How is shipping internationally different than shipping domestically?

While there are a lot of similarities between shipping domestically and internationally, there’s also a world of difference between the two.

 

For manufacturers that are looking to enter into the global market, understanding these differences are important and can be a big wakeup call if you are not prepared. Often, these differences have to do with transportation fees, paperwork, as well as several other barriers such as language and customs. Understanding these differences not only gives you an upper hand in the global market, but also can prevent many logistical nightmares that come with international shipping.

Transporting Goods
Shipping domestically is fairly straight forward, and is typically done via rail or over the road. However, when you’re shipping internationally, there are many more factors to consider. Not only will you have to factor in a higher cost of shipping and longer transit times, but also the international trade regulations for both countries that will impact the process. Failure to comply with these regulations is not only costly, but the fines and penalties for breaking them can offset any profitability of operating in foreign markets. Because of this, it’s important to make sure that the goods, method of shipping, and documentation are both in order and compliant with these regulations to avoid potential delays and fines.

Additional Fees
Another thing to consider in the differences between domestic and international shipping is the taxes, tariffs and fees that come with it. When shipping domestically, these fees tend to be minimal. When shipping to a different country, however, there are a much wider array of expenses that need to be considered, regardless of how the freight is actually being shipped (land, sea or air.) It’s important to understand the various fees, taxes, and charges associated with international shipping and make sure your prices are adjusted accordingly.

A Difference of Interpretation
This a common, yet easily forgotten, issue when it comes to shipping internationally. Domestic shipping doesn’t (typically) face the issues and barriers that come with working with a foreign country. It’s beyond important that both parties understand the customs and languages of one another to avoid potential misunderstandings when conducting trade. This aspect alone can greatly increase the complexity of the paperwork involved when coming to an agreement, which is often why a mediator is suggested. Yet another barrier to overcome is the rate of exchange between differing currencies. It’s important that both parties understand what the current exchange rate is when brokering a deal. While shipping domestically is certainly easier, it limits the range of your company.

Exposure to the global market not only provides exponential opportunities for growth, but increased profit as well. This potential is not without risk, however. There are many pitfalls you should be aware of, as international shipping becomes more and more complex. Having a good understanding of these complexities, as well as paying careful attention to the processes required will help to prevent these pitfalls.

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