Comprehensive guide to international shipping

International shipping is a method of transporting goods, usually by sea routes, not other means of transportation like roadways and airways. This is the most important reason for increasing the value of the goods.  International cargo shipping has been the leading means of transportation for many years. 

With the rapid growth of e-commerce, many smaller businesses now require international transportation. This article will teach how international shipping works and what documents are required.

How does international shipping work? 

The international shipping process typically involves several key steps, outlined as follows: 

1. Order placement: The most crucial part of the shipment procedure is placing the order for domestic or international shipping.
2. Document preparation: Before the goods reach their designated destination, the exporter needs to prepare various documents, including a bill of lading, invoice, and packing list. 
3. Order fulfillment: You and your partner must complete and attach the shipment label. If you ship your parcel internationally, you must complete the customs form.
4. Order export: The orders are categorized by the target country and delivered by air, land, or sea to a further country. Your choice of shipping option will depend on your budget and the desired delivery timeframe.
5. Order import: When the shipments arrive in the destination country, they must clear all the customs. Upon arrival, customs officers who will be appointed will scan your shipments. They will determine the tariffs, taxes, or fees that the recipients now owe based on their monetary rates and contents. 
6. Notification about delivery: The receivers will be notified about the availability of delivery or pick-ups and pending payments of the final fees. While some international shipping companies may pay these costs in advance to speed up the customs process, the parcel will not be delivered until the consumer makes the goods on their debt.
7. Last mile delivery: As the name states, this is the last step in the logistic chain for imported goods. Once the shipping container clears all the customs, it will be shipped from the warehouse to its final destination.
8. Pickup and return procedures: Your receiver partner will be notified of the notification regarding the availability of delivery or pick up & pending payment of overall fees. 

What documents are required for international shipping? 

Shipping documents are essential for transporting an item from one destination to another. International shipping documents contain applicable records, forms, and certificates that provide particular information about the item being shipped. 

This may include parcel description and specification, quantity, price, shipment date, delivery address, and shipping method. Some primary documentation includes: 

1. Airway Bill (AWB): The Airway Bill, also known as the Air Cargo receipt, is a critical and non-negotiable document the airline provides. It serves as a contract of carriage between the shipper and the carrier while highlighting the terms and conditions of the transportation. This AWB includes information such as the origin and destination, description of the parcel, shipper and consignee’s details, weight and dimensions of the shipments, terms and conditions of the carriage, fees, etc.
2. Commercial invoice: This is an important document issued by the exporter to the importer as evidence of the sale transaction between them. It includes order details with the number and PO (Purchase Order) number, brief information on the buyer and seller, all payment information, shipping line, parcel description, quantity, country of origin, total weight, shipment terms, item value, etc.
3. Export packing list: This list contains an item list of all the goods, including a shipment and important details about each item. This document is used to issue other important documents, such as a bill of lading (B/L) and a letter of credit. It includes the order date, shipping address, contact info, safety standards, etc.
4. Certificate of origin: Most international shipments require a certificate of origin to declare where the items originated. It includes the name and address of the shipper and buyer, the exporting carrier, the country of manufacture, the export date, and the authorized personnel's signature.
5. Shipper’s letter of instruction: This document contains specific instructions on successfully managing international shipping. It includes details like the shipper's name and contact information, details about the items that were previously shipped, type of packaging, special handling requirements, insurance information, exporting restrictions (if any), insurance information, and documents included in the shipment.
6. IEC code: The IEC code is a unique identification number issued by the country’s shipping container trading authorities to exporters and importers. This code is essential and used for shipping documentation during customs clearance, shipping, bank transactions, and international trade transactions. The IEC Code helps track and trace goods shipments and enables the government to regulate and control imports and exports. 
7. Letter of credit: This is a popular mode of payment for international transactions. It is a legally binding commitment, typically irreversible, in which the bank guarantees payment to the seller on behalf of the importer or buyer.

International shipping of containers can help logistics businesses operate globally. It allows quick delivery of goods and supplies, supports economic growth and sustainability, minimizes costs, and enhances efficiency. This can enhance their reputation and build trust in the market.

LOTUS Containers is the leading container supplier company. They provide different types of containers for shipping, whether international or domestic. Contact LOTUS Containers for more information.