x Import-export businesses wonder what the CIC fee is in sea transport?
When is CIC fee collected? x Do you want to know the regulations, calculation method as well as who has to pay the CIC surcharge in maritime transport?
x Do private individuals and businesses need to combine retail goods with other customers for sea transport to other countries?
CIC fee is a surcharge charged by shipping lines to exporters to offset shipping costs when importing and exporting goods. Proship.vn will address issues that private individuals and businesses are interested in to clarify the term CIC fee and related regulations. Through this, we also introduce "Cheap LCL cargo shipping service to Chinh Ngach countries" , if you need to combine goods with other customers to save shipping costs to the US, Germany, Australia, Japan. Japan, China, etc. can refer to and use the service.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
Cheap Container shipping service
What is CIC fee? What are the conditions for adding CIC fees?
What is CIC fee?
CIC fee is a type of fee that worries many businesses that need to import and export goods. If you work in the import-export industry, you are no longer unfamiliar with the concept of what CIC fees are and the information related to this type of fee.
What is the CIC Surcharge? CIC stands for “Container Imbalance Charge” (Equipment Surcharge), literally meaning container imbalance charge. This is a type of sea freight surcharge collected by shipping lines with the purpose of compensating for the costs of transporting empty containers from places with excess containers to places with goods that need to be packed into containers. The reason this cost appears is an imbalance in the amount of empty containers. The situation of unbalanced empty containers arises because countries have an imbalance in their import-export balance.
* An easy-to-understand example is as follows: Vietnam is a country that imports a lot of goods from China, but not many Vietnamese goods are exported to China. The imbalance between export and import leads to many empty containers in Vietnam while there is a serious shortage of containers packed in China to be shipped to Vietnam. Because of this problem, shipping lines need to transport empty containers from Vietnam to China and collect additional fees from businesses that have finished using that empty container.
Currently, there are many countries with trade deficits such as Vietnam, the US, the EU, etc., which will have a large amount of empty containers after import. On the contrary, export surplus countries such as China, India, etc. need many empty containers to pack export goods. Therefore, moving an empty container from a place where there is no need to a place where there is a need will incur costs for the shipping company, so the shipping company will collect an additional CIC fee to compensate and be considered part of the container fee. . CIC fees arise depending on the time of year. When there is a lot of imbalance, the shipping company collects it, but when there is a balance, it does not collect it.
Conditions must include CIC surcharge
Container imbalance fee is only adjusted when the following conditions are met:
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- The container imbalance surcharge is paid by the buyer and is not included in the actual value to be paid;
- Relevant documents can be measured. In cases where import and export goods have an additional adjustment but do not have relevant documents, they will not be calculated according to the transaction value method;
- Related to import and export activities of goods;
- Container imbalance surcharges are often required by Customs to add businesses to the taxable value. Therefore, you should pay attention to clarifying this fee in the transportation contract with the shipping company to avoid being charged too much.
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What are the regulations, how is it calculated and who pays the CIC fee?
Proship has answered questions about what the CIC fee is and the conditions that must be added to the CIC surcharge. Next will be the calculation method, information about who pays the CIC fee and some other related knowledge. As follows:
Who will be charged CIC fees: Shipper or Consignee?
CIC is a fee that can be added to the freight charged by the shipper (sender) or consignee (recipient). Depending on the transport contract of the two parties, it will be specified which party bears the container imbalance fee. Specifically there are two cases:
In case of packing export goods
If there is a shortage of containers, the shipping line is forced to transport excess containers to the missing place for packing and incur CIC fees. In this situation, container imbalance fees arise before packing and before arriving at the first import port. Therefore, this fee will be added to the freight and appear in the transportation contract with the shipping company.
* For example: Company A exports goods, but while packing the goods, it runs out of containers. At this time, the shipping company will have to transfer empty containers from other places and incur CIC fees in the exporting country. Therefore, the container imbalance surcharge is added to the ship's freight and recorded in the transportation contract with the shipping company.
In case the goods arrive at the first import port
After the goods arrive at the import port, but the importing country does not have the goods immediately to transfer the containers back to the loading port, they must pay a surcharge for container imbalance so that the shipping company can transfer empty containers from places that are not in demand to places that are in demand. .
* For example: For imported shipments, after the goods arrive at the unloading port, the importing countries do not wait until the goods are available to re-export through the loading port in the original exporting country. Therefore, to transport empty containers from the unloading port to the loading port, the shipping company must carry out the transportation, so they will collect an additional container imbalance fee.
How to calculate CIC surcharge?
Normally, the container imbalance fee will be collected by the shipping line once in the exporting or importing country. However, as a rule, this fee is usually collected at the import port. Therefore, to know which party needs to pay the container imbalance fee, from the time of booking the ship, both parties need to clearly agree which party will pay the fee. Unifying the fee bearer will avoid the situation where shipping lines collect fees twice.
In case the buyer pays CIC, this surcharge is not added to the selling price of the goods. On the contrary, if the seller pays CIC, the surcharge is added to the selling price of the goods. Currently, CIC fees are fluctuating around 85 USD/cont 20 feet and 170 USD/cont 40 feet. This is not a fixed fee but may change from time to time.
When are Container imbalance fees charged?
For many people, especially those who rarely transport goods by sea, they often do not know when they have to pay a container imbalance surcharge. In fact, the container imbalance surcharge will be collected at a certain level and only applied to each shipping route.
Accordingly, if shipping routes are carried out from trade surplus countries, most will have to pay this fee. Because, they often lack empty containers to pack export goods. In particular, at times when trading activities are vibrant such as year-end, holidays, etc., the need to use empty containers increases. Therefore, container imbalance fees are often collected more.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
SHOULD READ: Detailed Refrigerated Container shipping
Why are CIC surcharges in maritime transport still inadequate?
Once you know clearly what the CIC fee is, when comparing it with reality, businesses will easily realize that collecting a surcharge for missing empty containers still has many shortcomings. This is expressed from the following perspective:
CIC fees arise due to the moment when the container is unbalanced
In theory, the CIC fee arises when the container is unbalanced, so the shipping company must collect a fee to transfer the empty container to the missing place. It is difficult for any shipping company to ensure absolutely enough shells at ports and countries, so incurring CIC fees at this time is reasonable. However, the shipping company collects this fee based only on its own judgment, and the import-export enterprise that rents the container itself does not know when there is a shortage/excess of empty containers and whether there is actually an imbalance of containers between containers. area or not.
Since then, there is an existing reality that although Enterprises clearly understand what CIC costs are and know that empty containers are not always unbalanced, nor are shipping lines lacking containers, but most shipping lines are not. by charging CIC fees as a default. This has caused frustration among businesses as they are the ones suffering unjustly.
CIC fees collected by shipping lines are increasingly high and unreasonable
Many businesses "cry to heaven" because shipping lines charge very high CIC fees. Previously, the fee was only 40 USD/20-foot container, but it is increasing day by day and now sometimes reaches 100 - 120 USD. Although the lack of empty containers is real, it is not serious enough to push prices up like that. Shipping companies even collect CIC fees from both exporters and importers to increase freight rates, which is completely unreasonable.
Does Proship Logistics provide consolidation services, import and export of retail goods to Mainland countries by sea?
PROSHIP JOINT STOCK COMPANY we specialize in providing "LCL import and export services, shipping LCL goods to Chinh Ngach countries at cheap prices" with a professional and careful process in all the most important stages to ensure goods travel. in blocks, collected together from many retail customers but still absolutely safe, avoiding loss or damage that affects the production and business plans of Private/Enterprises.
Specifically, Proship Logistics, as a consolidator, will collect LCL shipments of many Shippers at CFS, arrange, classify and pack them into one container, then That arranges transportation from the loading port to the destination port. Such a combination of packing is called Consolidation. We will provide a fixed weekly LCL schedule to many destinations around the world (USA, Germany, Australia, Japan, Korea, Shanghai, China,...) to help customers. Plan your shipments accurately in advance.
Mode of transport - LCL delivery at Proship
LCL Chinh Ngach retail shipping methods according to the Proship block are being applied:
- Transporting LCL goods from Port to Port;
- Transporting retail goods from Port to Warehouse;
- LCL LCL cargo transportation from Warehouse to Warehouse;
- Transport goods to door upon request;
- Other accompanying services depend on the specific needs of customers.
Proship Logistics's target customers
Proship targets the following customers when importing and exporting Chinh Ngach retail goods by sea:
- Corporations, domestic and foreign companies that need to transport goods;
- Factories, projects, general agents and services for domestic goods, international import and export;
- Small and medium-sized enterprises have a need for international sea transport and import-export for the fastest time and the smallest cost savings.
Reasons to choose Chinh Ngach retail import-export service at Proship
The reason why customers should choose the service of consolidating and transporting retail goods to other countries by sea is because:
- The network of agents and partners is widespread across countries, so you can rest assured that the goods will be sent the fastest;
- Service rates for transporting LCL goods to Chinh Ngach countries are always reasonably cheap, professional services, and quick procedures;
- Consolidation service at international transit stations, service coverage to transit routes;
- Experienced staff, promptly consulting and quoting customers;
- Direct shipping to/from North American, South American, European and Asian ports;
- There are many direct export and import shipments every week;
- Collect goods in many countries (USA, Germany, Australia, Japan, China,...) and store goods waiting for delivery;
- CFS warehouse collects retail goods located at strategic locations, creating an effective and complete LCL solution for customers;
- You can track your order directly through the Websites or through the consulting staff;
- Compensation policy for goods at market price if shipping errors are detected;
- Many service packages: CY-CY transportation, Door to Door transportation, Transportation according to Incoterms terms in the contract.
Above is the information that Proship wants to send to readers to answer what the CIC fee is and related knowledge. Accordingly, once the shipping company has collected the CIC fee, you are forced to pay it. If you do not pay, the shipping company will not issue a D/O to receive the goods. Hopefully, this sharing article will help many businesses in the process of exporting and importing sea goods... And to be provided with cheap LCL cargo shipping services to Chinh Ngach countries, please contact us. Contact 0909 344 247 .
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
