/ By TJ China Freight / Cargo • China Freight News • Logistic

How To Choose The Right Shipping Method for Your Business

Among various modes of transportation, how to choose an appropriate mode of transportation is an important issue in logistics rationalization. Generally speaking, it should be determined from the service level required by the logistics system and the allowable logistics cost. Either one shipping method or an intermodal shipping method can be used.

 

When deciding the mode of transportation, the following five specific items can be carefully studied and considered on the basis of considering the specific conditions:

(1) the variety of goods;

(2) the transportation period;

(3) the transportation cost;

(4) the transportation distance;

(5) ) to ship in bulk.

Regarding the variety, nature, and shape of the goods, it should be explained in the packaging item, and the transportation method suitable for the characteristics and shape of the goods should be selected, and the affordability of the goods should also be carefully considered.

The shipping period must be linked to the delivery date, and the shipping time limit should be guaranteed. The transportation time required by various transportation means must be investigated, and the transportation means should be selected according to the transportation time. The order of transportation time is generally air transportation, automobile transportation, railway transportation, and ship transportation. Each means of transport can be grouped according to its speed to arrange the schedule, plus the operation time of its two ends and transit, the required transportation time can be calculated. In commodity circulation, it is a basic requirement to study the status quo of these transportation methods, carry out planned transportation, and hope to have an accurate delivery date.

The transportation cost varies with the type, weight, volume and distance of the goods. Moreover, the transportation cost will vary depending on the means of transportation. When considering the transportation cost, it must be noted that there is a mutually beneficial relationship between the freight and other logistics subsystems. The transportation method cannot be determined only by considering the transportation cost, but the total cost.

From the perspective of transportation distance, in general, the following principles can be followed: within 300 kilometers, transport by car; within 300 to 500 kilometers, by rail; more than 500 kilometers, by ship. Generally, this option is more economical and reasonable.

Let’s look at the impact of transportation batches. Because the transportation cost of large batches is low, the goods should be concentrated as close as possible to the final consumers. Selecting appropriate transportation means for transportation is a good strategy to reduce costs. Generally speaking, commodities under 15 to 20 tons are transported by automobile; commodities over 15 to 20 tons are transported by rail; commodities such as raw materials over hundreds of tons should be transported by ships.

Pay attention:

  1. Due to the imbalance of development between countries, the logistics method that can be selected in one country may not be adopted in another country due to the lack of the necessary infrastructure to adopt this method. In the selection, if this problem is not considered, it is impossible to form an effective logistics system.
  2. In international freight, I hope that through the above introduction, I can choose the appropriate freight method according to the actual situation of my goods. To save the cost of international freight, improve the timeliness of international freight, and ensure the safety of international freight.
  3. Generally speaking, the shipping time is long and the cost is low. If it is a cargo with a large volume or weight and a low value, it is more suitable for shipping by sea. On the other hand, for goods with smaller volume or weight and higher value, air freight can be considered. Although air freight is higher, the transit time is also shorter, and the business can be completed more efficiently and profitably.For example, if you have a valuable shipment of jewelry that needs to be shipping from China to USA, the best way to do this at this time is by air.
/ By tjchinafreight ivy / Shipping

Top 5 ports in Colombia

Top 5 ports in Colombia
Top 5 ports in Colombia

The Republic of Colombia occupies mostly South American territory, but also has some territory in North America. It has some of the finest emeralds and tropical landscapes in the world and is home to some of the most lucrative ports on the Caribbean and Pacific coasts. These ports facilitate trade and commerce with North American and other Pacific nations, as well as their South American counterparts. Colombia is the only country in South America with access to the Pacific and Caribbean trade routes.

Here are the top five ports in Colombia:

Puerto barranquilla

Located near the mouth of the Magdalena River along Colombia's Caribbean coast, the port is one of the most modern liquid bulk facilities in the county. The Palermo Tank Terminal is located on the port premises and has a capacity of 352,000 barrels of refined oil and crude oil.

The terminal has two storage tanks, infrastructure for easy loading and unloading of bulk liquids, and a dock for handling ships. The long-term vision for the port is to hold 2.5 million barrels of liquid substances, from bitumen to petrochemicals and vegetable oils.

Port of cartagena

Locally known as the Port of Cartagena, but officially it is called the Port of Cartagena. It is home to large cruise ships that transport passengers to the city of Cartagena, as well as larger ships carrying general cargo and other import and export cargo. As the fourth largest port in Colombia, it has the capacity to handle 80% of the region's imports and 60% of its exports. The agricultural activity in Colombia's Murcia region is intensive, providing more than 2.5 billion euros worth of fruits and vegetables, most of which pass through this port.

The port has two main terminals, 1.5 miles from each other by sea and 5 kilometers by road. The marinas are Escombreras and Cartagena. Because the port is a deep-water bay and is not affected by wind, currents are weak. It has the Compas terminal in the El Bosque district and the contecar terminal in the Ceballos district. Both handle dry bulk, liquid bulk, containers, breakbulk and some cruise traffic.

Puerto santa marta

The port is operated by the Santa Marta Ports Association and is located on Colombia's Caribbean coast. It consists of seven terminals and provides rail services to facilitate the loading and unloading of goods through the port. It is Colombia's main port on the maritime trade route to the Intra-Atlantic.

The port handles many types of cargo, from palm oil to fuel and carbon as well as grains and containers. One of the port's greatest strengths is its ability to cater to post-Panamax carriers with high cubic cargo. In terms of bulk cargoes from Colombia, the port has the third highest traffic volume.

Puerto tumaco

The Port of Tumaco is located in the city of Tumaco on the Pacific coast. The premises have berthing facilities to handle dry and liquid bulk cargoes passing through the port. It also has a marine terminal that handles the country's exported crude oil. The port of Tumaco is well connected by road and plane to the surrounding area, including the Colombian capital, Bogota and the western city of Cali.

Bananas grown in the Pacific lowlands enter the port for export, but are mainly used as a terminal for crude oil from the Putamayo field, about 160 kilometers southeast of the port. It is also a major fishing port promoting the export of tuna and sardines. The nearby airport makes it a popular port for importing delicate, time-sensitive goods and products as they reach the hinterland faster.

Puerto buenaventura

This is a seaport in front of the Columbia Pacific Ocean. It also happens to be the country's main port of call in the Pacific region. The port, also located in Tumaco, is a veritable "good luck" that has been a boon for the Colombian economy due to the volume of bulk cargoes it handles. The Port of Buenaventura has direct trade routes to Asian markets, which are starting to become as lucrative as the U.S. and European markets.

The port generates 27% of Colombia's total customs revenue. It is able to attract investment and trade because of its proximity to Mexico and Chile, and access to markets in Southeast Asia and beyond. Considering the city was once one of the deadliest due to the widespread cocaine wars in the port, the rebranding of Buenaventura into a growing center of trade and commerce is impressive.

/ By tjchinafreight ivy / Shipping

What are the main exports and imports of the Dominican Republic?

What are the main exports and imports of the Dominican Republic?
What are the main exports and imports of the Dominican Republic?

The main export of the Dominican Republic

1. Cocoa Beans

The country produces two types of cocoa beans: Hispaniola and Sanchez. Hispaniola accounts for only 4 percent of the country's cocoa exports. The remaining 96% is occupied by the Sanchez variety. In recent years, cocoa beans from the country have become as valued as the precious cocoa beans from Ecuador. The coca variety in Ecuador is called Nacional, while the Dominican beans are known as the new Nacional.

The country aims to triple production by 2027. According to the International Cocoa Organization (ICCO), 40% of cocoa from the Dominican Republic tastes great, which means it has a woody, herbal, caramel flavor that makes it rich and balanced.

The Dominican Republic is the ninth largest exporter of cocoa beans in the world. Although it has always exported this product, in the 1990s the US was its only market. It has now expanded its market and now exports 90 percent of its production, or about 60,000 metric tons of cocoa beans, annually. This is mainly sold to the Japanese and EU markets.

2. Manufactured products

From clothing to exports of optical and technical equipment and medical equipment, the country was able to export more than $5 billion in 2018. The main exports in its manufactured goods shipments are medical and optical equipment. It has grown steadily as the demand for such devices continues to increase.

Their machinery and equipment exports also performed well, generating the third largest gain for the country. The main export partners for these products are the United States, India, Haiti, Canada and Germany.

3. Jewelry

Gold has always been the Dominican Republic's preferred export, a country rich in gold and other precious stones. The country's mineral wealth also enables it to export silver and nickel, not to mention some copper. Found only in the Dominican Republic, Larimar is essential to the creation of jewelry, which is why the country is a leading exporter of jewelry.

As demand for gold has grown over the past decade, the country has benefited greatly from the intensive development of the mining industry. They own the largest single gold mine in Latin America at the Pueblo Viejo mine, and despite a drop in gold production in the country, they still have reserves large enough to keep their export partners afloat.

The Dominican Republic also has extremely rich deposits of gypsum, which is why they are among the best in the cement industry.

Main import

1. Oil

DR imports crude oil and refined oil because their economies are largely dependent on manufacturing and mining. Both are oil-intensive activities that require a constant supply of oil to keep the industry going.

Refined oil leads its oil imports, accounting for 10% of the country's total imports. They import oil from countries like Venezuela and Mexico. The country uses about 37,000 barrels of oil per day.

2. Cars

Automobiles are the Dominican Republic's second-largest import, and the U.S. provides the largest share of the Dominican Republic's market for cars. In 2017, the U.S. exported $378 million worth of vehicles to the country. This accounts for almost 50% of the country's car imports.

South Korea is another important player in the export of cars to Latin American countries. That same year, they exported about $150 million worth of cars. Other players with stakes in this market include Japan, which exported $142 million to the Democratic Republic of Congo in 2017, such as Germany and Sweden, Canada, Mexico, India, Chile and the United Kingdom.

The U.S. leads in exports of small passenger vehicles, while Mexico leads in exports of heavy construction and agricultural vehicles.

3. Industrial raw materials

Importing raw materials to the Dominican Republic is cheaper than importing finished goods. The laws tend to favor raw materials, which means they impose lower import duties on such products. The country's main raw material import partners include Mexico, Brazil, Venezuela, Colombia, Ecuador, the United States, Argentina, and several countries in the Eastern Pacific and Asia.

/ By tjchinafreight ivy / Shipping

5 major ports in the United Arab Emirates

5 major ports in the United Arab Emirates
5 major ports in the United Arab Emirates

Bordered by Oman and Saudi Arabia, the United Arab Emirates has become a beacon for development and trade on the Arabian Peninsula. It shares waters in the west and north with Qatar and Iran, respectively. The United Arab Emirates is made up of seven states, including Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain. Located in the northern part of the Strait of Hormuz, the country is a strategic country for sea container transportation and trade.

1. Jebel Ali Port (Dubai)

Jebel Ali is the largest man-made port in the world and the largest container port between Singapore and Rotterdam. The port offers the international shipping industry access to a market of 1.5 billion people, as it is the gateway between the Western Hemisphere and the Far East. As one of the most important and modern ports in the region, the port is equipped with state-of-the-art facilities to meet regional and international shipping needs in and around the Arabian Sea.

2. Mina Zayed Port (Abu Dhabi)

The Mina Zayed Port in Abu Dhabi is often just called Zayed Port. It is located at the northeastern end of the city of Abu Dhabi, which is not only the capital of the United Arab Emirates, but also the financial, communication and transportation center of the UAE.

3. Mina Rashid Port (Dubai)

Mina Rashid Port is another man-made port in the Emirate of Dubai, located on the southern coast of the vast Arabian Gulf. The port's location in the heart of the city makes it ideal for passenger operations, although it also handles its fair share of cargo.

The port has received the prestigious ISO-9002 certification as well as the Safety Excellence Certificate from IMS (International Maritime Security). As the only port in the Middle East to receive this recognition and certification, Port Rashid is highly regarded in the global cruise tourism industry. The 2 million-square-meter Mina Rashid Cruise terminal can handle seven of the largest cruise ships simultaneously, each with a capacity of 25,000 passengers. Due to its competence and professionalism, the port has been named the world's leading cruise port in the Middle East at the World Travel Awards for seven consecutive years.

4. Mina Khalid Port (Sharjah)

Also known as Khalid Port, this port is also located in the center of Sharjah. It is the first port in the region to have a container terminal, a free trade terminal and a ro-ro cargo terminal. It pioneered an area that other ports such as Jebel Ali and Zayed Ports followed and expanded upon.

The Port of Mina Khalid has 12 berths for handling general cargo as well as refrigerated, bulk, dry and liquid cargoes. It has two cold storages on the quay side and is also equipped with marine and oil support. The port is undergoing several key construction works that will further modernize its facilities. These include the construction of dhow dock facilities and new berths in the breakwater reclamation area.

5. Khor Fakkhan Port (Sharjah)

The port is also in Sharjah, under the same management as the Mina Khalid port. This is the only natural deep-water harbour in the region, unlike other fully man-made harbours. As one of the main container ports in the United Arab Emirates, this port sees a lot of traffic from the Indian Ocean front. Its location outside the volatile Strait of Hormuz makes this port an obvious choice for large east-west transshipments into the UAE's hinterland.

/ By tjchinafreight ivy / Shipping

5 major ports in Honduras

5 major ports in Honduras
5 major ports in Honduras

Located in Central America, Honduras is known for its natural resources, from coffee to minerals, and its growing textile industry. It is nestled between El Salvador, Guatemala and Nicaragua, with Pacific and Caribbean coastlines to the north and south, respectively.

Honduras has commercial cities, the capital Tegucalpa and San Pedro Sula. Both are industrial and commercial centers that drive the country's economy. But the country's ports may be the biggest reason for the country's economic development. These ports opened up Honduras' trade routes in the Pacific and the Caribbean.

1. Puerto Cortez

Puerto Cortez happens to be the only deep-water port in the whole of Central America. It is also one of the best equipped and largest ports in the region. Originally known as Puerto de Caballos, the port is located in the Caribbean waters of the northern part of the country. Because it has a natural bay, it can handle large ships with a capacity of 10 at a time.

It has a large 4,000-foot docking space and offers 24-hour service, with ships going to Miami seven times a week, New York four times a week, and New Orleans four times a week. Ships from the port travel to the Far East and Europe at least twice a week. The port is a designated safe port for the region, which is why it sees a lot of cargo traffic. That means it can safely ride on the giant ships that cross the Panama Canal.

2. Screen port

This port is also located on the northern coast of the Caribbean Sea. When it officially became the headquarters of the Tela Railway Company in 1914, it became an influential business point. This is a subsidiary of United Fruit Company, which transports bananas from the interior of Honduras to ports for export.

The railway remains intact and still in operation, bringing the banana crop, the region's main export, to the port. It is still called Banana Port because Honduras is one of fifteen countries that provide more than half of the world's banana exports. In 2018, the country exported $522.7 million worth of bananas from the port. Tela also handles coconuts and other agricultural products.

3. Port of Castile

The Port of Castile is actually a small fishing village, but the port facilities are some of the best in the country. They are home to a Honduras naval base and also have a container facility for fresh fruit produced by Dole. It also sits in the middle of African oil palm plantations that have started growing in the region. It will be the main port of call for oil exports

The port also has road access to the country's forestry project and the Aguan Valley Railway, which produces Honduras' famous timber for export.

4. La Ceiba Port

The port of La Ceiba is also located in the waters of the Caribbean Sea, but at the southern end of the coastline. It borders the Gulf of Honduras and is the third largest city in the country. The port developed into a modern port throughout the 19th century, becoming an important shipping port for banana exports. As an agricultural port, it also handles most agricultural products such as citrus fruits, pineapples, coconuts, fish, coffee, meat and wood.

The city hosts its famous carnival every May for the Spanish San Isidro Labrador, attracting more than 500,000 visitors. Ceiba is also considered the entertainment capital of Honduras and the ecotourism capital of Honduras, which means a huge influx of tourists into the city. The port has an excellent cruise terminal that caters for cruise ships that take passengers to various tourist attractions in the country.

5. Port of San Lorenzo

The port is located in the waters of the Pacific Ocean near the Gulf of Fonseca at the southern tip of Honduras. It was built to alleviate the inconvenience of using the old port of Ampara, which had to be dredged to enable ships to moor in the port. It can carry 1.1 million tons of cargo annually. The port of San Lorenzo also serves nearby industrial cities that process products such as rosin, a huge export product for Honduras.

It also handles shipments such as vegetable oils, dairy products and shrimp from local industries and processing plants. The port also has the advantage of being served by the nearby Ampara Airport, which transports goods and products to and from the port.

/ By tjchinafreight ivy / Shipping

The busiest seaport in the world

The busiest seaport in the world
The busiest seaport in the world

The busiest seaport in the world

A common question we see in the shipping world is "What is the busiest seaport in the world?" The size and scope of the shipping industry is difficult to understand, which is why working with experts can be so helpful for businesses. At TJ chinafreight, we work with various manufacturing and other companies to meet their transportation and logistics needs.

Currently, the busiest seaport in the world is Shanghai Port (according to Marine Insight). The name is based on the daily container flow through the port, meaning the biggest ports are not always the busiest. The port is located in the Yangtze River and the East China Sea with convenient transportation and consists of a deep sea port and an inland river port. The total area is 1,397.5 square miles! Shanghai beat Singapore to become the world's busiest port with 37.1 million TEUs of cargo in 2019 and is considered the world's fastest-growing economy. About 2,000 container ships depart from Shanghai Port every month.

Learn about the harbour

A seaport is the place of origin, transshipment or arrival of seaborne cargo. Simply put, maritime transport is the movement of goods, raw materials and commodities across the world's oceans and waterways. More than 90% of the world's goods are transported by sea. Without shipping, the world economy would come to a screeching halt—without electronics, manufacturers without raw materials, and store shelves half empty.

Ships are one of the oldest forms of transportation. Today, ships still sail through the former sea trade routes. Interested in learning more? TJ chinafreight would love to hear from you!

/ By tjchinafreight ivy / Shipping

Logistics Term

logistics term
logistics term

There are many industry terms in the logistics world! We've put together this short logistics glossary to help you familiarize yourself with some common terms and concepts you may encounter.

3PL: Sourcing and arranging many services on behalf of clients, from shipping to warehousing and everything in between. Learn more here.

Bullwhip Effect: Companies must constantly predict what customers want to buy. Without a crystal ball, they must make forecasts based on other factors such as industry trends, supply chain structure and inventory. The bullwhip effect is a term used to describe when this complex transport process is disrupted. Learn more here.

Digital Freight Brokers: Digital freight brokers connect shippers and freight companies through mobile apps or online marketplaces. Learn more here.

Double brokerage: Double brokerage occurs when a freight broker accepts cargo and then hands it to another freight broker without telling the client. Learn more here.

Expedited Shipping: Expedited shipping is a faster method than standard shipping. Typically, expedited shipments do not stop anywhere between the pickup location and the delivery location, resulting in shorter transit times. Learn more here.

Freight Broker: A person or company that oversees efficient shipping and handling logistics. Learn more here.

Cargo Insurance: Gives you extra protection in the event of loss or damage to your cargo. Learn more here.

HAZMAT Shipping: Shipping of hazardous materials. Transporting hazardous materials (HAZMAT) includes not only highly toxic chemicals and nuclear waste. Hazardous items include nail polish, perfume, batteries, and even hairspray. Learn more here.

Inbound Freight: Refers to raw materials and raw materials entering a business from suppliers or suppliers. Learn more here.

Incoterms: Colloquially, Incoterms are just a way of clarifying the roles and responsibilities of those involved in the shipping process. Learn more here.

Industry 4.0: Industry 4.0, also known as the Fourth Industrial Revolution, is the continuous automation of traditional manufacturing and industrial practices using modern smart technologies. Smart factories, 3D printing and smart sensors are just a few examples. Learn more here.

LTL Shipping: Less than full truckload, or "LTL" in industry slang, is a cost-effective alternative for smaller shipments that cannot be fully filled with trucks. Learn more here.

NMFC codes: In the shipping world, the National Motor Freight Classification or NMFC codes are used to help define and regulate products. In LTL shipping. NMFC codes are an industry-wide method of defining shipping rates. Learn more here.

Outbound Freight: Refers to the shipment of finished goods from a business to a customer or distribution channel. Learn more here.

Package Shipping: Package shipping is the shipment of boxed items weighing 100-150 pounds or less, depending on the carrier. These are smaller packages that can be easily moved by a person without assistance. Learn more here.

Transportation Management System (TMS): Global research and consulting firm Gartner defines a Transportation Management System or TMS as a solution "for planning shipments, grading shipments and shopping across all modes, selecting the right route and carrier, and Manage shipping orders and payments." Learn more here.

Full truckload: Full truckload is when the shipper pre-orders a full truck or tractor trailer. The idea is to load the tractor trailer to full capacity. Truck loads are usually picked up at one location and dropped off at another, usually without any stops along the way. Learn more here.

Supplier Verification: Supplier verification is the process of confirming that a supplier is a legitimate entity. Learn more here.

Customodal designs, executes and optimizes transportation logistics programs for businesses of all sizes to support client strategies and enhance client competitive advantage. Carrier negotiation, shipment execution, track and trace, waybill audits, performance scorecards and supply chain visibility are all part of Customodal's added value.

/ By tjchinafreight ivy / Shipping

All you need to know about a career in logistics

All you need to know about a career in logistics
All you need to know about a career in logistics

Are you considering a career in logistics? Here's everything you need to know about a career in logistics! Logistics is one of the fastest growing industries and an excellent career path that offers many opportunities. From working in warehouses to sales, from engineering to supply chain logistics management, there are various ways of working in this field. Logisticians are responsible for a business's supply chain, and their typical job responsibilities involve supplier relationships, material transportation, working with customers, and minimizing transportation costs.

Logisticians oversee activities including purchasing, transportation, inventory and warehousing. They can direct the movement of a range of goods, people or supplies, from general consumer goods to military supplies and personnel, and manage the entire life cycle of a product, including how it is acquired, distributed, and delivered.

Logisticians use software systems to plan and track the movement of products. They run software programs specifically designed to manage logistics functions, such as purchasing, inventory management, and other supply chain planning and management systems.

Knowledge about careers in logistics

1. There are many career paths in logistics.

This includes logistics coordinators, inventory analysts, warehouse managers, fleet managers, sales, warehouse workers, and more. It's a fast-paced industry!

2. A college degree is not required to work in logistics.

While some positions require a bachelor's or associate's degree, work experience, industry credentials, and certain skill sets are sometimes more important. Some roles, such as sales, just require a passion for learning. A good logistician has good communication, critical thinking, customer service, problem solving and organizational skills.

3. Logistics business is booming!

According to the U.S. Bureau of Labor Statistics, employment of support workers is projected to grow 30 percent from 2020 to 2030, much faster than the average for all occupations. On average, around 24,500 support staff positions are expected to open each year during this decade.

4. The work environment varies by industry.

This means you can choose the industry you like! Some logisticians work in the back office of a company, while others work in companies that specialize in logistical work, such as trucking companies. Manufacturing employs about 24% of logistics staff.

/ By tjchinafreight ivy / Shipping

How to Find a Heavy Equipment Shipping Partner You Can Trust

How to Find a Heavy Equipment Shipping Partner You Can Trust
How to Find a Heavy Equipment Shipping Partner You Can Trust

When shipping heavy equipment (or any cargo), working with a shipping provider you trust can have a profound impact on your experience. The right shipping partner will ensure that the entire process runs smoothly from start to finish, minimizing your work, stress, and often costs and any risk to your company.

When looking for a shipping partner you can trust, it's easy to find and choose the wrong one.

Here are some suggestions to help you avoid choosing the wrong heavy equipment shipping partner:

  • Taking the time now to choose the right heavy equipment shipping provider will save you a lot of trouble
  • Not only look for trusted heavy equipment shipping providers, but watch out for those you don't trust.
  • Pay attention to the right details when vetting potential heavy equipment (and other freight) shipping partners.

Here is some information you should ask for during your initial conversation with any potential shipping provider:

  • Evidence of financial stability
  • Safety record
  • Insurance and authorities
  • Communicate
  • Cargo transportation knowledge

A reputable and trusted partner will have this information and be happy to order quickly. This is a major warning sign if a potential shipping provider asks questions, delays providing you with this information, or otherwise attempts to circumvent your request.

Hope you don't get lost if you choose the wrong heavy equipment shipping provider.

If you find yourself working with a shipping partner you cannot trust, then you must review your contract with them. Determine what your partner is contractually obligated to provide and be ready and willing to take legal action if necessary.

Then, look for a trusted shipping provider as soon as possible. Depending on the situation, the right partner may be able to help you with your current situation. At the very least, he or she will be able to prevent and mitigate any potential problems.

/ By tjchinafreight ivy / Shipping

Cross-border delivery of products

Cross-border delivery of products
Cross-border delivery of products

Why you should ship internationally ?

Deciding to ship your products internationally can be a tough one, but the chances of an ecommerce business reaching new customers and increasing revenue often outweigh the initial process required to set up.

But if you're still on the sidelines, it might be helpful to know that now, better than ever, it's better to start shipping goods overseas, as we see a dramatic increase in the global middle-class population. This opens up new markets that were previously inaccessible in places like Asia, Africa and South America.

Choose your shipping process

Determining your shipping and fulfillment process starts with understanding your business model and target market. Do you ship directly to consumers, or sell to other businesses? Do you want to handle the details yourself, or would you rather work with an expert to resolve red tape and deal with customs authorities? Based on your answers to these questions, you will be able to determine what shipping arrangements are best for your company.

D2C, B2C or B2B?

What type of company are you? What do these three-letter options mean to you? If not, don't worry - we're breaking them down for you. It all depends on who you sell your product to.

Direct-to-Consumer (D2C)

- This is a popular choice for wholesaler companies. In this business model, middlemen are removed and customers buy directly from the manufacturer. Customers generally benefit from lower prices, so many choose to do business with D2C companies when possible.

Business to Consumer (B2C)

- This is the most popular e-commerce business model and is where a business sells products to a specific niche of customers. They don't make actual products, that's what differentiates them from D2C companies. Any consumer can order directly from their website, and the orders are usually small to medium.
Business to Business (B2B)

- If you are a business, manufacturer or distributor, and you sell directly to other businesses, then you have a B2B model. The typical consumer would not buy directly from this type of business, and the order size would be much larger.

Tips for reducing friction for you and your customers when shipping internationally

We like to think that where there is a challenge, there is a solution. We show you three inevitable hurdles you may encounter when you start shipping internationally. Now, here are some tips and possible solutions to overcome the potential challenges that international shipping can present.

  • Always ship DDP (Delivered Duty Paid) whenever possible - this removes the unpredictability of customs duties and duties in the destination country. And, as mentioned earlier, it offers your buyers an added benefit by adding a level of security and confidence, as they will avoid risks during shipping.
  • Negotiate discounts based on quantity whenever possible. Shipping rates are usually negotiable, so if you ship a certain quantity each month, you should be able to apply for a discount, especially if you can guarantee the same quantity each month.
  • If you can find a reliable and well-known logistics service provider, choose a regionally focused logistics service provider. Follow the tips we covered earlier and let a regionally focused freight provider handle the details for you. The time you save is money in your pocket.
  • Book with your freight forwarder early in the shipping cycle. This allows you to secure space with the airline or shipping company as early as possible. This is critical, especially in the uncertain times we are in the COVID-19 pandemic.