Make the Export Sale: Shipping Basics Freight Forwarders
How to Ship Internationally
Tips on International Shipping from U.S.
Now that you’ve made the export sale, you still have to get the goods to the buyer, who is often located thousands of miles away and where different rules may apply. When shipping overseas, be aware of packing, labeling, documentation, and insurance requirements and regulations. Make sure that the merchandise:
Is packed correctly so it arrives in good condition.
Is labeled correctly to ensure that the goods are handled properly and arrive on time at the right place.
- Has correct export documentation for U.S. and foreign-government requirements.
- Has insurance to cover any damage, loss, pilferage or delay.
Because of the many considerations involved in physically exporting goods, exporters often receive assistance from their air/ocean carrier or freight forwarder to provide services for these issues and more.
Working with Freight Forwarders
The simplest definition of a freight forwarder is that of a “travel agent for freight.” International freight forwarders are agents that ship cargo to foreign destinations.These agents should be familiar with the import rules and regulations of foreign countries, U.S. export regulations, different shipping methods and necessary documents. Freight forwarders are licensed by the International Air Transport Association (IATA) to handle air freight and by the Federal Maritime Commission to handle ocean freight.
Freight forwarders may be able to assist exporters in preparing price quotations by advising on freight costs, port charges, consular fees, costs of special documentation, insurance costs and the freight forwarders’ own handling fees. They may recommend packing methods that will protect the merchandise during transit, or can arrange to have the merchandise packed at the port or put in containers. Freight forwarders may also reserve the necessary space on a vessel, aircraft, train or truck. The cost for their services is a factor that should be included in the price charged to the customer.
Once the goods are ready for transit, freight forwarders should review all export shipping documents to ensure that everything is in order. This review is of particular importance with letter-of-credit payment terms. Freight forwarders may also prepare the bill of lading and any special required documentation, including electronic filing in the Automated Export System (AES). Freight forwarders can also route the documents to the seller, the buyer, or a paying bank. Freight forwarders can also make arrangements with customs brokers overseas to ensure that the goods comply with foreign import documentation-regulations.
A customs broker is an individual or company that is licensed to transact customs business on behalf of others. Customs business is limited to those activities involving transactions related to the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes or other charges assessed or collected; and the refund, rebate or drawback of those charges.
Export.gov, the U.S. federal government’s export assistance portal, links to many resources, including the following:
Locate a trade expert and learn about the export services of the U.S. Commercial Service’s global office network.
Country Commercial Guides provide the latest market intelligence on more than 140 countries from U.S. embassies worldwide. See Customs Regulations & Standards chapter.
Learn more about export shipping insurance.
- Export Documentation, the fifth video in the Make the Export Sale video set, provides details on export documentation required for foreign trade.
- Learn more about the logistics of shipping: Finding Schedule B numbers, HS Codes, and tariff rates; certificate of origin, documentation, and customs.
- Get to know Incoterms with this overview.
Steps to resolve customs clearance problems in foreign markets.
- National Customs Brokers and Freight Forwarders Association of America, and other shippers's associations can recommend brokers/members in your area who can assist with shipping specialized products. Some of the larger logistics companies, such as UPS, FedEx, and DHL are also freight forwarders and customs brokers.