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Frequently
Asked Questions |
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How should I Transport my Product ?
Transporting your products overseas
For goods exports, transporting your
product to an overseas market efficiently and competitively is
crucial. Using a good freight forwarder is very effective, but it is
also essential to understand the basics of shipping terms, pricing and
documentation.
Where do I start to learn about
shipping and service delivery?
Using a good customs broker and freight
forwarder is the most efficient way to ship your goods. These
companies are expert in documentation, freight rate negotiations and
finding the most economical way to get your product to the buyer.
Your product may be suited only for
ocean shipping or for airfreight. It is important to understand the
basic principles of both sea and air cargo as rates can vary when new
capacity is offered on trade routes and when new markets are serviced,
often with a range of intermodal services.
What do all these shipping terms mean?
Sea and airfreight have a well-ordered
series of conventions and these need careful study. A good starting
point is to learn what are known as INCO terms (International
Commercial Terms). Introduced in 1936 and modified since, INCO terms
are critical for the consignment and payment of goods shipped
internationally, and have precise definitions.
Letters of Credit (L/C) are a common form of payment, known as a
documentary credit, established by the buyer and guaranteeing payment
to the seller providing all the documentary terms of the instrument
are strictly adhered to. Your bankers will provide you with detailed
background information, essential for any exporter.
How do I negotiate the best freight
rate for my cargo?
Freight forwarders will provide you
with a range of options to find the most cost-efficient rate, but be
familiar with freight markets so you can gain the most competitive
rate.
Your overseas buyer will often specify the preferred option and this
could depend on ease of customs clearance at the port of discharge or
the frequency and reliability of sailing. Transhipment is a common
feature of liner shipping.
‘Hub’ ports such as Singapore, Hong Kong and Dubai distribute
containerised cargo to other ports by ‘feeder’ vessels. Make sure,
however, that the transhipment hub is efficient so your cargo does not
suffer delays.
Most freight forwarders have space and freight rate deals negotiated
with sea and air carriers.
What’s important is to locate a
forwarder who caters for your business profile – both in scale of
operation as well as geographic coverage.
Where do I find a freight forwarder ?
Follow
the link of freight forwarding companies.
For a comprehensive export guide, you can purchase The Export Handbook.
The handbook takes you through the practical aspects of exporting essential for both experienced and novice exporters. It covers Export Procedures and Documentation, Customs Export Regulations, Internet Commerce, Banking and Finance, Export Risk and Credit Insurance, Marine Insurance, Shipping and Air Cargo, Freight Forwarding, Export Packaging and Resources for International Trade.
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