Step 9: Forwarding Freight


Many first time exporters use a freight forwarder to help them with international inspections and export documentation. Freight forwarders are experienced in rules and regulations of importing countries, methods of shipping, export regulations, and completing documents in a timely manner. It is the responsibility of the exporter to hire a freight forwarder; importers rarely (if ever) do this. The freight service starts from coordinating shipment at place of production to completing trade documents.

Step 9.1: Service

Freight forwarding not only provides shipping, but also offers export consulting services. For example, at the beginning of a sale, a freight forwarder could advise exporters on freight costs, port charges, consular fees, and costs of special documentation, insurance costs and handling fees. This information is useful to prepare an accurate price quotation to foreign customers.

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Step 9.2: Expediting Shipments &; Payments

Freight forwarders coordinate the shipment from the exporters farm or plant according to the shipper’s letter of instructions. The freight forwarder works with carriers, completing export documentation, arranging cargo insurance, packaging and labeling, and export clearance. Furthermore, freight forwarders could process required documents for export payment.

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Step 9.3: Selection Criteria

Consider the following when choosing a freight forwarder: transportation method, payment method, destination country, and experience with your product. This last point is important in that some freight forwarders may have a lot of experience with a particular market, but they may not be familiar with the intricacies of your product or its regulations. Of course, the price charged by the freight forwarder is important as well.

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Disclaimer:

 This manual is a demonstration based on interviews of successful exporters. Each individual case is specific and optimal strategy may differ from those discussed here. References to sources and documents outside of WSU Extension and the IMPACT Center are for reader convenience. WSU does not review, control, or take responsibility for their content, nor does WSU or any person therein explicitly or implicitly endorse the positions or policies of these sources.


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