International freight shipping is a natural step for growing businesses. But do you know that laws keep changing? Even for established businesses, freight transport is never consistent.
With an increase in e-commerce businesses, a big number of smaller firms are going for international freight shipping. Knowing how to ship freight is now paramount.
Do You Know How to Ship Freight Internationally?
International freight shipping is a complex process. It demands the services of a smart global freight forwarder. The process needs specific documentation as it passes through a couple of customs checks. A freight forwarder helps in:
- Organizing your international shipment
- Assisting in handling and processing of paperwork
- Ensuring your freight arrives at the right place and time.
Even though a freight forwarder organizes the entire shipping, do you know what the process entails?
Knowing about freight transportation will assist you in matters relating to international freight. Following are the steps involved in international shipping.
Export Haulage
This is the first step in international freight shipping. The cargo is shipped from the shipper’s premises to forwarder’s premises. Loads that are smaller than containers are handled at the consolidation centers. They’re also known as warehouses.
At the centers, there are nominated agents who help in the process. Goods are then ferried by rail, road, or a combination of the two. If the shipper handles this shipping part, a local transportation firm will deal with the freight.
If it’s the consignee who is responsible, a freight forwarder provides export haulage as part of international freight shipping. Loading freight at the shipper’s premises and offloading at the forwarder’s premises is, however, not part of an export haulage.
Export Customs Clearance
For shipments leaving any country, customs formalities are performed to meet regulatory necessities. This entails developing the declaration and submitting the required documents to authorities.
Customs house brokers carry out the transaction. they’re companies with valid customs licenses.
Freight forwarders conduct export customs clearances. They do it using valid licenses or by the agents they appoint. Alternatively, customs house brokers who are directly appointed by shippers can prepare it. This might not necessarily take part in the shipping practices.
Do you know export customs clearance must be accomplished before the cargo leaves the country of origin? If not carried out by a freight forwarder, the process is supposed to be fulfilled.
Do this before the freight enters the forwarders origin center.
Origin Handling
In this phase, there is the entire inspection and physical handling of the cargo. That’s from receiving at the origin warehouse to loading in the container. Various steps are taken in this phase whereby the processing involves different parties.
Complete steps are coordinated by the freight forwarder or by the agent he/she appoints. Freight transportation entails receiving cargo, tallying, arranging it for loading. Consolidating it with other cargoes and inspecting it is also done. The load is then stuffed into the container before it’s shifted to the port where it’s loaded into a ship.
A freight forwarder can be paid by the shipper or consignee regardless of the one who bought the freight forwarding.
For instance, Forwarder A can be allocated the duty of import shipments by the consignee and agree with the shipper to cater to the origin charges. In that case, the shipper automatically buys the charges from the Forwarder A.
However, the situation can create friction if the shipper doubts the original handling price and that of market level. If the case is not resolved, as per the given an example, Forwarder A is required to intervene.
Ocean Freight
The freight forwarder chooses the shipping line that ferries cargo from origin to destination. The shipping line is supposed to meet the required shipments timeline. Besides, there’s a container carriage contract between the shipping line and the freight forwarder.
Do you know the consignee or shipper is not subject to direct interactions with the shipping line?
Ocean Shipping Steps
The consignee or the shipper cover the price of ocean freight. However, ocean freight is not the only charge during shipping. Other surcharges in the sector like currency change factor and bunker adjustment factor.
The charges are all passed to the consignee or the shipper.
Import Customs Clearance
Import customs clearance begins before the freight arrives at the destination country. There is the formality of developing and submitting a declaration with relevant documents. That enables authorities to levy and register any shipment customs duty.
The freight forwarder agents or customs house broker appointed by the consignee complete this process.
Destination Handling
Similar to the freight source, handling of cargo in the destination takes place before it reaches the consignee. Destination handling entails transferring of cargo from the ship to shore. From a port, the freight is taken to the forwarder’s destination center.
The process entails unstuffing a container and preparing cargo for picking by a consignee.
Truck for Haulage of Less Container Load (LCL) Consignments
The multiple destination charges are cleared before the cargo is surrendered to the consignee. Sometimes, the shipper has to pay for the ocean freight and the consignee for the destination charges. In such cases, the shipper determines who the consignee ought to “buy destination” from.
As per the origin charges, friction for the consignee can arise. Always get yourself the top ltl company to avoid issues.
Import Haulage
The actual freight delivery to the consignee is the final step of international freight shipping. A local transportation firm appointed by the consignee or by the freight forwarder can handle this.
If the shipper plans the process, a freight forwarder must take part in arranging the import haulage. This covers transportation to specific addresses. However, unloading the truck is the accountability of the consignee.
Wrapping Up
As you can see there are various ways on how to ship freight. Don’t forget to look for someone who has exceptional customer services and the best international freight shipping rates around.
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