December 14, 2022
Freight & Logistics -
How to Simplify the Process of International Shipping and Freight | One Link Holdings
The process of international shipping and freight can be a daunting task but is also very crucial to ensure that your products get delivered in top condition.
By understanding the basics of international shipping and freight, you can make the process much simpler and less stressful. Let’s look at what you need to know.
In this blog post, we’ll outline those steps and provide some tips on how to simplify freight shipping and international shipping. So, whether you’re preparing to ship your first package, or you’ve been doing it for years, read on for some helpful advice!
1. Know Your Incoterms
Incoterms are the terms used to describe the responsibilities of buyers and sellers in international trade. There are 11 different Incoterms, each of which outlines different obligations for buyers and sellers. They are divided into two categories: E terms and F terms. E terms are used for any mode of transport, while F terms can only be used for transport by sea or inland waterways. The most important thing to remember is that Incoterms do not transfer ownership of goods; they only specify who is responsible for what at each stage of the shipping process.
The 5 most common incoterms you will see include:
- FOB (Free on Board)
- DDP (Delivery Duty Paid)
- FAS (Free Alongside Ship)
- CIF (Cost, Freight & Insurance)
- FCA (Free Carrier)
To find out more on Incoterms, read our ‘All You Need to Know About Incoterms’ blog, featured on our blog page.
2. Choose the Right Freight Forwarder
A freight forwarder is a company that specializes in arranging the logistics of international shipments. When choosing a freight forwarder, it’s important to do your research to find one that is reputable and has experience shipping to your destination country. When first starting to work with a freight forwarder you should get a number of comparable quotes to ensure you are paying competitive rates. A freight forwarder will be responsible for preparing all the documentation, make the bookings on carriages and arrange necessary payments. They will also communicate with the shipping companies on your behalf and will troubleshoot if any issues arise during transportation. A reputable freight forwarder can also provide customs brokerage services, being able to act as a clearing and forwarding agent and can act on your behalf when dealing with customs agents.
3. Understand Your Documentation Requirements
There are a variety of documents that are required for international shipments, including commercial invoices, packing lists, bills of lading, import/export customs declarations and certificate of origin. These documents are usually mandatory in all types of shipments, however there is several other documents that may be needed depending on the type of cargo being shipped, as well as the importing and exporting location. It’s important to understand which documents are required for your shipment so that you can avoid delays or other problems.
Commercial Invoice
The commercial invoice is one of the most important documents as it is the invoice issued by the seller; the exporter, to the buyer who is the importer. This invoice is a legal document as it is a receipt of an international transaction between buyer and seller. It features information such as the price, value and quantity of the goods being sold. It will also detail the sale conditions agreed upon by the buyer and seller.
Packing List
Another important document is the packing list. This document provides a detailed overview of all the goods in the shipment, including how the shipment has been packed. As the buyer it is important to make sure that what you have paid for has been included in the packing list, if it hasn’t then your supplier may not have packed goods which has been paid for.
Customs Declaration
A customs declaration is used to clear your goods through customs and to also calculate applicable duties and taxes. To obtain a customs declaration, a customs broker will use the invoice and packing list to create the customs declaration for you. It is important that there are no discrepancies between the two, the smallest mistake could hold up your goods for days or weeks.
Certificate of Origin
The certificate of origin is a document that contains information about the product, where it was wholly obtained, processed, manufactured and even processed. It is intended to be used to obtain if a product has been made in a certain country and whether or not that product may reexported or imported.
Bill of Lading
A Bill of Lading is a contract of transportation, with details on the shipment included in the contract. It acts as a receipt of goods being shipped and a contract between carrier and shipper.
4. Understand the Country’s Specifications
It is important to acknowledge every country has different requirements with customs regulations and restrictions. There could be specific restrictions on what you can ship or extra taxes and duties on goods. If you don’t do your research before shipping, you may face lengthy disruptions or additional fees for failing to comply with the country’s requirements.
5. Research Shipping Costs
If you’re opting not to use a freight forwarding service, be sure to research shipping carriers and their costs. There are several freight companies, so picking the right one is crucial. When looking at shipping quotes, you need to consider factors such as transit time, insurance, and tracking before deciding. It is also helpful to research your intended shipping company to ensure they have positive reviews from customers. If possible try to research shipping costs before deciding where to manufacture your product as high shipping costs have the ability to throw out your bottom line.
6. Shipment Insurance
Shipping goods internationally comes with an element of risk, due to nature of sending goods via sea or air for a length of time. Taking out freight insurance is a great way to protect your business if something was to go wrong during transport, such as damage or loss of your goods. You can obtain freight insurance from your freight forwarder and it is strongly suggested if feasible.
7. Properly Labelled and Packaged
Whether sending goods via air or sea freight, careful consideration needs to be made to protect your goods. If sending via air freight, double-walled or reinforced parcel boxes are advised, to protect them when the plane is taking off, landing and in any turbulence during the flight. The goods may also be subject to rough handling when being loaded and unloaded from the plane. When sending goods via sea freight, using crates, or palletising your goods is advised. Shrink wrap is a great way to keep your goods together, and to protect them from any potential water damage.
Once you have your external packaging sorted, it’s time to find the perfect internal storage. For your parcel boxes, using packing peanuts or air cushions can be helpful in filling the empty space.
By following these simple tips, you can simplify the process of international shipping and freight significantly. By taking the time to understand your responsibilities, choose the right freight forwarder, and familiarize yourself with the documentation and country requirements, you’ll be well on your way to a successful international shipment.
At Onelink Holdings, we can simplify the process of international shipping and freight for your business. We have a team of experts who are experienced in handling all aspects of shipping and freight, from paperwork to logistics. We can save you time and money by ensuring that your shipments are processed efficiently and smoothly. Contact us today to learn more about our services.
Written By
One Link Holding team
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