Friday, July 14, 2017

Shipping ocean freight to or from Guam

What is the cost to ship to Guam?

Shipping ocean freight to or from Guam can be a complex situation for a variety of reasons. Only one carrier services Guam directly with a USA stop-off from the USA mainland – Matson Navigation Company (Matson). Matson’s transit time from Long Beach (SoCA), which includes a stop off in Hawaii, is 12 days from Long Beach to Guam, four days longer from Oakland and five days longer from Seattle.

American President Lines (APL) also ships containers to Guam but their transit time is not less than 23 days from Los Angeles, and perhaps longer depending on the vessel the Guam container gets loaded on and the foreign port where unloaded before being loaded onto a feeder vessel into Guam. APL does not offer any alternative transit times for container shipping to Guam from Oakland or Seattle, but modern day trucking services will allow them to service those areas, although less timely than the Matson direct service.

APL and Matson both have fully developed and integrated rail services to complement those container loads shipping to Guam from origins other than the West Coast. They are both well-respected carriers, and have a lot to offer shippers or consignees. Ask yourself how important the transit time is for the container load move to Guam and can you afford a delay in your goods arriving? If these conditions are ok, then a less expensive container load rate to ship to Guam available via APL transshipment is probably your best value. But if you need speedier transit time due to shipment arrival expectations or container content damage, are worried about humidity while on the vessel, need additional handling of the container during the transshipment process, price/value is not the sole focal point, and/or a delay might hurt business profits, then Matson is a better alternative.

A shipper to Guam also needs to be aware that Guam has its own Customs offices, officers, and laws, in addition to USA Customs offices, officers, regulations and laws. Guam Customs is responsible for, among other things, ensuring the goods arriving from the USA have submitted a commercial invoice, and consignees pay a Guam Use Tax or Gross Receipts Tax, as appropriate. The tax is 4% of the cost of the goods shipped into Guam if the merchandise is not held for resale and is used in the business. If you are working with a freight forwarder such as DHX - Dependable Hawaiian Express, the law requires the forwarder to collect taxes on taxable goods and remit it to Guam authorities. The rule of thumb is that if it’s sold as part of your normal business, no use tax is due; but if the goods are supplies and overhead items to be used in your business rather than sold, then a 4% Use Tax applies.

Another complex issue when using APL is that due to the vessel arriving at a foreign port prior to transshipping to Guam, an Automated Manifest System (AMS) has to be filed, meaning the shipper must provide the Harmonized Code tariff number for what they are shipping. DHX - Dependable Hawaiian Express can help you with that should you decide you’d like to move your containers to Guam through us.

There are also eastbound services available from Guam to the USA mainland or Hawaii, and additional information we can provide for shipping from non-USA origins into Guam. DHX also offers container load and less than container load services from the Hawaiian Islands to Guam. We look forward to responding to your requests for further information: call us at (888) 488-4888, Ext. 2017 (U.S. only)!


Monday, June 26, 2017

Effective July 1, 2017 - The New India Shipping Tax Reform

The most important issue in shipping to, from or within India currently is the new India Tax reform
scheduled to take effect July 1, 2017. This new tax structure will have a direct impact on logistics providers and cost structures. Whether shipping full container loads (FCL) to India, or shipping less than container load (LCL) shipments to India, this new law will impact ultimate cargo and logistics costs.

Currently, each of India’s 29 states taxes the goods that move across their borders at various rates. As a result, freight that moves across the country is taxed multiple times. The Indian government is about to roll out the new indirect tax program, GST, which has been in the works for over 12 years.

The impact of the GST on the individual companies located in India:

  • The consumer durables sector is expected to witness maximum drop in the logistics costs as a percentage of total sales, as their warehouses are built in certain specific states to avoid interstate tax.
  • Consumer-oriented industries are going to realize a higher impact from GST on their operations model rather than capital intensive industries, since they will work with cheaper labor and travel further to markets.
  • As individual companies react to the changing of the law, the long-term economics of doing business efficiently outweigh the economics of where to be located to avoid being taxed. It remains to be seen what the ultimate impact will be on the economy or the country, but DGX predicts the Indian Government will rise to the challenge and make adjustments where needed to ensure a single industry does not become the poster child for unfairness.

From our standpoint and the standpoint of other 3PLs, the impact of the new GST on third party logistic service providers will be as follows:

  • Post-GST implementation, most 3PLs will have to restructure their assets and realign their operations with changes in the operations of their customers in the new scenario.
  • Currently, many 3PLs have warehouses located near major distribution centers of their key clients (different industries) irrespective of geographic disadvantage, mainly to avoid interstate taxes.
  • However, post-GST implementation 3PLs are expected to build integrated warehouses at logistics suitable locations. So accordingly, 3PLs will have to restructure their assets to accommodate the long distance consignments which will occur with this scenario of free movement of goods across the country.
  • The consumer durables sector is expected to witness maximum drop in the logistics costs as a percentage of total sales, as their warehouses are built in different states to avoid interstate tax. Mostly, the consumer-oriented industries are going to have the highest impact of GST on its operations model rather than capital-intensive industries.

How this will impact the freight rates with a change of cargo movement from direct to each state versus to regional DCs (spoke-hub distributions) is yet to be determined by carriers.

The DGX India headquarters in Mumbai is ready to take on these changes and provide our customers with added-value solutions as they evolve in their supply chain based on these reforms.

What is GST? How does it work?
GST is a single, indirect tax for the whole nation, which will make India one unified common market.
It's a single tax on the supply of goods and services, directly from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

What are final GST rate slabs?
The Goods and Services Tax (GST) will be levied at multiple rates ranging from 0% to 28%. The GST council finalized a four-tier GST tax structure of 5%, 12%, 18% and 28%, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional “cess.” In India, "cess" is an import or sales tax on a commodity.

Service tax will go up from 15% to 18%. The services being taxed at lower rates, owing to the provision of abatement, such as train tickets, will fall in the lower slabs.

In order to control inflation, essential items including food, which presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate.

The lowest rate of 5% would be for common use items. There would be two standard rates of 12 per cent and 18 per cent, which would fall on the bulk of the goods and services. This includes fast-moving consumer goods.

Highest tax slab will be applicable to items which are currently taxed at 30-31% (excise duty plus VAT).

Ultra-luxuries, demerit and sin goods (like tobacco and aerated drinks), will attract a cess for a period of five years on top of the 28% GST.

The collection from this cess as well as that of the clean energy cess would create a revenue pool which would be used for compensating states for any loss of revenue during the first five years of implementation of GST.

Finance minister said that the cess would be lapsable after five years.

Which Taxes at the Centre and State level are being subsumed into GST?
At the Central level, the following taxes are being subsumed:

  1. Central Excise Duty
  2. Additional Excise Duty
  3. Service Tax
  4. Additional Customs Duty commonly known as Countervailing Duty
  5. Special Additional Duty of Customs

At the State level, the following taxes are being subsumed:

  1. Subsuming of State Value Added Tax/Sales Tax
  2. Entertainment tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States)
  3. Octroi and Entry tax
  4. Purchase tax
  5. Luxury tax, and
  6. Taxes on lottery, betting and gambling


Shipping Containers to and from Hawaii

There are a variety of items to consider when determining how to ship a container to Hawaii. The first couple of items are the transit time and deadlines you may have to meet.

From our experience on timing and deadlines, no one is faster than Matson Navigation Company, a primary mode of ocean transportation for DHX - Dependable Hawaiian Express. Matson’s transit times are shorter than the other ocean carrier by a day from Long Beach, and out of Oakland and Seattle. The other carrier, Pasha Hawaii, does not compete time-wise. Barge services offering Hawaiian Island connections also do not compete time-wise to or from Hawaii. So, if you are under a deadline or transit time is important, your first option will be Matson.

Another important factor is the origin of your container being shipped to Hawaii. From most origins within the US other than the West Coast, the rail transit times and rail service between the two are very similar. Pasha’s overall rail/inland may be a little less expensive, usually within $100 of Matson’s. Most intermodal or rail moves get shipped into Los Angeles for the subsequent sailing to Hawaii.

You’ll also want to look into the pricing of your container shipment to Hawaii. Depending on whether your shipment to Hawaii is recurring in nature or not, and depending if you are a business or an individual, your pricing will normally be at published tariff rates. If you are not a business and if your shipment of containers to Hawaii is not recurring in frequency, the ocean carriers have tariff rates allowing them to charge everyone uniformly.

Matson tariffs have evolved over a 100+ years, and they are based on a combination of the service offerings Matson has, the value of the goods in the container, the likelihood that what's in the container can be damaged, the weight of the container’s contents, etc. The competitor to Matson is Pasha and they normally have a tariff that is quite similar to Matson’s tariff, so the pricing is similar except if one of the carriers can be negotiated with to price their shipments differently.

DHX - Dependable Hawaiian Express has people who are experts in the carriers’ tariffs and have the knowledge to help you ensure your shipment arrives on time, intact, and competitively priced.

We represent a very healthy option for a business interested in reducing their rate basis as well as for those looking for answers to questions with respect to shipping containers to Hawaii.

Tuesday, May 23, 2017

Congratulations DHX - Dependable Hawaiian Express, Oahu!

In June 2017, we will celebrate the 25th anniversary of opening our own trucking terminal and delivery operation in Honolulu on Oahu.

A huge gamble and large investment at the time, DHX - Dependable Hawaiian Express opened in Honolulu, Oahu. Like all other freight forwarders then, we were using trucking agents to deliver freight across the island. Because we used third-party agents, the quality of the service was not reliable and the scope of services we could offer was limited such as short or long term storage and warehousing, assembly and distribution, or local trucking. We were a freight forwarder to Hawaii, like many others, but opening on Oahu made us distinct among the forwarding community.

Although we had started a trucking operation in Guam in 1989, the Honolulu operation helped us define future strategies in the islands. Once we had quality under control with freight handling being done through a single group of companies with the same management, we evolved into an outstanding service from the beginning of the shipment move to the end.

We started using credos like “on time, intact, every time” because we controlled all aspects of the move. Excuses like, "we'll have to check with our agent to see if they can do that and if there will be additional charges," went away because we were the agent and could easily make these business decisions. For customers, that meant less waiting, more seamless operations and a better quality shipping service to Honolulu. Because Oahu worked out so well, over time we expanded our delivery operations to include the destination ports Kawaihae on the Big Island and Kahului in Maui.

DHX - Dependable Hawaiian Express Honolulu has earned a big 25th anniversary congratulations! We wish to thank the management and staff for contributing to making us the biggest and best among all our competition there.

Thank you, DHX – Dependable Hawaiian Express, Oahu and Happy Anniversary! You help make us DEPENDABLE. From Start to Finish!

Monday, May 01, 2017

How much to ship to Guam?

What is the cost to ship to Guam?

Shipping costs to Guam vary, depending on your needs. If you’re interested in ocean transport, here are the areas to consider:
  • Do you have a Less-than-Container Load  (LCL) shipment?
  • Do you have a Full-Container Load (FCL)? Different rates apply for LCL vs. FCL.
  • What is your point of origin?
  • What is your ultimate destination?
  • Do you want to use a reliable carrier with newer vessels who sails directly into Guam from the West Coast via Hawaii – or – a carrier with a barge service who sails into an Asian port and then barges the goods out of Asia to Guam (adding a week to the transit)?
  • Are you using a motorized carriage vs. a barge service (much slower)?
All these variables will make a difference in the cost of shipping to Guam.

Air freight pricing differences can vary too. Again, consider the origin and destination as well as the expected time frame of the service.

So the answer is, shipping to Guam costs depending on the variable factors involved.

To simplify your quest for a rate, we offer online quotes via our Online Rate Quoter, also you can email us, or you can call and ask for the Rate Department at 888.488.4888. Our friendly folks can quickly and more precisely help you determine the cost of shipping to Guam!

Wednesday, April 05, 2017

Shipping to (or from) China

When shipping to China or from China, for ocean freight you will need to consider both the carrier you use (ocean liner or freight forwarder) as well as their pricing.

You have a wide variety of forwarders who categorize their sales and operating efforts to meet your needs in one of these three broad categories:
  • Big multinational companies who are data oriented in their selling/operating approach, focusing less on distinct customer needs
  • Medium-sized service-oriented forwarders who handle a variety of specialized origins and destinations and are more customer-focused
  • One-destination focused forwarders whose entire sales and service may be price-based to a specific location or from a specific location
Additionally you can work with ocean carriers directly, but if you don't have regular cargo-shipping, you won't get good pricing, and often fall short on customer service marks.

DGX - Dependable Global Express is a mid-sized customer-service oriented ocean and air freight forwarder, specializing in combining the best service possible with competitive rates. DGX ships Less than Container Load (LCL) freight both to and from China. We specialize in doing a "temperature-insulated wine consolidation" into Shanghai for wine importers into China.

How about the cost of shipping to China? For LCL shipments, there are a lot of freight forwarding companies to choose from which usually means intense price competition. When shipping LCL cargo to China, look at total costs from both origin and destination. Lately pricing in the USA has gone down because shippers do not realize their destination customer ends up paying the difference with higher destination fees and shipping rebates going back to the forwarder of origin.

For Full Container Load (FCL) pricing, there are multiple options. For shippers who do not have high tonnage or regular shipments to China, they should opt for an ocean freight forwarder vs. trying to negotiate directly with an ocean carrier. Call three three forwarders and obtain quotes to get an adequate knowledge of what you will pay to ship to China. Remember to ask for insurance from either your forwarder or your company insurance carrier and include this cost request in your initial quote. Neither the ocean carriers or forwarders will insure the value of your products - it's up to you to protect your cargo and your bottom line.

Two Rules of Thumb for China Shipping:
  1. The government nominates ports of loading for all exporters based on the geographic location of the exporters. This means you should look for local shipping that fits your shipping schedule locally.
  2. Understand the rules for shipping any hazard materials (aka: hazmat) cargo you ship into a specific port at destination. Different ports now have different hazardous materials rules and regulations.

Tuesday, April 04, 2017

The cost of shipping to Hawaii

The cost to ship to Hawaii will vary depending on your needs. For ocean transport various factors will change your shipping cost:
  • Less than Container Load (LCL) rates
  • Full Container Load (FCL) rates
  • The point of origin
  • Which Hawaiian island
  • The destination on that island
  • Whether you want to use a reliable carrier with newer vessels vs. one with older vessels
  • Will you be using a motorized carriage vs. a slower barge service
Air freight pricing differences will vary too including the freight origination, the destination island, the destination on the island, the expected time frame of the service, and more. All of these shipping variations will make a difference in how much it costs to ship to Hawaii.

For your convenience, we offer online rate quotes via our DHX - Dependable Hawaiian Express Quick Quote online rate quoter. You can also email us or call 800.488.4888 and ask for the Rate Department. Our friendly folks can help you determine the cost of shipping to Hawaii.

Why DHX - Dependable Hawaiian Express?
When you ship your cargo to Hawaii with an ocean freight forwarder, you need peace of mind knowing your products will arrive at their final destination in a safe and timely manner. We understand that shipping locally - or even nationally - can be stressful, costly, and time-consuming. At DHX - Dependable Hawaiian Express and DGX (our sister global shipping company), we specialize in Less than Container Load (LCL) or Full Container Load (FCL) shipping throughout North America, and the world to and from Hawaii. We are the largest asset-based LCL company specializing in Hawaii and our division includes assets of more than 100 tractors and trailers and ownership of three Hawaii-based trucking terminals. However, we do not stop there.

Our other lines of business allow us to be more flexible with pricing and service offerings that can have a positive impact on your complex supply chain. Our enterprise solutions include both mainland and island harbor drayage, mainland and island warehousing, and much more. Our Account Executives will customize solutions to help your supply chain operate more efficiently so that you get what you pay for, and FAST!

Five Key Advantages of DHX - Dependable Hawaiian Express
  1. Regional Leaders
    Separating us from most national carriers, we specialize in expedited LCL freight movement to and from Hawaii, both ocean and air freight. As a private company, we have the flexibility and capabilities of providing customized solutions for your requirements while providing fast, cost-effective shipping throughout our regional footprint. The benefits of choosing us include low shipping cost to Hawaii, low claims ratios, exceptional timely service performance, and possessing a large fleet lessening the chances of delay.
  2. On-Time Delivery
    Matson Navigation Company is used exclusively when shipping to Hawaii to ensure the least amount of delays and fastest ocean carriage. The old Horizon Lines vessels are unreliable. Once containers arrive at the appropriate destination port, we pride ourselves on 98% or better on-time delivery. Our commitment to timeliness gives our customers the ability to ship even the smallest amount of freight instead of having to wait until they have enough to order a full shipment, fast and on time.

    When considering the cost to ship to Hawaii, it’s important you’re getting the value you’re paying for. We pride ourselves on hiring skilled and professional drivers, owning modern equipment to ensure safe and efficient transportation of your freight, and implementing the latest technology to help monitor and manage scheduled pickups and deliveries. We pick up and deliver in a timely manner anywhere in the continental United States to and from our facilities and container freight stations.
  3. Dedicated Account ExecutivesWe pride ourselves on providing personalized service. We try to know our customers well, and strive to establish a strong business relationship to help our customers achieve their goals. Our knowledgeable Account Executives are always accessible and will customize services and pricing to help customers focus on results while providing superior end-to-end customer service.

    We have been in business since 1980, and our can-do attitude and commitment to excellence is an everlasting part of our culture and values that is inherent in every customer interaction. Our team will go the extra mile, listen to your initiatives, and expand our services to meet the requirements needed. We understand shipping costs to Hawaii do add up, so it is important to us that your experience is worry-free as well as cost-effective. If you’re asking questions like, “How much is it to ship to Hawaii?,” please give us a call at 800.488.4888. This way you’ll understand not only the cost of shipping but the value of our Dependable Difference.
  4. Asset-BasedFor an LCL company to have a successful relationship with their customers, they must be an extension of their customers and evolve with their needs. We have purposely purchased trucking facilities in the communities we service to ensure we are part of those cultures and understand our customers. Our investment in our facilities and equipment demonstrates our commitment to properly handling our customers’ freight so they can operate a more efficient supply chain to help ensure they meet their goals.
  5. One-Stop ShopSave time and money. Day to day operations can get hectic, and identifying business partners and vendors in various areas of transportation and logistics is time-consuming and expensive. As a private enterprise, we have the capabilities of servicing all of your transportation needs with our proven lines of businesses. We can customize solutions, and provide multiple modes of transportation including truckload (FTL), less-than-truckload (LTL), intermodal, International, as well as servicing your harbor drayage and warehousing needs. This type of flexibility gives our customers an “all-in-one” service offering to get their freight where it needs to go in the most timely and cost-efficient manner.
To find out more about the Dependable Difference, visit us here.

Thursday, March 09, 2017

Life in Guam

Guam DHX photoDHX - Dependable Hawaiian Express started shipping to Guam from the continental USA in 1981, when Founder, Ron Massman, bought a company that shipped to Guam for a grocery distributor. When current president Brad Dechter joined DHX - Dependable Hawaiian Express in 1982, the Guam trade lane became the first trade lane for which he was responsible. Since DHX - Dependable Hawaiian Express was shipping from California to Guam at that time, Guam helped with the future direction of the company: helping to refine their mainland trucking network to cover more inland points. Also, it helped them to replace their delivery agent on the Island and realize they needed to begin shipping from Guam to California.

Lessons learned in the microcosm of the Guam trade were eventually used across all services. As DHX - Dependable Hawaiian Express listened to the needs of their Guam customers, they changed their name to help the local customers feel their specific needs were being addressed. In 1989, the company opened their trucking operation on Guam, which was so successful it became the impetus behind opening future trucking operations in Hawaii. DHX - Dependable Hawaiian Express also opened shipping from Guam to California and the rest of the USA, an eastbound service similar to their operation in Hawaii. Eventually Mr. Dechter became president of the Forwarding Group of the Dependable Companies and was thankful for his Guam experience that helped to launch his subsequent career.

DHX - Dependable Hawaiian Express wants to thank their many friends in Guam that helped them develop their business on the island and meet the many, diverse needs of the local businesses there.

“Thank you to the people of Guam for the opportunity to handle your shipping to Guam (and Saipan) as well as being good people and helping us in our quest to be the best at shipping to Guam!” -- Brad Dechter, President, DHX - Dependable Hawaiian Express.

Shipping to/from Australia and the USA

Australia DGX PhotoShipping to Australia from the USA has some unique requirements that a qualified freight forwarder such as DGX can easily help with. Specific Australian shipping rules include:
  • Invasive species and their extermination
  • Import permits required by Australia for certain items shipping to Australia from the USA
  • General USA export rules regarding items permitted/not permitted to be shipped to various countries
  • Title validations for certain machinery and vehicles
  • The type of pallets that can be used
  • The types of vehicles permitted entry
  • Decontamination requirements
DGX is experienced with all of the ins and outs of shipping to Australia, after all that's what you would expect and that's what you will get.

There are also very specific rules when shipping from Australia to the USA which are not the same but just as important to be handled thoroughly. These rules include:
  • Insuring that your cargo shipment to the USA from Australia is safe to come into the USA and does not represent a threat to anyone 
  • Being sure it’s declared appropriately for customs clearance purposes
  • And that the U.S. government knows what's coming into our country 
It’s one of the reasons DGX is a C-TPAT member – to facilitate your shipments entry from Australia into the USA.

Whether located in Australia or the USA, these rules are important to both the importer and exporter, because one mistake can make a tremendous difference in whether you recover your property or whether the expense to get it back becomes so great you chalk it up to being a lost cause.

So whether shipping to Australia from the USA, or shipping to USA from Australia, do yourself a favor and use an expert. That’s what an experienced, customer-service focused freight forwarders like DGX does so well!