The international shipping process can be cumbersome and daunting for importers and exporters, given the number of steps, participants, and documentation involved. These are some of the most common issues they may face: You’ve been handling this, and will then contact their overseas partner to arrange for the shipment. The overseas representative will, in turn, contact the relevant supplier and arrange for the export of the buyer’s goods. This will involve preparing for the international shipping process, which is required by customs.

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Documents that suppliers need to prepare

Packing List: The supplier will prepare a packing list that the freight forwarder will use to highlight all the information about the goods being shipped.

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15 steps of international freight forwarding 

Step 1: The importer requests a quote and orders the merchandise.

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Importer: The importer is the buyer, also known as the consignee.

• Once you send the quotation to the supplier, the supplier will send the document: Proforma Invoice
• Agree on shipping incoterms, incoterms are very important in international trade
• Incoterms are essentially the terms that allocate costs and risks between the buyer and seller when shipping. Essentially, they determine who is responsible for moving the goods from point A to point B. Common terms are EXW or FOB.
• Once the order is confirmed, the factory will schedule the product and check the ready date.
• Hiring a freight forwarder: To meet the required shipment schedule, the freight forwarder arranges the shipping route. This step includes not only the transportation costs from port to port, but also any surcharges imposed, such as currency adjustment factors, exchange rates , and so on.

Step 2 : Freight forwarder arranges export

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• Freight forwarding includes: booking, freight, customs clearance and documents. Now more and more business people hope that logistics providers can provide one-stop services.

Step 3 : The freight forwarder checks the cargo documentation:

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• Booking information/SI sent to shipping line/bill of exchange/invoice, packing list.vgm, co, certificate, if wooden packaging etc. required documents for smooth import of goods
• SI information includes shipper: shipper company, address, phone number.
• Consignee information: consignee’s company name, destination address, telephone number, and contact person.

Step 4 : Empty Container Pickup

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Pick up the goods 1 day before loading, check the container carefully, our driver will check the container quality

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• Pickup – The container is delivered to the supplier’s factory. Export Shipping The first physical step your goods take in the ocean freight process is called export shipping – when your goods are transferred from the original manufacturer’s or exporter ‘s warehouse to the country of origin warehouse .
• Origin handling : This step covers all physical handling, inspection and loading of the goods

Step 5 : Container arrives at the port and is loaded on board

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• The container deadline is the date by which containers need to enter the port. These containers are loaded onto a ship, from where they will sail to their destination country .

Step 6 : Container arrives at the ship – VGM is required and export customs clearance is released.

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A really big number of containers are being collected at the terminal, so the deadline must be kept as there needs to be enough time for loading and unloading

Step 7 : Lift the container onto the ship using a gantry crane

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Container weights are subject to restrictions on ships and ports. Typically, a container is limited to 25 tons, regardless of whether it is 20 feet or 40 feet.

Step 8 : B/L is issued when the container is loaded

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• The freight forwarder will issue the bill of lading to the shipper, who will send the original to the consignee via courier (such as DHL or FedEx)
• The consignee asks B/O to pick up the goods D/O

Step 9 : Export by sea

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• Sometimes ships are delayed due to weather or port congestion, but this is unhelpful.

Destination Processing

This involves the transportation and unloading of cargo from the port to the destination warehouse.

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Step 10 : Arrival Notification (A/N )

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• Before the goods arrive at the port, an arrival notice is issued and sent to the consignee. There are some fees for the arrival notice, such as THC (Terminal handling fee), D/O, DOC, etc., which the importer must pay.

Step 11 : Pay A/N and submit B/ L

Step 12 : Release D/ O

 

Step 13 : Import customs clearance

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• After the importer’s freight forwarder receives the payment, they will complete the customs clearance based on the invoice, packing list, company documents, etc. If there is no problem with the customs declaration, the customs will issue an import license. However, if not, an inspection is required. If the freight forwarder holds a valid license , they can handle the import customs clearance, which is handled by the customs broker designated by the consignee.

Step 14 : Container Release

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• Import transportation: obtain D/O and customs clearance, pay duties, and release the container.

Step 15 : Goods Delivery

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• The consignee can pick up the goods at home. The truck arrives at its destination, unloads the container, and returns to the port. The final step, actual delivery , involves the product being delivered to the consignee (the individual or company who handles the goods at the receiving end) and ultimately to the consumer. This concludes the delivery .

 

When shipping by sea, exporters can choose one of two modes of transport – Full Container Load (FCL) or Less than Container Load (LCL).

When a shipment occupies an entire container, it is called full container load (FCL). This mode is suitable for large quantities of goods that need to be transported by sea in the shortest possible time.

LCL shipping means fewer container loads. The process is the same, except that several customers’ orders are combined into one full container and shipped together.

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Other logistics and transportation process instructions

Export customs clearance

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Customs clearance involves the official declaration to the authorities and the exchange of necessary documents. This should be done in conjunction with a customs broker. Export clearance is typically required upon shipment departure from the country of origin, but if the freight forwarder does not perform this process, it may be required upon shipment arrival at the destination warehouse. Other authorized customs brokers are primarily appointed directly by shippers and are not involved in vessel formalities. Both types of clearance can occur.

Key players in the transportation process

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Importers determine when goods are needed within a reachable geographic area and identify the best global suppliers to sell to. Exporters: Exporters produce products based on customer demand or purchase needed products from them. Banks: Banks provide banking services, including mortgages, financing documents, and credit cards. Insurance companies can cover loss or damage to materials during the truck’s return trip due to accidents or other losses. Freight Forwarders: Freight forwarders act as agents for importers working with other parties.

Certificate

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Three important types of documents for shipping goods are the invoice, the contract or packing list, and the shipping documents. These are typically sent to the shipping company to prove the goods are awaiting delivery. A commercial invoice lists the price of the goods, their type, and the destination. A packing list is similar to a commercial invoice. For every document you need on this journey, a reliable and experienced shipping service is likely an important first step.

Your shipping schedule

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Knowing how long it will take to reach your destination can make a difference in managing your shipment. Keep in mind any issues that may affect the delivery of your shipment. Can products be imported from abroad? Can I get more information from them through my contact form?

Booking

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Once these documents are approved, the customer can then accept the export order at the supplier’s expense. There are many factors that influence the booking of cargo and it is often necessary, especially when the cargo needs to be transported on a crowded vessel.

Shipments to international warehouses/ports

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After the goods are packed, they are shipped to the shipping warehouse for export. Depending on the carrier terms, they can be agreed upon by the supplier or by the shipper through the freight forwarder. Export approval may also follow.

When you’re building a supply chain involving ocean freight, there are many decisions to make. A shipping company is a working ecosystem, with every cog in the wheel working in a symbiotic relationship. You must decide what’s best for your business, and the only way to make an informed decision is to be fully informed.

E-Chain Logistics ensures smooth transportation

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Online services have significantly simplified the shipping process. E-Chain Logistics aims to simplify it. We develop and distribute supply chain solutions for various key players in our international trade network.

E-Chain Logistics has been a freight forwarder for 20 years: a logistics and transportation service provider. Besides ocean freight, our freight forwarding also includes air freight. Connect with a trusted logistics provider now.

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