This day and age the internet gives people endless product options and the ability to have it all delivered right to their doorstep. Many of these products tend to come from a variety of places including across borders and overseas. So how do these products get from those different countries to their destinations and what does it entail? The process is detail oriented that can get complicated and not as simple as other forms of transportation. It involves multiple different parties, specific custom requirements, and checkpoints. It is a good idea to include an international freight forwarder to partner with to help you navigate the difficult process.
Types of International Shipping
There are 2 main ways to ship internationally: air and ocean.
Ocean
Ocean is the cheapest international option but is also the slowest. Shipping can range from a few weeks to a couple months. The timing all depends on the distance and the market at the time. It is a good idea to be mindful of your shipping deadlines when choosing to ship via ocean. The cost of ocean shipments is priced 2 different ways depending on if you choose to ship less than container load (LCL) or full container load (FCL). LCL pricing is based on cubic meters used and FCL is a flat rate based on the size of the container you choose to use, distance, and market demand. FCL and LCL are similar to LTL and FTL.
LCL
LCL, as mentioned above stands for less than container load which is the ocean equivalent to less than truckload (LTL) on the roads. When a full container is not needed it is cheaper to share a container with another company rather than paying for FCL. This can be a better option for restocking and different seasonal inventories.
FCL
FCL, full container load, is similar to FTL, full truckload. This is where you pay for a full container instead of sharing with other shippers. This can be a quicker and safer option than LCL because there is no waiting on other products to fill up the container and less chance for other cargo to cause damage. Any shipper can choose FCL whether they fill the container or not.
Air
Air freight is the other option to ship internationally, a quicker and safer choice than ocean, but also more expensive. Air freight takes days versus the weeks it could take via ocean shipping. It is a good option for freight that is urgent or high valued. Pricing is based on the weight or volume of the cargo, whichever is more expensive, combined with the distance it needs to go and the current market costs and demands. There are 4 options for different air shipping needs; international, next flight out, consolidated, and deferred.
International Air Freight
This option is used for larger cargo that requires more planning and preparing. Freight from multiple shippers can be included on a single trip.
Next Flight Out
This is an expedited choice, the fastest and most expensive air freight option. Your shipment will be put on the next available plane out, where capacity is available last minute.
Consolidated
Consolidated is a less expensive alternative compared to other air freight options, just a bit slower. Your shipment is combined with other cargo from different shippers, which means you only pay for your space. Consolidated air freight is on a certain schedule so plan accordingly.
Deferred
Deferred is for the lowest priority air freight as it can be the slowest option. Your shipment will get on a plane when there is extra space and can be deferred for around a week or so.
International Shipping Process
There are many steps to go through to get your freight from point A to point B. The steps of the freight follows as below:
Picked Up at Origin
First, the freight is picked up at the shipper’s address and transported to a premises by where the cargo will go through customs.
Origin Handling
This is where the shipment will be inspected, coordinated, and loaded onto the mode of transportation, whether it be a plane or ship.
Ocean/Air Transport
Freight is actively moving from ocean port or airport to the destination ocean port or airport for customs in the destination country. Customs sometimes takes place before the cargo arrives to the country.
Destination Handling
Unloaded off the ship or plane and prepared for transfer to the address of the receiver.
Dropped to Destination
Picked up from airport or ocean port and transported to the destination address.
International Freight Shipping Documentation
When it comes to international shipping the documentation and customs are big factors that can cause delays and money when incorrect or missing. When exporting make sure to register your freight with custom authorities before your shipment gets picked up. The required documents are going to vary depending on the countries you are shipping to and from, what your shipping, and the value of your cargo. Typically, the company you ship with will inform you on the documents that are needed.
Compliance and Customs
Just as the supply chain industry changes on a daily basis, customs and compliance procedures are changing just as much. It is important to keep up to date on regulations and stay compliant when shipping internationally. Here are some things you can do to help stay compliant:
Experienced Broker
Using a knowledgeable and expert customs broker can assist you with bonds, duties, taxes, and other international shipping procedures. They will also be able to answer your questions and help you successfully plan your shipment.
Your Staff
Keep a detail oriented, focused, and knowledgeable staff on hand who you can trust to make smart decisions when it comes to staying compliant.
Compliance Fines
Fines come up all the time, but can always be avoided, right? It is always about preparation and not damage control. Compliance fines most commonly come up from incorrect evaluation, misunderstandings, and classification. A compliance broker can help make sure your cargo is successfully shipped without fines popping up.
Documentation
Have your documents together prior to shipping your freight and send over to your brokers as soon as possible to avoid compliance issues and delays.
International Freight Shipping Tips
Different Countries
Keep in mind that shipping to other countries may entail different details that you are not used to. The destination addresses may be a different format and restrictions, licensing, and imported goods requirements will vary from country to country. Some countries have restrictions on certain goods that are not allowed to be shipped to another country. Most carriers will have these country requirements on their websites.
International Freight Forwarder
Using an international freight forwarder can be very useful when shipping internationally. They will understand the different factors and details that go into shipping your freight to different countries. They will make the process simpler for you.
Tracking
Keep track on your freight. Know exactly where your freight will be all times, all the way to its destination. Track what mode it will be on, when it will be on there, and when it will transfer to the next mode.
Timing
Timing is a big consideration when choosing air or ocean for your shipping method. If you have an urgent shipment that has a tight deadline and you can afford it, choose air. If you have time, choosing Ocean is going to be cheaper and is better for the environment because so much freight can fit on a ship! However, keep in mind that international shipping changes every single day and is never consistent, make sure to plan for customs clearance and other factors.
Dependability
When choosing to ship via ocean, always consider the weather. Dangerous weather can affect the schedules of ocean delivery and cause delays. Ocean freight is also more sensitive to weather, specifically the temperature and humidity levels. If your cargo is vulnerable to these conditions, you may need to thing about the best method of shipping.
Incoterms
International Commercial Terms. Knowing the incoterm for your shipment is essential to understand who is responsible for what in the shipment of your cargo.
The best way to get your international freight to its destination successfully requires detail, knowledge, and communication. The current market is expensive, demanding, and an overall headache. Consider combining ocean and air modes of transportation as a strategy to efficiently ship your freight with lower costs.
ATS Logistics is available to help you navigate these international transportation options, customs, compliances, and differing country regulations. Contact us today to get in contact with our certified customs broker and international shipping experts. We are here to get you through these tough markets!