FREIGHT SHIPPING

Shipping product between countries isn’t the easiest of steps.  There are a lot of fees, forms, and coordinating involved to make your product travel from the manufacture to you, especially when shipping internationally.  Here are a few terms you should know:

 

 

Freight Forwarder

They concentrate on the logistics and physical transportation of cargo.  They are responsible for transporting your goods.

 

Customs Broker

They are the intermediary between the importer and the government’s customs department.  They are responsible for handling all the paperwork necessary to get your goods through customs.

 

Brokers handle the importing goods, not exporting.  Exporting is not a problem.  Trying to get something into a country is the issue.

Many freight forwarders have their own customs brokers or are partnered with a customs broker.

 

Packing List

Your manufacturer will create a document known as a Packing List, which basically contains all the details of the cargo:

- Number of cases

- Number of pallets

- Dimensions

- Weight

You need a packing list to get a shipping quote.  The freight forwarder needs to know what they’re delivering.

 

Before your manufacturer generates a Packing List, be sure to provide your any special packing instructions.  For instance, if your endgame is Amazon, Amazon only allows 40x48in, four-way access pallets.

 

 

Bill of Lading (BOL)

This document accompanies your shipment.  It is your official shipping label.  It’s also a receipt and mini-contract all rolled into one.

 

Incoterms

Incoterms is the name given to the terms of agreement regarding international shipping between buyer and seller.  Incoterms are published by the International Chamber of Commerce.  As of 2020, there are eleven Incoterms.  Only a handful are relevant to our purposes:

EXW (Ex Works): The seller packs the goods and makes them available for pickup at their factory.  It is the buyer’s responsibility to orchestrate all shipping.

 

FOB (Free on Board): The seller brings the product to the departing port and loads the goods on to the ocean liner.  From that point on, the buyer is responsible.

 

DDP (Delivery Duty Paid): The seller is fully responsible for getting the product to your doorstep (or whatever destination you choose).

So how should you ship your product?  Well start by seeing if your manufacturer offers DDP (which most do).  They’ll get you a quote from their go-to freight forwarder.  They’ll throw in their service fee.  If you find that total price acceptable, I say do it.  Make shipping their problem and relax.

 

Feel free to contact other freight forwarders and try to get quotes.  In my experience, it took awhile to get a response.  And many said they only take on customers who will do repeat business, as in ten or more shipments a year.  Also as a new customer you will mostly be required to place a rather large deposit before shipping. 

 

Your manufacture has already established a relationship with a freight forwarder.  Since trust has been built, your manufacturer doesn’t need to do a deposit.  Also, if your shipment gets stopped for a customs exam, the freight forwarder will pay the exam fees right away so your shipment doesn’t get any more delayed.  You’ll obviously have to reimburse them but it’s a nice perk of having an established relationship.

 

My freight forwarder is TopOcean.  My cousins already ship goods from China and had the established relationship, thus why I choose them.  They weren’t that much cheaper than doing DDP with the manufacturer.  I've attached the bill.  So you can see all the required fees involved with international shipping.  Note that this is for five pallets and doesn't include the custom broker fee of $158.  Plus I got stopped at customs where they gave me the full pat-down (so ignore the two exam fees).