The 7 Steps Of International Shipping.

2023-02-21

Affected by the new crown epidemic, starting from the second half of 2020, the international logistics market has experienced large-scale price increases, exploding cabins, and lack of cabinets, etc.However, with various policy changes and the gradual opening up of the epidemic situation, the logistics trend has gradually improved.

Shipping lines, booking agents, freight forwarders, customs house brokers; there are many players involved in international transportation. If your shipping need is related to cargo which can fit into a standard shipping container, but not enough to fill it up, and if your cargo is not so urgent that you want to pay extra for airfreight, you likely need a less than container load. There are five physical steps and two documentary steps in the movement of goods from sender to consignee, each of which has an associated cost that must be addressed by either the shipper or the consignee.

1. Domestic Transportation

The first part of the shipment is the domestic export shipment. This involves moving the cargo from the shipper to the freight forwarder's premises. Goods are usually transported by road, rail or combined. If the shipper is responsible for this part of the transportation, it will usually be arranged through a local carrier.

2. Export Customs Clearance

Every piece of goods leaving the country must go through customs procedures and meet regulatory requirements. Export customs clearance can be done by a freight forwarder with a valid license or an agent appointed by a freight forwarder, or it can be done by a customs broker directly appointed by the shipper. Goods must be cleared at origin before export. If it is not done by the freight forwarder, it usually needs to be done before the goods enter the freight forwarder's warehouse of origin.

3. Origin Processing

Domestic warehouse handling covers the physical handling and inspection of all goods from receipt at the warehouse to loading into containers for shipment. In short, when cargo is received, it is inspected, planned for loading, combined with other cargo, loaded into containers and moved to port where it is then loaded onto the ship.

4. By Air or By  Sea

The freight forwarder decides to choose an airline or shipping company for sea transportation from the origin to the destination. The freight forwarder enters into a transportation contract with the shipping company, in which case the shipper or consignee has no direct contact with the shipping company. Freight costs are ultimately borne by the shipper or consignee. Shipping is never the total shipping cost from one port to another. There are various surcharges imposed by the industry, such as fuel adjustment factors and currency adjustment factors, which are passed on to the shipper or receiver.

5. Import Customs Clearance

Import customs clearance can usually start before the goods reach the country of destination, by the freight forwarder or the freight forwarder's agent or the customs broker appointed by the consignee. Import customs clearance procedures must be completed before the goods leave the bonded zone of the destination country.

6. Destination Processing

The cargo needs to be loaded and unloaded at the destination before it can be delivered to the consignee. Destination handling involves several destination charges and is usually performed by the freight forwarder or an agent appointed by the freight forwarder. Fees can be charged to the shipper or the consignee, but full payment is always required before the goods are handed over to the consignee.

7. Terminal Delivery

The final stage of transportation is the physical delivery of the goods to the consignee, which is carried out by a freight forwarder or a local carrier designated by the consignee.

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