International Cargo Shipping: A Definitive Guide

International cargo shipping is something that you should consider if you want to expand and further your customer reach.

With international cargo shipping, you can reach many customers and won’t be limited to your country only. In addition, with the expansion of eCommerce, international cargo shipping is becoming more popular for smaller businesses.

International shipment hauling involves importing or importing goods via various transport methods, such as ocean, air, or road. It is not an easy process as many different rules, laws, and regulations must be adhered to haul your goods successfully. As you can imagine, this is a complicated process as other countries will have different rules to abide by.

Moreover, you must consider foreign currencies, different time zones, language barriers, and cultural differences when importing or exporting goods to and from other countries.

So, if you want to expand your business and want to consider international cargo shipping, this definitive guide is for you.

We will review everything you need to know to make the process easier and more cost-effective.

Shipping Process:

As you can probably tell, international shipment hauling is complicated and intricate. There is a lot of documentation and cost involved, and each country will have its own set of laws and regulations when accepting or sending off cargo.

So, we have taken the time to make the process easier for you to understand and comprehend.

1. Export Haulage:

First, the cargo will go from the shippers to the forwarder’s location. There are different ways in which this can be handled from the forwarder’s point of view.

They may manage the cargo from this point with their agency or employees to oversee the process. From the shipper’s point of view, however, they may decide to hire local transportation to get the cargo to the origin warehouse. There should be a conversation beforehand regarding who is responsible for the freight.

2. Export Customs Clearance:

This process takes place for every single shipment leaving the country. Specific regulations and formalities ensure that the cargo is delivered under the law.

A declaration is produced, and the relevant documentation is given to authorities. It is important to note that this can only occur with companies with valid customs licenses.

A customs house broker usually does this, which the shipper appoints. Moreover, this step must be done before the goods leave the country.

3. Origin Handling:

During this stage, the cargo is thoroughly inspected at the origins warehouse.

This takes place until the cargo is loaded onto the ship. The shipment is tallied, and a plan is put into place regarding how the freight will be loaded. It is then consolidated with other cargo in the same container, which is then put in the container and moved to the port.

The shipment will then be put onto a ship. An agreement stating which side of the party is responsible for paying for this part of the process should be established. The shipper or the forwarder can either pay for this.

4. Ocean Freight:

If the method of transportation is via ocean, the specific ocean line will then be decided upon. The shipping line will be responsible for the entire journey, from the shippers’ location to the forwarder’s destination. A contract will be produced and signed at this point, but there will be no direct interaction with the shipping line. Once again, an agreement will be placed on which party will pay for the different stages of the shipment process.

Various surcharges are involved in the process, such as currency adjustments or bunker adjustment factors.

5. Import Customs Clearance:

This part of the process can be technically done before the cargo reaches the destination. This process includes a declaration that is developed and submitted with relevant documentation. This then enables authorities to register and levy customs duty on the shipment. This part of the process must be cleared before the cargo can leave the customs area in the destination country.

6. Destination Handling:

Cargo handling also needs to take place before the cargo can be released to the forwarder. This takes place in the container being transferred from the ship to the shore. The container is then taken from the port to the forwarder’s warehouse. The cargo is prepared specifically for the forwarder before being delivered. Once again, there needs to be an agreement as to which party will cover the costs of this process, which needs to be paid in full before the cargo can be released successfully.

7. Import Haulage:

The final step of this process is the cargo being hauled to the forwarder. Usually, the cost of this does not cover unpacking the shipment once it reaches the forwarder’s warehouse, which will be done by the forwarder’s employees.

Freight Forwarding:

Your mind is probably on overdrive after ingesting all the information above. But what you may be unaware of is that there is something called Freight Forwarding that can take care of the whole process mentioned above for you in a timely and cost-effective manner.

What is Shipment Forwarding?

Freight Forwarding consists of a company taking charge of the shipment process for importing and exporting goods. Using a freight forwarder for your business will alleviate endless stress and ensure that your international shipment hauling runs smoothly.

In addition, a freight forwarder will be aware of all the regulations and laws required to follow in each country and at each step in the process.

Moreover, a freight forwarder will act as the transporting service's middleman and the shipper to ensure clear communication. It may not have anything to do with the physical shipment of products. A freight forwarder is either a single person or a company that implements the necessary process to ensure smooth international cargo delivery.

Benefits of Using Freight Forwarders:

Experienced freight forwarders will be able to run the process quickly and save both time and money as they may be able to offer discounts and know the most cost-effective ways to do so.

In addition, they will know the best routes to take and learn how to overcome barriers to international cargo shipping.

Moreover, the freight forwarding company or individual will be able to predict specific issues and will be able to implement specific problem-solving solutions that will, as a result, save time and money.

This is especially useful if your business does not have ample knowledge of international cargo shipping. The freight forwarder will be able to guide you appropriately. Moreover, you will rest assured that the company will work ethically and according to the law.

Initial Processes Involved in International Cargo Transport:

1. Finding the Best Route

Knowing the correct route and the best transportation method is vital to haul cargo internationally. For example, one must decipher the best transport method for dispatching cars internationally. Will it be best to do so by air, land, or ocean?

Many different risks need to be considered for each transportation method, and a risk assessment plan would need to be devised for each of these to determine which transportation method poses the least risk.

2. Customs Clearance

Similarly, hauling international cargo will need to be cleared to fly abroad and take your luggage through customs.

Various documentation goes into doing this, and the paperwork will be checked thoroughly before being able to enter any country. Customs will need to ensure that the goods have been delivered legally. Knowing the different regulations for each country you want to transport goods to is vital to the success of international cargo shipping.

3. Prepping documentation

Apart from the documentation needed for customs, various documentation and licenses will be required to haul international cargo successfully. Documentation that would most likely be required is things such as invoices, statements, and certificates.

4. Packing Goods and Storage

A prominent part of the process would be packing and storing the goods you want to import or export. If you are transporting fragile goods, you must ensure your stock is packaged and stored appropriately to save on cost.

Different Charges Involved:

Although we have mentioned a few different costs above, we have compiled a detailed list and brief explanation of the additional costs involved in international shipment hauling.

Freight-associated Costs:

Maritime Shipment Charge

This is the main cost that needs to be considered when sending cargo via the ocean. This charge covers the prices generated when hauling freight from the origin port to the destination port.

Carrier-related Fees:

• Bunker Adjustment Factor (BAF): Fuel costs
• Emergency Bunker Surcharge (EBS): Rise in fuel costs
• Currency Adjustment Factor (CAF): Exchange rate risks
• Peak Season Surcharge (PSS): Covers an increase in operational expenses between July and October
• Lesser known carrier-related fees include congestion surcharges, war risk, and container management fees (other career-related fees).

Zone-specific Charges:

These charges cover additional charges through specific zones, such as Piracy Risk, River Plate Toll, and Suez Canal Surcharge, to name a few.

Delay Fees:

Demurrage:

If there is congestion, The cost for cargo in containers by shipping lines.

Per Diem:

This charge covers equipment not returned to the port or terminal after its allocated free time. This is to prevent importers from holding onto containers for too long.

Storage Fee:

This covers the fees of holding your cargo at any location.

Taxes and Duties:

Taxes:

This is calculated according to the value of the cargo being hauled. The importer usually covers this.

Duties:

Duties are charged, taking into consideration the percentage of the value of the goods. This comprises the cost of the goods, maritime freight rate, and insurance.

Customs Fees:

• Customs clearance fee: administrative tasks are covered by this fee
• Customs bond: insurance for goods ensures that taxes and duties are paid.

Other Charges:

• Port charges
• Inland charges
• Destination charges
• Documentation fees
• Cargo insurance

Thus, it is clear that planning the shipment of cars internationally can take up much time and involves utilizing a vast amount of resources. There are numerous steps to the process and many charges that must be paid along the way. Moreover, when hauling a car internationally, the shipper and the forwarder need to consider each country's different regulations and laws. If these are not considered, then the shipment of cars will not be successful.

Accordingly, A1 Auto Transport holds terminals in most major cities in the United States. When utilizing a terminal, one would need to drop off and pick up your car once the shipment has been made. If, for some reason, the terminal cannot be accessed, A1 Auto Transport also offers door-to-door services.

For those customers who own luxury cars, we can offer for your vehicle to be loaded into the container first to avoid any cars that may be reloaded, resulting in less chance of damage. At A1 Auto Transport, we ensure that the vehicles in our care are covered by insurance.

We also have satellite tracking to keep an eye on the entire process. Although we take the utmost care of the cars we haul, we suggest taking out additional insurance for international car shipping. This will ensure extra safety for your vehicle should any issues that are out of our control occur.

And so, we understand how difficult and stressful it is when you need to haul your car safely to another destination. You may not have known how to do so before, but now that you have gone through this information, you hopefully have a broader knowledge of the services we can offer you.