Case Study - YQN Safeguards Chemical Exports | YQNLink

YQN's Strict Control of 'Three Key Aspects'

to Safeguard Chemical Exports

According to data from the General Administration of Customs, China's total exports of organic chemicals reached $80.7 billion in 2022, with a year-on-year increase of 17%, and total export value of inorganic chemicals reached $39.4 billion, with a year-on-year increase of 68%.

The growth is closely related to changes in the global manufacturing supply chain. As downstream production lines in China, such as automobiles, auto parts, tires, clothing, and footwear, etc., gradually shift to Southeast Asia and other regions, the demand for chemical products as essential raw materials for production has further expanded. Additionally, the European energy crisis has led to a soaring prices and shortages of raw materials, further fueling the rise in demand for Chinese chemical products for export.

Despite the expected slowdown in the global economy, the shipping of chemical products remains a focus, especially in Southeast Asia and India. How can we seize the opportunity and smoothly transport the "hazardous" chemical products overseas? Today, we will discuss the three tips for YQN of shipping chemical products.

Tip 1: Assess Whether the Chemical Products Are Dangerous Goods

Rubber accelerators, oxalic acid, and activated carbon are important raw materials for tire production and are among the larger-scale chemical products shipped overseas. YQN has been serving a leading domestic chemical production company for a long time, arranging shipments of several tons to several hundreds of oxalic acid, activated carbon, and other chemical products to destinations such as Japan, South Korea, Southeast Asia, Middle East, India, etc., every year.

Unlike other product categories, transporting chemical products involves issues related to corrosivity and flammability. During booking and customs clearance, dangerous goods declaration is required, and essential qualifications include an MSDS (Material Safety Data Sheet) and a "Certifications for Safe Transport of Chemical Goods" issued by chemical institutes in Shanghai, Tianjin, Qingdao, Guangzhou, Changzhou, etc., to prove that the goods are ordinary chemical products but not hazardous. If the shipments contain activated carbon, bamboo charcoal, or wood charcoal, self-heating test report must also be provided. Failure to provide complete qualifications will lead to challenges at various stages of the logistics process, from difficulties in booking to the inability of vessel to sail. Therefore, shippers need to prioritize the processing of relevant qualifications.

Once on board, some carriers may place containers containing chemical products in designated dangerous goods storage areas. And during loading and unloading, containers are directly lifted onto the ship using trailers, bypassing container terminal to avoid risks.

Overall, internationally, there are specific and stringent requirements for the packaging, warehousing, segregation, loading and unloading, management, transportation conditions, and firefighting measures for the export of hazardous goods. This demands a higher level of attention to detail and expertise from international logistics service providers.

So far, YQN has provided logistics services for a batch of chemical product exporters, helping them go global with its wealth of shipping experience, by selecting the right carriers and planning shipment schedules in advance.

Tip 2: How to Avoid Shipments Being Rejected by the Carriers

In our experience with shipping chemical products, we have found that carriers in different regions have their own examination and handling procedures, leading to many uncontrollable factors in chemical transportation.

Chinese, Japanese and Korean carriers conduct a full review of all qualifications during booking and directly confirm booking. In contrast, European and American carriers conduct simultaneous booking and qualification reviews. Even if a booking is made, the cargo may still be rejected if the qualifications are deemed inadequate.

How to avoid those risks? YQN's logistics experts have over 20 years of experience in international transportation for chemical products and are familiar with the qualification review rules of different carriers, enabling businesses to choose the right carriers promptly and saving transit time and cost.

Tip 3: Optimize Delivery Time with Effective Control Over the Process

Many of our top-tier clients' product lines cover high-end chemical products. These products not only have complex production processes but also possess formula patents, making them highly sought after in the international market. These clients have stringent time requirements for shipping and need efficient coordination across the entire logistics chain, including booking, customs clearance, and trucking services.

In response to this, YQN provides a systematic service process:

1. Engage in early communication with clients, develop monthly shipment logistics plans, proactively secure efficient, quality, and cost-effective shipping routes, reserve shipping spaces early, and effectively manage the transit time.

2. Prioritizing efficiency, YQN avoids dealing with certain carriers with ambiguous approval processes and uncontrollable factors to ensure smooth operations in all aspects, from booking, customs clearance, trucking, to loading, helping clients minimize unnecessary losses and enhance logistics service efficiency.

3. As a leading international logistics online platform, YQN has built up a wealth of quality shipping resources in emerging regions like Southeast Asia, Latin America, Middle East and India, as well as areas such as Europe, America, Japan, and South Korea, providing clients with advantageous choices in terms of route efficiency and shipping space.

It is estimated that the global chemical production growth rate will remain above 3% until 2025, and China's chemical product exports will continue to grow steadily. Considering the complexities and multiple aspects involved in chemical exports, YQN's profound industry experience and reliable service expertise can effectively help chemical companies enhance supply chain control, reduce costs but increase efficiency, improving their competitiveness in the international market.

YQN Operation Team

info@yqnlink.com

2023-08-16 19:00:00