Thursday, June 30, 2011

Aliya: Israeli Groups for New Olim

Groups and Organizations

There are many groups, both abroad and here in Israel, which can help with pre- or post-Aliya needs. This is a partial list, with an outline of what they do:

  • AACI (Americans and Canadians in Israel)
    AACI is a great resource, offering help with Job Placement, assistance on arrival, social activities, Financial planning, discounts at many Israeli Businesses for members, and all sorts of advice related to making Aliya and living in Israel.
    www.aaci.org.il
  • ESRA
    (English Speaking Residents Association
    )
    ESRA offers assistance with absorption, Job Placement, and many other need for (English Speaking) people who have just make Aliya.
    www.esra.org.il
  • TELFED
    TELFED is the South African Zionist Federation assistance organization. Offering the same types of help as AACI, and other issues specific to people who are, or have, made Aliya from South Africa.
    www.telfed.org.il

  • MATI
    The Jerusalem Business Development Center is designed to help Israelis (both Native and Olim) set up small businesses and expand existing ones.
    www.mati.org.il/eng/
  • Cyrus Foundation
    A non-profit organization which offers grants for new immigrants from the US to ship their goods to Israel (when making Aliya).
    www.restorationisrael.org

  • Israel Business Connection
    A business offering free advice for Olim setting up small business and understanding the more intricate aspects of specific business models in Israel.
    www.infoisrael.co.il
  • Jacob Richmond’s Aliya Pages
    Jacob is an amazing person, and a computer pro. His pages are filled with all sorts of information from Job Search (specific to people in computers and high tech), learning Hebrew, and all types of current events in Israel.
    www.jr.co.il

Wednesday, June 15, 2011

Aliya Organizations to Contact

There are basically two organizations involved in the pre-Aliya process.

  • The Jewish Agency (JAFI in English, Keren Kayemit L’Yisrael in Hebrew):
    This is the group which is responsible for outreach throughout the world. In many countries, the Jewish Agency is solely responsible for Aliya, and in every country the Jewish Agency is integrally involved in the application process.

    Once you decide you might want to make Aliya, it is a good idea to contact them.
    www.jafi.org.il
  • Nefesh B’Nefesh
    Nefesh B’Nefesh (NBN for short) is deeply involved in the Aliya process for people coming from North America, the UK, and other English Speaking Countries.


    Nefesh B’Nefesh provides pre- and post-Aliya support, and tremendous help with the Aliya process.

    In some instances, Nefesh B’Nefesh offers grants for people or families making Aliya.

    In any instance, if you are making Aliya from North America, or the UK, you should be in touch with Nefesh B’Nefesh as soon as you think you might want to make Aliya.

    www.nbn.org.il

Monday, May 30, 2011

Aliya- First step


Here is a simple checklist (in no specific order) for the first things to do:

  • Contact Nefesh B’Nefesh or the Jewish Agency (more information below) about starting the application.
  • Place your home on the market, or at least calculate how long your home will take to sell (contact a real estate agent).
  • Review your Hebrew skills, and determine your skill level.
    If it is low, consider taking a class in Hebrew.
  • Budget your finances – both for the time before you will make Aliya, as well as the fist six months to one year after you arrive.
    (It’s a good idea to assume you will need at least six months to find employment).
  • Review your (and your families) medical history and get a check up.
  • Make contact with some Israeli based Aliya groups (AACI, for example).
  • Pay off or pay down any debts.
  • Review your decision to make Aliya with all family members, especially children who will be coming with you.
  • If you have pets, find out the needed procedures for bringing them to Israel (this can take a few months).
  • Try to cut back on your day to day expenses – reduce what you spend on things like entertainment, dining out, and other luxuries.
    The money will come in handy later, and you’ll start to get used to a more Israeli lifestyle (where recreation is usually done in a less expensive manner).
  • Start to review your possessions – what you might ship or might not.
    Shipping is expensive, so there is no reason to ship goods that should go to Tzedaka or the trash.
  • Consider any special needs you or your family might have, and see what resources are available in Israel.

This is not a complete list, as each individual or family will likely have something important to them.
However, the idea is that you will be changing everything in your life, so review everything you can, as early as possible.

Sunday, May 15, 2011

Early Aliya Planning

When is the time to start planning your Aliya?
As soon as possible! As soon as you think you might want to make Aliya, it makes sense to review what is involved, and what you can do now, rather than later.

At a minimum, it’s a good idea to start six months before.
However it is very normal for people to start over a year in advance.

Starting could be as simple as reading this (or other) guides, taking a course in Hebrew, squaring away your finances (and putting some money aside), or visiting Israel on a pilot trip (not a touring trip – see below).

Here are some basic things you should review during your early Aliya planning.

Sunday, May 1, 2011

Aliya to Israel (1)


Making Aliya is an exciting and challenging move.
Not only do you need to consider all of the normal changes involved with a move (finding a home, schools, learning your way around the new city); or the normal considerations in moving to a new country (new languages, laws, governmental procedures); you will also be returning to the home of your ancestors, as well as a modern country in all respects.

The Israel you will be moving to most likely won’t be the Israel in your imagination, however every year thousands of Jews make Aliya and settle in happily.

This brief guide will hopefully help make your Aliya to Israel a little easier.
Of course, no guide is comprehensive – instead, it is designed to help you both plan properly, and to point you to references which will also help.

May your Aliya and Klita (absorption) be smooth and easy!


Thursday, December 9, 2010

Adventure Weekend in Israel with Sonigo


What happens when you take a stack of foreign agents assembled in Israel and surprise them with adventure after adventure?

Sonigo really does stack their agents. Notice the always popular Corrine Benhaim of Bailly International of Paris in the middle.

The answer is scattered over hundreds of kilometers of Israel – from the ancient port of Jaffa to a tent in the desert, through 2000 year old tunnels in the middle of the country to the magnificent Old City of Jerusalem.

Sonigo’s partners and colleagues came from as far away as St. Louis and New York and as close as France, Belgium and London. Certainly a learning experience –the opening tour showcased the ancient port of Jaffa – the biblical port of choice for pilgrims and cargo to Jerusalem.

A startled Herbert Lorenz (l.) of Unigroup in St. Louis emerges from an ancient tunnel. Philippe Marecaux (r.) of Meys and Zonnen in Antwerp, ever the gentlemen, escorts Helen Pertoldi of Abels of Cambridge while complaining his Blackberry was not working.

And certainly a challenging experience – everybody burrowed through underground escape and hiding tunnels dug some 2000 years ago by the Jews during their uprising against the Romans. Some of the passageways were no more than 40 centimeters which prove all movers are thin and svelte. (As a personal note – this adventure was your author’s idea after I enjoyed this 30 years ago – I remain amazed how much narrower the tunnels have become!)

Morgan Lott of Seegmuller in Paris insists it was the donkey and not him doing it.

Since all removal experts are involved with logistics and map reading, the group split into teams and were given donkeys to follow maps and a trail. While clearly designed to carry heavy loads, these donkeys carried lightweight and svelte (see above) removal experts. For a classic video of Sonigo’s own lightweight and svelte Joe Semel, please see YouTube under Sonigo, Joe Semel.

Sonigo’s typical uniformed crew en route to another satisfied customer (except for the guy with the socks….)

After a tough day on the trails of Israel and before retiring into the finest accommodations available in a desert tent …the adventuresome movers and shakers donned swimming suits, luxurious robes and relaxed in a natural hot spring where Blue Label flowed as freely as the hot springs.

A magnificent and exotic Swiss instrument – the hang drum provided more than just background music – it was almost trance like (or was it the Blue Lable?)!

Corinne Benhaim (l.) and Marianne Mischol of Packimpex in Switzerland practicing their amazing dance routine at the Dead Sea.

After traveling along the “Peace Border” with Jordan, the moving professionals donned their swimming suits for another dip – this time in the mineral rich, super salty – Dead Sea where one floats in the buoyant waters known for their healing and medicinal powers.

From the Dead Sea, the crew packed up and loaded the bus to travel to Jerusalem – a magical holy city with an atmosphere unlike any other. Sonigo’s adventure weekend came to a close with visits to the Church of the Holy Sepulcher and the Western Wall.

Most certainly, these moving executives will take their rightful place as Ambassadors for Israel encouraging International Moving Organizations to consider Israel as a venue for conventions, meetings and seminars.

Where else can a mover – tunnel underground (talk about difficult access!), ride a donkey (the original shuttle service), read a paper while floating on the Dead Sea (no need for an external elevator), sleep in a desert tent (can a 40’ container travel on sand?), pray at the holiest sites to the three main religions and visit a 7000 year old Port?

Just wait for next year!

Monday, November 8, 2010

Choosing an International Shipping Company

By Ed Singer - Sonigo International Shipping. This article may be copied in its complete state only.

Introduction

International Shipping and International Moving is a difficult and exciting process. Chances are very good that this is something you will do once in your life, and most people will never do.

This guide is primarily written for people shipping from the United States, although what is written here applies to anyone who needs to choose and international shipping company.

This is written for people shipping household goods for personal use.

May you have a successful move!

Who is Involved in an International Shipment

There are many people and companies involved in an international shipment, and it will help if you understand who they are, what they do, and how they work together.

You will likely have direct contact with one or two of the many companies involved, and little or no contact with the others.

This understanding will help you to make an informed choice.

The Shipper

This is you, the person doing the shipment. You will also be the “Exporter” (the person exporting goods from the country of origin) and the “Importer” (the person importing goods into the destination country).

It is very important that you understand this. As the “Shipper”, you are accepting responsibility for the legality of the goods that are being shipped, any import duties, supplying paperwork, and, most importantly, any charges that might arise in the event of some unusual occurrence (like a strike, a customs inspection, or an unusual delivery situation).

In short, make sure that you know all of the rules for importing to the specific country to which you are shipping, and budget extra money in the event that it is needed.

The Origin Agent

This is the local company that will do the visual survey, as well as the packing and loading. This might also be the Freight Forwarder, The Consolidating Warehouse, and/or the Move Manager. See below for details on these other functions.


The Freight Forwarder

This is the company that arranges the ocean freight and does the export documentation (including a “House Bill of Lading”). This is also the company that will move your cargo from the pick-up point to the port.

In many countries, a Freight Forwarder must be licensed. In the USA, The Federal Maritime Commission makes a distinction between a Freight Forwarder (FF) and a Non-Vehicle Operating Common Carrier (NVOCC). For the typical customer doing international shipping, the difference doesn’t matter, so when I say Freight Forwarder, I mean Freight Forwarder or NVOCC.

You can easily check to see if the Freight Forwarder you want to use is licensed at www.fmc.gov (Federal Maritime Commission, or FMC)

For Shipments originating from the USA, it is best to use a Licensed Freight Forwarder, or an authorized agent. If in doubt, check with the FMC.

You might also choose to work with a Freight Forwarder in the destination country. This is particularly useful if you are moving to a country with unusual rules for import, or if English is your second language and you are moving someplace which speaks your mother tongue.

The Freight Forwarder might also be the Origin Agent, the Consolidating Warehouse, and/or the Move Manager.

The Consolidating Warehouse

If you do not have an exclusive container, your goods will need to be loaded into a container with other cargo. This decision will be made based on the volume of your shipment, and the location of the origin.

In this case, your goods will wait in a warehouse until there is enough cargo to fill a container. This is called the Consolidating Warehouse. If you live near a port city, this will probably be the same warehouse as the Origin Agent (but not necessarily). If you live far away from the port, your goods will be sent by truck to the consolidating warehouse.

For the most part, this will be “invisible” to you, although it is quite possible that goods will seem to move in the “wrong direction” before being loaded onto a ship.

For example, cargo from Cleveland, Ohio to London, England might be moved to Chicago, Illinois to be loaded into the container there.

The Consolidating Warehouse can also be the Origin Agent, The Freight Forwarder, and/or the Move Manager.

The Export Port

This is the actual port where the container is brought (already loaded and sealed) to be loaded onto the ship. For all practical purposes, this means nothing to you, as you won’t be dealing with it in any way.

The only important thing to consider in your quote is if the port fees and Terminal Handling Charges are included. This will usually be listed as OTHC (Origin Terminal Handling Charges) or Origin Port Fees. From the USA, these fees are regulated and relatively low, and they are almost always included, however it is worth checking to see.

Under NO circumstances should you ask for, or accept, a price “from port”! If you want to save some money by bringing the goods somewhere, ask for the price “from warehouse”. Nothing goes to the port that is not already loaded into a container, sealed, and cleared from Export Customs.

The Ship Line

This is the company that owns the ship. They will issue the “Master Bill of Lading” or “Seaway Bill of Lading”. For the most part, this will be invisible to you however it makes good sense to ask which ship line your goods will sail on, for two reasons:

· To make sure the quote is based on actual rates, and not a “guess”

· To allow online tracking direct with the ship line

It is also a good idea to understand a little about international shipping, and the “rules of the seas”.

International Shipping, and Ship Lines, are crucial to the world economy. Ship Lines move commercial cargo, military equipment, and anything else that needs to be moved from one country to another.

Because countries need Ship Lines, Ship Lines are given special allowances and privileges:

· Ship Lines have the right to overbook, and “roll” cargo to the next available ship. Any associated costs get passed on to the shipper (that’s you!)

· Ship Lines have the right to declare “End Of Voyage” in the event that the destination port is not available due to war, strike, or other unseen event. Any extra charges get passed on to the shipper (that’s you!)

· Ship Lines have the right to jettison cargo (throw it overboard) in the event that the ship gets damaged or might sink otherwise. If this happens, everyone whose container does not get jettisoned must pay for the containers that do get jettisoned. (This is pretty rare, by the way).

· Ship Lines can change schedules, routes, or almost anything else in the event that they need to (even if the need is strictly financial). You know who pays for this by now, right?

· Ship Lines are not responsible for any damages to cargo, or any related damages caused because of a late arrival, or no arrival of the cargo.

· Ship Lines must get paid before they will release the cargo.

This is slightly simplified, but you get the idea.

Ship Lines do have some rules and standards, as well as some obligations, but by and large, particularly for the one-time shipper, they are mostly untouchable. So make sure you have some extra money on hand in case of tidal wave or port strike. Usually another 10-20% is enough to cover it, and these instances are rare and easily verifiable (by asking the Ship Lines directly, or getting the Ship Line Bill).

The most important thing to remember is that Ship Lines work on a “highest priority” basis, and Household Goods (what you are shipping) is the lowest priority.

The Ship Line might also be the container line (see below).

The Container Line

The Container Line is the company that rents the ocean container. This may or may not be the same as the ship line, but for all practical purposes it won’t make a difference to you.


The Destination Port

This is where the goods are finally unloaded, in the country of destination. You will usually have no dealings with the port however you will owe them money!

It is very important that you check your quote to see that it includes destination port fees and Terminal Handling Charges, or at least shows what they will be.

Note – It is standard in international shipping to exclude destination port fees.

These fees are usually due in the currency of the destination country, and will often times be listed as not included. The quote you accept should include them, or show what they will be. Even if they are not listed, you must pay them, regardless of the amount.

In some very rare instances (usually third world countries) it is impossible to know in advance. You can always check with a shipping company in the destination country to see if they can tell you what those fees will be, and arrange your shipment through them.

If you can’t find out the amount of the destination port fees in advance, expect them to be $1000-$2000 or more, no matter the size of your shipment.

Customs Bonded Warehouses

This is the warehouse where your goods will be held until they clear through customs. How this is handled will vary by country to country. For example, in Canada, the shipper must be present when the goods arrive. In the USA, an entire container is cleared through customs at once, even if there are multiple shipments in the same container. In some countries, containers with more than one shipment must be unloaded, and each shipment cleared through customs individually.

It is important to find out how this process works, and what time limits you have before storage and other charges start.

The Destination Agent

This is the company in the destination country that will handle the customs clearing procedures, dealings with the port, and delivery to your residence.

You can use this company to arrange for the entire shipment, although it is standard to use a company in the country of origin. If you are moving to a country with unusual laws regarding personal import, or that speaks your language, it might make sense to choose the destination company to arrange your move.

It makes sense to find out who the destination agent will be when getting your quote, for the following reasons:

· To make sure the quote is based on a real figure, and not a guess

· To check the reputation and references of the company that will be handling your goods at destination

· To ask any questions regarding import duties, restrictions, exemptions

· To find out about location specific concerns about access (Is “such and such” a city accessible to a 40 foot container? Do most places have elevators big enough to fit my super-sized sofa?)

The Move Manager

This is a term I use to represent a function which can be done by any of several people or companies.

In simple terms, this is your salesman. This is the company with whom you sign the contract (or agreement, or estimate), and who will be sending your bill. This is the company you will turn to in the event of any claims for damages, updates on your shipment, or questions in general.

All of the other entities involved will be “employees” or “subcontractors” of the Move Manager. Since your agreement is with them, any problems or concerns will need to be addressed to them, and any disputes will need to be settled with them.

It is a very good idea to use a Move Manager that will also be performing one of the other functions, for the following reasons:

· Ease of communications (between the move manager and the involved parties)

· More direct responsibility

· Less overhead (since the Move Manager is making money doing what they do, they won’t need to add extra for handling the entire thing.)

The International Shipping Company you chose will be the Move Manager, however I want to show this as a separate function, because to the consumer, it appears to be a separate function (from the other jobs defined above).

A Broker

A broker is a Move Manager that does not do any of the other work. This is not to be confused with a Freight Forwarder who might subcontract the origin agent and the destination agent, because the Freight Forwarder is doing something vital to the International Shipping (even if you don’t see it being done).

Generally speaking, a broker is an unlicensed entity. In most countries, this is illegal, but since International Shipping is such done by such a (relatively) small amount of the general population, there is usually no enforcement, until many, many complaints have been filed.

Since a broker is not doing any of the actual required work, his price will be higher than that quoted by any of the other companies he uses, assuming that company uses the same set of services as the broker.

However, often brokers will give seemingly lower prices because:

· They do not use the same quality set of services that another might choose.

· They do not check actual costs until after you have chosen to use their services, and then raise the prices through some loophole in their agreement.

· They do not pay any of the needed fees to be properly licensed.

Because of this, a broker might give what appears to be the lowest price, but what ends up to be either more expensive, or just a lower quality of service (more damages, more delays, more problems, more $$$)

More importantly, a Broker has no one checking his financial stability. If you pay the broker, and he doesn’t pay the ship line, you don’t get your goods! The Federal Maritime Commission requires a bond, and other industry trade groups check the financial stability of member companies (Fidi Faim, for example).

How Not to Select an International Shipping Company

Now that you have an understanding of who will be involved in your international shipment, let’s get down to the nuts and bolts.

The below “do not’s!” are taken from the Federal Maritime Commission, as well as several years personal experience in the industry.

No one wants to pay too much for a service, but International Shipping is not a product in a box – it’s very difficult to compare prices and services like you would a TV or a Car.

Here is what to avoid:

Shop on Price

This is the sure-fire way to run into problems. Scammers prey on greed and ignorance (meaning people don’t know; even smart people) so don’t be greedy!

If you go online to one of those “Find-a-Mover” websites, and pick the lowest quote you get, rest assured you will have many problems, and your final bill will be much higher than the low quote you (thought you) agreed to.

While price should be a consideration, it should be one of the lower ones.

More importantly, the price is NEVER what you will pay. You need to see what is NOT INCLUDED, and find out what that will cost, also.

Keep in mind that it is quite possible, especially for small shipments, that the cost of shipping is more than you can afford, or more than the goods are worth. If that is the case, you are “ripe pickings” for a scammer or unethical salesman to offer what appears to be a low price, but in fact is not inclusive of all of the fees you will need to pay.

Don’t Get a Visual Survey

If you hear the line “You know better than some stranger what you want to ship” run!

The visual survey is the best way to sort the good and the bad in our industry. It is more than just seeing what is being shipped – however that is a big part of it. The survey allows the shipping company to see the house, the street you live on, what size truck can fit, what the parking regulations or restrictions are, and many other factors that are important in determining the cost.

Also, the visual survey allows you to see a representative of the company that will be doing the packing, find out the company name, address, and a little about them. It also allows you to weed out the broker working from a basement in some remote city (or country!), before he has your goods and you have a problem.

The only instance where a visual survey might not be possible is if you live more than an hour from the nearest moving company. In most of the world, that is not an issue, so in most of the world, only accept quotes from companies that send a surveyor.

Think of this – you would never call a Dentist and say “My tooth hurts – what will it cost to fix?” would you? When you order international shipping services without a visual survey that is exactly what you are doing!

Don’t Read the Fine Print

The most common question I get as a salesman is:

“Does that price include everything?”

It’s a legitimate question – if you don’t read the quote. However, if you read the quote, you will see that there are some things that can’t be predicted, and they are not included.

It’s also the perfect questions for the scammer to hear, for exactly the same reason. When you get the bill, if there are charges that are different from the quote, the first thing a judge (or anyone else will ask) is “What does it say in the agreement?”

It won’t matter what the salesman said (or didn’t say) on the phone, it matters what is written on the agreement. So if you don’t want to read it, don’t complain when you find out what the price doesn’t include, and be prepared to pay for it.

How to Select an International Shipping Company

So you now know what not to do. Now let’s talk about what to do.

Start Sorting

International shipping is expensive. It makes no sense to ship something, only to arrive in destination to find you won’t or can’t use it, or should have thrown it away years ago.

Find out about the size of home you will be living in, and what you will want, use, or need. This is a good time to get rid of things you should have gotten rid of years ago, even if you can’t sell them.

Note – Homes in North America are generally much larger than other places. Check standards for things like door sizes, electricity, and room/house sizes to help determine what should not be shipped.

Get References from Relevant People/Groups

This is where you should start. Here are some tips on where to start your search:

· People who have moved from the same origin to the same destination

· Chat groups or support groups for people in the destination country who have moved there

· The local embassy or consulate of the destination country

· Local groups of people from the destination country

· The Human Resources department of your company (especially if they have offices in the destination country, or if they send employees overseas)

Note - You will notice I did not mention going to the nearest search engine and doing a search on “International Shipping”. This is on purpose. Do NOT do this!

Select Three Companies

Now that you’ve checked with friends, family, people who have already moved to your destination, the local consulate, and possible your employer, you should have a list of suggested companies.

As a bonus, you will probably also belong to an online group of people like you in your destination country who will be able to answer other questions once you arrive. (Where can I find a good butcher? What cut of beef is a number 6?)

Three companies is enough for you to get an accurate idea of competitive costs, while not killing yourself with reviewing estimates, comparing prices, or having surveyors come to do the visual survey.

Get Visual Surveys

Call or email (or both) the three companies you have chosen, and have them come to survey the goods. In the end, you will pay for the volume (or weight) of what you ship, so the survey is a key to getting an accurate quote.

Here are some tips:

· Do a walk-through of the house to determine what must go, what might go, and what won’t go, before the surveyor arrives. Make a list, and add in what you think it would cost if you needed to replace the items (this will come in useful later – see Insurance below).

· Try to schedule the three surveys as close together, or even on the same day (at different times) if possible.

· Make sure both Husband and Wife are at home during the survey.

· Get a written copy of the surveyor sheet and review it.

· Be honest – both when you are showing the surveyors what is being shipped, and when you are reviewing the list. If you have 4 kids, and the survey sheet shows 2 boxes of toys, something is wrong! If the living room is filled with knick-knacks and books, and the survey sheet show 3 small boxes from the living room, there is a problem!

Note – You will pay for the final volume, once the goods are packed. Make sure the survey sheet shows accurately what is going and what is not. Pay specific attention to the amount of boxes listed, especially if you plan on taking much less than you currently own.

Read the Entire Quote

The surveyor has come and gone, and now you get the quote. The first thing you do is scroll down to see the numbers, right? Big mistake!

Ethical salesmen spend a lot of time in putting together the price quotes, and outlining what is and what is not included. The terms and conditions, while maybe in small letters, are very important to you.

Unethical salesmen make a living because most people don’t read the quote!

If all you are reading is the “price” you are missing the total cost. Read everything, and what you don’t understand, question. Get answers in writing.

It might help to make a spreadsheet so you can compare the entire cost, not just the “door to door” costs.

Pay specific attention to what is NOT included! This is where you will find the extra charges, and you must know, in advance, what is going to be due (as opposed to maybe).

Note – Destination Port Fees and Terminal Handling Charges are routinely excluded from door-to-door quotes. Make sure your quote shows, in writing, what these fees will be! Never assume that one company will charge the same as another company for these fees.

I know that this means possibly a few hours of reading, but you are considering spending quite a bit off money (possible as much as a car!) and you will be handing over almost everything you own. Take the time to read, and understand, what is involved.

Other Important Considerations

Hopefully you’ve read this far. This will be good practice for reviewing the three quotes you will be getting, as well as all of the other documentation which comes along with the quotes.

Here are a few other things to keep in mind.

Get it in Writing

Once you have read the pricing, the terms and conditions, and everything else, you will have questions.

There may also be specific services you require, or want.

If it is important, get it in writing. If it is not in writing, it doesn’t exist!

In the event of a dispute, the first thing that will be reviewed is the written agreement and other written correspondences.

It’s a good idea to follow up phone conversations with an email, to make sure there is no confusion, and to make sure that you get a response, in writing, from the International Shipping Company that matches your needs, wants, and expectations.

Insurance/Valuation/Coverage

Depending on which International Shipping Company you choose, the name of insurance may vary, but there are some basic things you need to know:

· Insurance is never included in the cost.

· The cost of insurance is based on the amount of insurance you need, and the deductible you choose.

· Insurance can be either “Total Loss” or “All Risk”.

· If your goods are not insured, you can not claim damages, even if you see the worker drop the box!

· Insurance is based on you insuring your entire shipment, for what it costs to replace new, in the country of destination.

· You will need to make a list of what you are shipping, and how much it will cost if you have to replace it new, in the country of destination.

This may seem a little odd, so I’ll explain it here:

Your cargo is probably worth much more than the cost of shipping it. If it didn’t, you likely wouldn’t ship it. However, the International Shipping Company has no way of knowing what the value of that cargo is. (Remember, most cargo is commercial.) Considering the average profit on a given shipment, the value of the cargo is usually way, way more than the profit.

Obviously, the International Shipping Company will need to use an outside Marine Insurance Company to cover against loss or damage.


Since the value of a given volume of cargo can vary greatly, each shipper needs to purchase coverage for his own goods. I’ll give an example here, of five different shipments of the same size:

· Mr. Jones 1 x 20 of used Household Goods - $18,000

· Dynaflex Industries 1 x 20 of high-tech Gadgets - $500,000

· Museum of Art 1 x 20 of Original Paintings - $250,000

· US Army 1 x 20 – top secret - ?????

· Mr. Smith 1 x 20 new and used household goods - $70,000

Hopefully this will give you an idea of why it is fair for each shipper to pay for his own coverage, and why it is the only practical way to do it.

Keep in mind, that this means insurance must be considered as part of the cost of the shipment, and is usually not optional!

While the terms of every Marine Insurance Company vary, (and have to be read!) there are some similarities.

You can get either Total Loss or All Risk.

Total loss means that you can only make a claim if your cargo is considered a “total loss”. In simple words, this means you don’t get any of the cargo, but you get a check.

Note – Goods that are owner packed are almost always covered for total loss only.

All Risk means that you can make a claim if you dish breaks, or a piece of furniture gets damaged. Usually you are given a period of time from when the goods are delivered to go through everything and file what is missing or damaged. Regardless of how much or how many pieces are missing or damaged, you usually get only one claim.

Marine Insurance Companies generally require you to insure your goods for the full replacement value in the country of destination. This is often called the “Co-insurance clause”. It’s an odd name, but it’s important, particularly in the case of damage. If you underinsure a piece, and it needs to be repaired, the insurance company will pay out proportionately. Here is an example:

You have a dining room table which is worth $5,000. But you want to save some money, so you insure it for $2,000 (40% of its replacement value).

The table arrives damaged, and the repair will cost $1,000. The insurance company will pay that at 40% (meaning $400), based on the fact that you only insured it for 40% of what it is really worth.

Last but not least, is that you will need to supply a list of what you are shipping, and what it will cost to replace, as new, in the destination country. While all Marine Insurance Companies will have a different form to fill out, they will all want the same information, so get started on the list early.

This is also where the group of people you met online (or from some other medium) in the destination country can help – they can tell you the cost or availability of items you want to ship. It might be that the hard wood dining room table is twice the price, or isn’t even available there.

Always add the cost of shipping to the value of insurance.

Full Pack versus Partial Pack versus Self-Load

One of the ways to reduce the cost is to reduce the services you require. However, this will often not make a big difference in cost, yet it will make a big difference in the chances of damage, and your ability to file a claim against damages. This might also increase your chances of a customs inspection (as well as the extra, not included, charges).

In a full pack move, the international shipping company will pack all of your goods – boxes, clothing, dishes, as well as wrap your furniture. It is important to check that this service includes materials. If not, expect very high charges for materials! With this type of service, you can almost always get All Risk Coverage.

Sometimes it makes sense to do a partial-pack. This means that you pack non-breakable items (like books and clothing) and the shipping company packs breakable items (like dishes) and wraps furniture. Items which you pack will have limited coverage (usually only if the box is lost, and only if you provide a list before pick-up of what is in each box, and what the box is worth). Check to see if the International Shipping Company will supply materials for goods that you plan on packing, and if not, consider the cost of proper packing materials and boxes.

The least expensive option is to load the container yourself. The reason for this should be obvious – you will be doing all of the hard work, supplying all of the materials, and taking all of the risk of damage. Unless you have experience as a professional international packer, this is not a good option. Consider shipping fewer goods to save money instead.

Note – The more goods that are packed by the shipper (you), the greater chance there is of a customs inspection, and extra charges.

The Problem with Quotes “To Port”

Many International Shipping Companies will try to sell you services “to port” only. This will be much less expensive than door to door, because it is not inclusive of all of the fees you will need to pay (even if you plan on hiring a truck to pick the goods up!).

A quote “To Port” will never include any of the Destination Port Fees or Terminal Handling Charges, which will be due! Also, many ship lines and/or container lines will not release a container to an individual without a large deposit. Lastly, ports often give a very limited amount of time to clear the container from customs and remove the container before costly charges start.

In short, if you do not already do regular shipments to the destination country, if you don’t employ a licensed customs clearer, and if you don’t already have any agreements with the foreign port, bonded warehouses, and ship lines, do NOT take this option.

If you want to save some money by not having delivery service, ask for a quote “To warehouse, customs cleared”.


Not Included

This is the single most important section of any international shipping quote to read, and understand. This is where the “hidden fees” will be, as well as the legitimate, unpredictable costs will be explained.

Here are some standard not included items, and an explanation of what they are:

· Custom and Duties

Even used household goods may be subject to import duties. It is important to find out what the exemptions are for the destination country, what you will need to do to get those exemptions, and what the duties (customs) will be for items that are not exempt.

· Difficult Access

Since the International Shipping Company usually does not know where you will be moving, they will offer a price making some assumptions. These assumptions include that there will be room on the street for a relatively large truck, that the truck can park relatively close to the door of the house or apartment, and that they won’t have to carry the goods up more than one or two flights of steps.

If you don’t know where you will be moving, find out what these extra costs might be, so you can keep that in mind when looking for a place to live (and accept delivery).

· Custom Crating

The surveyor will determine if you have something that needs special packaging or custom crating, however if there is nothing in the house that requires this at the time of the survey, it will not be included (keep this in mind if you are debating buying a large Flat Screen TV or an expensive piece of artwork.)

· Unusually Heavy or Bulky Items

Items like safes or pianos require extra labor and/or special equipment. If the surveyor sees a piano when he surveys, the associated costs should be listed, however if not, assume that there will be extra charges.

· Customs Inspection or Quarantine Charges

In the event that Customs wants to check what is in the shipment (either on export from the origin country or import into the destination country), there will be extra charges, and they will not be included. The shipper (you) will need to pay these charges.

· Force Majeur

This is a legal term, and it basically means “Anything that can’t be predicted or controlled”. Some examples would be a war, strike, or natural disaster. The shipper (you) will need to pay these charges.


Now, here are some items which may be in the “Not Included” section which should be included:

Note – If one of these below is listed as “Not Included” – find out, in writing, what it will cost.

· THC, Destination Port Fees, or DTHC

This basically means the fees that will be charged by the destination port, the destination ship line offices, and the destination bonded warehouse.

Because of differences in translation, it may show up as any of the above, but if it’s not listed, in writing, get it!

· Materials

It is very important to find out the cost of the materials, especially if you are getting full pack service. This is a simple way to hide a big fee.

· Customs Clearance

This is the procedure of turning over all of the paperwork and dealing with the foreign tax officials in the destination country. It’s usually relatively inexpensive, and it should be a standard part of door to door services.

· Delivery to door

It may seem odd that this would be listed as not included on a door to door quote, but it is an easy way for an unethical salesman to offer a seemingly lower price, especially to the customer who doesn’t read the quote.

By now this is where you’re at:

· You’ve reviewed the three quotes you got, based on visual surveys.

· You’ve reviewed what is and what is not included.

· You’ve made sure that the quotes include what you will need to pay.

· You’ve budgeted some for what you might need to pay, just in case.

· You’ve calculated how much insurance you will need, and what it will cost.

· You’ve come up with three totals, inclusive of everything that can be predicted, inclusive of insurance, and inclusive of a little extra just in case.

· You’ve had a chance to get an idea of who your Move Manager is, what type of person they are, and how well you and they communicate.

Now you’re ready to make your choice. If you’ve gotten this far in the process, the choice will be pretty obvious. Choose the International Shipping company that is able to provide the services you want and need, and the Move Manager that you will feel comfortable with over the next few weeks (or months) while your goods are in transit, until they arrive at your new home.


Some Useful Names

This is a partial list of some useful Trade Groups and Consumer/Industry websites.

· The US Federal Maritime Commission www.fmc.gov

· The British Association of International Removers www.bar.co.uk

· Australian Furniture Removers Association www.afra.com.au

· Canadian Border Services Agency www.cbsa-asfc.gc.ca

· Fidi Faim (Highly Respected Industry Trade Association) www.fidi-faim.com

· Moving Scam (Consumers Website) www.movingscam.com

· ReloRoundtable (Industry Website) http://www.reloroundtable.com/