On the Way of Packing

         Mr. Li and Mr. Greene move on to the topic of the way of packing, after settling the issue of insurance..

Li :    So, what should come the next, Mr. Li?

Greene: The way of packing, I think.

Li:     Well. Packing is very import for the shipment of the products, especially for transshipment, if   they are required. I’d like to hear your opinion first concerning the matter of packing.

Greene: We all know that different articles require different packing. As an experienced exporter as  you are, what do you usually do to pack electronic products, I wonder?

Li:     As for the electronic products, such as computers, we usually pack each set of them in a   polyethylene wrapper.

Greene: What about the outer packing? It’s also important.

Li:     We usually use a special corrugated cardboard box with stenciled shipping marks as outer  packing.

Greene: I’m afraid the cardboard boxes are not strong enough for such product.

Li:     Such cardboard boxes are very strong and we also reinforce them with iron straps.

Greene: You are probably right. But if these goods are to be transshipped on the way, don’t you think dampness or rain might spoil the goods?

Li:     Oh, don’ worry about it. Each box is lined with waterproof material, which serves as the  protective outer packing.

Greene: But will the cardboard box be strong enough for long-distance ocean transportation?

Li:     Of course, they will. We recommend you the cardboard boxes because we think they are good enough for such lightweight articles as computers. They are comparatively light and  easy to handle. We will have reinforcement measures to make the articles inside safe and  sound, like what I mentioned just now.

Greene: But, still I have one more question. These boxes, though as you said are strong and light, are  actually paper-made, right? So I’m afraid that it might be easy to cut open with a knife. Our  products may well have the risk of pilferage.

Li:     Don’t worry. Theft cases against the cardboard boxes have never occurred, because they are  easier to be detected.

Greene: Anyway, I’m afraid that the insurance company might refuse indemnification in case of  damage or pilferage, on the grounds of improper packing.

Li:     There is no need for you to worry about that. The boxes are strong enough for sea voyage  and possible transshipment. What is more, the boxes have been used extensively for such  articles in international trade. The insurance company would have no occasion to refuse indemnification on such grounds.

Greene: Well, Mr. Li, if you could guarantee that, we’d be quite willing to accept cardboard boxes.

Li:     Then the problem of packing is settled.

 

 

 

(The assimilated situation: the talk is still ongoing over the way of shipment between Mr.Li and Mr.Greene in the afternoon.)

Li:     Now, we can come to the problem of shipment this afternoon, is it OK, Mr. Greene?

Greene: That’s good. I’d like to ask when and how you are going to ship our goods?

Li:     We usually ship the goods by regular liners.

Greene: For this lot, could you consider prompt shipment? The goods are badly needed by our users  back home.

Li:     No, I’m afraid it’s difficult for us to do that because we don’t have the amount of the

       products in stock, as you know they are our best sellers this year. Our production base told me this morning that workers are working in three shifts in order to step up the production  against your orders.

Greene: When is the deadline of the loading period, may I ask?

Li:     In order to make it easy for us to get the goods ready for shipment, I’d like to suggest a  partial shipment, is the solution acceptable for you?

Greene: Not yet. It’s better to ship them all at one time, otherwise the users will return the  prchases.

Li:     Sorry, we can’t ship them all at one time. I was told by our shipping department yesterday   that liner space for South Africa has been fully booked up, it is scheduled to leave at the end of this month. I’m afraid we can do very little about it. We have to wait for the next steamer early the next month, anyway.

Greene: Is there any chance of transshipment to be allowed?

Li:     But I have to make it clear that transshipment adds to the expenses, risks of damage and sometimes may delay arrival. Besides, it is very difficult for us to find the connection steamer now. There are also many factors that might make the goods miss the intended connection  vessel, even if we find one. It may have already been in full load.

Greene: Oh, I heard that you are operating a container service from Guangzhou, Shanghai to South  Africa sea routes. It seems to be the last resort.

Li:     Yes, we are using more and more containerized vessels for cargoes destined for the area. But it’s a little bit ostly.

Greene: What sizes are your containers of?

Li:     The shipping containers are of two sizes, namely 10ft. and 20ft.

Greene: Are your containers temperature –controlled?

Li:     Yes. They are also watertight and airtight to protect goods from being damaged by heat,  water or dampness. They can be opened at both ends, thus making it possible to load and   unload at the same time. 

Greene: Containers certainly have got a lot of advantages. The loading and unloading process can be  greatly speeded up.

Li:     If you decide to choose container vessels, I’d like to tell you that there will be one heading  For South Africa at the end of this month,. What’s more, it’s not been fully booked up. The  vessel space is enough for your lot, we’ll have enough time to get the goods ready for  container shipment by the time.

Greene: It seems the best solution for both sides.

 

 

 

For Buyers

1. What’s the scope of PICC’s insurance coverage?

2. As the goods will be transported from the destination port to some inland city, would you please extend the insurance coverage for 60 days from the time it ends at the port of destination?

3. If we conclude this business on CIF basis, what coverage will you take out for this lot of goods?

4. I’m afraid that the cardboard boxes are not strong enough for transport by sea.

5. As to the inner packing, it must be attractive and helpful to the sales; the outer packing must be   seaworthy.

6. It should be packed in seaworthy wooden case with tinlining and iron hoops.

7. When you pack, please put 2 or 3 different designs and colors in each box, it will be convenient   for us to make distribution to the retailers.

8. We prefer direct sailing as transshipment adds to the risk of damage and late arrival.

9. When is the deadline of the loading period?

10. Shipment has to be made before November, otherwise we are not to catch the Christmas season.

11.If you cannot get the goods ready by the time the ship we chartered arrives at the loading port, you’ll be responsible for the losses thus incurred.

For the Sellers

1. The People’s Insurance Company has a fine reputation for its good credit as well as its   reasonable rates. It has more than 300 surveyors and agents all over the world.

2. For marine cargo, PICC has three major categories of insurance: Free from Particular Average,   With Particular Average and All Risks.

3. We agree to your request to insure the shipment for 130% of the invoice value, but the premium   for the difference between 130%and 110% should be for your account.

4. According to our usual practice we prefer our export shipment to be insured by the People’s  Company of Insurance in accordance with the China insurance clauses.

5. The insurance validity expires on the 60th day after the insured goods are unloaded at the final  port of discharging.

6. How would you like us to pack your lot?

7. We could use wooden cases for the stationery if you insist on the packing.

8. We hope that the design and the color will suit Arabian tastes.

9. We’ve already taken steps to improve our packing and we are sure that our future shipments will give you complete satisfactory.

10. How would you like to ship your goods, by ocean freight or by airfreight?

11. Would you like your goods to be transported in partial shipment or transshipment, under such circumstances?

12. The ship space for North America has already been booked up.

13. The goods you ordered are all in stock, and we assure you that the shipment will be made by the first steamer available in November.

14. The loading period we fixed is from June to July, 2002.