Common shipping procedures that companies observe
When shipping goods from one part of the country or world to another, the exporter needs to take measures to ensure the cargo arrives to its destination safely. At the same time, the shipping company needs to observe some basic, yet important safety procedures.
Some of these requirements include proper insurance, packing, documentation, and labeling of products. As the good move through unknown carriers to customers far away, the person or company shipping them must follow the following procedures.
Ensure the goods are packed appropriately so that they arrive in the best condition possible. For example, hazardous goods such as drugs, chemicals, and fertilizer must be packed in bags separate from goods meant for human consumption.
Ensure the packages are labeled well to guarantee safe and proper handling. All fragile goods and packages must be labeled as so. Proper labeling ensures that people in the shipping process do not deliver goods to the wrong addresses.
Ensure that the packages have undergone proper documentation. Here, local governments and foreign authorities have laws for taxation of the shipped products. At the same time, authorities and regulators must approve the goods for standards and quality.
Ensure the goods have proper insurance. If an accident or an incident was to happen midway, the owners of the goods know that they will be compensated. At the same time, the person or company to whom the goods are delivered can claim for compensation if the goods arrive late or in a poor condition.
The role of freight forwarders
As new companies may not be familiar with the standard shipping procedures, they rely on the help of freight forwarders. At the same time, experienced manufacturers may not have the time to be acquainted with changing shipping regulations.
For this reason, a freight forwarder acts as the agent between manufacturers and companies receiving goods at the other end. These professionals should be thoroughly familiar with export and import rules, procedures, regulations, documentation, and safety measures. They can help in drafting price quotations for the exporter.
Freight forwarders have the knowledge to handle an order from the beginning. For this reason, they can advise the company exporting on emerging trends, and costs involved. Common shipping costs include port fees, freight charges, consular fees, insurance and special documentation costs.
Clearing and forwarding personnel also advise exporters and importers in the packaging of goods under transit. There are two common options here. An exporter can either have the merchandise packaged at the port or put into containers directly.
When orders are ready, freight forwarders review packing lists, commercial invoices, and credit letters to ensure they are in the right order. If the exporter desires additional services, a forwarder can reserve space on the ocean vesse