To effectively manage your supply chain, you should know the basics of international customs. Your freight forwarders will indeed manage all aspects of the shipment, but knowing the fundamentals of customs brokerage, transportation, and international freight forwarding will help you go more ahead than your competitors. The comprehensive door-to-door global logistics is dramatically rising. International shipping today spans air, rail, and oceans, and so does international customs. If you are a part of this supply chain, the chances of your success increase manifold if you choose to work with the right freight forwarder. ”You will not find it difficult to prove that battles and wars have been won or lost primarily because of logistics. ”— Dwight D. Eisenhower
Elements Of International Shipping
We know and understand that expanding your business globally is an exciting adventure you are embarking on. However, there are many things to look into before you expand your business globally. But, relying only on vendors to educate you is a mistake that often has costly consequences. “You need to remain in a constant state of curiosity about the world of international shipping to be successful because there are changes every day,” Mark Baxa, a prominent member of Council of Professionals remarked.
Who Is Involved In An International Shipment?
There are a lot of people involved in shipping cargo internationally but the ones who you should be concerned about includes:
- The International Shipping Company. They are the ones with whom you sign your contract, and who are in touch with you throughout the process. They will address your concerns, bills, damages or any other problems.
- The Freight Forwarder. Usually a licensed party or authorised agent, the freight forwarder is the most significant part of the supply chain. They arrange the ocean freight as well as export documentation. In many cases, freight forwarders often play the role of the shipping company, as well as a customs broker. To manage all the nitty-gritty of the process involved, freight forwarding companies today are often using ERP solutions to help them achieve efficiency. These practical and accountable solution keeps you (the shipper) and the freight forwarder in the loop about the package at all times by sending alerts and notifications. Hence, has become an integral part of shipment management.
- Customs Broker. When exporting your goods internationally, every nation has its own set of rules and regulations. These rules are continually changing over time and to keep track of these, a custom house agent will help you seamlessly get your shipment delivered across international borders. In addition to being updated about the laws and documentation, they also act as the forefront for your company. Custom brokers deal with customs government officials, to ensure your shipment sails through all the borders.
Mistakes To Avoid While Shipping Your Cargo Internationally
Customer is your king. Once the king is disappointed, it's very challenging to win them back. To avoid customer complaints and money loss, let’s understand a few international shipping mistakes you can avoid
- Every nation has a different set of rules. Make sure you or your customs agent is updated with the country’s trade law and requirements before you ship the cargo.
- Pick a shipping company who are experts in the country you are sending the package to. This ensures that your shipping company will be able to talk out of a situation if they have established relationships with customs for that region.
- Choose a digitally sound freight forwarding company. Consciously choose to work with freight forwarders who have a recognised ERP solution installed.
- Stay updated on the rules and regulations as much as you can. You don’t want your vendors, customs broker, or anyone to fool you.