Practical Example of How International Shipping Works
The main players in this transaction are the seller/ shipper, consignee/ buyer, shipping company, and the freight forwarder.
First, both parties need to enter a binding contract to agree on liability and build a romantic relationship for future transactions, so to speak. As soon as all papers are signed, the next step to work on is export haulage. This is simply the process of moving goods from the shipper’s warehouse to the forwarder’s place of operation.
At this point, a local logistics company will be contracted to offer transport services. Where the consignee is responsible for moving the purchased goods from the seller’s warehouse, it’s far-reaching to use a forwarding company with export haulage services.
Haulage services include unloading the goods from the truck when they’re delivered at the forwarder’s premises. The next formality you’ll need to take part in is export customs clearance. There are noticeable variations when it comes to customs rules since countries have different policies.
A clearance transaction involves the submission of all the required documents to the relevant authorities so that the goods can be released from the country of origin. This part needs deeper insights to understand all the applicable regulations. If this feels too complicated, a better alternative is to work with a licensed clearing agent.
The subsequent step is referred to as origin handling. To put it simply, and as the name suggests, origin handling is the physical inspection of the consignment by the freight forwarder or the appointed agent before it’s loaded into a ship.
Right after origin handling, is ocean freight. The freight forwarder picks a shipping line which carries the container to the destination specified on the bill of lading. Not only is the timeline a crucial component while choosing a shipping company but also the shipping lanes.
A shipping lane is more like a sea road or route which vessels use to sail through. The consignee will be responsible for all the pertinent ocean freight charges. The consignee will then have to work on the import customs clearance part.
This process can begin while the goods are in transit. Customs clearance is largely meant for tax obligations. Your goods will be temporarily held in the customs area. To expedite this process, the buyer might have to work with a local clearing and forwarding agent.
Destination handling is yet another essential step in the shipping process.
It includes unloading the container from the ship and transporting it to the forwarder’s warehouse. The buyer can finally collect their shipment from that point and pay the agreed fees.
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