Efficient and competent importing of products to a market overseas is crucial. Using a good, reliable international freight forwarder can be very effective, but it's also important to have a good understanding on the basic shipping terms, documentation, and pricing. Here are some important points to keep in mind:
Where do you begin to learn about shipping?
Seeking the services of a good, well experienced customs broker and international freight forwarder is often the most efficient way to transport goods. These firms are experts in freight rate negotiations, documentation, customs clearance, and finding the most budget-friendly way to deliver products to buyers.
Your products may be suited for air shipping or ocean freight only. It's important for you to understand the basic principles that govern both air and sea cargo, as freight rates may vary when new markets are serviced and new capacity is offered on routes for trading, usually with a wide range of inter-modal services.
What do the shipping terms mean?
Air and sea freight have a well ordered series of terms and these require careful study. A good way to start is learning the INCO terms or the International Commercial Terms.
INCO terms are very important for the payment and consignment of products transported globally. Their definitions are precise.
L/C or Letters of Credit are a very common mode of payment. They are known as a documentary credit which the buyer has established. They guarantee payment to the seller.
How do you negotiate the best freight rate for your shipment?
International freight forwarders will present you with a range of options in order to find the more cost effective freight rate. But you should be familiar with the freight markets, so you would be able to gain the rate that's most competitive.
Often, your buyer overseas will specify his preferred options, and this can depend on the reliability or frequency of sailing or the ease of custom clearance in the port of discharge. One common feature of liner shipping is transhipment.
'Hub' ports like Dubai, Hong Kong, and Singapore contribute containerized consignment to other harbors by feeder vessels. But see to it that the transhipment hub is effective, so your freight doesn't suffer any delay.
Most international freight forwarders have rate deals negotiated with air and sea carriers. The important thing is to find a forwarder who provides services for the type of business and products you have -- both in the geographic coverage as well as in the scale of operation.
Is the export documentation a complicated thing?
The important documentation for export should be prepared with much care, in order to avoid any delay in customs clearance at the port of discharge and to comply with the documentary letters of credit (L/C) that specif conditions like packing lists, certificates of origin, product descriptions, and quarantine certificates.
Computer has made documentation much easier and faster. But note that mistakes could be costly. It's important to understand the process of documentation and to make sure that the preparation of the paperwork is accurately and meticulously carried out.
