Freight forwarding is one of the most important aspects of international Forwarding trade. It’s what helps companies get their goods from A to B, and it can also be a great way for businesses to expand into new markets. But if you’re not familiar with the entire process, it can seem daunting at first: What does an import export contract even look like? What do I need for my shipping documents? How do I track my shipment once it leaves port or airport? Just how long will this take? Well, we’re here to help! In this blog post we’ll give you an overview of all 10 steps involved in making sure your shipments are handled correctly—and why they’re so important.
Step 1. The Import Export Contract
An import export contract is a legally binding agreement between the buyer and seller. This document details all aspects of the transaction, including terms and conditions, payment schedule and delivery dates. It also includes any warranties offered by either party as well as any indemnities or holdback agreements in relation to damage caused by goods being shipped from one country to another.
- What’s an Import Export Contract?
An Import Export Contract (IEC) is a written legal document used when importing/exporting goods into/from another country for commercial purposes; often referred to as “importing” or “exporting”. The IEC should cover every aspect of what’s being shipped including its value; weight; dimensions; composition etc., but most importantly its destination port(s) where it will arrive after passing through customs clearance procedures at various ports along its journey towards yours!
Step 2. The Freight Forwarder Quotation
The quote should include all the costs of your shipment, including freight, insurance and documentation. You should also be asked to provide the carrier with a copy of your bill of lading so that they can see exactly what you are sending them.
The quote should be in writing and easy to understand by both parties involved. It is important that both parties agree on every detail of their deal before it goes any further—this will ensure that there are no misunderstandings later on down the road when it comes time for payment or delivery!
Step 3. Preparing the Shipment
- Make sure you have the right packaging.
- Make sure you have the right documentation.
- Make sure you have the right labels and permits for your shipment, including customs regulations (if applicable) and any other legal requirements that may apply to your goods or services being exported or imported into another country.
- Ensure that all cargo is properly insured against loss, damage or theft before leaving home port with a reputable carrier like CargoControl Ltd., which can offer coverage up until 30 days after delivery at no additional cost beyond our standard rates as well as special discounts on international shipments going southbound through Mexico City airport!
Step 4. Freight Forwarder Documentation
The fourth step in the process is documentation. Documentation is required for customs, insurance and other parties involved with your shipment. Documentation can be provided by a freight forwarder or through the shipper themselves (such as a letter of credit).
The importance of good documentation cannot be stressed enough; it’s what allows you to avoid delays at customs, which means avoiding fines and penalties when getting into another country safely.
Step 5. Freight Liability Insurance Coverage
The next step in the process is to purchase a liability insurance policy. This covers your company’s liability for any injuries or damages caused by its employees, contractors, and independent contractors.
There are many different types of freight forwarders that offer different levels of coverage for this type of expense. Some insurance companies will provide you with a basic policy that only covers up to $500 million per accident; however, if you want more protection than this then it may be worth looking into some additional options available from an independent agent or broker (i.e., one who works outside their normal business). The best approach is often hiring an agent who has experience selling these kinds of policies on behalf of other companies so they can give recommendations based on their experience dealing with similar situations in the past—and ultimately save time when filing claims later on down the road!
Step 6. Freight Pick-Up and Transport to Port or Airport
Now that you’ve received the shipment, it’s time to pick it up. You can do this at a port or airport. Make sure that your freight forwarding company has a partner in place who will operate their own shipping line on behalf of your business. This way, when you make arrangements with them for transport, they will be able to deliver the goods on time and without any delays or additional costs!
It’s also important for them to handle all aspects of delivering shipments safely so that no accidents happen during transit—you don’t want something happening with one person’s carelessness causing damage elsewhere in their operation (or yours).
Step 7. Customs Clearance, Transit and Storage
Once you have successfully exported your goods and have received payment, it’s time to move on to customs clearance. This is a critical step in the process that can lead to delays or even rejection if not handled correctly.
The first step in customs clearance is determining which country will handle it: either the country where you started your importation process or another one (such as New York). In order for this process not only be efficient but also cost effective, you should consider hiring an international freight forwarding agent who specializes in customs clearance services. These agents will identify all relevant information about how long each country takes for their processes before proceeding with anything else; this allows them make sure everything goes smoothly so there aren’t any delays caused by mistakes made during this stage alone!
Step 8. Booking the Carrier Vessel or Aircraft
Once the carrier has been selected, you will be able to book the vessel or aircraft.
The shipping cost depends on the type of transportation used and its distance from your home port to your final destination. The most common methods include:
- Ocean transport: A ship travels across open water until it reaches its final destination (like New York City). This type of shipping costs more than airfreight because there is no third party involved in transferring goods between locations via air cargo or trucking companies or warehouses that can be accessed through various channels such as railroads and highways.
- Airfreight: Airplanes carry cargo from one point to another by flying at high altitudes above landmasses, thereby reducing friction with terrain along their route (which reduces fuel consumption).
Step 9. Freight Tracking and Monitoring
Freight tracking and monitoring is essential to the successful completion of a shipment. You can track your shipment online at any time, or you can call the freight forwarder. If there is an issue with your shipment, such as damage or lost packages, then you will want to look at the contract that was signed between both parties for more information about what is covered in terms of damages and other problems with shipments.
Step 10. Freight Delivery Destinations and/or Transfers of Ownership
Now that the shipment is ready to be delivered and all of your paperwork is complete, you can go ahead and finalize your transaction with a freight forwarder.
If you’re paying by check or wire transfer, they will need to receive payment before they deliver your cargo. If this is not possible for whatever reason (i.e., if there was an error made on their part), then they will require payment in full before sending out anything else—including documents related to customs clearance and insurance policies if applicable.
These 10 steps will help you make sure your shipments are being handled correctly!
- Declaration of Origin
- Import Documentation
- Carrier Selection and Transportation Documents (e.g., bill of lading, air waybill)
- Freight Forwarding Documents (e.g., customs clearance documents)
- Customs Clearance Documents
7 Freight Forwarder’s Shipping Instructions (if applicable)
As you can see, the process of international freight forwarding is fairly simple. This guide will help you get started on your own journey as an exporter or importer. Just remember that, at the end of the day, it’s up to you to make sure that everything goes smoothly!