FAQ
What services do freight forwarders provide and how can I find one?
- Advises and assists clients on how to move goods most efficiently from one destination to another.
- Tracking inland transportation, preparation of shipping and export documents, warehousing, booking cargo space.
- Negotiating freight charges, freight consolidation, cargo insurance, and filing of insurance claims.
- The forwarder will procure the services of third parties who will perform the packing of the goods.
- Forwarder provides storage/warehousing service of the goods.
- Provides transport, handling and customs clearance of the goods on behalf of the importer or exporter.
- The freight forwarder organizes and pick up the goods from the manufacturer or the shipper on the behalf of the buyer.
How to find a freight forwarder.
What can I do to prevent delays and ensure a smooth process of the shipment?
Any advice for a first time shipper?
- Each shipper should note that there are unnecessary expenses that can incur due to simple mistakes. This can be avoided by appointing a reliable clearing and forwarding Agent. For instance if a consignment is forwarded from origin and cleared at destination by one Agent the cost will be minimal compared to involving several Agents. There’s fast communication and easy follow up, no handover fees.
- Make use of the peak season –
Shipping has peak seasons that vary in different parts of the world. If you are shipping products from Asian countries such as china, The Philippines, Japan and others, you should try to beat the Chinese New Year when trading is at its peak. If you are shipping from American or European countries, you should use the peak period, which is right before major holiday seasons. During the holidays, factories shut down for weeks, resulting in a major delay in your shipment.
- Find out everything about charges
Make sure that you understand all the shipping fees. Even when you buy products and some of the vendors offer you free shipping you may incur some hidden charges. You should ask about the charges, payment plan, and any other fees that your shipment plan might attract. Make sure that you also understand the customs and regulations in your country when it comes to shipping, so that you do not have problems retrieving your shipment.
- Have all the necessary documentation
To avoid any misunderstanding with your cargo, make sure that you have all the required documents ready. Do your research and prepare all the paperwork related to that shipment. Advice your supplier accordingly so that he or she creates the necessary paperwork to help with a smooth shipment. Such documents include packing lists, receipts, bill of lading, invoices, legal permits, licenses, custom stamps, and many others.
- Prepare your cargo well
Shipping containers should be prepared well to withstand extreme shipping conditions. They are subjected to extreme humidity, strong winds, subzero temperatures and sometimes flooding. They are handled manually at the port, hence they have to be in a good condition. Make sure that your shipping container is well prepared to protect your cargo from such conditions.
- Label organic cargo
Organic cargo is tricky to ship since some of it has a short shelf life. It is important that you label your organic cargo well for smooth shipping. Failure to declare organic cargo can lead to losses. Your cargo can be delayed at the port, quarantined for testing, or even destroyed. Remember that any delays cause losses since the more time your cargo stays in the port the more charges you incur.
- Insure your cargo
It is wise to insure your cargo no matter how much you trust your shipping company. From the time your cargo leaves its destination, it is handled by trucking companies, the port, warehousing companies, crane operators and many other people in between before it gets to you. It is important to insure your cargo to protect yourself against major losses.
Can you ship my vehicle internationally?
Do you have warehouse where I can drop off the cargo?
- General Warehouse
This is a storage facility for goods not yet been bonded through Customs for legal entry into the country, but have arrived in the United States. Items can be in the warehouse for up to six months. They will auctioned, sold by the United States Government, or donated to charity, if the duties are unpaid or documentation incomplete after the six month storage,
- A bonded warehouse.
A bonded warehouse, or bond, is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty. It may be managed by the state or by private enterprise. In the latter case a customs bond must be posted with the government.
What’s the best way to save money on air freight?
- Schedule delivery to coincide with least expensive shipping options
By establishing a required delivery date that allows time to ship via ocean freight, versus air freight, you can keep your transportation costs reasonable. When shippers send their goods through the air, they will often pay a premium for the speedy service. Lower your transportation costs by planning your moves in advance and take advantage of competitive ocean freight rates.
- Choose foreign suppliers carefully
Ex Works Costs (EWC) is a fundamental piece of all International freight shipping. The term refers to the price by which a seller – the supplier or manufacturer – makes goods available to the buyer, and the costs associated with this act. These costs can become complicated when duty rates and fees are applied. For example, the Ex Works Cost from a more distant part of the globe may be the least expensive. But when transportation and customs duty rates are added to the equation, the closer supplier with a higher Ex Works price is actually the better deal.
- Find a forwarder who treats you as a partner and not a commodity
The lowest quoted price may not result in the lowest spending. If you find a forwarder who quotes a low, bare-bones price but does not explain all of the costs involved in shipping you may find yourself with a higher bill than anticipated. The relationship between a shipper and a forwarder should be collaborative. Proper screening and investigation of your prospective partners will result in a better overall experience.
- Minimize product footprint
Efficient packaging can cut down on the amount space and weight a product occupies on an aircraft. For transportation companies, space is the most valuable commodity. When you reduce your packaging down to the bare minimum it will take up less space, and give you the best price available for your goods. There are still some basic requirements and best practices for securing your product for shipment, but a good product and thoughtful package design can help your supply chain reach its most efficient state.
- Space out Your Shipping
More cargo, less often. That’s the golden rule to keep air freight costs low. There are two main things to consider when pricing up a freight job: the distance and the weight of your shipment.
Supplier or manufacturer – makes goods available to the buyer, and the costs associated with this act. These costs can become complicated when duty rates and fees are applied. For example, the Ex Works Cost from a more distant part of the globe may be the least expensive. But when transportation and customs duty rates are added to the equation, the closer supplier with a higher Ex Works price is actually the better deal.
- Use a Consolidation Shipping Service
Consolidation services take small packages and bundle them together in the ‘spare space’ within other shipments. This is an ideal solution for any business that can’t avoid sending relatively small packages on a regular basis.
Rather than paying for your own, expensive, shipping space, you ‘fill in the gaps’ in another shipment, paying only for what you use. The company sending the larger shipment save money by not paying for empty space, and you get a great shipping cost.
- Negotiate a Long-Term Agreement
To cut down on the amount you spend on shipping, don’t just keep using the same service. But it doesn’t necessarily mean you shouldn’t shop around for a better price. Developing a relationship is more valuable than the short-term gains of looking at other providers. Talk to your regular provider about setting up an agreement which benefits you both in the long term.
You may be able to make a commitment to ship a set amount of goods each month, for example. If that’s the case, to ‘lock in’ that business for them, the courier service is likely to be able to negotiate with you on the price.
Are there types of cargo that cannot be shipped via air freight?
- Explosives: fireworks and firecrackers, detonating fuses.
- Gases: such as compressed gas, gas cartridge, inflated ball, respirator, explosive automotive airbag, aerosol, gas lighter, gas cylinder, and lamp bulb.
- Flammable liquid: e.g. paint, gasoline, engine oil, camphor oil, engine starting fluid, turpentine, thinner, mucilage.
- Flammable solid, pyrophoric substances, and substances that emit flammable gases in contact with water: e.g. activated carbon, titanium powder, copra, castor products, rubber debris, safety matches, dry white phosphorus , dry yellow phosphorus, magnesium powder, and solid gum.
- Toxic and infectious items: pesticides, lithium batteries.
- Corrosive items: e.g. batteries, alkaline battery electrolyte.
- Magnetic substances without degaussing packaging, magnetic steel and other strong magnetic products: e.g. currency detectors, speakers, magnets.
- Oxidizers, organic peroxides, radioactive materials & corrosive items: e.g. chemical medicines, lab chemicals (potassium permanganate, sulphuric acid)
- Powder, liquids, pastes, and other items with danger signs on their packaging.