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Sharing my lifetime experience in export/import. Product sourcing specialist.

sparechange

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wtf is that?

try to presell?
 
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Walter Hay

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@Xeon, The product you want might be available in Singapore. See Parade Singapore - regional leader of thermoforming industry

If you can't find a supplier there, you will certainly be able to locate suppliers on B2B sites such as Alibaba. You can get a quick lesson on the manufcaturing possibilities by viewing this Canadian company's FAQ page:FAQ Clear Folding Cartons | Clearpak Transparent Packaging | Canada

PVC is the material most commonly used in thermoforming. Thermoforming, also known as vacuum forming is the process by which the shaped and folded products are made. The main reason for big MOQs is the mold cost, although the molds are much simpler than injection molds.

Walter
 

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Thanks a lot Walter!
 

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Having trouble finding a micro modal underwear manufacturer, suppliers that do have these don't seem legitimate and there audit reports cant be trusted.

Any insight as to where to search?
 
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Walter Hay

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Having trouble finding a micro modal underwear manufacturer, suppliers that do have these don't seem legitimate and there audit reports cant be trusted.

Any insight as to where to search?
I have sent you a link to a well established manufacturer. The references they provide are impressive and are endorsed by an authority I trust.

Walter
 

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Hi @Walter Hay

I currently work with my supplier in Pakistan that has been very trust worthy. This supplier was referred to me by a colleague of mine. However, I feel like I can get a better price from other suppliers.

Many suppliers reach out to me and their prices seem much better. I understand the risk and have heard stories of suppliers giving high quality samples, but when it comes to production orders, they will send bad quality. What is your recommendation on preventing this from happening? I can ask for pictures of their factory, along with the products. I can even visit them but I still feel like I can potentially get "scammed".

Thanks!
 
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Walter Hay

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Hi @Walter Hay

I currently work with my supplier in Pakistan that has been very trust worthy. This supplier was referred to me by a colleague of mine. However, I feel like I can get a better price from other suppliers.

Many suppliers reach out to me and their prices seem much better. I understand the risk and have heard stories of suppliers giving high quality samples, but when it comes to production orders, they will send bad quality. What is your recommendation on preventing this from happening? I can ask for pictures of their factory, along with the products. I can even visit them but I still feel like I can potentially get "scammed".

Thanks!
I understand your concerns because suppliers in both India and Pakistan have developed a bad reputation. It has not only been my experience, but others that I have personal connections with have told me of their own bad experiences.

I have no doubt that personal visits are your best form of protection, but even when doing that you must take care to be sure you are getting what you pay for.

The person that I mention in my book is still buying substantial quantities in India, and although he has dealt with some suppliers for years he still travels there every time he places an order.

His procedure is this. In the early days he paid 10% deposit, but having built a relationship the supplier is now willing to accept orders without a deposit. He places an order in the usual way, and his supplier accepts payment of the 100% by L/C. When production of the order is complete he travels to India where he inspects the products and supervises loading into a container. He has pre-arranged for a forwarder to seal and collect the container.

I have suggested that he could save himself all that trouble by using an inspection service such as SGS but he says he has come to enjoy his trips to India, and his system works well.

My view is that for most people in this situation, using an internationally recognized inspection service is the safest option. Payment by L/C or escrow are the safest payment options. Negotiating a small deposit is not easy but worth the effort.

Walter
 

Walter Hay

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Latest Edition Now Available

I am pleased to announce that the latest revision of my importing book has now been published and is available here: https://provenchinasourcing.com

All those who have purchased previous copies will be notified by my support team at Jim Cockrum's Proven Amazon Course (PAC) and will receive a link to a free download. If you have bought a copy but did not give permission for email contact, please send your purchase details to msteamwebmaster@gmail.com and they will send you the download link.

The new edition is the product of a lot of work to provide updates in an ever changing importing scene, with particular emphasis on sourcing beyond China.

Here is a list of the major changes:
  • Addition of a substantial report on Vietnam as the new China, including details of cultural business practices.
  • Major review of Alibaba who have made big changes on three occasions since our 2017 edition was published.
  • Changes to GlobalSources.com supplier rating system, including a new optional supplier assessment procedure that importers pay for!
  • Addition of a paid advertiser badge on HKTDC and why it should be ignored.
  • Details of significant changes to Made-in-China's rating system and why the new "Top Rank" badge should be ignored. Also advising readers that Made-in-China no longer even try to give the appearance of a buyer protection scheme.
  • Expanded information on Importer of Record.
  • More information on air and sea cargo consolidation services, including identity of one major company that will handle shipments from more than one supplier and send as one shipment.
  • Important new section on freight scams.
  • List of more than 1,000 suppliers used by KMart, with instructions on how to use the list to find trustworthy suppliers.
  • Expansion of the Alibaba section, with advice on how to safely use that site.
  • Detailed report on Alibaba's Trade Assurance system. Their rules have been expanded substantially.
  • Addition of a section on obtaining binding duty rates in advance. (Can save a lot of pain.)
  • Addition of sections dealing with Importer of Record, Customs Bonds, and Power of Attorney.
  • There are now 27 links to help source products outside of China, including more detailed site navigation help, and a few paragraphs on making sourcing requests through places other than B2B sites.
  • Expanded chapter on Inspection Services, mainly resulting from changes to Alibaba's listing of those services.
  • Additional resources for labeling requirements.
I hope that this newest version will help importers gain from the changes brought about by the tariff turmoil and changing Amazon scene. My book can be obtained free of charge as part of PAC. Here is a link to obtain that: The Planet's #1 Amazon Seller Training Course

I am currently working on providing a list of sourcing sites worldwide that will blow your socks off! Keep a lookout for an announcement.

Walter
EDIT: Since I published the 2018 edition, Alibaba have removed the Assessed supplier filter, so buyers will be reliant on the now sketchy reports by SGS or TUV, some parts of which read like they were written by the supplier's marketing office.
 
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Hi Walter,

Thanks for the revised edition! the K-Mart Supplier list is golden. You'll instantly know that they are legit.

My question:
I'm looking to have a prototype made. It needs to be CNC-machined. The final product will be made with a different manufacturing method.

Do you think it would be best to just go with a trading company to handle the sourcing. Because getting the absolutely cheapest price is not necessary when I just need 1 or 2 pieces made.

I'd do it locally, but local companies aren't even willing to give me a quote. I know it's totally doable and I'm ready to pay for it, but the business just is too good around here for CNC-shops.
 
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Hi Walter,

Thanks for the revised edition! the K-Mart Supplier list is golden. You'll instantly know that they are legit.

My question:
I'm looking to have a prototype made. It needs to be CNC-machined. The final product will be made with a different manufacturing method.

Do you think it would be best to just go with a trading company to handle the sourcing. Because getting the absolutely cheapest price is not necessary when I just need 1 or 2 pieces made.

I'd do it locally, but local companies aren't even willing to give me a quote. I know it's totally doable and I'm ready to pay for it, but the business just is too good around here for CNC-shops.
Yes, when you know that one of the big retailers buy from certain companies you can be very confident that those companies have proven performance. I hope my instructions on how to make use of that list will help you find great suppliers.

If you want to have some prototypes made in China you will have start the process on the basis that you want to order production quantities and to do that you should ask them to quote for volume orders as well as the cost of the prototypes.

I can understand that Finnish CNC businesses would be reluctant to handle one - off prototyping, and the same would apply in China.

Would 3D printing be a suitable method for making your prototypes?

Walter
 

Victor Cezar

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Hello Walter,

I have a simple question. I've been reading this topic, I went through a few pages to know something about this subject. I've also checked out your page Proven China Sourcing and I found out there is a course called Proven Amazon Course.

I am trying to find a way to get inside of this kind of "job" to make some money in the next months because I am leaving my job this month.

I had never touched this topic before (about Import and Export items). This book about import from China that you have, can really help me to know from nothing how to import/export and get some income? I am also from Brazil and I don't have sure if your book technics applies to my country.

GG
 

Walter Hay

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Hello Walter,

I have a simple question. I've been reading this topic, I went through a few pages to know something about this subject. I've also checked out your page Proven China Sourcing and I found out there is a course called Proven Amazon Course.

I am trying to find a way to get inside of this kind of "job" to make some money in the next months because I am leaving my job this month.

I had never touched this topic before (about Import and Export items). This book about import from China that you have, can really help me to know from nothing how to import/export and get some income? I am also from Brazil and I don't have sure if your book technics applies to my country.

GG
My book has helped people in countries around the world. The information and methods taught apply in every country.

I would avoid importing into Brazil because of the horrible Customs processes, but if you decide to do that, you must use a Customs Broker.

Yes, there is a reference to the Proven Amazon Course (PAC) on my book's home page, and that is because the PAC team handle support for my book buyers. I have taught them a lot about importing and they are able to answer most of my book reader's questions. They refer any very difficult ones to me.

If you buy the PAC you will get a free copy of my book included. I will send you a link for that, because I should not post it here.

Selling on Amazon USA could be a very good option for you. There are hundreds of people in countries outside the USA who are doing that with the help of PAC.

Walter
 
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Walter Hay

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Walt any feedback on services like Sourcify or Prouduct? Are they glorified sourcing agents?
They are both glorified sourcing agents.

Proudcut give so little information that I would not bother clicking on their "Apply for free supplier audit" button. The only contact details you ill find is an email address. There is not even an "About Us" page, and no location address. I would feel a lot safer using Alibaba!!!

Sourcify is one of many agents offering to source manufacturers for newbies. Their main line of business is getting you to use their services to arrange production of your new product. They don't appear to have much interest in sourcing currently existing products.

Their blog is very much oriented towards telling you how difficult sourcing can be if you don't use them. I refer to such scare tactics in my book. Here's an extract from my book:

"I looked at what importing guides are available online, and found that some of the information is misleading, much of it is out of date, some uses jargon that is not explained, some is unnecessarily complicated, and much of it is designed to try to get you to use someone else’s services as “facilitator” or “sourcing agent.” They do this by giving the impression that if you try to do it yourself you are risking disaster."

In my opinion, this last sentence is a fair description of Sourcify. I read a sourcing article on the blog and found it full of dire warnings and exaggerations, as well as showing that the author lacks a real understanding of safe sourcing using B2B sites.

Walter
 

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Yes, when you know that one of the big retailers buy from certain companies you can be very confident that those companies have proven performance. I hope my instructions on how to make use of that list will help you find great suppliers.

If you want to have some prototypes made in China you will have start the process on the basis that you want to order production quantities and to do that you should ask them to quote for volume orders as well as the cost of the prototypes.

I can understand that Finnish CNC businesses would be reluctant to handle one - off prototyping, and the same would apply in China.

Would 3D printing be a suitable method for making your prototypes?

Walter

I actually managed to get a quote from China. They are specialized in protoypes only.
The quote is what I expected it to be, about 1300$ which is a fair price for this kind of job from my experience.

They also accept Paypal. But my only concern is that the Paypal is registered in free email service, while the rest of the company has @companyname.com emails.
 
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Walter Hay

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I actually managed to get a quote from China. They are specialized in protoypes only.
The quote is what I expected it to be, about 1300$ which is a fair price for this kind of job from my experience.

They also accept Paypal. But my only concern is that the Paypal is registered in free email service, while the rest of the company has @companyname.com emails.
It is very common for suppliers in China to use private PayPal accounts and that probably explains the free email address for the PayPal account.

At least with PayPal you have reasonable protection, but if you also use a credit card to pay through PayPal you have a much higher level of protection. This is because CC providers will refund if you make a complaint and the supplier has to prove that they have done the right thing.

I suggest that before sending payment it is probably worth doing a Google search for the company, and go through to at least page 5 of the search results to see if there are any bad reviews.

Walter
 

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Hi Walter,

I have asked a quote for door-to-door Air courier shipment and my supplier says door-to-door Air courier shipment means that the shipment will be delivered to the airport in my country, and not to my door. Is that true? I thought it literally meant door to door.

Also I have to pay 12% of the invoice to customs clearance tax. Does that mean 12% of the price of the goods only or 12% of the price of the goods+shipping costs combined?

Thank you!
 

Walter Hay

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Hi Walter,

I have asked a quote for door-to-door Air courier shipment and my supplier says door-to-door Air courier shipment means that the shipment will be delivered to the airport in my country, and not to my door. Is that true? I thought it literally meant door to door.

Also I have to pay 12% of the invoice to customs clearance tax. Does that mean 12% of the price of the goods only or 12% of the price of the goods+shipping costs combined?

Thank you!
Your supplier is wrong. Door to door means exactly that. Delivery to the destination airport is air freight, not air courier. Costs to you after it arrives at the airport on an air freight basis can be huge, so do not accept those terms.

Ask which courier service they will use. If it is a freight forwarder, or an airline, or any company that you don't recognize as one of the air couriers such as TNT, FedEx, UPS, don't let them ship the goods.

Depending on the value of the shipment you might not have to pay any duty at all. Each country has a a minimum amount on which they charge duty, and if it is below that amount it goes through duty free. You might still pay VAT.

If duty is charged it is usually on the total of FOB cost + freight.

Don't let the supplier talk you into accepting shipment on a freight collect basis. That can cost you arm arm and a leg.

In some countries, some of the air couriers will charge you a fee for Customs clearance, so you need to be sure that is included, but any duty paid to Customs will always be an extra charge.

Walter
 
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Thank you for the clear and detailed explanation. +rep
Depending on the value of the shipment you might not have to pay any duty at all. Each country has a a minimum amount on which they charge duty, and if it is below that amount it goes through duty free.

Let's say you have a shipment worth €1500 euro and the minimum amount my country charges is €150. Is it then feasible to have the shipment sent in 10 parts, each a bit less than €150 to avoid duty?

If duty is charged it is usually on the total of FOB cost + freight.

Or in the case of air courier shipment, that would be EXW cost+ shipment cost?
 

Walter Hay

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You are thinking this through well. In answer to your questions:

1. Yes that is right, but you need to get your supplier to only ship every 3 days, otherwise if two or three shipments arrive close together they will be treated as a single shipment and you will pay duty on the total value of the two or three.

You must calculate whether or not the saving on duty is more than the extra cost of shipping in smaller value shipments. You also need to take into account the inconvenience.

2. Correct again. If you can reduce the freight cost that would help, but you need a cooperative supplier to help. Shipment via ePacket might save some money but you need to ask your supplier to find the most economical door to door shipment for you. In the case of ePacket you will possibly have to collect from your post office.

I suggest you check with the Post Office in your country to see if they automatically clear and deliver. In many countries that is routine, but if they don't you might have to go to a Postal Customs depot to collect and this could involve the red tape of completing an informal clearance.

Refresh your memory about invoices by looking at Chapter 17 Order Procedure and Checklist. The checklist is not numbered, but the important part when shipping multiple small shipments is the 9th item on the list. That item helps with clearance whether automatic or by you doing an informal clearance.

Walter
 

Walter Hay

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Labeling book: Error in my support email address.

I have been advised by several people that emails to me at Power Labels – for Private Labeling Profits have bounced. I have contacted my web developer and the fault should be corrected within a few days.

Meanwhile support requests can be sent to me via PM or through my son in law's email at imagemodeuk@yahoo.co.uk.

I am posting this here because it is the most likely place people will look regarding my labeling book.

Walter
 
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You are thinking this through well. In answer to your questions:

1. Yes that is right, but you need to get your supplier to only ship every 3 days, otherwise if two or three shipments arrive close together they will be treated as a single shipment and you will pay duty on the total value of the two or three.

You must calculate whether or not the saving on duty is more than the extra cost of shipping in smaller value shipments. You also need to take into account the inconvenience.

2. Correct again. If you can reduce the freight cost that would help, but you need a cooperative supplier to help. Shipment via ePacket might save some money but you need to ask your supplier to find the most economical door to door shipment for you. In the case of ePacket you will possibly have to collect from your post office.

I suggest you check with the Post Office in your country to see if they automatically clear and deliver. In many countries that is routine, but if they don't you might have to go to a Postal Customs depot to collect and this could involve the red tape of completing an informal clearance.

Refresh your memory about invoices by looking at Chapter 17 Order Procedure and Checklist. The checklist is not numbered, but the important part when shipping multiple small shipments is the 9th item on the list. That item helps with clearance whether automatic or by you doing an informal clearance.

Walter

Yes, I should be careful not to overthink it ;)

Very good to know about shipping every other 3 days and the ePacket option. I am investigating everything right now.

It's been a hell lots of research importing my first product. Doesn't help that it has different sizes and styles to choose from and it's a big item, meaning high shipment costs. I'm going to see whether air freight and sea is a better opton.

Thank you so much for the help. Honestly, your book has saved me sooo much time and prevented me from so many errors!
 

Walter Hay

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Yes, I should be careful not to overthink it ;)

Very good to know about shipping every other 3 days and the ePacket option. I am investigating everything right now.

It's been a hell lots of research importing my first product. Doesn't help that it has different sizes and styles to choose from and it's a big item, meaning high shipment costs. I'm going to see whether air freight and sea is a better opton.

Thank you so much for the help. Honestly, your book has saved me sooo much time and prevented me from so many errors!
When checking those air and sea freight options it is essential that you get quotes that cover all of the port charges at the destination airport or sea port.

Those local charges have often been known to exceed the freight cost for shipping goods thousands of kilometers.

Walter
 

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When checking those air and sea freight options it is essential that you get quotes that cover all of the port charges at the destination airport or sea port.

Those local charges have often been known to exceed the freight cost for shipping goods thousands of kilometers.

Walter

Thank you for the reminder, I will certainly make sure of that. I hope I am not being too annoying with all the questions but here it goes...

I asked this supplier to quote me for Air courier, door-to-door, customs clearance included, CPT (if I understood it correctly in the book, I should ask for air courier quote this way) and now they have quoted me a price that includes the customs duty (2.7%) and VAT (21%) that has to be paid to the Dutch government . So it is pre paid already. I thought the quote I asked did not include these, so I hope this is safe.

That quoted price for Air courier seems reasonable and maybe even too expensive. But they have also quoted me a very good price for train freight (30 days to deliver door-to-door) that has all these costs included. My question is: is freight train something that is usually safe and thus a good option?

The cost was 430 USD for 8 cartons of 58x40x43cm,11kg.
I am curious as to whether sea is even cheaper, I will figure that out soon.
 
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@Walter Hay , just wanted to thank for pouring your heart and mind out in writing the books. I am reading both books and the wealth of knowledge is superior to any other resources I have found on these topics.

Thanks you for your immense contribution!
 

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Thank you for the reminder, I will certainly make sure of that. I hope I am not being too annoying with all the questions but here it goes...

I asked this supplier to quote me for Air courier, door-to-door, customs clearance included, CPT (if I understood it correctly in the book, I should ask for air courier quote this way) and now they have quoted me a price that includes the customs duty (2.7%) and VAT (21%) that has to be paid to the Dutch government . So it is pre paid already. I thought the quote I asked did not include these, so I hope this is safe.

That quoted price for Air courier seems reasonable and maybe even too expensive. But they have also quoted me a very good price for train freight (30 days to deliver door-to-door) that has all these costs included. My question is: is freight train something that is usually safe and thus a good option?

The cost was 430 USD for 8 cartons of 58x40x43cm,11kg.
I am curious as to whether sea is even cheaper, I will figure that out soon.
The correct Incoterm for the quote you have received is DDP. It should read: DDP (Delivery Address) DDP = Delivered Duty Paid. If the quote is for door to door the delivery address must not be the destination port, it must be your address.

In answer to your question, rail freight is generally regarded as one of the safest freight methods.

The forwarder being used by your supplier is most likely http://www.zotrains.com They ship from the big rail terminal at Cheng du, and most freight goes via the shortest route which is through Russia. The rate you have been quoted is very good, and I doubt that sea freight would be cheaper.

ZoTrains, also known as Sino-Euro Trains, are based in Shenzhen, and they have offices in Poland, Germany, and the Netherlands, but they can transport cargo by rail to almost any destination in Europe. I would regard them as safe to use.

Your questions are not annoying. The purpose of my AMA is to help members with their sourcing and shipping questions, so you are in fact helping others by asking questions.

Walter
 

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The correct Incoterm for the quote you have received is DDP. It should read: DDP (Delivery Address) DDP = Delivered Duty Paid. If the quote is for door to door the delivery address must not be the destination port, it must be your address.

In answer to your question, rail freight is generally regarded as one of the safest freight methods.

The forwarder being used by your supplier is most likely http://www.zotrains.com They ship from the big rail terminal at Cheng du, and most freight goes via the shortest route which is through Russia. The rate you have been quoted is very good, and I doubt that sea freight would be cheaper.

ZoTrains, also known as Sino-Euro Trains, are based in Shenzhen, and they have offices in Poland, Germany, and the Netherlands, but they can transport cargo by rail to almost any destination in Europe. I would regard them as safe to use.

Your questions are not annoying. The purpose of my AMA is to help members with their sourcing and shipping questions, so you are in fact helping others by asking questions.

Walter

Thank you soo much! Couldn't be any more clearer. +rep

The delivery address is indeed my address, not the destination port. So that is good.

Much love!
 
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I am sourcing Manufacturers at the moment from all over the globe as well as Domestically.

I am having a good conversation with a Domestic supplier and they have sent me samples of there materials albeit they do not have what I am after.

But Manufacturers located overseas I am not getting replies from them at all.

I didn't find the international suppliers on alibaba and I have been professional in the emails I am using to communicate with them.

Anyone got any ideas or insight as to why that might be?
 

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Howdy @Walter Hay,

Congrats on publishing your 2018 edition of Proven China Sourcing. I'm sure it's excellent.

You've probably already noticed this, but as far as I can tell Alibaba has removed the "Assessed Supplier" designation and replaced it with "Onsite Check." What do you make of this development?

Another question: what's your opinion of freightos.com? They seem to make sea and air freight arrangements a lot more transparent.
 

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