How Does International Shipping Work? – A Detailed Guide for Businesses

If you’re shipping goods from one country to another, there are many factors to consider. You need to ensure that your company’s name is protected and that your goods arrive undamaged and within the stipulated time. For this process to run smoothly, businesses must understand how international shipping works.

In the process of global shipping, something that is imperative is hiring an oversea shipping company. International shipping has become easier and more convenient today because of these freight forwarding companies, compared to 10-15 years back.

This article will help readers understand how the whole process of overseas shipping works. 

The 4 Transport Modes used by International Logistics Companies

Ocean Freight

Ocean freight service is an economical, reliable, and secure way to transport large volumes of goods internationally. It’s fast too. With an average transit time of around 40 days, ocean freight service can get your goods to their destination within weeks – sometimes even sooner. 

The majority of consumer goods are shipped by sea. In fact, more than 90% of worldwide trade goes through ocean freight services because the cost is low compared with air transportation or trucking routes.

Air Freight

Air freight service is a fast and convenient way to ship goods. It’s often used for urgent shipments (like medical supplies) and delicate items that need special treatment. 

Air carriers handle nearly half of all international trade. This is mainly because it can be faster than ocean freight services, which take up to 30 days on average to reach their destination.

Rail Freight

Rail freight services are an excellent alternative for shipping your cargo. The main benefit is transit time, which can be as fast as three days. You’ll also save on shipping costs since rail freight is cheaper than air, ocean, and trucking services. 

Besides, these are more reliable than other modes of transport because they don’t require refueling along the way as planes or trucks do.

Rail freight also works well with heavy goods that need to move quickly and cheaply across long distances, such as coal, grain, and iron ore. In fact, rail moves more cargo than any other mode of transport. In 2017 alone, railways moved 15% more tonnage than all other modes combined.

Road Freight

International road freight service is one of the most economical and time-saving methods for shipping goods internationally. It also has several other benefits that make it a preferred choice among many businesses worldwide. These include –

• • Economical Shipping Cost: The cost of shipping by road freight service is much lower when compared to air or sea freight services.

• Low Shipping Risk: The risk associated with loss or damage to products during transit is less when compared with air and sea freight services.

In addition, statistics show that road freight services have been on an ascending trend in recent years, with more than 70 million tons being transported in 2011 alone. 

Departments involved in International Shipping

International shipping involves several departments, each with its role in the process. 

• Export Department: It is responsible for getting your product shipped overseas. This includes making sure that all of your paperwork is completed and in order, as well as packaging up your product so it’s safe during transport. 

• Import Department: It does exactly what it says on the tin i.e., receiving packages from international sources and processing them so they can be delivered to their final destinations. 

• Customs Departments: These are the gatekeepers. They check incoming goods to ensure they comply with local laws before allowing them into the country or rejecting them if necessary. 

• Regional Logistics Department: It manages transportation within a specific region (i.e., within one country), while shipping departments handle transporting goods across oceans and continents. 

Top 5 Steps Involved in Intercontinental Shipping

Export Haulage

Export haulage happens when a plane picks up your box from an airport and transports it to its final destination. This can be done using either air freight or sea freight services.

The first thing to understand about international shipping is that most of this process happens at airports, which are privately owned and operated by airlines.

After your package arrives at an airport in one country, it will need to be transferred onto another plane before being shipped overseas. If you want quick delivery times and affordable prices, the best shot is to hire a professional shipping company.

Origin Handling

The second step of international shipping is called “origin handling,” which refers to getting a shipment ready for travel. The carrier will assess the shipment and determine how much it weighs, its dimensions, where it’s going, etc., all while also determining if any special handling needs to be applied or if customs declarations are needed.

Export Customs Clearance

Export customs clearance is clearing goods for export from the origin country. It is a legal requirement to clear goods through customs before they are shipped overseas. Importing countries have different rules and regulations for importing goods, so it’s critical to understand these rules before shipping overseas.

Export Haulage

The next step is export haulage when a cargo ship transports goods from its origin country to an overseas destination. This is where you’ll want to choose your transport mode carefully and determine whether you want to hire a freight forwarder to help coordinate things.

Import Customs Clearance

Once the goods arrive at their destination, you will need to fill out an Import Customs Declaration Form (the same form you used to export goods). This form is filled out by a customs agent, who then files it with the local government office. Once your goods have cleared customs, they will be delivered or available for pickup from the designated facility. 

Verdict: Is it mandatory to hire a Logistics Company?

The entire process of shipping across two countries, states, or continents is complicated. However, when you hire an oversea shipping company, your company can ensure that the process is managed by professionals with full responsibility. A professional shipping service provider handles all the above steps to ensure your company’s goods reach their destination and, finally, to your customers in one piece.