Packing, Shipping & Handling for Import/Export

Articles > Packing, Shipping & Handling for Import/Export

Packing, shipping and handling considerations

Gone are the days when merchants would gamble their fortune and their futures on a shipment of goods. The modern trading systems have more or less eliminated risk from the transport equation. However, getting the goods you are trading from A to B could cause a lot of logistical problems if you don't know your pallets from your bonded warehouses. Like most transport operations, the process of shipping, handling and packing need a little extra care when crossing borders, so before you begin importing or exporting goods, it is a good idea to talk to the people who know.

The experts in this area are companies called freight forwarders. It is probably best to look for accredited freight forwarding companies. An official accreditation gives you peace of mind that the job is being handled professionally. They will advise you on which is the best, most cost effective method of transport. The main choices here are obviously sea, air, road or rail and there are major cost implications depending on which shipping method is appropriate. Can you afford to wait for the slower but cheaper sea freight or can you justify the cost of shipping by air? It is also vital to work out who is paying for this, you or your trading partner (see the terms of agreement section for more details on who is expected to pay for what).

Once you have decided how you are going to transport the goods, the next step is to look at the packaging. Freight companies strongly prefer that the goods to be carried are dispatched in standard units, for example the ubiquitous containers, or for smaller shipments, there is a standard sized pallet. Check out some competitive prices from freight forwarders, some will charge by weight, others by volume and for some types of goods this can be a key factor. Another important question to consider is - who packs the goods? Are you or your trading partner confident that the packaging you can prepare is appropriate for the journey and meets the requirements of the Customs? With the growth in world trade has come an increased number of shipments damaged in transit and poor packaging is almost always the culprit. It is vital to ensure for example that each container is completely full so as not to allow movement within the container during the voyage.

A related issue is insurance. As well as damage in transit, a small amount of cargo is inevitably lost in transit. However, insurance is available at typically 4-5% of the total declared value of the shipment and with a number of carriers, this type of cover is an obligatory requirement.

Once the goods have reached their destination, there is a whole new set of variables concerning customs. You can choose to place the goods in a customs warehouse where the shipment can wait until you are ready to pay the duty. If you wish the goods to be immediately available, there is likely to be some delay while the cargo is processed by customs and it is as well to be prepared for this.

The packing, shipping and handling side of international trading is not a complex business but it can have a disproportionate affect on the bottom line if you get it wrong. Many experts recommend trying out a test shipment to make sure that everything goes well.


Go Back To The Articles Page