While there are several factors involved, the primary is market demand. Traditionally from Dec through April for imports, especially from Asia to the U.S., it is called the "slow season." Because the retail market slows down after Christmas. However from mid January through early February there is an upsurge of cargo moving to beat the Chinese New Year deadline whereby factories all over China shut down for weeks. This usually keeps rates high as there is always space problems for cargo getting on vessels. From May through November this would be the "peak season" where there is a big demand for cargo moving into the U.S., so the Carriers raise the rates during this period, with the GRI (general rate increase), and PSS (peak season surcharge).

Another factor is fuel, or what is called the Bunker Fuel factor. This is a floating surcharge that the Carrier's can change when oil prices rise or fall. It is called the BAF.

Another factor is when the Carrier has increases in costs such as when Terminal costs rise, especially with Unions, congestion problems, etc. Or when the U.S Rail costs increase for similar reasons. This is where the Carriers can add in new surcharges which have happened in the past and eventually get absorbed into the "all in " rate quoted.

Most recently the primary reason for rate increases, was a knee jerk response to the tremendous downturn in traffic and volume as a result of the current U.S. recession since '08. This downturn caused many carriers to lose about 50% of their previous volume and while their costs remained the same or higher, and their revenue all but disappeared, they found themselves the beginning of this year looking at an average of $500, 000,000 in losses per Carrier. So from late '09 until May of '10, most Carriers put a large portion of their fleet out of commission off the coast of Singapore. Thereby creating a vessel shortage, or a false space problem. This gave them all excuse to raise their rates again, in order to salvage their businesses. This type of thing is not normal.

Most freight payments are done with a Company check. However you can also pay with wire transfer or credit card (subject to administrative fee). Payment is sent right around the time the freight is due to arrive, clear customs and be released.

Yes. You would fill out a credit application that we would send you ahead of time, with all necessary banking information and references. Once your credit is approved, you would be granted the appropriate credit amount and length of time.

Firstly, make sure your supplier overseas (on imports) or if you are the supplier for an export shipment, creates all of the necessary documents correctly (packing lists, commercial invoice, original bill of lading-OB/L) and in a timely fashion, so that all documents are provided with the necessary banks and sent to you (the importer) or your buyer-consignee on the B/L (if you are the exporter) at least 1 week before cargo arrives the destination so that everything can be processed through customs ahead of schedule and freight can be paid along with presentation of the original B/L. One factor that usually slows this process down is when there is discrepancies between the buyer and supplier and since the goods are not paid for, the OB/L has not been surrendered by the Supplier to the Consignee (buyer)

There is one clear recommendation & 'yes' Marine Insurance must be arranged for all shipments. The 'MSC Rena' grounding in Tauranga is a recent reminder of what can occur in transit irrespective of what freight forwarder or shipping line you use. Dependent on terms of sale the responsibility for marine coverage will sit with the seller or buyer, however make sure this is clear before a shipment is arranged. For regular shipments it would be more practical & cost effective to arrange a blanket insurance policy. CTS can arrange coverage on your behalf if requested in writing before shipment at an additional cost.

This area is commonly overlooked by importers assuming that their current Customs Broker is applying the correct tariff classifications. All Customs Brokers are obliged to classify in accordance with regulations however if proper care is not taken you may face the consequences of your brokers inaccuracy or end up paying duty on goods with available concessions. CTS conducts a tariff review on all new clients to ensure the accuracy of information provided to Customs & that correct classification is made.