29.7 C
Tuesday, May 28, 2024
HomeLogisticsKey Logistics Consideration for International Freight

Key Logistics Consideration for International Freight

International shipping is the term used to describe a parcel delivery or group of parcel deliveries in which the parcel is taken from one country and delivered to an address in another. Many online sellers will offer international shipping to attract an audience that goes beyond the limits of the country in which they are selling in. Because of the number of resources involved to get a parcel from one country to another country, international shipping is typically a little more expensive than domestic deliveries.

Export Haulage

The transfer of the goods from the shipper’s premises to the NVOCCs origin warehouse is called export haulage. It is typically by means of truck or a combination of truck and train (rail), and typically takes from a few hours to weeks, depending on distance and geography. The responsibility for the arranging and paying of the export haulage depends on the agreement between the shipper and the consignee.

If the agreement is that the consignee has responsibility for the shipment right from the shipper’s premises, it is the consignee’s responsibility to arrange export haulage.

If the agreement is that the consignee takes responsibility anytime later in the shipping process, the arrangement for export haulage is the responsibility of the shipper.

Importing exporting
Image taken from https://publication.sipmm.edu.sg/wp-content/uploads/2018/10/Top-view-of-container-ship-importing-exporting-and-business-logistics-SIPMM-1280×720.jpg

Origin Handling

The unloading, inspection and validation of the cargo against its booking documents. Covers all physical handling and inspection of the cargo from receiving it at the origin warehouse till it is loaded on a ship in a container. There are many steps carried out under origin handling by many different parties, but all that is coordinated and the responsibility of the freight forwarder. The freight forwarder performing origin handling, it can be paid by either shipper or consignee, regardless of who buy the freight forwarding.

Image taken from https://publication.sipmm.edu.sg/wp-content/uploads/2018/10/Freight-Forwarding-by-air-sea-SIPMM-1280×720.jpg

Export Custom Clearance

The goods receive clearance to leave its country of origin. Customs clearance is a transaction whereby a declaration is developed and required documents are submitted to authorities. Can only be performed by companies holding valid customs licenses, so-called customs house brokers. The export customs clearance step must be completed before the cargo can leave the country of origin. The diagram below shows the international airfreight exporting procedures.

Forward Flow
Image taken from https://www.hh-express.com/jp/en/solution/forward/flow.html

Ocean Freight

Vessels are used to transport large or bulky quantities of cargo. It is a comparatively cheaper and simple alternative method. However, it is time consuming and not for time sensitive shipments. There are multiple surcharges levied in the industry, such as bunker adjustment factor and currency adjustment factor. The cost of the ocean freight will ultimately be charged to the shipper or the consignee.

Effective Delivery Operations
Image taken from https://publication.sipmm.edu.sg/8-p-effective-delivery-integrated-logistics-operations/

Air Freight

Aircrafts are used to transport cargo. This delivery method is best for goods that are required to be delivered quickly can be transported via air cargo which are not big or bulky. It is the costliest method but one of the fastest as well. Delays are common due to weather conditions playing a large role in productivity. Below diagram is the 7 steps process for air freight.

Air transport
Image taken from https://asstra.com/mode-of-transport/air-transport/

Land Freight

Land transport is movement of things from one place to another on land. Usually by rail or road. This is an inexpensive and readily available delivery method. Rail transport can be used if cargo is large and heavy enough.

Image taken from https://publication.sipmm.edu.sg/8-p-effective-delivery-integrated-logistics-operations/

Import Custom Clearance

The customs paperwork for your cargo will be checked by the authorities. Import customs clearance can typically begin before the cargo arrives at its destination country. Import customs clearance is performed by the freight forwarder or an agent of the freight forwarder. The import customs clearance process must be completed prior to the cargo leaving a customs bonded area in the country of destination. The diagram below shows the international airfreight importing procedures.

Image taken from https://www.hh-express.com/jp/en/solution/forward/flow.html

Destination Handling

Destination handling comprises several activities performed at the destination office of the freight forwarder. It starts with receiving documents from the freight forwarder’s office or agent at origin, checking the documents and submitting the original carrier bill of lading to the shipping line. The container is collected at the port and brought to the destination warehouse where it is un-stuffed, and the cargo is inspected and sorted either for onwards transportation or collection by the consignee.

The full content is only visible to SIPMM members

Already a member? Please Login to continue reading.


Abi Teh Ching Yee, DLSM. (2018). “Essential Strategies for Managing Freight Forwarding”. Retrieved from SIPMM: https://publication.sipmm.edu.sg/essential-strategies-managing-freight-forwarding, accessed 15/12/2019.

David Noah. (2018). “Eight Documents Required for International Shipping”. Retrieved from https://www.shippingsolutions.com/blog/documents-required-for-international-shipping, accessed 15/12/2019.

Econocaribe. (2013) “Export Shipping Process”. Retrieved from http://www.econocaribe.us/relocation/ExportShippingProcess.pdf, accessed 15/12/2019.

John Stuart. (2017). “13 Things You Need To Know About Freight Forwarding”. Retrieved from https://transporteca.co.uk/international-shipping-guide, accessed 15/12/2019.

Sivalingam Munisamy, DLSM. (2018) “The Eight P’s for Effective Delivery of an Integrated Logistics Operations”. Retrieved from SIPMM: https://publication.sipmm.edu.sg/8-p-effective-delivery-integrated-logistics-operations, accessed 15/12/2019.

Transporteca. (2017). “The 7 steps of international shipping”. Retrieved from https://transporteca.co.uk/international-shipping-guide, accessed 15/12/2019.

Vikneswaran Thevar, DLM. (2017) “Key Factors Impacting Transportation Logistics in Supply Chain Management”. Retrieved from SIPMM: https://publication.sipmm.edu.sg/key-factors-impacting-transportation-logistics-in-supply-chain-management/, accessed 15/12/2019.

Jenny Chew Pooi Yee
Jenny Chew Pooi Yee
Jenny Chew Pooi Yee has several years of experiences in supply chain practices, and specifically in third party logistics services sector. She holds the Executive Certificate in Supply Chain Management and is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Jenny completed the Diploma in Logistics and Supply Management (DLSM) on December 2019 at SIPMM Institute.

Most Read