FAQ & Resources
At Target Shipping, we pride ourselves on being an international shipping resource for our clients and for the industry as a whole. We’ve put together the following frequently asked questions, which we update regularly, to lend our hard-earned expertise to those who might benefit from it, whether or not we’re the right fit for your project. If there’s something you’re struggling with that we don’t answer here, contact us. We’re always happy to help.
How does Target Shipping work with my business?
How is COVID-19 affecting freight shipping, and what do I need to plan for?
Can you explain U.S. EXIM Bank regulations as they relate to freight shipping?
What are U.S. Flag vessels, and what does working with them involve?
When do you recommend a live load vs. a drop and pick?
How does Target Shipping work with my business?
First things first: If you think you might be interested in working with us, get in touch. We’ll help determine if we’re right for your project by diving into the nitty-gritty details, focusing not only on what you’re shipping and your Incoterms but also on how your shipment is packaged, how it will be transported, what kind of considerations you have, and so on. We like to put ourselves in your shoes and to understand your challenges before developing proposals. From there, we’ll strategize and present you with several options, on various timelines, with different services, and with a range of pricing. Then, if Target Shipping is a good fit, we’ll help you weigh your priorities and advise you on how to best proceed.
How is COVID-19 affecting freight shipping, and what do I need to plan for?
Because of the global pandemic, there has been some disruption in service as carriers have tried to maximize their efficiency. This has meant decreasing frequency of vessels and eliminating or substituting some port calls. Also, rates have increased. Because there are less vessels on a route, there are increased space constraints, and this requires more advance planning and booking as well.
Can you explain U.S. EXIM Bank regulations as they relate to freight shipping?
The short answer: For EXIM Bank 1) direct loans or 2) guarantees over $20,000,000 or with a repayment period of seven-plus years, you are required to ship with U.S. Flag vessels. You can find more on EXIM Bank policies here.
What are U.S. Flag vessels, and what does working with them involve?
U.S. Flag vessels have 100% U.S. citizen crews and must meet other regulatory standards. They offer two types of service: U.S. Flag Priority 1 (P1), which is direct, and Global Priority 2 (P2), which has connections. For container shipping, there are three carriers: APL, Maersk Line, Limited, and Hapag-Lloyd USA. For breakbulk, there are a couple dozen carriers, and we can help you find the appropriate one for your job. If you are working on an EXIM Bank project that requires U.S. Flag vessels but there is no cost-competitive P1 or P2 service available to your destination on your timeline, it is possible to file for an exception, which is something we can help you navigate.
When do you recommend a live load vs. a drop and pick?
Our general rule of thumb is that if you can get your containers loaded in under four hours, do a live load. It’s more cost-effective to pay for a couple extra hours of truck detention than to pay for a container to make two round-trips.
What are the pros and cons of a part-charter vessel?
To start, you need to have enough volume for a charter option to come into play. In those cases, there are many considerations, but if the rates for a part-charter and a liner service are the same, we typically recommend a liner service. This is because you are exposed to more liabilities when working with a charter and can be hit with unbudgeted expenses if congestion, weather, or vessel detention become issues. That said, with a part-charter, transit times can be faster, cargo is handled less, and you can go anywhere, including hard-to-reach ports.
When I get a freight shipping quote, what charges should I be looking for? What fees are sometimes not included that I should plan for?
A good freight shipping quote should always tell you what is included, such as receiving charges (terminal receiving, ocean freight, origin trucking, etc.), and what is not. Destination charges are not typically part of our quotes, but we can work with you to prepay them, along with any fees for documentation or certificates you may need at the destination. Sometimes, depending on where you are shipping, a container will be subject to a customs exam, and that comes with a fee that you are obligated to pay, regardless of whether the customs agents encounter an issue or not. Truck detention, waiting time, port storage, and container detention are other charges to be aware of and ones a freight shipper should be budgeting for when necessary and working to avoid when not.
Last updated August 2020.