3 Critical Questions To Ask Before Shipping Internationally

As the shipper, you probably know all there is to know about your product and shipment. You will know generally how you want things to go once your containers hit the water. But as most experienced freight forwarders will tell you, that’s the easy part. A TON of the hard work is done before the shipment even leaves the port. Maybe even most of the work. So what are the biggest tasks to deal with before you can ship a single container?  

We have a list of a few here that might be helpful to remember. 

What, How, And Where?

The first thing to keep in mind is probably what you are shipping, how you are shipping it, and to where. Depending on WHAT you’re shipping, the price can be wildly different for the same exact weight of products. Plus, it will also affect the kinds of paperwork you will have to fill out. Potentially dangerous shipments that contain anything flammable or chemical will take more time and effort to arrange. Similarly, you’ll need to decide whether to ship by air or sea. Air freight can be surprisingly affordable for certain types of merchandise, such as expensive electronics. And it’s much, much faster. That being said, most freight goes by sea, and you’ll get the best prices that way for the vast majority of products you might want to ship. As to where you are shipping, not only will the price vary between one location and another, but so will the regulations. Not only will there be restrictions on certain items and tariffs, but one item might be classified as a toy in one country and an electronic in another. 

How Much Do You Value Your Cargo?

If the answer is: a lot, then there’s only one answer… Insurance. Insurance. Insurance. Make sure your cargo is insured… and read the fine print! Many things can happen at sea and in port, and if you simply purchase the cheapest policy you can get your hands on, you may find that your cargo is not covered as well as you thought. For instance, most insurance only covers cargo when it’s being transported, not when it’s on land in the port. Yet horrific weather conditions can wreck havoc on your merchandise in port as well as sea. 

Who Is Paying What?

Doubtless part of your job will be negotiating with carriers and other freight agents. Some of the biggest (and messiest) situations come about when there are misunderstanding in the contract about who pays for when. Who is paying for the insurance, for instance? How is the cargo going to get to the port in the first place, and who is responsible for arranging and paying for that? Who is going to handle all the paperwork of getting your cargo through customs and clearing the red tape? Situations like this are best dealt with using INCOTERMS, which can clarify. If you want a quick way to generate these terms, you can use Catapult QMS. 

But even with these terms, misunderstandings happen, so make sure none exist between you and anyone in your logistics chain. What is YOUR biggest concern when shipping merchandise?

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