Preparing a Product for Shipping
When preparing to ship a product overseas, the exporter needs to ensure that the merchandise is packed correctly so that it arrives in good condition; labeled correctly to ensure that the goods are handled properly and will arrive on time and at the right place; documented correctly to meet government requirements, as well as proper collection standards; and insured against damage, loss, and pilferage and, in some cases, delay.
Freight forwarders the international freight forwarder acts as an agent for the exporter in moving cargo to the overseas destination. The freight forwarder can assist with an order from the start by advising the exporter of the freight costs, port charges, consular fees, cost of special documentation, and insurance costs, as well as the freight forwarder's handling fees-all of which help in preparing price quotations. The freight forwarder may also recommend the type of packing for best protecting the merchandise in transit and can arrange to have the merchandise packed at the port or placed into containers.
Packing on packing an item for export, the shipper should be aware of the demands that transport puts on a package, namely, breakage, weight, moisture, and pilferage. Because proper packing is essential in exporting, the buyer often specifies packing requirements. One popular method of shipment is the use of containers obtained from carriers or private leasing concerns. These containers vary in size, material, and construction, and can accommodate most cargo. Refrigerated and liquid bulk containers are readily available as well.
Labeling specific markings and labeling are used on export shipping cartons and containers to meet shipping regulations, ensure proper handling, conceal the identity of the contents, and help receivers identify shipments. The overseas buyer usually specifies which export marks should appear on the cargo for easy identification by receivers.
Documentation exporters should seriously consider having the freight forwarder handle the formidable amount of documentation that exporting requires, because freight forwarders are specialists in this process. Documentation must be precise. Slight discrepancies or omissions may prevent merchandise from being exported, result in firms not getting paid, or even result in the seizure of the exporter's goods by foreign government customs.
Shipping the export marks should be added to the standard information shown on the domestic bill of lading and should show the name of the exporting carrier and the latest permissible arrival date at the port of export. The exporter should also include instructions for the inland carrier to notify the international freight forwarder by telephone on arrival.
Insurance export shipments are usually insured by cargo insurance against loss, damage, and delay in transit. For international shipments, the carrier's liability is frequently limited by international agreements, and the coverage is substantially different from domestic coverage. Arrangements for cargo insurance may be made by either the buyer or seller, depending on the terms of sale. Exporters are advised to consult with international insurance carriers or freight forwarders for more information.
Damaging weather conditions, rough handling by carriers, and other common hazards to cargo make marine insurance important protection for exporters. If the terms of sale make the firm responsible for insurance, it should either obtain its own policy or insure cargo under a freight forwarder's policy for a fee. If the terms of sale make the foreign buyer responsible, the exporter should make sure via examination of documentation (not assume or even take the buyer's word) that adequate insurance has been obtained. If the buyer neglects to obtain coverage or obtains too little, damage to the cargo may cause a major financial loss to the exporter.