If your business involves the importing/exporting of goods and products abroad, you will more often than not need a shipping company in your corner. Most companies will need a third party service to help them with the shipments, but do not know where to start.
There are different sorts of shipping services that is dependent on what you need. If you are a company dealing with cargo, then you understand the importance of proper freight management. Fortunately, there are many freight companies available today to handle all your cargo needs. Before hiring the best company to handle your cargo, whether, by sea, air or road, there are questions you should be asking yourself, especially if you are newer to the services. Below, we will explore these 10 most common questions and they will act as your guide to choosing the best services every time to favor your business needs.
1. Can the company handle your products right?
This is one of the most important considering that some goods are more fragile, delicate and perishable than others. Some require special handling during transportation. Good freight companies will have all the relevant tools of the trade to accommodate your product needs, but great freight companies will even provide specialized handling based on your shipment. Be sure to do the due diligence and contact the companies beforehand for your products.
2. What is a Container Yard (CY)?
A Container Yard (CY) is a place where both empty and loaded containers are accepted to be loaded onboard. At CY’s, containers are also stored and off-loaded at this facility.
3. Can the freight company handle all your global needs?
As an extension of the first question, this one covers the global business needs. A good company should be large enough to cater to your service needs. With many shipping services provided, such as land, sea, and air shipping, freight companies will have the tools and resources to deliver your items. However, the secret is to settle for a company you are sure can accommodate your needs all through or find you a reasonable alternative especially, rather than looking into multiple companies.
Question is…does your company need freight forwarding services? Check out our other article on how freight forwarding works, and how it can help your company.
4. What is “FOB”?
FOB stands for Free on Board. FOB is an indicator that shows when ownership of a package is transferred from a seller to the buyer. However, in international shipping, FOB stands for “name of originating port”. This shows the transportation of the goods and the cost of loading to the port of shipment.
5. Do freight companies have good global agent networks?
Most companies will, but you want to be able to sit down with them and map out the route and players with your shipment. This is important considering that your goods could be moving from one destination to another, and that they may be in different hands before they can reach their final decision. The smooth process will for sure give you peace of mind all through.
6. What is “Live Load” and “Drop and Pick”?
Live Load – An international transportation company’s driver will arrive at your location to secure and seal your shipment. Then they will transport the items to the shipping dock and thus begins the freight shipping.
Drop and Pick – An international transportation company’s driver will deliver a shipment container to the loading point. Then they will wait a few days, return to the container, load up, and bring the shipment to the destination.
7. Do the freight companies have cargo insurance?
This is another question you must ask your intended provider. Most freight companies will have insurance because this is a must for them, especially because if client goods are damaged, there needs to be reimbursement for the items. With cargo insurance, you know that your business will not end up suffering if some awry were to happen.
Click here to read more about What You Should Know Before Selecting a Third Party Logistics Company!
8. What are the necessary shipping documents used in international shipping?
The international shipping experts at freight companies will most of the time look at these following items:
- Sea Freight Price Quotations
- Booking Confirmations
- Shipping Instructions
- AES ITN on US Shipper’s Export Declaration
- Dock Receipt
- Valued Packing Lists
- Insurance Certificates
- Freight Invoice
- Sea Freight Bill of Lading
9. What do they mean by SED (Shipper’s Export Declaration)?
A U.S. shipper’s Export Declaration is a standard United States government form required for all U.S. exports with commodities valued from $2,500 or more. However, this has since been replaced by the Electronic Export Information form (EEI).
10. What is Ocean Freight?
There is some freight that is shipped intercontinental and transported via containers in sea vessel. This is rarely the only component to international shipping, however. Transportation of the freight to and from container yards at the ports of origin and destination is provided by trucks and are not part of an ocean freight charge.
At Mach 1 Global, we deliver on our promises when it comes to the export of goods, both on a national and international scale. To contact one of our offices to see if we are what you are looking for, please visit our contact page and give us a call or email to a location near you!
The content written in the blog provides general information and discussion about freight forwarding, transport management, and logistic services. The words and other content provided in this blog, and in any linked materials, are not intended and should not be viewed as facts, but rather what we believe about the topic. If the reader or any other person has a concern related to the contents of this piece, please be sure to contact us here.
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