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International Freight Shipping: How To Streamline Your Global Shipping

international-freight-shipping:-how-to-streamline-your-global-shipping

Never have there been more options available to ship your products and get them into the hands of your customers—even if those customers are halfway around the world.

Expanding your customer base is essential for a growing business. Going global is a matter of time for many brands, particularly in a buying world with increasingly porous borders. If you start your brand in North America, but your factories are in Portugal, and you have customers in Japan, how will you get your products there quickly but without breaking the bank?

International freight shipping is a crucial way any product makes its way to a customer. This fulfillment mode opens up new markets and customers, boosting a company's offering.

According to Report Linker, the value of the global freight transport market will reach $58 billion by 2028, with 11% growth expected each year. The logistics industry is expected to exceed just over $14 trillion by 2028. International freight shipping will become an essential driver for every global commerce business. Ahead, learn about the particulars of international freight shipping, such as what it is and how long it takes, get tips for international freight shipping, including costs, and discover the different types of freight shipping you can use to get products to your customers.

What is international freight shipping?

International freight shipping is when products are shipped globally via air, sea, or land. For the most part, international freight shipping is a combination of those methods over the course of one journey.

Freight shipping is a vital component of the vast global trade system—but it does require business owners and their workers to understand this system for importing or exporting goods. Different customs policies and documents must be considered before shipping and the logistics of moving products via freight between countries, such as which local company to use.

Key to international shipping is the partnership between the business, the freight shipping company (or multiple companies), and the destination country. Each has to comply with local rules and regulations, and some places have far stricter import directives than others. Additionally, international freight shipping can come with a cost: some countries have specific tax considerations that a business must prepare for in advance or risk a delayed shipment or more time and money spent.

How long does international freight shipping take?

The length of time international freight shipping takes depends on multiple factors, such as mode of transport (air, land, or sea), weight of the shipment, and its size.

Shipping products by air is generally the fastest method, taking up to as little as two days, even expedited overnight. Shipping by sea can take weeks, even up to a month or more, depending on the checkpoints the vessel needs to pass and the final destination.

Five key phases of international freight shipping will determine how long a shipment takes to arrive at its final destination. They are:

  • Export haulage. The first step is the quickest and involves moving your product from your warehouse to the freight shipper of your choice.
  • Export customs clearance. The next step involves paperwork: a declaration for the product's destination country is needed at this state. This part is performed by companies with valid customs licenses. Hold-ups here may involve incorrectly filled forms by the freight carrier, delaying products at the companies with valid customs licenses perform this part, or air—it all depends on your method of transport.
  • Import customs clearance. When the product or cargo has arrived at its destination country, you'll need to ensure that the goods in the freight container meet the location's requirements, including any applicable taxes.
  • Import haulage. The last step is much like the first: moving the cargo to the warehouse where local shipping occurs.

Types of international freight shipment

There are a few ways to ship products around the world. Some are faster, easier, and cheaper, but your choice depends on the type of cargo and when it needs to reach its destination.

International freight shipping by air

Air shipment of goods is the fastest of all the options available. This is great for those, that need productsd to arrive quickly at their destination or for high-e goods like apparel or jewelry.

Air shipping is usually more expensive, so factor this into any cost decisions around which mode of transportation to use. If it's more valuable to you to spend upfront to make sure your goods arrive quickly, air shipping is the most suitable option. This method of shipping also provides greater security, too.

International freight shipping by ocean

Around 90% of the goods shipped worldwide are done by sea. It's cost-effective, a great way to transport large volumes of product in bulk across borders, and offers better flexibility in the size and weight of shipments. Ocean shipping is low-emission compared to air freight shipping, with this method producing less than 3% of total greenhouse emissions. Air freight shipping, on the other hand, has 20 to 30 times more pollution than shipping by sea. There's also even less than a 1% chance of cargo getting lost by sea.

International freight shipping by land (LTL)

Freight shipping by land is another cost-effective method of product shipping. Some international freight by land is called Less Than Truckload (LTL), which refers to smaller loads or freight quantities between 100 and 15,000 pounds. LTL shipments can include multiple shipments in one truck, depending on the size and weight of the total cargo.

Multimodal freight shipping

A key component of international freight shipping is that not all companies or agencies can or will handle the entire shipping journey—unless it's a multimodal freight shipment. With multimodal freight shipping, a contract or company can take the whole shipment journey through multiple modes of transportation. Say you have a cargo shipment in a warehouse that needs to get to a port somewhere else before being driven to a warehouse in its location destination. Multimodal shipping can handle all parts of that journey. This is great for long-distance shipments that require thoughtful planning and execution.

How to calculate international freight shipping costs

Freight shipping costs for your goods depend on a number of factors. You can use a freight rate calculator or contact a freight forwarder for a quote, but these are the essential components:

  • Weight and dimensions of several: The weight and dimensions of your shipment are critical in determining the shipping cost. The heavier and more significant the cargo, the more it will cost to ship.
  • Mode of transportation: The the shipping cost depends on which transportation method you choose. Sea shipping is more cost-effective but takes longer, while air shipping is faster but more expensive.
  • Distance between origin and destination: A significant component of how much a a freight shipment'sds on where it's going. Is it to another country that's not far from your border? Or do you need to send it halfway around the world? The distance between the origin warehouse and the destination warehouse will impact the cost of the overall shipment.
  • Type of cargo: The kind of product or cargo being shipped will affect how much freight shipping costs. If the cargo being transported is hazardous in any way and, therefore, may need special rules around handling and packaging, that will increase the shipment cost. Fragile cargo and materials requiring special handling will also drive up the price.
  • Customs fees and taxes: Customs fees and taxes are crucial to your shipment. Freight shipping will have different fees and taxes, depending entirely on the destination country. Those fees and tax requirements differ from country to country—so ensure you've researched so these costs can be included in your total shipment cost.

Required documents for shipping freight internationally

International shipping of goods has several steps, and many documents are needed to complete the transaction. While getting your interests in the hands of new buyers is exciting, it's essential to fill out all paperwork correctly and include certain documents for when your cargo arrives at its destination.

Here are seven required documents needed for international freight shipping:

  • Commercial invoice: A commercial invoice details the transaction. It provides essential information on the shipped items, such as product description, quantity, and value.
  • Bill of lading: A bill of lading (BOL) is the contract between the shipper and the freight carrier. It should include details on the shipment, origin and destination locations, goods being shipped, and the terms of the shipment. An authorized page must sign a BOL to release the load.
  • Packing list: An itemized document called a packing list is required for each package being shipped. This is especially important if your overall shipment contains different products. The packing list will have descriptions, weight, and product dimensions.
  • Certificate of origin (C/O): A certificate of origin certifies the country of origin for the goods shipped to a new destination. Weights of many treaty agreements for international trade, it's a required document for customs officials to determine the amount of duty and taxes a business must pay.
  • Export license: An export license is not a required piece of documentation for all counties. Some destination locations will need this license for goods like hazardous materials or weaponry. It's a legal document issued by the government.
  • Insurance certificate: Issued by an insurance provider, an insurance certificate certifies that the exporter has coverage for any accidents or liabilities that may occur with the shipment.
  • Customs declaration: A vital document needed to enter the destination location that provides details on the value, description, and quantity of goods shipped.

Five tips for international freight shipping

There's no getting around it: international freight shipping is complicated. Starting in the best possible position is crucial to avoid unnecessary delays or efforts. Here are five top tips for international freight shipping.

1. Choose the suitable mode of transportation

Begin with how you're going to get your product to its destination. Consider the following questions when deciding on the suitable mode of transportation: Is your shipment so large that it needs to travel by sea? What's your budget? How soon does it need to be in its destination location? Look at all the available options and select the one that makes the most sense.

2. Properly package and label your cargo

Opening a box of damaged goods can ruin the customer experience. Properly pack your cargo so that in-transit accidents or damage can be avoided. Make sure to label what the load is and if it's fragile.

3. Choose a reliable freight forwarder

A key partner in international freight shipping is a freight forwarder, which is a company or agent who helps, for a fee, companies ship their goods around the world. Your freight forwarding partner is there to help you understand the complexities of local rules and regulations, even tax implications, so you must find a company or agent who will support you.

4. Understand customs regulations

Customs vary from country to country. Like with personal or business travel, you must understand what can or can't be brought into a country and how much can be brought in at a time. On a large scale, such as freight shipping, customs will be significantly different. Ensure you perform your due diligence and research the necessary businesses at every step of the shipping journey so you aren't caught in a situation unprepared.

5. Purchase cargo insurance

Accidents happen. Protect your cargo with cargo insurance if something arises on the shipping journey.

International freight shipping FAQ

How much does it cost to ship freight internationally?

Freight shipping costs for your goods depend on several factors, such as the shipment's weight and dimensions, transportation method, origin and destination distances, type of cargo, and fees, including customs and taxes. You can use a freight rate calculator or contact a freight forwarder for a quote to calculate the shipping cost.

How does international freight work?

When products are shipped globally over air, sea, or land, this is called international freight shipping. For the most part, international freight shipping combines those journeys and is part of a complex system that requires businesses to adhere to local rules. Some custom policies and documents need to be considered before embarking on shipping, and the logistics of moving product via freight between countries, such as which company to use locally.

What is the best international shipping method?

The best international shipping method depends on the cargo you're trying to ship. Typically, air is the fastest mode of transporting goods over a considerable distance, but it is far costlier.

Who pays for freight shipping?

The business (or exporter) of the goods pays for freight shipping.

What is the cheapest international shipping method?

Ocean freight shipping is the cheapest international shipping method. More than 90% of international shipping is conducted through ocean shipping.

 

This originally appeared on Shopify Plus and is available here for broader discovery.
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