We Are Still Here to Take Your Cargo!

The moments we are currently experiencing are quite troubled. We were forced to change habits, to adapt to a new and strange reality. It won’t be forever, nor will it be for much longer! – we hope.

In any case, being confined to our homes did not end Green Ibérica’s mission: transport your cargoes as far as the seas reach – and even beyond!

At a time of adaptations, and although we continue with our usual services using new methodologies, we also ask for your collaboration. If you don’t do it yet, we ask you to also adapt your processes and make maximum use of the technology we have been providing for some time now.

Through our e-commerce platform, ShipmentLink, you have access to several features that you can use and, thus, streamline processes, perform actions and obtain information.

At ShipmentLink you can perform several actions, of which we highlight:

You also have access to various information relevant for your shipment, such as:

In the same way, and considering the risk posed by the circulation of physical documents, we also request that you only ask the issue of originals as a last resort.

Let’s all work for the common good!

For any further information, get in touch with us.

International Chamber of Commerce Releases Incoterms 2020

Incoterms 2020 has been released! As we mentioned before, the new international commerce terms take effect on January 1, 2020.

Incoterms are fundamental to foreign trade as they provide a set of contract terms for international freight. With this new edition, the ICC – International Chamber of Commerce aims to increase confidence and transparency in business and global trade.

The main purpose of Incoterms is, as it has always been since their first version of 1936, to simplify communication processes, as well as to present international negotiating terms. This new Incoterms aim to be more reachable and easier to use than their previous versions. This includes more detailed explanations, aided and reinforced with graphs illustrating the responsibilities of importers and exporters, for each Incoterms rule. The introduction of Incoterms 2020 includes detailed explanations to help direct you to the most appropriate Incoterm for a given transaction, or how your sales contract will interact with complementary contracts.

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Some of Incoterms 2020 main characteristics are:

  • To provide for demonstrated market need in relation to bills of lading (BL) with an on-board notation and the Free Carrier (FCA) Incoterms rule;
  • To align different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid to (CIP);
  • To include arrangements for carriage with own means of transport in FCA, Delivered at Place (DAP), Delivered at Place Unloaded (DPU), and Delivered Duty Paid (DDP);
  • There is a change in the three-letter name for Delivered at Terminal (DAT) to DPU;
  • Incoterms 2020 includes security-related requirements within carriage obligations and costs…

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In line with their commitment to develop technology available to everyone, access to the essential information on new Incoterms is available on a Mobile Application launched by ICC, which includes a wide range of informational elements, including breaking news, events and training.

Learn more about Incoterms 2020.

You may acquire new Incoterms 2020, under ICC conditions, HERE.

Advantages of Sea Shipping

Sea shipping and the movement of goods, is an essential process for the way consumer society is currently organized. At this moment, more than ever, we live in a global world. By way of example: we buy raw materials from India for goods we produce in Portugal, which we then sell to the United States. And this trend is increasing more and more. Consequently choosing the mode of transport is a major step, which may define the success/failure of our projects.

All modes of transport have their specific characteristics, with advantages and disadvantages, which vary according to the need and specificity of each product, customer and/or market(s) in which it operates. Following are some of the advantages of Sea Shipping.

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Key Advantages of Sea Shipping

The specific case of maritime transport has several advantages, ranging from:

  • Suitable for any type of cargo

The size and capacity of today’s ships make them an extremely versatile means of transport. Thus it is virtually possible to transport any type of cargo: chemicals, fuels, perishable and frozen food, sands, cereals, ores, automobiles, among others.

  • Large Volume Handling

The advantages of sea shipping are also present in the transport of large volumes, either in terms of the size of the goods or in the quantity of those.

  • Safety

Sea Shipping follows strict international safety rules and standards, which, combined with the specific conditions of shipping, make it a very safe and viable option.

  • Travel Long Distances

About 70% of the earth’s surface is covered by water from the oceans, which connect cities, countries, continents. This means that sea shipping is widely covered globally, and the most widely used mode of international freight.

  • Lower Unit Costs

With impressive cargo capacities (there are already ships capable of carrying more than 23,000 TEU!) allow shipping costs to be diluted making the unitary price quite competitive.

  • Environmentally More Sustainable

In the environmental ground, transporting large quantities of goods, together with the use of less polluting fuels and more efficient ships, allows the ecological footprint of sea shipping to be diminished compared to other means of transport.

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Sea Shipping has many advantages for those who have the world as their market. If this is the option that best suits your company, contact Green Ibérica and we will be happy to answer all your questions!

New Incoterms 2020 are Coming!

The International Chamber of Commerce (ICC) is working to publish new Incoterms later this September to take effect early next year. According to the ICC, this publication will include an update to the regulations that define the liability of buyers and sellers operating in global trade.

 

About Incoterms

Incoterms is the acronym for “International Commerce Terms”. Incoterms were designed by the ICC in 1936 to avoid miscommunication that abounded in international trade. At the time they were born under the name “International Rules for the Interpretation of Trade Terms”.

The introduction of standardized rules and interpretations has greatly improved international business transactions. From then on these rules were adjusted and evolving in line with international trade.

 

Expected Changes in Incoterms 2020

The current Incoterms (which you can find here) are from 2010. With the changes felt in the world trade, the adjustment to the new reality becomes urgent. In order to make these adjustments in line with actual needs, the International Chamber of Commerce has joined a development group consisting of 5 elements representing the main world trade zones – the European Union, the United States of America, Australia and China.

This working group has as its action plan the simplification of the rules as well as the adaptation to the current reality. With this, they intended to provide a clearer text without superfluous or confusing information. This group should also be aware that English will not be the native language for many Incoterms users.

There are, however, aspects such as VAT, Customs Unions or VGM where no changes are expected. This is because this update seeks to standardize global rules, leaving aside local issues of intrinsically distinct characteristics.

Changes expected from Incoterms include:

  • Elimination of EXW (Ex Works), DDP (Delivered Duty Paid) and FAS (Free Alongside Ship);
  • Extending the scope of the Free Carrier Arrangement (FCA);
  • Updates on FOB (Free on Board) and CIF (Cost, Insurance & Freight);
  • The arrival of CNI (Cost and Insurance).

Cyber security will also be a factor and take into consideration in the new Incoterms. In recent years, with the increasing use of these systems, there has also been a growing increase in computer attacks involving the deletion, theft or corruption of data, as well as the theft of financial information. Therefore, the creation of an Incoterm to protect against these new dangers is expected. In addition, clarification work is expected from international trade companies so that they become more aware of the potential dangers that may arise, and help them to take precautions.

 

Conclusion

International trade has seen significant changes in the last decade, the present reality is different from that of 2010. In this sense, the ICC, based on the accumulated knowledge of this decade, has joined a team that brings together elements from the most important world markets to update the new Terms for the World Trade – Incoterms 2020. With this it is expected:

  • Clarification and attribution of risks and responsibilities;
  • Packaging, marking and inspection of products;
  • Safety Certificate;
  • Stakeholder Responsibility

 

New Incoterms 2020 will be launched later this month, to become effective on January 1, 2020.

To learn more about the rules of the new Incoterms 2020, see the page of the International Chamber of Commerce.

 

Green Ibérica will be alert to this issue and as soon as news emerges we will share them with our customers.

Ever Govern has joined EVERGREEN

Ever Govern is the ninth G-Class (20,000+ TEU) ship to be part of the EVERGREEN’s fleet. After the arrival of this “megamax” ship, only two of this class are still to be delivered, to complete the order of the eleven ordered in 2015. The latter is expected to arrive as early as September.

For now Ever Govern has joined the OCEAN Alliance in the Asia – Europe ‘NEU6’ loop (branded as ‘CEM’ by EVERGREEN).

Ever Govern and New ULCV Characteristics

As we have already mentioned in the past, this giant of 400 m in length and 59 m (23 rows) in breadth, comes with an 11-cylinder MAN-B & W G95ME engine, delivering around 59,250 kW. This engine allows you to reach speeds that can reach 21 knots.

New ULCV and the Environment

Unlike the first seven ships of this class already delivered, Ever Govern, as well as the remaining 3 ships that make up the 11 ordered, already comes with a SOx scrubber installed. This “extra” means a loss of 144 TEU of capacity (from 20,388 TEU to 20,244 TEU). This is, however, an investment aimed at the greater good of preserving the environment. With this we will be limiting pollutant emissions to the atmosphere and, consequently, our ecological footprint.

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Importation, Import to Portugal

How to Import to Portugal – Guidelines

Export of and Import to Portugal, can be the only ways for a company to have a reliable economic model in one market as limited as the Portuguese.

Nowadays, if you want to have a company economically sustainable, especially in a limited market as the Portuguese, frontiers can and should be, just geographic references, not having vital importance in where businesses take place. It is in this context that products Importation and Exportation – intra-community acquisition of goods, when within European Union – rise.

Import to Portugal in a safety way, is not too complex. That doesn’t mean that it does not have any risks. It is important to identify those risks, be ready and mitigate them. You have to pay attention to some processes so everything go without unpleasant surprises.

In this article, Green Ibérica intends to approach the theme “How to Import to Portugal” and give a few tips to help you with this process.

 

Planning

First of all, planning is crucial. As Portuguese, we have the art of “desenrascar” crusted in our identities. Maybe you should keep that cultural quality for other fields, though. You’ll have to develop a good business plan so you can know/define the strategic way to follow. Research, study, devote resources and describe in detail all the actions you’ll have to take.

 

Make Sure You Are Legally Able to Import to Portugal

After you plan and know exactly the way to go, make sure your company have every legal requirements needed in this kind of transactions. Make sure the “NIPC” of the company have the importation and exportation activity in the corporate object.

 

Select Your Importation Suppliers

To make sure that you can rely on your potential suppliers to import to Portugal, you should attend to fairs, conferences, congresses, etc., that they can be at.  Beyond that, personal contact with the company, with their representatives and with their products and services can help you deciding if that is what you need. Look for references. Try to know more about their clients. If possible, try to reach them and hear their experience.

There are several websites that can help you researching for the best places to go. n’Feiras and 10times are just two examples, there are much more, you just have to look in the area you want to.

 

Go to the Supplier Factory

There are no better way to know your suppliers and their products, than go and see them in loco. If you have that opportunity check all the manufacturing process. Including machinery conditions, certificates, safety norms and anything that can certify the integrity of your supplier.

 

Built an Expenses Sheet

Is not easy to get immediately how much you will pay. The product price is just one of the costs you will have. To be aware of taxes, charges, insurances and other amounts of the import to Portugal transaction, will help you determine its feasibility.

So, before you close a deal, be aware all the potential costs, which can include:

  • International Shipping;
  • International Shipping insurance;
  • Importation Taxes;
  • Customs Fees;
  • VAT;
  • Bank Expenses;
  • Port Charges;
  • Storage Charges;
  • Customs Broker;
  • Internal Shipping…

 

Negotiate Incoterms

By the time of the negotiation it is possible your supplier offers you three intercoms[1]  for the cargo shipping:

  • FOB (Free On Board or FCA – Free CArrier, for air cargo) – cover the shipping costs, from the place of receipt to the Port of Loading.

  • CFR (Cost and FReight) – the seller its responsible for the sea shipping.

  • DAP (Delivery At Place) – The seller is the responsible for all the costs of the shipping, since the place of receipt to the place of delivery.

To choose the best incoterm will depend on the knowledge and the contacts you have, mostly in the origin place of the goods you acquire.

 

Documents Needed to Import to Portugal

After boarding, the exporter send several documents that will allow the importer to release the cargo in the customs. Be aware on the details in the documents. Little inaccuracies can drive to major problems, which ultimately can lead to the apprehension of the goods. If you don’t have the knowledge, looking for an experienced partner can be important.

There are global laws, and so documentation, which are mandatory all over the world. Besides that, there are local laws and local legislation that should be studied, so you avoid unpleasant surprises.

Some of the most important documents to importation:

  • Bill of Lading (B/L) – Is the most important document in the sea shipping. It is issued by the containerized shipping company (or by a transport agent, as Green Ibérica) to be informed about a cargo shipping. B/L has three main purposes: is the shipping contract between the shipper and the containerized shipping company; is the delivery receipt of the cargo; and is possession title of the goods, which usually can be negotiated/transferred.

  • AirWay Bill – Such as B/L in sea shipping, AirWay Bill is the most important document in air cargo transport. In contrast to B/L, it can’t be negotiable. The main functions of AirWay Bill are: transport contract; receipt proof of the goods; freight bill; insurance certificate; customs declaration…

  • Commercial Invoice – Emitted by the supplier, the commercial invoice have the data of the company and of the cargo. In many countries is used to determine the value of the goods that will determine the customs fee.

  • Packing List – It’s a supplementary document to the commercial invoice, which intent is to describe the content of the shipment. Identify volumes, dimensions, weights, references, etc., of each package. In short, Packing List covers transported boxes and/or packages. Commercial invoice covers every item commercialized.

  • Origin Certificate – As its name, this document certificate the origin of the goods. There are several Origin Certificates, the most usual is the Form A. This form also allows to have access to tax benefits of some goods.

  • Insurance Certificate – It’s a way to assure consignees that possible losses and/or damages occurred in the goods during the shipping, are covered.

 

 

Conclusion

We’ve had discussed some tips that can be useful if you are thinking about internationalize your business. Export of and Import to Portugal, and so internationalization, can be the only way for you to manage a dynamic and secure company. Even so, maybe you shouldn’t take the deep plunge. Work your way paying attention to the market´ response. Don’t forget, the most important is for you to surround yourself of people/companies secure and experienced in the field. Gather as many information as you can.

Work hard, be confident and believe. Your resilience will be awarded!

 

Green Ibérica

 

 

[1] Incoterms are the international terms used in commerce, which determine duties and obligations of both importers and exporters. Know more about Incoterms in the website of ICC – International Chamber of Commerce. ­­­