Everything you need to know: What is an EORI number and how do you get it?

Any business engaged in the importation, transit, exportation or other customs operations in the European Union will eventually come across and need an Economic Operators Registration and Identification (EORI) number.

In fact, it is required when exporting or importing goods in any member state by the EU customs legislation. This unique identification number is used to identify your business as an importer and allows you to reclaim your import VAT.

So, who exactly needs an EORI number, where is it used and how to get one?

Who needs an EORI number?

By definition, an EORI number is required for any economic operator registered in the EU who is involved in international trade. An EORI number is also required for any third country operator looking to transport or sell goods into the European Union.

This number is used by EU customs administrations in every member state during all kinds of trade operations and procedures.

It should be noted that an EORI number is not limited to just businesses but can be issued and used by individuals engaging in international trade as well. In short: anyone looking to perform trade operations from within or with the EU will need an EORI number.

The only time you will not require an EORI number is when your business activities are contained within one member state – e.g only in Estonia and there’s no import/export with other countries – or when moving goods for personal use only.

Where is an EORI number used?

Since EORI is basically the business’s identification number in the EU, it is used in all customs procedures performed by economic operators. It does not matter whether you are importing goods into the EU, the UK or other countries – when dealing with the European Union customs, you will need an EORI number.

Why do you need an EORI number outside and inside the European Union?

Any customs authority in the EU will need an EORI number to process the paperwork of any company or individual. While EORI numbers are required for all businesses and persons established in the European Union, economic operators looking to import, transport or otherwise engage in trade with a member state will also need an EORI number for customs legislation.

Situations, where an economic operator not established in the Union will need an EORI number, are:

  • for lodging a customs declaration in the customs territory of the EU;
  • lodging an Entry (ENS) or Exit Summary Declaration (EXS);
  • submitting a temporary storage declaration in the customs territory of the EU;
  • acting as a carrier for the purposes of transport by sea, inland waterway or air;
  • acting as a carrier who is connected to the customs system and wants to receive any notifications provided in the customs legislation.

Individuals or persons other than economic operators will need to register for an EORI number in the same situations.

How to register for an EORI number?

Any company wishing to conduct business in the European Union or with any of its member states must therefore register for an EORI number. Persons or companies established in the customs territory of the Union should request the assignment of the number to the customs authority of the country in which they are established.

Economic operations or individuals outside of the EU should file their request for registration to the customs authorities of the EU country responsible for the place where they first lodge a declaration or apply for a decision.

This is usually the country of the first port of entry within the EU – e.g when your goods first land in Malta, you should register for an EORI number with Malta’s EU customs authority.

You can find a list of all European Member states’ national customs websites from this link.

The registration process itself is fairly straightforward and should not take too long. It might differ across the member states but on average it takes about 3 to 10 days to complete the whole process. In some countries like Estonia, Finland or Latvia it might be much simpler and quicker while in countries like France and Germany the process might take longer.

Processing time may also depend on the applicant’s original country of registration as well as other factors.

Good to know, third party registration

Registering for or even figuring out whether your business needs an EORI number might seem a bit tricky at first. Especially when dealing with other countries’ customs agencies. Some companies may prefer having a external help or organise their EORI number registration process for themselves, although it’s possible to do it on your own as well.

Such companies can help make sure everything is in check with the application and give advice about the best practices and latest updates on European customs regulations. At MyDello, we pride ourselves on our expertise and knowledge on the subject as well as positive customer feedback, whether it concerns EORI registrations or any other customs requirements.

Feel free to contact us if you are unsure about your regulatory or logistics needs in the EU and outside. We also recommend you check the official information about Economic Operators Registration and Identification number here.

International ocean freight usually involves stacking coloured containers on a cargo ship – an image we have all seen. While shipping containers may just look like regular rectangular boxes to many of us, there’s actually a wide variety of different shipping containers with standardised measurements and sizes.

Thanks to an internationally agreed system of shipping or freight containers, the same ‘boxes’ can be used across different modes of transportation. Thus shipping containers are often known as intermodal containers – from ocean freight to rail and land freight. And although these containers may seem similar at first glance, knowing the different types of shipping containers is important for anyone looking to ship goods internationally using ocean freight.

The most obvious question about ocean containers is usually – how much cargo can you ship with it? Containers can also be categorised by type as well as size, however, and it pays to know that the container you are choosing is actually suitable for international shipping. In this article we try to give answers to all these questions.

History of ocean containers

The use of international standardised steel shipping containers dates back to the 1940s and 50s when both commercial shipping operators and the US military began developing such units. Previously, standardised shipping containers had been in use across Europe in the 1930s, but it was until the mid-1950s that the containers that we are most familiar with went into widespread use.

The goal for shipping operators was always finding the most efficient way for shipping cargo across oceans and other modes of transport. With globalisation came the need for standardising the shipping process across different countries and operators, thus leading to the invention of modern intermodal containers and their regulations, known as ISO standards.

Published between 1968 and 1970, ISO standards establish consistent rules for loading, transporting and unloading goods across the globe. The development and widespread use of internationally standardised shipping containers greatly helped global trade and had a major role in the world becoming more globalised.

Shipping container quality types

When looking for different shipping containers, you might come across terms like ‘as-is container’ or ‘wwt container’. These terms refer to the quality of the container. What different quality grades are there and why are they important to know?

Different quality containers are usually charged differently. While some cargo such as raw materials can often be shipped in regular dry cargo containers or open top containers, many goods have specific shipping requirements. The following container quality specifications are used to provide customers information about the quality, age and type of container – e.g. whether the container is air- or waterproof or not.

 

  • Grade A container – these are the highest quality containers, usually brand new with no scratches or wear marks.
  • One-trip container – brand new containers that have only made the trip from the manufacturer to the destination country. Mostly free of any wear marks, save for minor scratches.
  • Wind and water tight (wwt) container – containers that very rarely leak or have any holes. Container is considered wwt if no air or water can get into it. Usually more than 8 years old, divided into grades based on their quality.
  • Cargo worthy (cw) container – the most commonly used B-grade containers which have already made some trips but are still in working condition. Their price can depend on the quality and age of the container.
  • As-is container – no longer cargo worthy containers. These containers have either too much rust or too many structural issues which mean cargo might be damaged during the shipping process.

Which are the different types of shipping containers?

Most people associate shipping containers with colourful rectangular boxes onboard ships or at ports, waiting to be loaded. While the vast majority of shipping containers are known as ‘general purpose’ or ‘dry freight’ containers – the very same closed boxes in the image, used mainly for shipping dry goods – there are in fact many different types of shipping containers, differing by both their use, measurements and even shape.

Ocean containers come in different sizes and measurements, although 20’ and 40’ dry cargo containers are the most common
Ocean containers come in different sizes and measurements, although 20’ and 40’ dry cargo containers are the most common. © Pexels.

Although over 90 per cent of the world’s shipping containers are made up of dry cargo containers, even those differ in size. As one might guess, the measurements of your shipping container are extremely important as they determine how much cargo you can load into (or onto) your container and how much that will cost – different-sized containers are usually charged differently.

Some goods may also not be suitable for ocean freight with regular closed containers. Depending on your cargo type, different container types might be necessary – coal and fish have different shipping requirements, after all. Fortunately, the standardisation of ocean shipping containers has made choosing and understanding different container types very simple across the board.

 

Dry Cargo container (DC)

20ft Dry Container.

The most common container type is undoubtedly the dry cargo or dry storage containers, which make up approximately 90 percent of all shipping containers. These containers can be divided mainly into 20 or 40 feet sizes and are manufactured from either aluminium or steel. They are suitable for most types of cargo. Aluminium dry containers have a slightly larger payload than steel, and steel dry containers have a slightly larger internal cube.

 

Most common dry cargo container sizes are:

  • 20’ dry cargo container = 20’ DC
  • 40’ dry cargo container = 40’ DC

 

High Cube Dry Cargo container (HC)

40ft High Cube container.

High cube dry cargo containers are identical to the regular containers in all aspects except height. Being a foot higher, they allow for more cargo space. High cube dry cargo containers come mainly in the following dimensions:

 

  • 40’ high cube dry cargo container = 40’ HC
  • 45’ high cube dry cargo container = 45’ HC

 

Open Top container (OT)

20ft Open Top container.

Open top containers are another standard type of ocean container, which are mostly used to transport overweight cargo. The open top enables for easier loading and unloading of heavy or cumbersome cargo and instead of a steel or aluminium roof, they can be covered with a tarp.

 

  • 20’ open top container = 20’ OT
  • 40’ open top container = 40’ OT
  • 40’ open top high cube container = 40’ OT HC

 

Flat Rack container (FR)

20ft Flat Rack container.

With collapsible sides, flat rack containers are very flexible and suited for transporting a wide variety of goods, including extremely heavy cargo that needs loading from the top or sides. Collapsible and non-collapsible flat rack containers can come with or without walls.

 

  • 20’ flat rack container = 20’ FR
  • 40’ flat rack container = 40’ FR
  • 40’ flat rack high cube container = 40’ FR HC

Refrigerated container (RF)

20ft Reefer container.

Refrigerated containers or reefer containers are used to transport goods requiring temperature-controlled conditions in transit, such as fruit, vegetables, dairy products and meat. It is fitted with a refrigeration unit which is connected to the carrying ship’s electrical power supply.

 

  • 20’ refrigerated container
  • 40’ refrigerated container

Insulated or thermal container

These shipping containers have controls for regulating temperatures, usually for maintaining a higher temperature than regular containers. Suitable for long-distance transportation of temperature-sensitive products.

 

  • 20’ insulated container
  • 40’ insulated container

Special purpose shipping containers

The six main container types listed above are the most commonly used and seen in the industry but in reality, there are many different so-called special purpose shipping containers. These containers usually have a more narrow purpose which means they are suited for a specific type of cargo.

Such containers are:

 

  • Ventilated shipping container – the ventilation system allows for hot air to leave and fresh air to enter the container, which is good for certain types of goods. Most commonly used for shipping coffee, these containers are also sometimes called coffee containers.
  • ISO tank shipping container – used for transporting liquids and gases, the tank containers can hold a variety of cargo from oil to hazardous substances – you can read more about shipping dangerous goods here.
  • Tunnel shipping container – similar to standard dry cargo containers with doors on both ends, allowing for easier access.
  • Open side shipping container – standard-size dry cargo container with side doors for easier access.
  • Double doors shipping container – same as before, except doors can cover the entire side, allowing for best side access.

 

As you might guess by now, the shipping containers list doesn’t actually end even here. You can read about even more different types of shipping containers and their purposes here.

What are the measurements and loading capacity of ocean shipping containers?

The following table gives the measurements for the most common container sizes and types in the metric system. When choosing shipping containers, always confirm container sizes with your supplier to ensure you both are talking about the same types of containers.

 Internal length (m)Internal width (m)Internal height (m)Payload (kg)Cubic capacity (m3)
20 ft Dry Container5,902,352,3921 70033,2
40 ft Dry Container12,032,352,3926 80067,7
20 ft High Cube5,902,352,6926 50037,2
40 ft High Cube12,032,352,7026 50076,3
20 ft Open Top5,892,352,3528 22032,5
40 ft Open Top12,032,352,3426 50066,2
20 ft Reefer Container5,442,292,2727 70028,3
40 ft Reefer Container11,562,282,2529 52059,3
20 ft Flat Rack5,942,402,3530 14033,5
40 ft Flat Rack12,132,402,1440 00062,2

Conclusion

Ocean shipping containers come in many different shapes and sizes. For anyone looking to ship goods internationally in shipping containers, taking a moment to familiarise yourself with the different container types, purposes and measurements can save both time and money. It’s important to keep in mind that different containers have different costs.

While standard-size shipping containers such as 20’ and 40’ dry cargo containers will usually have fixed prices, special shipping containers usually require a direct quotation from the provider.

 

Matthew McConaughey, who has been awarded the best actor Oscar, ordered a sauna from the Estonian company Iglucraft. MyDello was proud to lead the transportation process.

MyDello has been a partner for Iglucraft for quite a while now, but this time it was a bit more special. First of all, the end customer was notable, and it meant for MyDello, that at the beginning of the process, the exact address needed to be revealed. Luckily, you can get the first offer from MyDello to plan your route only by knowing the approximate area. The shipment ended up in Hawaii, which is not the most common destination in Estonia.

 

MyDello had a significant role

From the client side, almost all things related to logistics were trusted by MyDello’s team and partners. The process started in Viljandi County, Estonia, where an empty container arrived at the Iglucraft factory. The company has many international clients and has therefore designed its saunas and small houses to fit into international standard containers. There are only a few millimeters of free space in the container after the sauna is fitted in with some softening.

From the Iglucraft factory, the shipment moved on to Muuga port in Estonia. From there, it moved to the main European port and from there to the port of Los Angeles. There were quite a few delays at the ports on the western coast of the U.S. at the time, which also meant some for this consignment. The delay at the Port of Los Angeles added a few months to the delivery time.

The sender or receiver generally handles on-the-spot transportation. Still, Matthew McConaughey’s representatives asked us to take care of all logistics on the island of Hawaii. For that part, we used our partner, who lifted the shipment out of the container on-site, ordered a crane, and loaded Iglucraft to the final location.

 

Maritime transportation suited the best

Mainly the use of maritime transport was the only conceivable way, as air transport would have meant a six-figure cost for transport. Using a ro-ro ship was also an option at first, but in that case, a container could have been transported from Europe to the U.S. East Coast, and it would have to pass through the entire U.S. on roads.

MyDello was delighted to engage in such a unique project in terms of customer and all supporting activities. Any extra action the carrier has to take to resize content means careful planning and using trustworthy partners. It happens only a couple of times a year, which makes it more interesting. From MyDello we wish a good time with Iglucraft to Matthew McConaughey and his family.

The MyDello logistics platform has become a partner in the daily logistics management of thousands of companies in just under a year. Since the launch of the platform, we have constantly updated the platform to make logistics fully automatic.

The MyDello platform was founded in 2021, whit the goal to make logistics simple and efficient. MyDello’s primary goal is to provide a simple solution that a logistics specialist can handle daily, whereas the long-term goal is to make the entire supply chain organization fully automated, and as the platform evolves, this becomes more and more likely.

MyDello combines the various parties in the supply chain: we reduce the number of intermediaries, digitalize all information, and contribute to ensuring that the costs to logistics are minimal. According to our data, using the platform means 15-20% lower costs on average, and our customers value it highly.

MyDello is currently available in Estonia, Latvia, and Lithuania. Still, we plan to continue growing and soon start offering services to Swedish companies.

Read more about how the platform is actively developing https://www.delfi.ee/artikkel/120072032/revolutsiooniline-eesti-logistikaplatvorm-areneb-iga-paevaga

International trade and logistics are complex. Countries have different laws and regulations and it is really challenging to understand and follow them. Therefore, standardized global rules called terms of delivery, also known as Incoterms, have been set in place.

Term of delivery is the standard contract used to define responsibility and liability between the seller and the buyer for the shipment of goods. Simply put, the term of delivery determines how far along into the process the supplier will ensure that the goods are moved and at what point the buyer takes over the shipment process.

There are two main aspects to consider:

  • Till what point the seller covers the freight costs and from where the buyer pays for transport.
  • Till what point the risk for damaging or losing the cargo is for the seller and from where for the buyer.

Additionally, some Incoterms determine if the cargo needs to be insured.

What are Incoterms?

Incoterms are something everyone shipping goods internationally will encounter sooner or later. Short for International Commercial Terms, Incoterms are a set of pre-defined commercial terms which relate to international commercial law. These terms determine the rights and obligations of the parties involved in the purchase or sale of goods.

Why are Incoterms necessary? Because international trade and logistics are complex and countries have different laws and regulations, which are often challenging to understand and follow. International shipments thus run the risk of differing interpretations of rules in different countries.

To make international shipping more understandable for both buyers and sellers, standardized global rules called terms of delivery or Incoterms have been set in place.

Incoterms® 2020.

How are Incoterms used?

Incoterms can be recognized by a set of three-letter terms most commonly present in international contracts for sale of goods. These terms are incorporated into sales contracts to provide a standard solution for delivery costs, risks and responsibilities. When shipping goods internationally, it is thus important to be aware of the meanings of different terms of delivery.

Incoterms are marked by three letters followed by a location: i.e CIF London. This gives the buyer and seller information about the rules, risks and costs of the delivery as to the location. In order to understand the meaning of this Incoterm, we must first understand the different types of Incoterms.

In total, there are 11 rules that define who is responsible for what in international transactions: EXW, FCA, FOB, FAS, CPT, CIF,  CFR, CIP, DPU, DAP, DDP. Different Incoterms are used for different types of transportation. According to transportation, these terms are divided into two categories:

  • EXW, FCA, CPT, CIP, DPU, DAP, DDP are used for all transportation types (ocean freight, road freight, rail freight, air freight)
  • FAS, FOB, CFR, CIF are only used for ocean freight

What is the latest version of Incoterms?

The newest set of Incoterms known as Incoterms 2020 is the ninth official version of Incoterms and was published on September 10, 2019. The International Chamber of Commerce published the first work on international trade terms in 1923, but the first Incoterm were officially published in 1936 and updated in the years to come.

Why are Incoterms important?

While Incoterms are used to provide clarity about the transaction and international shipment rules, they can seem difficult to understand at first glance. To a layman, ‘CIF Incoterms’ might not mean much. Third party logistics companies like MyDello deal with Incoterms every day, but it’s very important that both the buyer and seller understand exactly what they are signing when agreeing to an international sales contract.

Additionally, some Incoterms determine if the cargo needs to be insured. Not understanding Incoterms means that you might end up with a much larger shipment cost than originally planned. As such, Incoterms are and should always be taken into account when calculating freight rate estimations.

CFR, CIF and FAS Incoterms for example require the buyer to pay all costs at the port of destination and organize transportation from the port to the final destination. Unaware buyers might assume that the shipment will be delivered to the final destination and must deal with a bad surprise, when the shipment arrives at the port of destination.

Example:

For a shipment from London to Shanghai, Incoterm CIP Shanghai will mean that the UK seller will be responsible for transporting the goods to the destination assigned by the buyer, in this case Shanghai. The risk, however, is transferred to the buyer upon loading the goods from the seller’s premises. According to CIP Incoterm, the seller must also insure the goods while transit in the buyer’s favor.

If the goods happen to be damaged upon arrival and the seller’s insurance reimburses the buyer, because that was in the CIP contract. Under CPT, the buyer would carry the loss themselves.

Four types of Incoterms

Thus it is important to understand the Incoterms related to your international shipment. For that, we must understand how Incoterms are read and what they mean. In general, Incoterms can be grouped into four categories according the responsibility they place on the seller and buyer:

  • “C” terms (CFR, CIF, CPT, CIP) – Seller or manufacturer is responsible for contracting and paying for carriage of the goods, but not responsible for additional costs or loss of goods once they have been shipped.
  • “D” terms (DPU, DAP, DDP) – Seller or manufacturer is responsible for all costs and risks associated with delivering goods to the destination. Most responsibility is on the seller.
  • “E” term (EXW) – Only term where seller or manufacturer makes goods available at his own premises to the buyer. Least responsibility on the seller.
  • “F” terms (FCA, FAS, FOB) – Seller or manufacturer is responsible for delivering the goods to a carrier named by the buyer.

As seen above, buyers should always pay attention to Incoterms when quoting delivery costs for any shipment type, whether by land, air or sea. Some Incoterms will place more responsibility on the seller, whereas others might seem attractive to the seller. In any case, it pays to be aware of possible delays in international shipments and always think of every scenario to find the best solution for you.

What do different Incoterms mean?

Now that we understand why Incoterms are important and how they are categorized and used, it is time to get into each of them specifically. Here are all the Incoterms explained in depth. You can find a convenient and comprehensive table of all the Incoterms with their risks, costs and explanations here.

In addition to Incoterms, those dealing with international shipments, especially ocean freight, might come across additional terms and abbreviations. An overview of ocean freight terms alongside Incoterms can be found on this page.

Incoterms for all transportation modes (ocean freight, air freight, rail freight, road freight)

These Incoterms will be familiar for any international logistics operators, merchants, manufacturers, exporters and importers. Each Incoterm is an abbreviation for the type of delivery contract. The following Incoterms 2020 apply for all transportation modes.

EXW – Ex Works (named place of delivery)

The seller makes the goods available at their premises, but the buyer incurs all the risks of bringing the goods to the final destination. This term places the maximum obligation on the buyer and minimum obligations on the seller. EXW is regularly used when making an initial quotation for the sale of goods without any transportation costs included.

If parties wish the seller to be responsible for loading the goods and bearing the risks and costs of loading, this must be made clear by adding concrete wording in the contract of sale.

FCA – Free Carrier (named place of delivery)

Seller delivers the goods, cleared for export, at a named place, including the seller’s own premises. The goods can be delivered to a carrier named  by the buyer, or to another party named by the buyer.

Seller is responsible for loading the goods onto the buyer’s carrier if the delivery occurs at the seller’s premises. If the delivery occurs at any other place, the seller is deemed to have delivered the goods once their transport has arrived at the name place and the buyer is responsible for both unloading the goods and loading them onto their own carrier.

CPT – Carriage Paid To (named place of destination)

Seller pays for the carriage of goods up to the named place at the destination country. But the goods are considered to be delivered when handed over to the first or main carrier. This means the risk transfers to the buyer upon handing goods over to that carrier at the place of shipment in the country of export. The seller has fulfilled their obligation when goods are handed over to the carrier, not when they reach the destination.

Seller is responsible for origin costs, including export clearance and freight costs for shipment to the named place of destination. This could be either the final destination such as the buyer’s facilities or a port of destination. This has to be agreed to by the seller and buyer, however.

CIP – Carriage and Insurance Paid to (named place of destination)

Similar to CPT, except the seller is required to obtain insurance for the goods while in transit. Under Incoterms 2020, CIP requires the seller to insure the goods for 110% of the contract value. Again, the seller has fulfilled his obligation when the goods are handed over to the carrier, not when goods reach their destination. Risk transfers from seller to the first carrier upon handing over the goods.

DAP – Delivered At Place (named place of destination)

Seller’s obligation is fulfilled when the goods are ready for unloading onto the incoming transport at the specified destination. Buyer bears the costs and risks of unloading the goods, arranges import customs clearance and import taxes if necessary.

DPU – Delivered At Place Unloaded (named place of destination)

Seller is required to deliver the goods and unload them at the named place of destination. The seller covers all the costs of transport including export fees and carriage, unloading from the main carrier at destination port and destination port charges and assumes all risk until arrival at the destination port or terminal.

Seller’s obligation is fulfilled once the goods are unloaded at specified destination and carries risk until arrival at the destination port or terminal.  All charges after unloading (for example, import duty, taxes, customs and on-carriage) are to be borne by the buyer. However, it is important to note that any delay or demurrage charges at the terminal will generally be paid by the seller.

DDP – Delivered Duty Paid (named place of destination)

Seller is responsible for delivering the goods to the named place in the country of destination and pay all costs in bringing goods to the destination (incl. import duties and taxes). Buyer is responsible for the unloading. Risk is transferred to the buyer at the delivery of the goods at the named place of destination.

DDP requires the seller to be aware of any duties, taxes and regulations in the buyer’s country and should thus be used with caution.

Incoterms for sea and inland waterway transport

These are the four Incoterms 2020 for international trade where transportation is conducted entirely by water.

It should be noted that these Incoterms are generally not suited for shipments in ocean freight containers. This is because the point at which risk and responsibility transfer is when the goods are loaded on board of the ship – in containers it is impossible to verify the condition of the goods at this point.

FAS – Free Alongside Ship (named port of shipment)

The shipment is considered delivered when the goods are placed alongside the buyer’s vessel at the named port of shipment. This means that the buyer bears the costs and risks from that moment. FAS requires the seller to clear the goods for export by default. For alternative arrangements, the contract of sale should be modified.

FOB – Free on Board (named port of shipment)

Seller bears all costs and risks up to when the goods are loaded on board the vessel. The seller’s obligations include the customs clearance of the export of the goods in the country of departure.

CFR – Cost and Freight (named port of destination)

Seller pays for the carriage of the goods up to the named port of destination. Risk transfers to the buyer when the goods have been loaded on board the ship in the country of export.

The seller is responsible for origin costs including export clearance and freight costs for carriage to the named port. The shipper is not responsible for delivery to the final destination from the port or for buying insurance.

CIF – Cost, Insurance & Freight (named port of destination)

Seller is responsible until the goods have been unloaded from the deck at the port of destination. The seller must handle customs clearance, main transport to the port of destination and the insurance for the goods. Seller’s delivery obligation ends upon handing goods over to the carrier.

Conclusion

Incoterms give vital information about the costs and responsibilities of international shipments. It is important to pay attention to Incoterms both when getting quotations from the merchant or manufacturer as well as transportation and logistics services.

Not knowing Incoterms can mean the difference between getting your shipment delivered on time versus having to pay extra delivery costs or organize last mile deliveries yourself.

Table 1. Incoterms 2020.

Businesses need to prepare for Christmas now

 

It might seem like the Christmas period is still far away, because autumn hasn’t even really started yet. However, logistics companies invite you to start thinking about preparing for Christmas early this year. As the saying goes, “the slower you go, the farther you go” is very relevant to the preparation stage. Whether you’re a logistics specialist or a manager in a business, you need to be aware that there are various risks in the run-up to Christmas that could make it difficult for your business to receive a shipment on time. In the article, we explain the main recommendations so that the preparation for Christmas in your company goes without worries.

 

Tip number one – start implementing cargo planning now!

Christmas is only a few months away. Logistics specialists strongly recommend to act in time if you want to stock your online store or physical store shelves with various goods for the Christmas season. First of all, in the fall, various popular countries, such as the USA, Canada or China, may impose new restrictions due to the spread of the virus, and as a result, the time of receiving goods may be significantly extended. Observing the current situation in the field of logistics, businessmen are invited to use sea transportation from China to Europe, because currently price changes differ depending on the route, but in popular Far Eastern directions, the price difference reaches up to 40%.

 

Second, there is a labor shortage in many countries, especially in the US and Europe. Thirdly, the workers of several airlines are on strike for a long time. People’s expenses are growing disproportionately to income, so strikes are really expected more and more. They usually take place directly in large companies, such as Lufthansa, SAS, Hamburg port terminals, where there are large unions that are ready to fight for fair wages. Logistics specialists anticipate strikes in other companies related to international transport as well.

 

This type of force majeure will significantly affect the processing of cargo before dispatch and will prolong the delivery. That is why the cargo should be ordered already in September. Regardless of whether you, as an entrepreneur, this Christmas will be only the first or already the tenth, we invite all entrepreneurs to act in time and order cargo without worries. Using “MyDello”, it is possible to save both your time and costs by 15-20%.

 

Tip number two – Black Friday is coming before Christmas

Every year on the last Friday of November, the popular “Black Friday” sale takes place in several countries, forcing a number of retailers to prepare even faster for the sales boom. According to the long-term experience of logistics specialists, a high demand for air transportation can be observed in the month of November, because it is a relatively fast delivery time – during this period, transportation costs can rise rapidly, because in November businessmen will “fight” with each other to place their cargo on the cargo plane.

 

Tip number three – diversify your suppliers

Given the above, the US and China may potentially be the countries that could significantly impact freight flow and delivery times. Why is this important? If there are significant developments in one or the other country, you have alternatives – a member state of the European Union, from which it is possible to order, for example, strings of Christmas lights or Christmas trees.

 

Cargo planning needs to be thought about much faster, because no one in China has so far canceled the policy of zero cases of Covid-19, which is implemented with the highest responsibility. If new outbreaks of the virus are recorded among the population, all businesses in the area are severely restricted or even suspended. Neither production nor transport or transport infrastructure companies (ports, airports) are exceptions. As a result, overloads are formed in the non-closed transportation nodes, because loads from the closed sections are transferred there.

 

Entrepreneurs are invited to evaluate – the closer to the end of the year, as there are greater risks related to both Covid-19 and airline employee strikes. It is very likely that no one will be able to avoid these risks, so it is more and more important to implement cargo planning now.

 

MyDello will be able to help in any situation

Regardless of whether you are a representative of a small, medium or large company and with or without a logistics specialist in your team, one of the most effective solutions for ordering cargo is the through “MyDello”. The platform will significantly facilitate your freight orders, allow you to easily review and compare the costs of freight shipments, as well as track the shipment 24/7. “MyDello” is staffed by experienced logistics specialists from Latvia, Estonia and Lithuania and will be able to find the best solution for you in different situations individually. The online platform is free to use.

 

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Every year autumn highlights new topics to discuss and new challenges to tackle. And this time it still includes COVID. We are already witnessing new local lockdowns in China, and we also see the transport volumes for pandemic-related commodities like protective gear and COVID tests are increasing again. A new wave is coming, but this time the world is well prepared to handle it.

 

China has always practiced more strict measures to fight the pandemics. At this time China is implementing local lockdowns if number of cases rises in one specific city or region. These lockdowns may be in place from a couple of days up to 10 days, depending on the number of new daily cases.

 

How does it affect logistics?
Logistics is not shut down during lockdowns. But safety precautions are applied. This is a big difference and it helps to keep goods moving and business going. This means that pick-up and deliveries can be done, but it may take an additional day or two due as in some regions a permit must be applied and in some cases decontamination process for the shipment and the truck may be needed.

 

What about freight rates?
Even now space for freight is easily available for Air and Ocean freight, with attractive rates too. If you are looking something faster than Ocean, but cheaper than Air and you do not wish to take risk with rail, our Ocean Premium service is a great option with 45-day transit time.

We decided to ask some of MyDello’s customers for their feedback to know why they use MyDello and whether they would recommend it to another. Or even to their competitors?

The companies that use the logistics service pointed out that MyDello is simple and logical because inquiries are held on one platform. There is no need to send out any email. “There is usually some important information missing in the emails. MyDello has the option to enter the data, and the offers will come immediately,” says Marite Uustal of beauty products company Careria.

 

Immediate results

Companies using MyDello, on average, spend 45% less time on logistics. It means there is more time to focus on the company’s core business and grow it. It’s also one of the main reasons Careria started using MyDello. “Simply enter the data and get the offers. You’ll know the best prices in less than a minute, and you’ll order the transport of goods in just a few clicks,” says Uustal.

You only need to know where from and to you want the shipment to be sent and what’s the dimensions estimate and MyDello will give you the first quote.

 

Compare different modes of transportation

Which mode of transport to choose? Air, rail, maritime transport or road transport? As a platform, MyDello offers a wide range of services and helps you find a suitable, cost-effective solution.

Our client Tiia Prous from Kinkston confirms that. “So far, my experience has shown that the MyDello solutions are sufficient and can be safely used, whether the shipment is coming from Europe or Asia.”

Who would have thought that, in some cases, air transport could be faster and cheaper than by rail? This can sometimes happen, and so it is always a good idea to have the offer from different carriers and compare different modes of transport. You’ll get all these offers from MyDello in just a matter of seconds. MyDello statistics also confirm this—platform users spend 7-11% less money compared to traditional offerings. So, using MyDello, you win time and money.

 

Ask experts, if needed

Many companies, especially smaller ones, need logistics services a couple of times a month. Thus, knowing all the crucial things in the logistics world is sometimes difficult. MyDello platform helps make the right choices during the order submission process. If necessary, questions can always be addressed to MyDello’s logistics specialists.

Logistics is an area that requires day-to-day work and focuses on the details. MyDello’s team has experience and expertise in solving the most complex and time-critical situations. According to Peeter Vahar, Chief Experience Officer of MyDello, a solution to all the questions will be found. “Support is always available—for simple questions to the most complex cases,” Vahar says. The logistics specialists can always be contacted from the right corner of the MyDello page.

 

Suitable for both beginners and professionals

The use of MyDello is simple, and its functionalities support handling a single shipment and regular logistics work. The logistics specialist of Cleveron, Rasmus Kodres, couldn’t agree more. “Digital solutions are the next likely step in supply chain management, and platforms like MyDello that allow this are very much expected,” says Kodres. “Logistics is an area that requires exceptional accuracy. All the shipments and documents must be properly formulated and always within reach.”

The platform can track the current status of all shipments. In addition, you can, for example, see information about previously sent items or create reports about shipments. Explore the full functionality of the platform on the MyDello page

MyDello started exactly one year ago in May, and the goal remains the same – we want future logistics to be fully automated. Over the year, it has become clear that our customers appreciate the possibility of comparing different modes of transport. As all costs increase, it is good to know that, on average, MyDello users save 15-20% on logistics.

 

MyDello’s is created by experienced experts from the field of logistics. MyDello is the most convenient way to get an immediate offer for international transport instead of many phone calls and emails. The portal displays a selection to find the most suitable transport solution for your business, taking changing circumstances into account.

Why choose MyDello?

We believe that global logistics will become fully automated in the near future. MyDello combines the various parties in the supply chain: we reduce the number of intermediaries, digitalise all information, and contribute to ensuring that the costs to logistics are minimal. According to our data, using the platform means 15-20% lower costs on average, and our customers value it highly.

MyDello’s primary goal is to provide a simple solution that a logistics specialist can handle daily. There have been major changes in logistics in the last two years due to pandemic Covid-19 and crises, and companies are looking for new ways to operate as efficiently as possible. Compared to different supply modes, it is necessary to find the best solution. For example, during the crisis in the Suez Canal, maritime transport was disrupted, and prices increased rapidly. Which delivery method to choose as a replacement? The answer is just a few clicks away.

The best part of digitalisation is that the business is more efficient and takes less time. MyDello uses different logistics service providers and carriers and brings them all together. A good overview can already be obtained with a single query. Paperless management has become more natural in every sector and country. Therefore it’s great to witness the logistics sector coming more and more digital.

MyDello has countless advantages as a digital platform. Let the numbers speak for themselves: almost 2,000 companies have joined MyDello in the year. According to the latest feedback, customers appreciate the most important way to compare prices and delivery methods.

 

MyDello shifts boundaries

The whole logistics sector has changed significantly over the last year. Nevertheless, MyDello’s first year has been very successful. The main objective, to provide services with a turnover of at least two million euros, has been achieved. Two thousand customers have joined the portal, indicating a need for a digitalised logistics service.

MyDello is currently available in Estonia, Latvia, and Lithuania. Still, we plan to continue growing and soon start offering services to Swedish companies.

Follow MyDello also on LinkedIn and Facebook.

When sending goods and selecting pallet type and packaging materials, it’s best to be careful as the wrong choice may cause additional time and be more expensive. Requirements differ according to the goods, mode of transportation and desired destination, says Peeter Vahar, the Chief Experience Officer of MyDello.

In the EU, the most common pallet is EUR (the same size as ISO1). Usually, this helps to send goods almost everywhere without any extra hustle in the customs of the country of destination. The general rule is that even if the buyer takes care of the whole logistics, it is still the consignor’s responsibility to make sure that packaging and the preparation of the invoice are done correctly. It becomes natural when sending goods more often as there are some potential risks, mainly if exporting out of Europe.

 

Wood must be fumigated

The main rule for international trade is that all wooden pallets and materials must be treated against pesticides and pests. Processing the wood will help prevent the arrival and spread of potentially dangerous pests in the country of destination. Suitable pallets are already pre-ready and heat-treated or have to go under the fumigation process in the port.

Also, it is good to know that all wooden parts that are used for packing or fastening the goods must be fumigated. Just an example: there is a machine that exceeds the standard size, and there are pretty no pre-made suitable packages for that. In this case, it is still necessary to secure the shipment by using different packing materials and, most probably, some wooden pieces. When using wood, it’s good to select pre-treated components, or the load must be fumigated before leaving the port. Fumigating before the transportation adds extra two or three days, and a certificate will be issued after the process.

In addition to wooden pallets, there are also pallets made out of plastic and metal. In terms of price and quality, the most reasonable choice is wood. The advantage of plastic is that, unlike wood, it doesn’t rot. At the same time, transport is generally in dry conditions and, for example, in a container, excessive moisture does not endanger wood.

The choice of the pallet must primarily be based on the size and nature of the goods. In different countries and regions, there are different standards for the dimensions.

 

Choose the suitable packaging materials

Packaging requirements apply to goods that may pose a higher risk to other goods, means of transport, persons or the environment in the transportation process. These requirements are regulated in international agreements. According to the type of risk, the requirements differ. For example, chemicals must be packaged in a box that withstands falls and leaks.

Suppose the goods are packed in accordance with the requirements. In that case, the transportation process does not differ, just some additional information must be provided on the goods, and the potential risks have to be avoided. However, it should be kept in mind that certain goods are subject to requirements that exclude, for example, transport in a passenger plane. For example, lithium batteries are generally only allowed to be transported in a commercial aircraft.

 

Mistakes may be pricy

If you should choose the wrong pallet or package, it probably causes some unwanted problems. Based on our experience, it is the cheapest to avoid mistakes beforehand instead of finding a solution with the customs board and the receiver afterwards. In the worst-case scenario, a wrong pallet or error in choosing the right packaging materials may mean that the whole shipment will be confiscated. The process following the mistake generally depends on the rules of a particular country and customs, but sometimes it can be solved by simply changing unsuitable packaging. However, the customs procedure and the deposit may cause additional costs.

There have also been situations where the customs authorities do not agree to destroy nonfumigated pallets in more complex cases. In this case, the sender must pay to ship goods back to the sender. However weird it may be, an empty pallet must be shipped to the other side of the world. Usually, it is not seen as a big problem, but it sure costs extra money and time. You can be pretty sure that the delivery partner is not happy with the delays in the transportation.

 

MyDello is here to help
If it’s your first time sending goods somewhere far away, or you want to double-check, feel free to contact MyDello. We will identify the specific conditions and the requirements. When sending dangerous goods, our system does not automatically display the price, but we will manually check the transport compliance before you can even notice.

 

Good to know: most common pallet types

  • EUR-pallet (ISO1) pallet in size 1200 x 800 x h mm
  • EUR-pallet is usually pre-treated or fumigated, but some non-fumigated pallets are sometimes also referred to as Euro-pallets
  • Smaller EUR 6 pallet (ISO0) 800 x 600 x h mm
  • EUR 2 (ISO2) pallet 1000 x 1200 x h mm