Manufacturers commonly ship large quantities of goods in containers aboard ocean freight vessels. Considered to be the most cost-effective option, demand for ocean container shipping has steadily increased over the years, thanks to the global expansion of supply chains.

Container shipping has evolved in terms of types of containers, the size of vessels, expansion of the kinds of shipping methods including door-to-door, door-to-port, port-to-door and port-to-port and advancements in technology including tracking and managing of freight in real-time.

This type of shipping is considered a reliable means of shipping. The reliability stems from the process required in loading goods into durable containers and then loaded directly onto trucks and then onto vessels. This process results in less handling of products and reduces the risk of damage during shipping. Also, this process ensures the most efficient loading of cargo ships, which can result in lower overall shipping costs when compared to other methods of shipping goods overseas.

Alba Wheels Up is here for your shipping needs.

Find a Freight Forwarder

A freight forwarder is responsible for the transportation of goods between one destination and another. The forwarder is knowledgeable in all things supply chain and can assist the Shipper on all levels, from the packing, any needed warehousing, acquiring capacity, and managing the customs process.

But not all freight forwarders are the same. Ask questions. Researching before choosing a freight forwarder will ensure that the Shipper’s goods get to their destination in a timely, cost-effective manner.

One of the most important things to consider is the importance of a good working relationship between the Shipper and forwarder. The Shipper wants a forwarding partner that they can trust and rely on, as well as one with strong customer service to ensure that cargo shipments arrive safely and on time.

Using a freight forwarder can be advantageous. Utilizing the forwarder’s knowledge and expertise will ensure that goods will arrive at the correct destination on time and save the shipper money in the process, compared to doing it alone.

Related: Alba Wheels Up Approach

Communicate Shipping Needs to Freight Forwarder

Once you have chosen a trusted forwarder, you should discuss your shipment needs.

A forwarder can assist in several ways, including packing of the goods that require shipment, temporary storage, inventory management, insurance, and financing of inventory, documentation, and customs clearance.

Also, understanding a forwarder’s value-added services such as dangerous goods handling or additional handling and management of temperature-controlled goods can be helpful if the Shipper requires such services.

Before loading the goods onto the vessel, the forwarder typically arranges the transportation of products from the Shipper’s facility to either the forwarder’s warehouse or straight to the port or airport for transport.

It’s also necessary to have all paperwork such as the bill of lading, commercial invoice, export packing list, and other required documentation completed early in the process. That reduces the risk of the shipment not being released from customs or the bank refusing to release funds for payment.

Upon arrival at the port, the goods need to be cleared for export. That includes having completed paperwork such as the export packing list, export license, and the bill of lading. The goods are unloaded, inspected, and validated against their booking documents.

Once approved and the goods clear, the items are loaded onto the vessel for transport. Throughout the voyage, the shipments are usually monitored in real-time. If any exceptions occur while in transit, the forwarder and/or Shipper will be notified so any necessary adjustments can be made.

What to Do When the Containers Arrive

Once the shipment arrives at its destination, shippers and their forwarders will need to be mindful of potential demurrage charges. If the importer has not taken delivery of the full container and moved it out of the port/terminal area for unpacking within the allowed free days, the shipping line levies these charges to the importer.

Knowledgeable forwarders will be mindful of these and other potential charges ahead of time. They will have created a process beforehand that efficiently handles shipments through the clearance process, including any temporary warehousing.  Once cleared, the forwarder will arrange transportation to its final destination.

Maintain records

(Make sure you have Commercial invoice, Bill of Lading contract, Certificate of origin statement, Inspection certificate, Export license, Export packing list, Shipper’s export declaration document, Understand Customs Brokerage. Mention that the freight forwarder will provide these documents)

Many required forms must be completed by or on behalf of the Shipper when shipping internationally.

Such forms include:

• Commercial Invoice – A proof of sale between the buyer and seller
• Bill of Lading – Lists the type, quantity, and destination of the carried goods.
• Certificate of Origin Statement – Certifies that goods in a particular export shipment are wholly obtained, produced, manufactured, or processed in a specific country.
• Export license – Allows the exporter to transport his product in a foreign market
• Shippers export declaration – Used for compiling the official U.S. export statistics for the United States and export control purposes.

 

If a form is incorrect, delays will occur either at the origin or destination. Financial penalties can also occur.

As noted previously, demurrage charges can occur. Some of the primary reasons for such charges are often due to the documentation being either incorrect or insufficient, the cargo received was not as per the sales order, or the forwarder did not receive the documents in time for customs clearance. Hence, it is wise to let an experienced forwarder fill out the required forms for the Shipper.

Once the shipment has arrived at its destination, it is still necessary to maintain a record of all forms by shipment in case a government entity or other organization has questions concerning a prior shipment.

Keep track of changing regulations

It is critical to keep track of changes in trade agreements between countries, specific country requirements, and port regulations. Failure to do so will result in shipment delays and financial fines.

Not all forwarders have the necessary expertise in such knowledge. One that does, however, is Alba Wheels Up, which is considered a major force in regulatory, compliance, and automation initiatives. The company’s Executive Vice President, Vince Iacopella, resides on the Advisory Committee on Commercial Operations of Customs and Border Protection (CBP). Also, prior and current leadership positions include (President) of the Los Angeles Customs Brokers and Freight Forwarders Association (LACBFFA) and President of the Pacific Coast Council of Customs Brokers and Freight Forwarders respectively.

Conclusion

Experienced and successful freight forwarders are those that can take lessons learned from prior shipments handled that quickly and efficiently manage issues that may arise as goods are transported. They work to get the best rates for shipping cargo as well as ensuring the shipment arrives on time.

But one of the most significant benefits of partnering with a freight forwarder is their customs skills and know-how. The global environment is continually changing, and sometimes just a tweet can set the wheels in motion for trade changes. The speed of knowing such changes helps speed up shipment compliance and clearance.

Shippers will not only have peace of mind that their shipments are in good hands with forwarders. The forwarders possess strong customs skills and knowledge, but the shippers will also benefit from individual consultation by these forwarders and understand how such changes impact their goods and shipments.

Alba Wheels Up is ready to get your goods to their destination.