There are five physical steps and two documentation steps in the transportation process from shipper to consignee, which must be completed for each shipment。Each step has associated costs and must be addressed by someone (usually the shipper or consignee)。If you want to avoid unexpected costs and unnecessary delays in your supply chain, make sure you clearly agree with who pays for each of the seven steps each time you order goods。
Seven steps: export consignment, origin processing, export customs clearance, sea transportation, import customs clearance, destination processing and consignment import。
If you are unsure, consult the contract between consignor and consignee。In the case of the sale of goods, the transfer of liability for the goods is usually stipulated in the contract, which is the source of determining who pays how much。
1.Transport exit
The first part is export transportation。This requires the carriage of the goods from the consignor to the place of business。If less than the container is loaded, the location of the freight forwarder is always an export consolidation center (warehouse of origin), which has its own personnel or designated agents。Goods by road (by truck).Rail or intermodal transport。If it is agreed that the shipper is responsible for this part of the transport, it is usually arranged by the local transport company。However, it usually makes the most sense to use the ability to act if the consignee is responsible for itInternational transportPart of a transport agent。
Processing (loaded) at the shipper's location (loading to truck) is not considered part of export transportation, as unloading trucks at the freight forwarder's location is generally not part of export transportation。
2.Export clearance
Every piece of goods leaving a country must go through customs to meet regulatory requirements。Customs clearance is a transaction in which only a company with a valid customs permit (the so-called customs broker) can formulate a declaration and submit the required documents to the authorities。
Exporters can do this through a freight forwarder with a valid license or an agent appointed by the freight forwarder。Another method is to be carried out by a customs agent directly appointed by the consignor, who is not necessarily involved in any other part of the shipping process。The steps of export clearance must be completed before the goods leave the country of origin, otherwise they must be completed before the goods are shipped out of the country of origin, which usually needs to be completed before the goods enter the warehouse of origin of the transport agent。
3.Origin treatment
Source management includes the physical handling and inspection of all goods received from the warehouse of origin until they are shipped to the ship。Many steps are performed by many different parties under origin processing, but these steps are coordinated and responsible for the freight forwarder or agent appointed by the freight forwarder。Simply put, after receiving the goods, they are inspected (counted), planned for shipment, combined with other goods, packed in containers, moved to the port, and then loaded on board。
While the final freight forwarder always handles the origin, the person who actually buys the freight forwarder can be paid by the shipper or consignee。For example, the consignee decides to use forwarder A to import the goods, and reaches an agreement with the shipper that the shipper must pay the origin fee, and the shipper will automatically purchase the origin fee from the forwarder A。If the shipper believes that the price of the origin processing is out of line with the market level, there will be some friction, because in this case, they are forced to use forwarder A。
4.海运
The forwarder decides to select a transport company to complete the sea transportation from the departure point to the destination in order to meet the schedule of shipping requirements。The freight forwarder and the shipping company signed the container transportation contract, the shipper and the consignee will not have direct communication with the shipping company。
The freight is ultimately borne by the shipper or consignee。But from port to port, ocean transport is never the full cost。There are many types of additional charges imposed by industries, such as fuel adjustment factor and currency adjustment factor, which are passed on to the shipper or consignee。
5.Import clearance
Import clearance can usually begin before the goods arrive in the country of destination。In the case of export customs clearance, a customs declaration should be prepared and submitted together with the relevant documents to enable the competent authorities to register the goods and collect any duties。The customs agent designated by the importer or the consignee of the goods for import customs clearance。
The import clearance procedure must be completed before the goods leave the bonded area of the destination country。Generally speaking, this refers to the goods from the destination warehouse out of the freight forwarder or freight forwarder before。
6.Destination processing
For the origin, it is also necessary to load the goods at the destination and then deliver the goods to the consignee。Simply put, destination processing includes the transfer of containers from the ship to shore, and the transfer of the destination warehouse from the port to the freight forwarder。It also includes unloading containers and preparing goods for collection by the consignee。
A truck used to transport less than one container load
Destination processing involves multiple destinations and is always the responsibility of the freight forwarder or an agent appointed by the freight forwarder。Charges may be made to the consignor or consignee, but must be paid in full before the goods are delivered to the consignee。Similarly, if the agreement is that the shipper pays the sea freight and the consignee pays the destination cost, in effect the shipper decides from whom the consignee must pay。Doing so may cause some unreasonable friction or surprise to the consignee when it comes to the cost of origin。
7.Transport entry
The last stage of shipment is the actual delivery of the goods to the consignee。It can be handled by the freight forwarder or local transport company designated by the consignee。If this part of the transport is arranged by the shipper, it usually makes sense to use a freight forwarder who can also arrange the import transport。Imported goods usually include transportation to a specific address, but do not include delivery of goods by truck, which is the responsibility of the consignee。