Dos and Don’ts of International Shipping: A Guide

Shipping: A Guide

International shipping is a robust aspect of the global economy, linking businesses and consumers across borders and continents. While international freight forwarding is a game changer, navigating it is a complex process.

If you are a business expanding globally or an individual seeking personal packages, comprehending the difficulties, as well as the dos and don’ts, when shipping is a great key. This will ensure that packages will arrive efficiently at their destination without any disputes along the shipping process.

Understanding International Shipping

International shipping is the procedure of transporting items across international borders. This often involves logistical challenges like customs clearance, global regulations, product packaging, documentation, and choosing the right shipping mode, be it via air, sea, or land.

When shipping internationally, some businesses rely on logistics companies in the Philippines and other regions to enable a seamless transaction. These firms are experts in handling complex shipping procedures such as the arrangement of break bulk shipments or coordinating with international freight forwarding services.

But in today’s global shipping industry, companies must be aware of the burdens that come with cross-border shipping, as a single mistake could lead to delays, additional costs, or even failure of delivery.

Dos of International Shipping

Following these dos can help secure your shipment reach its destination safely. These tips will streamline the process and help you avoid further issues.

  1. Do Proper Research on Customs Regulations

Every country has its restrictions, and understanding them is integral to assuring that goods will not be deferred or confiscated. As customs regulations differ from country to country, proper research is necessary to guarantee that shipment meets all the legal requirements. It may include an adequate process for paperwork which shall be submitted to authorities in both the origin and destination countries.

  1. Do Choose the Correct Shipping Method

Always select the right shipping method based on timeline and the nature of goods. For instance, air freight is the best method if there is a need to ship an item immediately., yet, air freight’s transporting time is faster but is expensive.

Meanwhile, ocean freight is one of the most common methods, as it carries 80% of the international trade in goods. However, it has longer timescales despite having cheaper costs. But if you are shipping heavy items, break bulk shipping is capable of shipping cargo that does not fit into standard containers.

  1. Do Plan for Packaging and Labeling

Transporting goods might be full of hazards that can damage the item. Therefore, ensure that the items are securely packed to withstand the severities of international transport. This could be accomplished by opting for double-walled boxes, using foams, fillers, and bubble wraps, as well as strong tapes to seal all edges and openings.

More so, proper labelling is crucial to avoid confusion and guarantee that the package is routed correctly. Make sure to put some labels on the package, as well as on the contents of the shipment, which include warnings like ‘fragile‘ or ‘perishable‘.

  1. Do Track Shipments

Utilizing modern technology enables tracking shipments in real time. It is important to pick a trustworthy freight forwarding partner that supplies tracking tools, giving awareness of the progress of the shipment. Monitoring the shipping process can help in planning and anticipating its arrival and respond quickly to any delays or issues.

  1. Do Consider Insurance

International shipping can expose package to risks, such as theft, damage, or loss, but you can protect it by investing in insurance. This will help in mitigating potential financial losses if something goes wrong. Your logistics partner can recommend the best insurance options depending on the shipment’s value and type.

Don’ts of International Shipping

These don’ts highlight common traps to avoid that can direct to costly delays, fines, or damage to your goods. By avoiding the following, you can ensure a smoother and more successful international shipping experience.

  1. Don’t Ignore International Regulations

Overlooking every country’s import and export regulations could result in higher fines and delays. Hence, do not assume that shipping methods are the same everywhere. Research detailed customs guidelines, prohibited items, requirements, and taxes that might apply. Also, confirm that the shipped items meet and comply with all the local customs of the destination country to avert conflicts.

  1. Don’t Disregard Shipping Costs

International freight forwarding is expensive, and costs can vary significantly depending on one package’s weight, dimensions, destination, and mode of transport. Don’t make the mistake of undervaluing these costs when computing the overall price of these goods. It is required to be aware of possible ‘hidden charges’ such as customs duties, detention fees, port fees, fuel tariffs, and other taxes.

  1. Don’t Overlook Documentation

Incorrect and insufficient documentation can cause substantial delays in customs clearance. Make sure that all the required documents, like commercial invoices, certificates of origin, and export declarations, are finished. Missing or unaccomplished paperwork can stop goods from clearing customs, costing you more time and money.

  1. Don’t Use Inadequate Packaging

It is tempting to use minimal packaging to lessen shipping costs, but this can result in impaired goods. Poor packaging not only risks product integrity but can also raise the chances of theft during transit. Always ensure that the packages are safe and meet international shipping standards. To add, guarantee that they arrive in the same good condition they left.

  1. Don’t Ignore ‘Timing’

Shipping times can change depending on the method of transport, the distance, and the destination country. Don’t miss the timing required to move goods as neglecting it will cause delays and cancelled orders. It is fundamental to plan well ahead of time and allow sufficient lead time to account for potential delays due to customs hold-ups, rough weather, or shipping strikes. Doing research is also useful to find out the scheduling, as well as how long an export or import will take.

Final Thoughts

Navigating the international shipping industry can seem daunting, but by following these tips, you can certainly avoid such pitfalls. Whether you are a business operating large-scale shipments or individual shipping goods abroad, teaming up with a reliable logistics company like Excelsior is paramount to guarantee seamless transit.

Understanding the intricacies of freight forwarding to the nuances of break bulk shipping, is necessary for efficiently shipping your goods. By investing time in understanding the best practices in shipping, you can confidently boost your business reach or send items globally without bother or complications.

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Things to Consider Before Engaging in International Shipping-Infographic

So, you finally started your own business. You managed to find suppliers for your products, gain some brand awareness to attract customers, and you are sure that you are earning a considerable return on investment or ROI. You finally considered to further expand your business by reaching potential markets from other places. This is where you realized that engaging in international shipping is indeed possible.

If ever you come across such thoughts before, here are some of the things to be aware of before taking a big step into the world of international shipping:

Identifying the Countries to Ship Your Products

Finding international locations where you can sell your products can be a crucial and tricky task at the same time. The following tips will help you narrow down which countries should you ship your products to:

  • Look for countries with customer demographics that are similar to your local market.
  • Make sure that your target countries speak a language that you familiar with, and since English iswidelyconsidered as the universal language, going for countries with speakers that are conversant with the English language can be an advantage.
  • Figure whether the countries on your list have an existing demand for what products you can offer.

Familiarize Yourself with the Rules of Regulations

Shipping rules and regulations may vary from country to country, so make sure to do research.  Try to figure out the list of items that are either prohibited or restricted to a specific country where you think you can gain some customers. Knowing some information about the location of your target markets and their existing laws will increase your chances of getting better deals and a seamless shipping process.

What Products Should You Try for Shipping?

The most ideal products to be shipped in cross-country trade are:

  • Smaller and lighter items for lowering downs shipping costs
  • Popular products that can be sold on an international scale
  • Products that can be shipped for longer periods of time.
  • Products that can be easier to package.

Expect Additional Duties and Taxes

International shipping might be a tempting venture for your business, but it will require you to be ready to take new duties and some extra expenses if you wanted to be successful. Learn more about how to deal with customs authorities and taxes-related of some countries that might affect the cost of shipping your products. Another essential thing to consider is introducing new payment processes for making business transactions with international clients more convenient.

Hire a Freight Forwarding Agency

Freight forwarders can offer their services to business owners like you who are trying to enter international trade. These people are skilled in handling logistic networks so that you can have a hassle-free and cheaper shipping process. Partnering with a freight forwarder is basically the best option as they can bear most of the tasks associated with international shipping. They always ensure that your products will go from point A to point B while you focus on other important aspects of your business.

 

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

 

Sources:

https://www.storeautomator.com/prepare-your-business-for-international-shipping/

https://shippingeasy.com/resources/preparing-international-shipping-shipping-platform/

Shipping Terms Every International Importer and Exporter Should Know

Shipping Terms Every International Importer and Exporter Should Know

If you’ve been managing a business for quite some time now, you might’ve experienced some difficulties when it comes shipping your goods from one place to another. Aside from ensuring the safety and timely arrival of your cargo, you also need to familiarize yourself to several jargons associated with the shipping industry. Most business owners nowadays ended up getting confused about some of the technical terms used in shipping. While you don’t really have to be a pure expert when it comes in dealing with these terms, your knowledge about them could prove to be pretty handy in the future indeed.

So, to help you avoid unnecessary misunderstandings and minimize errors while you communicate with your shipping company, here are some of the most common terminology used in international shipping:

Bill of Lading (BoL)

Bill of Lading, also known as BoL is a document given by a carrier to a shipper. This document is issued on a receipt form with the sign of the vessel’s representative and acts as a written proof of contract that a transportation has been made. 

This document is very important as many ports do not allow anyone to claim their goods without presenting their BoL. Unfortunately, some notorious freight forwarding scammers use BoL as a way to steal money from the others. Know more about the other freight forwarding scams through this infographic here.

Carrier

Carriers can be an individual or legal entity that offers transporting services for passengers and goods. Examples of carriers are airlines, shipping lines, railroad and trucking companies.

Backhaul

If a driver takes a cargo during the return trip of a commercial vehicle, it’s technically referred to as a backhaul. Cargo vehicles do this practice as a way to maximize the productivity of their trips.

Customs Broker

Customs Brokers are private individual or firms that works as a guide for both importers and exporters in meeting the necessary requirements given by the customs authorities. Many people usually mistook customs brokers to freight forwarders, but both professions have several distinctions with each other.

Freight Forwarder

These are persons or company that specializes in logistics and organizing shipping processes in place of an individual or company to transport their goods.

Hazmat

A shortened term for “hazardous materials,” hazmat is a material that could pose safety risks to anyone that it comes in contact with. Unlike other forms of cargo, shipping hazmat requires special endorsements from all involved parties.

Intermodal

Cargo can be considered as an intermodal once it was shipped using multiple forms of transportation, like a cargo truck and rail transport.

Less Than Truckload (LTL)

When the weight of a shipment ended up being less than the required weight of the truckload rate, that is described as Less Than Truckload or LTL.

Tender

Tender is a fixed cost to move a cargo.

Transportation Management System (TMS)

Transportation Management Systems or TMS is a software designed to help businesses and even some freight forwarding companies to optimize their planning and execution in the physical movement of the goods. There are several benefits that can be obtained by investing in this kind of system.

 

Sources:

New Cebu international port project may start in August

Lorenciana, Carlo and Braga, Michael Vencynth (2016, June 24). The Freeman. New Cebu international port project may start in August. Retrieved from http://www.philstar.com/cebu-news/2016/04/29/1577985/new-cebu-international-port-project-may-start-august

CEBU, Philippines – The new Cebu international container port may start construction by August this year if the National Economic and Development Authority Board would approve the project.

Cebu Port Authority General Manager Edmund Tan, however, could not say if the port project will be approved within President Aquino’s term which ends this June. The President chairs the NEDA.

Tan said he was hoping the project would be approved as soon as possible.

Speaking at the Visayas Shipping Conference 2016 yesterday in Cebu City, Tan said NEDA is currently awaiting from the Department of Transportation and Communications “the submission of requisite documents for the said project to facilitate NEDA Board-ICC (Investment Coordination Committee) processing and approval.”

These documents include the feasibility study which was completed in July 2015 and ICC project evaluation forms.

The project, Tan added, is scheduled to be presented to DOTC secretary for approval and subsequent endorsement to the NEDA Board-ICC.

According to the project’s implementation timeline, the target schedule for the construction is August this year and completion is second quarter of 2019.

The feasibility study on the new Cebu port, done by Korean experts, pointed a location in Tayud, Consolacion as the project site.

Among the study’s recommendations include funding from the Korea’s Economic Development Cooperation Fund as the project, which has an estimated project cost of P10 billion, has a poor financial viability.

Tan said the new port will need an access road to connect the port to and from the Cebu North Coastal Road.

The study noted that the traffic on the existing road linked to the access road to the new port will increase due to the increased cargo transport.

“It is recommended to expand lane of the existing road and set up a countermeasure for traffic improvement,” Tan said.

He said the CPA will have to ask the Department of Public Works and Highways for the possibility of funding the road access project.

The study also recommended the application of Korea’s container port development experience to Cebu new port.

The new container port is geared to meet the demands of dynamic and growing economy of Cebu and of the region.

It is expected to provide a long-term solution to the congestion at the existing Cebu International Port due to increasing cargo volume and the shallow water depth of its container berths.

The new port project was included in the Comprehensive and Integrated Infrastructure Program (CIIP) on April 11.

The municipality of Consolacion welcomes the idea of establishing the international port in Barangay Tayud.

Mayor Teresa Alegado believes that transferring the port to other areas like Consolacion will decongest the traffic in the cities of Mandaue and Cebu.

She added that it would also spur economic development of the town.

The traffic congestion at the Cebu International Port area is reportedly caused by big trucks hauling cargoes inside the area.

Excelsior Worldwide Logistics Corp.