Trading at the international scene is not simple, especially when it comes to shipping commodities.
There is a process that you must follow to ensure that you legally obtain the goods. For this reason, quite several traders do not succeed in the sea and air shipping but rather, buy products from the local store.
Incoterms 2010 are used today by practitioners and traders, anyone involved in the supply chain of delivering goods overseas will probably come across incoterms, including Traders, Producers, Buyers, Sellers, Governments, and Banks.
However, as you will later find out later, the process is easy. There is less documentation as opposed to what you might be thinking. Well, I'm sure you already have the cost in mind. But believe me not, it is affordable. Let us explore the process step by step.
The Export Haulage
Ex Works is a trading scenario in which the Seller of the goods responsible for the production and packaging of the goods at their place of manufacture only. And this is the issue Ex-works have in the international marketplace. The Buyer remember, is responsible for all the above process and movements
Export haulage is the transportation of commodities from shipper's to forwarder's warehouse.
The haulage can either be done by either trains or trucks. The process is short as it takes hours to weeks. The time taken depends on
Depending on the agreement between you and the shipper, this kind of haulage can be paid by any of you
Clearance of Export Customs
When you are about to ship the cargo either through air or sea, you are required to pay export customs. Here, you approach a house broker who is licensed to do the task. For this process, you must produce a declaration on the details of the cargo plus any other support document.
You, as the consignee should agree with your shipper, on who is to perform the export customs clearance. However, the rule of thumb in export customs is that the shipper clears the customs unless during odd occasions
Original Handling of the Cargo
This is the third step that you must go through. The freight forwarder mainly performs it. Sequentially, the cargo is received, unloaded from trucks and staged for inspection.
For the inspection, the cargo is validated with the provided details of the booking. Besides, the shipment is inspected and counted to ensure it is in the right amount and condition.
Eventually, your shipper is given a receipt as proof that the cargo was inspected and released for either air or sea shipping.
Origin Handling of the Container
After your cargo goes through original handling, it is kept in a warehouse waiting to be shipped with others landing the same destination. After that, the container is kept in a line, and trucking happens. Eventually, the loading is done when the ship or plane ferrying it is ready
Depending on your agreement with the shipper, either of you pays the original handling cost
Freight and Its Charges
A shipping line will perform all your freight charges. The freight forwarder calculates the total charges of the freight including the surcharges. Later, he/she distributes the cost among all the people who have their goods in that container.
You can be sure that if you work with us, we shall give you a sum of all the charges. Your work shall be to pay the charged amount.
Clearance of Import Customs
When your cargo is finally home, you have to clear it from the port or airport for it to be released. Therefore, prepare all the documentation needed to the customs authority.
As the owner of the goods, you perform the clearance. The good thing is that you can even start clearing with the import customs before the arrival of your cargo.
Handling at the Destination
At this point, the following activities happen
- Document checking
- Submission of carrier bill to the shipping line
- Collection of the container at the port
- Cargo inspection
Afterward, you can either transport your cargo to your business premise
As we already saw earlier, this is about the transportation of the cargo. However, this time, we are transporting the cargo from the reception warehouse to your destination.
This can either be part of the work of the freight forwarder or a company of your choice. Alternatively, you can decide to take your cargo directly from the destination warehouse and save some pennies for yourself.
Well, there is no doubt that sea and air shipping process is hectic. I just felt so myself! However, you should always know that we can handle the part for you. Our costs are friendly as usual. We guarantee safety and confidentiality in the whole process.