avoid all added storage fees. It will liberate the goods from custody, where your shipment is stored before being released, and enable you to begin the US part of your freight.
• Within 10 days from the cargo release from custody, send to the CBP office the CBP Form 7501 (entry summary). This document is detailing the category, value and origin of the goods you imported. Also, you should pay the duties asked to customs in the same time limit. You will first pay an estimation of the duties, as described in the first step. After the liquidation process, which means that the exact amount of duties will be determined, you will have to pay the remaining amount, or you will be refund if you paid too much the first time.

Also, please note that your goods will still remain in custody until you completed all these steps. It means that you must verify every time that the documentation is correctly provided, and that there are no missing documents.

 Customs contacts

Vietnam Customs

Official Name: General Department of Vietnam Customs

Website: Vietnamese Customs

US Customs

Official Name: US Customs and Border Protection

Website: US Customs

What are the necessary freight documents to transfer my goods in the US?

 Bill of lading or Airway bill

The Bill of Lading is equivalent to a passport and a boarding card for your shipment. Depending on the method used to transfer your goods, it can be an Airway Bill (for Air Freight) or a Bill of Lading (for Ocean Freight). It is also a document testifying of the legality of the transfer, because it is emitted once the carrier received payment for its services. This document is important for all international transfer of commercial goods.

The following pictures are detailing what information are provided on a Bill of Lading:

 The original invoice

It will be used by the USCBP to ensure that the goods received are corresponding to the goods you declared.

 The packing list

The packing list is summing up all the items included in your shipment. You should attach the MSDS data sheet and the international code, if you’re importing hazardous or chemical products in the US.

 Certificate of Origin

This document is very important if you’re wishing that your import can be treated under the GSP regime. Indeed, it is the only legal proof that your goods were made in Vietnam. Like the Bill of Lading, the Certificate of Origin is a very important document for all international import. The document must be signed by the manufacturer and delivered by a government agency of Vietnam.

Here is what it looks like (for China here):

 Forbidden or restricted products in the US

 Products needing an import license

In the US a lot of goods’ categories such as food products, drugs, plant, animal, trademarked articles such as name-brand shoes, handbags, sportswear apparel, toys, etc. are requiring an import license delivered by the concerned authority to enter the US territory. All the goods requiring an import license are  compiled in the Chapter 39 of the Importing in the United States guide.

 Products forbidden or restricted to import in the US

These following articles are requiring an import license or are simply forbidden to enter in the US:

Absinthe (subject to permit delivered by the Food and Drug Administration and the Department of the Treasury's Alcohol and Tobacco Tax and Trade Bureau)

Automobiles (subject to approbation of the Environmental Protection Agency and the Department of Transportation)

Cultural Artifacts and Cultural Property (subject to an export permit from the country of origin)

Defense Articles or Items with Military or Proliferation Applications (cannot be permanently imported, contact the Bureau of Industry and Security or the Directorate of Defense Trade Controls to learn more)

Firearms (heavily restricted, importations are requiring approval from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), or the Directorate of Defense Trade Controls)

Dog and Cat Fur (forbidden)

Drug Paraphernalia (forbidden)

Fish and Wildlife (some are forbidden, others require permits from the Fish & Wildlife Service)

Biologicals (subject to permit delivered by the Department of Agriculture and the Centers for Disease Control and Prevention)

Game and Hunting Trophies (some are forbidden, others require permits from the Fish & Wildlife Service and the CBP)

Gold (may be subject to regulation of the Office of Foreign Assets Control)

Merchandise from Embargoed Countries (forbidden)

 FTA between Vietnam and the US

The US leaving the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) during the negotiation phase in 2017, there is no Free Trade Agreement (FTA) existing between the two countries.

 Trade relations between the US and Vietnam

Despite the Vietnam War and the following embargo period of the US on Vietnam, the two countries have nowadays great relationship. They both have great communities of Vietnamese and Americans in their respective countries, and their diplomatic relations are at an all-time high. Economically, USA is the second trading partner of Vietnam, after China. Also, since the US trade war on China, a lot of American importers are sourcing a bigger part of their imports in Vietnam.

According to the latest statistics of the World Bank (2017), the US is the second export partner and the 5^th import partner of Vietnam. On the other hand, Vietnam is the 31st export partner and the 12^th import partner of the US. During this year good flows from Vietnam to the US had a value of 48.4 billion USD, while in the opposite way it was of 8 billion USD. The actual commercial balance is largely benefiting to Vietnam.

The US are importing broadcasting equipment, furniture, integrated circuits, knit sweaters, textile footwear, leather footwear, computers, knit women’s suits and non-knit women’s suits from Vietnam.

On the other way, the US are exporting integrated circuits, aluminium bars, raw cotton, soybeans, nuts and starch residue to Vietnam.

 What further services can provide FNM Vietnam?

 Our warehousing services

 Warehousing in Vietnam

Our warehouses near the ports of HCMC, Haiphong and Quy Nhon, can welcome your shipment during all the time required, before sending it to the US, or delivering it in Vietnam. Our facilities are constantly watched by CCTVs and security staff. Each move is taped inside and outside our warehouses, for a great safety.

 Warehousing in the US

We can also store your goods in the US at competitive prices thanks to our local network there. Our storage services are secured and financially advantageous on both continents.

 Our packing and unpacking services

 Overview

You want to realize the packing of your goods by yourself? We’re giving you further tips and tricks in the following lines. Be aware that this important phase is requiring an extra care to be realized. Indeed, your products packaging is the greatest protection against all environmental constraints applied on your products. We’re possessing very skilled packing teams to pack your goods the best way.

 Packing material

 Carton boxes

The thickest and unbending your carton is, the better he will protect your goods against all impacts. Carton is a material used since a long time in the industry, but it is still practical and great for conditioning. No matter how big or shaped are your products, our packing teams will only use excellent cartons to condition them.

 Your goods’ palletization

Pallets enables your goods to be easily moved with mechanical handling methods. Thereby, it enables a safer handling of your goods, in order to place them inside a container. We’re possessing all the pallet dimensions possible inside our warehouses, to put your goods on pallets if your supplier cannot achieve this step.

 Wooden crates

Voluminous objects can be put inside wooden crates to ease their transport. Depending on the instructions they can be placed inside a crate or a box. Indeed, if they need to be oriented in a precise direction during their transport, it is better to place them in a crate. On the other hand, if they can be displayed without a particular direction, the crate is better used. Our operation teams can build appropriated crates without regarding the dimensions of your goods.

Others: Bubble wrap, tape, wrapping paper…

The wrapping paper, the bubble wrap and all other protection materials are enabling a soft contact between your goods and the carton or box. Our packing teams are systematically using them to isolate your goods.

Why packing is important for the insurance?

The packing is very important because in any case of damage inflicted to your goods during their transport, the insurance company covering them can refuse to reimburse you if the packing wasn’t professionally made. To keep calm during the transfer of your goods, take services from our operation teams to pack your goods.

 Insure your goods during the freight

How much costs a freight insurance?

The commercial value of your products serves as a base to calculate the price of your insurance contract. This explains why it is better to not underestimate the value of your goods, because you will not be fully reimbursed in case of any incident. Naturally, you will increase in vain the value of your insurance contracts if you’re declaring a too much important value of your goods.

The price that the insurance will provide you can be determined this way: freight value + product value * 2-3%.

The rate is determined depending on the category of your goods.

The cargo insurance

 Supplier management in Vietnam

Quality control in Vietnam

It is very important for us to establish a very good contact with your supplier from the beginning, to know the state of your products and their packing. We cannot allow a too fragile or incorrectly packed shipment to be internationally transferred. Thereby, we will avoid a great part of the incidents possible.

 Relationship with your supplier

No matter which incoterm is ruling your transfer, even for a FOB (Free on Board), the type, the HS Code, the dimensions and the packing of your goods, will always be verified. Our collaborators will ensure an excellent communication with your supplier, thanks to their mastering of Vietnamese, French and English. The pickup the documentation and the packing of your goods will be greatly mastered. Your freight will be fluid from the start to the finish. 

 3PL services for e-commerce in Vietnam

 Order fulfilment / Packing and Labelling

The ecommerce supply chain is very complex to handle, mostly if you are not located in the on the country of sourcing. Our packing, labelling and fulfilment services in Vietnam will enable us to be your extension in the country. Thereby we will handle the customer relation and your inventory for you.

 Delivery at house in Vietnam and in the US

No matter where you’re located in the US, we can deliver your goods to you thanks to our international network of messengers. They are guaranteeing the quality of our door-to-door services.

 Send personal effects from Vietnam

 Excess luggage

If you’re coming back home after a trip in Vietnam, taking with too much souvenirs and things than at arrival, it is possible that the airline doesn’t accept all your goods onboard. Thanks to our express transport services, we can deliver your excess luggage to you, in the US in the best time.

 Moving services between the US and Vietnam

We are able to handle the packing, the transfer, the customs clearance and the warehousing of your goods if necessary, between Vietnam and the US. Our moving services are efficient, and tailored to your needs.

What is the best method to ship your goods from Vietnam to Canada?

Sea freight shipping from Vietnam to Canada

Overview - Ocean cargo from Vietnam to Canada

 Canada is one of the largest countries in the world.  Geographically, its situation crossing the northern American continent from east to west is providing great coastline on the Atlantic and the Pacific Ocean to the country. Numerous ports and well-developed  infrastructures are enabling the country to handle important volumes of goods. Canadian ports are all ranked in the list of the 25 busiest ports of north America, according to the American Association of Port Authorities (AAPA). The main ports of the country are Vancouver, Montreal, Halifax and Prince Rupert. Thereby, ocean freight is one of the most used methods to transfer goods between Canada and Vietnam.

Shipping companies offering services from Vietnam to Canada ports

Port of Montreal

During the year 2017, the port of Montreal managed 38 million tonnes of goods in total. Among them, 14 million tonnes have been imported or exported by containers, which is corresponding to 1.5 million of TEUs. Others were 23.9 million tonnes of bulk. 61% of this bulk was liquid bulk, which is corresponding to 14.6 million of tonnes and the other 39% were solid bulk, which is corresponding to 9.3 million of tonnes of goods. Comparing to the previous year, the port of Montreal realised a growth of 7.6% of its goods’ traffic.

Port of Halifax

In 2017, port of Halifax handled 5 million tonnes of containerized goods, which is equivalent to 560 thousand of TEUs. Bulk goods handled during the same year were of 3.9 million of tonnes, which is a total of 8.9 million of tonnes of goods handled in 2017. This is describing a growth of 7% of the goods administered compared to the previous year.

Port of Vancouver

Port of Vancouver is the largest Canadian port and the 6^th busiest port in North America, just after the neighbouring port of Seattle-Tacoma. In 2017, the port handled 142 million of tonnes of freight, which is describing a growth of 5% compared to the year 2016. Among these goods, 26 million of tonnes where containerized products which is corresponding to 3.2 million of TEUs. Bulk and transhipped goods will have respectively been of 98 million of tonnes and 16.6 million of tonnes during that same year. 430 thousands vehicles were imported or exported within this port.

Port of Prince Rupert

Port of Prince Rupert is the 3^rd largest port of Canada. In 2017, it handled 9.2 million of containerized goods, which is corresponding to 926 thousand of TEUs. Among these goods, 5.2 million of tonnes where imported and 4 million where exported. In total 24.3 million of tonnes of goods where handled in Prince Rupert in 2017.

Should I ship by consolidation or full container from Vietnam to Canada?

What is LCL?

Also called groupage, LCL is one of the two management methods for space in a container. It serves to handle different small shipments in a same container. Thereby, your shipment will be assembled with shipments from other senders, and each person will only pay for the space he is using. It enables to allocate fairly the total cost of the container between each consignee.

What is FCL?

FCL is the other method to handle space inside a container. Simply, if your goods are voluminous enough to entirely fulfil a container, or to be financially interesting to rent it all, this method will be preferred to groupage.

In which conditions is FCL recommended?

Usually, FCL is more advantageous economically, when your goods are larger than 15 CBMs.

How long does it take to ship from Vietnam to Canada by sea freight?

The following table is describing the necessary navigation time between Vietnam and Canada.

*You can reach one of our consultants for further precisions on the necessary transit times between Vietnam and Canada

How much does it cost to ship a container from Vietnam to Canada?

*Maritime freight is generally privileged by Canadian importers because compared to other methods, it is the most economic for large cargos.

It is the main reason explaining why ocean freight is the most used solution to transfer goods between Vietnam and Canada. For important volumes air freight is generally very expensive. Thereby, for voluminous and regular transfer through times between both countries, ocean freight is the best solution.

Special sea freight services

Reefer container from Vietnam to Canada

The reefer container is often used by chemical and food companies. It enables to move sensitive or perishable goods in a totally mastered environment. Indeed, humidity and temperature inside a reefer container are controlled in all times. Between Canada and Vietnam, FNM can book you reefer container freight.

Roro/Bulk/OOG from Vietnam to Canada

Similar to ferry ships, Roll-on/Roll-off vessels, also called “Roro” are equipped with a retractable ramp at their extremity. This ramp enables to load important quantity of goods on trailer, and all sorts of vehicles. It is the method used to transfer all types of vehicles worldwide, like cars, buses, trucks, boats…

 If you’re aiming to transfer raw goods in great quantities, bulk is the solution you need. Bulk cargos are enabling to transfer large quantities of liquid goods (gas, oil…) and solid goods (cereals, wood, ores…) in their large tanks.

OOG goods, which stands for Out of Gauge is including all sorts of goods that can’t be transferred by bulk cargo or container, because they are too voluminous or elaborated. They are generally charged on trailers or platforms, and then transported inside Roro vessels or on the last stage of a container. The inherent handling operations must be processed with care.

How long is the transfer from Vietnam to Canada by air freight?

From Vietnam, more or less 20 hours are required for your goods to land in Canada.

How much does it cost to ship a parcel from Vietnam to Canada?

Air freight, like all other freight solution is requiring numerous information to be quoted. We will provide you a tailored quote thanks to our quoting policy. Thereby, our consultants will answer your demand in the best time for air freight services. Don’t hesitate to contact them.

Should I choose an Express Air freight from Vietnam to Canada?

Express service – Perfect solution for small package

For large volumes, express freight isn’t recommended because it will be very expensive. Contrariwise, if your shipment is lighter than 20 kgs and smaller than 0.5 CBM, it is an interesting solution. Also, it is necessary to remind that it is the fastest transfer method existing. Of course, if you’re absolutely requiring this method to transfer your goods, we will do it without regarding the volume or the weight.

How long does it take for a package to be shipped from Vietnam to Canada?

From your supplier’s location in Vietnam to your address in Canada, courier freight is requiring 4 days at most. This method is very quick because the customs clearance of your goods is made inside the facilities of the express carriers.

How much an Express service costs from Vietnam to Canada?

*To quote your express freight, a different method is applied instead of gross and volumetric weight. The following ratio must be considered: 1 CBM = 200 kgs

Because we’re evaluating each request individually for express also, we don’t have a price list for this kind of service. We’re transmitting a precise and detailed price once we have enough data. We have very competitive rates for this type of services with the courier companies, thanks to the business volume we’re providing to them each month. You will not have such great rates if you’re asking them prices directly.

Major airports to ship in Canada 

Toronto Airport

Toronto Airport is the most important airport in Canada, both in terms of freight and passengers. In 2014, 40% of the air freight in Canada was handled in this airport, which is corresponding to approximately 450 thousands of tonnes of goods. Around 50 million passengers travelled through this airport in 2017.

Vancouver Airport

Vancouver airport is the most important airport on the east coast of Canada. In 2016, this airport welcomed more than 22.3 million of passengers. During the year 2017, around 313 thousands of tonnes of cargo were administered in Canada through this airport. It is situated on the Sea Island in the estuary of the Fraser river, south of Vancouver.

Montréal Airport

Montréal Airport is the third airport of the country, both in terms of passenger and cargo flights. 206 thousand tonnes of goods were handled there in 2017, and 18 million passengers travelled there during the same period. It is corresponding to a growth of 7% of the cargo volume handled compared to the previous year.

Calgary Airport

Calgary Airport handled 147 thousands of tonnes of cargo and 16.3 millions of passengers in 2017. It corresponds to a growth of 4% of the passenger number compared to the previous year.

Door-to-door transport from Vietnam to Canada

Overview – Door to Door

Door-to-door, also called “All-in” freight, is the transport service that will provide you the greatest peace of mind. Indeed, we will handle the complete execution of your freight, including all the phases of storage, customs clearance, main and secondary transport… Until we deliver your goods to your address. We’re totally responsible of each phase of your transfer, which provides you serenity and time to achieve other things. The comfort provided with this solution is greatly appreciated by our customers.

Why door-to-door services are necessary?

Door-to-door is enabling us to ensure the greatest fluidity of your transfer from the start to the end. Indeed, our agents in Vietnam and Canada will cooperate to get rid of all possible delay and added costs, caused by communication mistakes between all the parties involved for your freight. Also, steps like the customs clearance will be monitored thanks to our collaborator’s proficiency with Canadian and Vietnamese customs.

Customs clearance in Canada for goods imported from Vietnam

How much will the customs clearance cost?

Before all import process, it’s a must to estimate the freight and customs clearance cost of your goods in Canada. Canada, Vietnam and all other countries that are members of the World Trade Organization (WTO) are using the Harmonized System. Thanks to this, all the articles that you’re buying have the same ID code worldwide. This ID is called the “HS code” and is composed of 6 figures.

Calculate the import taxes that you will be liable to with the HS code

For instance, the HS code of a pineapple is 08043010, the picture below is describing the signification behind the code : In case that you still don’t know what is the HS code of your product, the website of the Canadian post implemented an interesting tool to help you determine it. Let’s take still the example of a pineapple. When typing pineapple in the search bar, and choosing Canada as a country of destination, you will find the corresponding HS code: Now that you know the HS code of your product, you can find the inherent import taxes. In this objective you have to consult the departmental codification of the customs tariff 2019. In a first time, it is interesting to know which tariff treatment is applied to products made in Vietnam. In this objective, you can reach the page 27 of the document. You will find that Vietnamese goods can benefit of the Most Favoured Nation (MFN) and the General Preferential Tariff (GPT). You can now determine the amount of import taxes you will pay on your products. In this objective, you must go to the corresponding chapter. Still for pineapple, it is the chapter n°8 “EDIBLE FRUIT AND NUTS; PEEL OF CITRUS FRUIT OR MELONS” beginning at the page 149 of the document. Tariffs on pineapples are described on the page 154, where you can see: Prices are referred per Kgs of goods, as you can see. But pineapples are free of import taxes, so you will not have to pay any tariffs when you import this product. For all other kind of goods, please refer to the corresponding chapter, to the precise unit of measure used and the applicable preferential rate.

VAT in Canada

Canada is implementing a unique system in terms of VAT. Three rates are applying individually or added, depending on the province where you’re bringing your goods. These rates are the GST, the PST and the HST:

• The GST (Goods and Services Tax) is applied in most of the Anglo-Saxon countries and is the equivalent of the VAT in other countries. The rate is of 5% in all the province.
• The PST (Products and Services Tax) is applied in complement of the GST, only in certain provinces. It is applied on the price of the product without taxes, except in Québec, where it is applied on the price with the GST.
• Finally, the HST is designating all the taxes that you will have to pay, like the GST + PST eventually, depending on the province.

To learn more about the applicable taxes in the province where you aim to import goods, the website AdValorem.ca is explaining greatly how it works.

Excise duties in Canada

The law on excise in Canada is aiming to tax different products and services like:

• Jewelry
• Cosmetics
• Air transportation
• Some types of vehicles
• Air conditioning for vehicles
• Gas and Fuel
• Telecommunications
• Liquors and alcoholic beverages
• Tobacco products and cannabis

The laws applying on these products are very detailed. If you wish to import them in Canada from Vietnam, you will find the corresponding information by following these links:

• Tobacco, Alcohol and Cannabis
• Air transportation, Telecommunications, Jewelry and Cosmetic products
• Petroleum products and Vehicles
• Vehicles, Petroleum products and Air Conditionner

How to have an import tax exemption in Canada?

In Canada, depending on the type of goods and the country of import, you can benefit of a diminution or a total exoneration of tariffs. It is concerning:

• The most basic products like food and agricultural products, drugs…
• The import countries of the GPT list like Vietnam, or the Least Developed Country (LDCT)
• All the countries possessing a FTA with Canada like Israel, Colombia, Australia, Chile, Costa Rica, EU, USA, Honduras, Mexico, Iceland, Jordan, Korea, Norway, New Zealand, Peru, Panama, States of the Commonwealth, Switzerland, Lichtenstein and Ukraine

General Preferential Tariff (GPT)

Canada, like all the countries member of the WTO, is supporting the economic and social development of the emerging countries like Vietnam. This comes out in the form of a reduction or a total exemption of import taxes on the goods produced in these countries. Most of the products made in Vietnam can benefit of the GPT, except some categories of products, where the international competition is too intense, like textile products. The necessary condition to benefit of such measures is to provide the Certificate of Origin of your goods to the Canadian customs. Indeed, no other documents can legally prove that your articles were made in Vietnam.

Does FNM Vietnam charges the customs representation?

No, we’re only charging the handling and production of the necessary documents. Of course, you will be liable to pay the import taxes and other taxes that are inherent to your goods. All the necessary documents during the customs clearance of your goods will be provided to you.

How is the customs clearance process doing in Canada?

The arrival of my goods and the customs clearance, step by step

Here are the steps that you should follow to clear your goods with the Canadian customs:

• If you don’t have one, you can ask an enterprise registration number to the Canada Revenue Agency (CRA), (by the way you can call them for this at the 1-800-959-7775). You have to do the Business Registration Online (BRO)
• Then use the Electronic Data Interchange (EDI), to declare your goods to the Canadian customs
• You will have to pay the import taxes after, to obtain the release of your goods, after that the customs received them in custody. You will find the different payment options by following this link
• The goods can travel through the Canadian territory after and be delivered to the final destination

Customs contacts

Contact at the Vietnamese customs Official name: General Department of Vietnam Customs Website: Vietnamese Customs   Contact at the Canadian customs Official name: Canada Border Services Agency Website: Canadian Customs

What are the necessary documents for the freight and the clearance of my goods?

The Bill of lading or Airway bill

The BL is equivalent to a boarding pass and a passport for your cargo. Depending on the used transfer method, it can take the form of an Airway bill for an air freight, or a Bill of Lading for an Ocean freight. It is also a document testifying that the transport of your shipment is legal, because it is emitted once the carrier is receiving payment for its services. This document is paramount when we’re talking about an international transfer of commercial goods. The following pictures are detailing how a B/L is organised and all the information we can find on:

The original invoice

The CBSA will use it to make sure that the goods you’re importing are corresponding to the one that are described on your customs declaration.

The packing list

The packing list is summing up all the items in your shipment. You must attach to it the MSDS data sheet and the international code, in case that you’re importing hazardous or chemical goods to Canada.

Certificate of Origin

This document is of a prime importance if you wish to be granted the GPT tariff treatment. Indeed, it is the only legal proof that your goods were manufactured in Vietnam. Your supplier must sign the certificate of origin, who must be produced by a Vietnamese government agency. Like the Bill of Lading, the Certificate of Origins is one of the most important documents for all international import. Here is how a certificate of origin is looking, here in Chinese:

What are the restricted or forbidden products in Canada?

Products requiring an import license

The following goods are requiring an import license delivered by the corresponding authority, in order to be imported:

• Animals; plants; food and all other similar items, food labels ; wooden packaging ; machineries and used equipment ; international garbage (licenses provided by the Canadian Food Inspection Agency)
• Agri-food products ; Clothes and textiles ; Products from countries with embargo ; weapons ; steel (licenses provided by Global Affairs Canada)
• Human bodies and all its organs and parts ; pathogens (licenses provided by the Public Health Agency of Canada)
• Devices emitting radiations; Nuclear technologies or materials or with a double use in nuclear activities (licenses provided by the Canadian Nuclear Safety Commission)
• Labelling and packing of products other than food ; clothes labelling ; precious metals labelling (licenses provided by the Competition Bureau Canada)
• Wild or endangered animal or vegetal species ; hazardous recyclable wastes and materials ; Substances depleting the ozone layer or products composed with such substances (licenses provided by Environment and Climate Change Canada)
• Gas, fuel and electricity (licenses provided by the National Energy Board)
• Cultural and patrimonial goods (licenses provided by the Canadian Heritage)
• Telecommunication and radiocommunication technologies (licenses provided by Innovation, Science and Economic Development Canada)
• Aquatic and fishery species (licenses provided by Fisheries and Ocean Canada)
• Weapons and ammunitions (licenses provided by the Canadian Firearms Program)
• Diamonds, explosives and fireworks (licenses provided by Natural Resources Canada)
• Food ; consumer goods ; vitamins ; natural products ; medical devices ; pharmaceutical products ; toxic substances ; pesticides ; radiation emitting devices (licenses provided by Health Canada)
• Goods or technologies able to influence the national defence and security (licenses provided by the Controled Goods Program)
• Vehicles; tires; hazardous goods (licenses provided by Transport Canada)

Products restricted to import

Some kind of products can be imported, but their import is strictly controlled. Such products are:

• Weapons and ammunitions
• Turkeys, chickens, eggs and poultries for a personal use
• Beef and veal for a personal use
• Dairies and margarine for personal use
• Eligible agricultural goods
• Hazardous chemical products
• Roses (flower)
• Wheat and barley
• Steel and specialized products in steel

You will find all these details on the Justice Laws Website

Products forbidden to import

Are forbidden to enter in the Canadian territory:

• All materials considered obscene
• All goods produced by prisoners
• Fake or altered money
• Goods mentionned in the Departmental consolidation of the customs tariff 2019
• Used or 2^nd hand mattress
• Matches with white phosphorus
• Used or 2^nd hand vehicles
• Vicious propaganda and all material aiming to create sedition and betrayal

Free Trade Agreements between Canada and Vietnam

The CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) is a Free Trade Agreement (FTA) implying 495 million of persons in 11 different countries, including Vietnam and Canada. This FTA entered into force the 30 December 2018 for Canada and the 14 January 2019 for Vietnam. Since 2015, Vietnam is the first economic partner of Canada inside ASEAN. The CPTPP will favour trades and both economies of Vietnam and Canada by suppressing import taxes on numerous Canadian goods in Vietnam like agricultural products:

• Beef and pork – All the import taxes on these two meats can be as high as 31% in Vietnam and will be suppressed within 9 years
• Lobsters – Tariff barriers of up to 34% will be completely eliminated within 3 years
• Salmons and fish filets – Import taxes of up to 18% are suppressed since the 14 January 2019
• Canola – Import taxes of up to 5% and 20% respectively on seeds and canola oil are suppressed since the 14th of January 2019 for seeds and within 7 years for the oil.
• Whiskey and ice wine – Import taxes up to 56% will be suppressed within 10 years
• Cardboard packaging, journal paper, papers and uncoated cartons – Tariff barriers of up to 27% will be totally eliminated within 3 years

Industrial products :

• Industrial machineries – Customs tariffs of up to 25% will be totally suppressed within 8 years
• Chemical and plastic products – Import taxes on these products can reach 31% and will become free of tax within 10 years
• Minerals and metals – Customs rights on such products are at least of 31%, and will be free within 10 years
• Cosmetic products – Import taxes on such products in Vietnam can reach 30% and will be free within 4 years

CPTPP will provide to Canadian investors more security, protection and ease to penetrate the Vietnamese market. The sectors of the economy in Vietnam with the biggest potential nowadays are:

• Education – Vietnam is one of the biggest importers in the world of education products and services
• Communication and information technologies – The Vietnamese GDP is composed at 7% by the CIT sector
• Agriculture and Food – Two massive sectors in Vietnam
• Infrastructures – Transport, Health and social infrastructures are booming in Vietnam, since the standard of living is growing
• Environment – Conscious of the fragility of their territory, and of earth in general, Vietnam is aiming to create a viable economic development on long term and is including fully the ecologic dimension
• Aerospace – The Vietnamese sector of aerospace will be one of the tenth markets worldwide with the biggest growth in the next decade, according to the International Air Transport Association (IATA)

Trade relationship between Vietnam and Canada

The last trade statistics from the World Bank (2016), are showing that Canada is the 18^th export and the 30^th import partner of Vietnam. On the other way, Vietnam is the 36^th export and the 10^th import partner of Canada. During this year, trade flows departing from Vietnam and going to Canada had a value of 3.7 billion USD, while flows going to Vietnam from Canada had a value of 400 million USD. The trade balance between these two countries are largely benefiting to Vietnam. Canada is largely exporting soy seeds, wheat, crustacean, frozen fish, potassium fertilizer, raw furs, coal bricks and polyethylene to Vietnam. In return, Canada is importing broadcasting equipment, computers, furniture, textile and leather shoe, insulated wires from Vietnam.

What other services can FNM Vietnam provide?

Our packing/unpacking services

Overview

You wish to do the packing of your goods by yourself, before their transfer? We’re giving you some tricks and tips in the next paragraphs. Note first that this important step is requiring a great care to be processed. Indeed, the conditioning of your goods is the biggest protection possible, to protect your cargo against all constraints applied by the environment. We’re having very skilled packing teams to pack your goods the best way.

Packing material

Cardboard packaging

You should know that more the carton is thick and inflexible, the better it will cover your goods against all shock. Cardboard packaging is a material used in the industry since a long time ago, but it is still very convenient to use to pack numerous types of goods. No matter the volume and the shape of your products, our packing teams will only use premium cardboard to condition your goods.

The palettization of your products

The pallet is enabling your goods to be easily moved with mechanic handling methods. Thereby, it allows a better and safer handling of your goods, to put them inside a container. We’re possessing in our warehouses all possible dimensions and types of pallets, to palletize your goods if your supplier can’t provide this service.

Wooden crates

Voluminous objects can be placed inside wooden crates to ease their transport. Depending on the necessary precautions to handle them, they can be placed inside a crate or a box. Indeed, if they need to be oriented in a particular direction during their transport, it is better to place them inside a wooden crate. On the other hand, if they can be placed without any precise direction, the crate is better used. Our operation teams can place your goods in crates, without regarding their dimensions.

Other: Polystyrene, bubble wrap, tape, wrapping paper

All these protecting and wrapping materials are enabling a cushioned contact between your goods and their box or crate that are containing them. Our packing staff is systematically using it to isolate each object.

Why packing is important for the insurance?

The packing is very important because in any case of damage inflicted on your goods during their transport, the insurance company that may cover your goods will systematically verify how the packing was realized. If it wasn’t made professionally, they can refuse to refund the goods you lost. To keep a peace of mind during the transfer of your goods, you can ask for our packing teams to condition your goods.

Insure the transport of your goods

How much does a freight insurance cost?

The commercial value of your products is used as a base to calculate the price of your insurance contract. It explains why it’s not recommended to declare a too small value of your goods, because you will not be completely refunded in case of any damage happening. Obviously, you will only increase the price of your insurance contract if you’re declaring a superior value.

The price that the insurance will charge you is determined this way: freight value + product value * 2-3%

The percent rate is determined in function of the type of goods you’re aiming to ensure

Supplier management in Vietnam

Quality control in Vietnam

With your supplier, it is important for us to establish a great contact from start, to learn more about the state and the packing of your goods. It is extremely important because we can’t let go goods that are too fragile or poorly packed, because they will not survive to an international transport. Thereby, we can avoid a great part of the incidents that can happen.

Relationship with your supplier

Without regarding the incoterm of your transfer, even for a FOB (Free On Board) transfer, the type, the HS Code, the dimensions and the packing of your goods will always be verified. Our collaborators are well-concerned and will ensure an excellent communication with your suppliers, thanks to their proficiency in Vietnamese, French and English. The handling of your goods, their documentation and packaging will be perfectly handled. Thereby, your freight will be fluid and uninterrupted.

Last mile delivery

Without regarding where you’re located in Canada, we can deliver your goods to your address thanks to our international network of messengers, presents in Vietnam as well as in Canada. They are guaranteeing the quality of our door-to-door services.

Shipping personal effects from Vietnam

Excess luggage

If you’re coming back from a trip in Vietnam, and you’re bringing home with you a lot more items than on your arrival, the airline might refuse to bring all your luggage on board. Thanks to our express transport services, we can deliver your excess personal effects and souvenirs to your address in Canada in the best time.

Relocation services between Vietnam and Canada

We’re able to take in charge the packing, the transfer, the customs clearance and the storage (if necessary) of your goods between the two countries, without regarding the sense. Our relocation services are very effective and flexible for your particular needs.

Free regulation advisor

Our proficiency between Vietnam and Canada is enabling us to effectively point out the possible issues and requirements that are proper to each transfer. You can reach us for all administrative aspects, or any other topic that are important for your project. It will avoid you to spend unnecessary money and time.

FAQ – For 1^st time importer from Vietnam

How can I ensure that I have selected the correct site/supplier/factory to shop on?  

If you don’t know the reputation of your sourcing website, in the case that you sourced your supplier on the internet, it is primary to verify the notoriety of the platform. For this you can watch for opinions on other websites and forums. Afterwards you can verify the reputation of your supplier particularly. Here are a few steps to check your supplier’s reputation:

• Firstly, analyse his clients. If most of his clients are in Europe, in the US or in Japan for instance, you can be sure that his products are at least of a correct quality. On the other hand, if the majority of its clients are in Africa or Middle-East, you must be pernicketier before placing your first order.
• After, it is important to analyse his products catalogue. If it is homogeneous, and that there is a clear directing line, for instance wooden jewellery, wooden artwork, wooden accessories… It is certainly a manufacturer. On the other hand, if he is providing very different articles like silicon phone cases, headphones and selfie sticks, he is probably a wholesaler rather than a producer. In general, wholesalers are less focused on quality than direct manufacturers.
• Finally, verify since when your supplier is active online. If he’s been active for more than 5 years, you can easily trust him.

In case of any doubts, do not hesitate to reach our consultants, they will provide you great advices on the proficiency of your supplier.

FAQ – How can FNM be helpful?

Do you have a privacy policy?

Our privacy policy can be consulted on our website. We’re ensuring you that none of your information will be disclosed. We’re only using your details to deliver the best service possible.

What will you do next for customer services once I paid the cost?  

Because communication is a key factor for the success of every project, our consultants are available at all time to answer your questions. They can be reached every day of the week, until you’re totally satisfied of the service provided. Naturally, they will join you for each progress of your freight, until the final delivery.

I have bought many different items of goods from cities around Vietnam, could you gather together to send me?  

Of course, our consolidation services are realized in our facilities, once we will receive all the different goods from your several suppliers. Our FNM specialists will bring you further details on this topic, you can reach them on purpose.

Can I change the delivery address once the transfer process has begun?

Yes, you can. However, please inform us as soon as possible, so we can adapt and reorganize you transfer the best way possible.

Conclusion

We hope that this page provides you more knowledge on the freight and customs process between Vietnam and Canada. We also hope that your project between the two countries seems clearer now, and you’re guided to proceed it. You always can reach one of our consultants for recommendations based on your situation. As told, FNM Vietnam can help you to source your products in Vietnam, to optimise your transport and supply chain, from or to Vietnam.

Are you planning to import products made in Vietnam? Are you discussing the packing with your supplier? You’re not sure if the packing solution he will provide is enough? Having these interrogations is normal, and everything will be clearer after reading this page. Here is all you need to know about the packing, before implementing any trade process.

FNM Vietnam is an international freight forwarder and a multimodal services specialist. Our 10 years of multimodal freight management, and all other transport methods, enables us to precisely understand all what this method is requiring. If a maritime transport between Vietnam and your second place isn’t fast enough, and if an air freight is too costly, multimodal freight should be your ideal compromise. In this article we will detail all the advantages of this method, and when you should ask for it.

1) What is a cargo insurance?

The cargo insurance is covering all losses or material damage that occurred on your shipment during its air, sea or ground freight. Many importers and exporters are thinking that this aspect is handled by the carrier, which is a very common mistake. Furthermore, if you are not handling yourself the insurance, it will be difficult to know if the right insurance and value of your goods have been chosen.

1.1) How important is it to insure your goods when importing from Vietnam?

Companies are not realising how common are the damages occurred during the freight. On the factory floor, at the airport or port of departure/arrival, shipments aren’t spared. When such events are occurring, the transport insurance is the only thing that will allow your enterprise to stay above. No compensations can be asked without an insurance.

Partial or total loss can be caused by:

• Theft
• Inappropriate loading/unloading or handling during the transport
• Vehicle accidents, like vessel sinking, a plane crash, a burning, or any other type of catastrophy
• Rain or sea water exposition
• Temperature variations

You cannot handle all those risks by yourself, because during the travel, you’re giving the responsibility of your shipment to the carrier, the forwarder and the supplier. In times of problems, you can’t question them.

2) How to insure your cargo?

There are numerous methods to insure your cargo. We’re detailing the two most common methods in the next paragraphs.

2.1) Ask a transfer under the CIF (Cost, Insurance and Freight) incoterm

By definition, when you’re buying a CIF transfer (which is including the freight of your goods from your supplier’s factory to the port of loading), your shipment is automatically insured. If you’re choosing any other incoterm, you must communicate with your supplier and your freight forwarder to insure your goods, depending on the freight contract chosen.

Of course, you must ask a copy of the insurance contract to the carrier or the forwarder.

2.2) Ask your forwarder to buy you a freight insurance

Passing through a forwarder for the insurance of your freight is a guarantee of transparency and control. First, you can ask for an optimal coverage of your goods during the transport in Vietnam, the loading and unloading operations and also during the main transportions (vessel, plane, train, truck…).

3) What will be covered by your insurance?

Your insurance will reimburse the value of your goods for all total or partial loss caused by:

• A sea, air or ground danger
• Mother nature (Extreme weather conditions, natural catastrophes…)
• An accident during the transport
• Inappropriate handlings
• Act of carelessness or malice
• Theft or destruction because of a human factor

4) How much will cost my cargo insurance?

The price of your insurance is based on the total value of your freight and shipment. The insurance cost is calculated by applying a ratio to the previous base value. This price is brought by the insurance company.

The calculation method is as follow: (freight value + goods’ value) * 2-3% = cost of your insurance.

The percentage is depending on your products’ type.

5) Claiming for a refund

If you’re regularly ordering Vietnamese supplies, the probability is high that you will have to do a refund claim at least once. Good news, it’s generally easy to do it and it is usually accepted by the insurance company. Furthermore, you will be quickly compensated.

To obtain a refund, you must be able to prove that the deterioration of your goods occurred when the carrier oversaw them, which means that he is responsible of the damages. The first thing to do is to ensure yourself that there is no harm linked with the transportation when you’re receiving your goods. If there is the least damage, you must quickly declare it to your forwarder, which means ideally in less than 48 hours. To prove it, you must provide:

• Videos and pictures of the decanting of the container and of the opening of the cartons. It will prove that you’re not liable to the damage occurred on your products

• A list of the damaged products, the quantity and value of each loss
• A proof of the value like the pro forma and commercial invoice
• A proof of the reception of the goods

Depending on the damaged quantity, you will be compensated partially or for the total of your loss. You will probably obtain a refund in the form of a money transfer directly sent on your bank account. Generally, the transfer is done within three weeks after the approval of your request.

Contrariwise, the process may be longer if you’re letting your supplier manage your freight, because he may be unused to handle compensation demands. In numerous cases, the supplier is asking the client to handle it by himself.

3.3) Is intermodal freight more beneficial than multimodal freight?

Intermodal freight is generally used when the multimodal freight isn’t possible, which means that no logistic company can ensure the transfer of your goods from A to Z. Thus, you’re forced to contact several logistic services suppliers.

The price of the intermodal freight is generally higher, because of the number of parties involved. Generally, a carrier will proportionally put higher margins on small services than on big services. Thus, the addition of the quotes from all the different companies will be higher than if one company take care of the whole service.

For all freight needs from and to Vietnam, without regarding if they are multimodal or intermodal, FNM Vietnam is the partner you want. Our experience and our skilled and multilingual teams are the key of a successful freight. Do not hesitate to send us a quote request. We will answer you within 48 hours with a detailed answer and competitive rates.