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Westhaven Worldwide Logistics. Delivering Service Westhaven Worldwide Logistics
Exporting - The Basics - Part 3 Transport Methods + Equipment Types + Documentation Transport Methods Shipping Agents & Carriers Once you have confirmed the INCOTERMS for your shipment and considered the most appropriate way to get the goods to the customer (air, sea, overland) it’s time to make contact with a Shipping Agent or Carrier. A Shipping Agent, as the name suggests, acts as an agent between the exporter and the actual company carrying the goods and will offer a portfolio of services, usually based on being able to sub-contract the shipment to the most appropriate Carrier. A Shipping Agent is therefore more likely to offer a much wider range of services, whereas a Carrier (shipping line, airline, haulier) tends to be more specialised in one area of business or one geographical area. If you have the time to find ‘horses for courses’, then dealing directly with a Carrier can be effective and will probably be less expensive. However, if you have little experience of exporting, or don’t have the time or resources to identify a suitable Carrier for different shipments, you may find it more appropriate to deal with a Shipping Agent. A Shipping Agent (more often now referred to as a Logistics company) can perhaps be thought of as a cross between a travel agent and an independent financial advisor for cargo movements and should be able to advise on all aspects of international transport and trade. The main UK organisations representing Shipping Agents or Logistics companies are: BIFA – British International Freight Association CILT – Chartered Institute of Logistics & Transport UK Road haulage companies in the UK are represented by : FTA – Freight Transport Association RHA – Road Haulage Association Airlines are governed by rules established by: IATA – International Air Transport Association Shipping lines are governed by rules established by: IMO – International Maritime Organisation
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Westhaven Worldwide Logistics. Delivering Service Westhaven Worldwide Transport Methods Logistics Equipment Types Depending on the mode of transport (road, rail, sea, air) there are many different types of equipment used to carry goods. The size, weight, nature of goods and urgency of delivery will have a bearing on what kind of vehicle or system used. If you refer to the typical transit times and modes of transport set out in E X P O R T I N G - T h e B a s i c s Part 2 this will help you decide what method is best for your consignment. Shipments by SEA As explained earlier, shipment by sea is more suitable for larger or heavier shipments which are not urgently required. It is relatively slow, but inexpensive. Containers (carried in specially constructed cellular vessels) are used for the shipment of most packaged goods. The guide below gives details of the main types of container used. http://www.westhavenww.co.uk/container_dimensions/ Special vessels are used for Bulk liquids, powders, gases, grain, minerals, etc. and for Project Cargo (large / heavy items that won’t go in containers). Wheeled items and larger static pieces can be shipped by Roll-on, Roll-off services, where cargo can be either driven or pulled on and off the vessel. Collection from the origin point to the port of departure, and delivery to destination from the port of arrival, is undertaken by road, rail or inland waterway. Shipments by ROAD As might be expected, transport by road is faster than movement by sea but is slower than air freight, especially over long distances. It’s suitable for both light weight / bulky items and for heavier goods and is only limited by the dimensions and maximum load capacity of any particular vehicle and national rules for road vehicles. The guide below gives an overview of the kind of road vehicles in use in Europe. http://www.westhavenww.co.uk/vehicle_trailer_dimensions/
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Westhaven Worldwide Logistics. Delivering Service Westhaven Worldwide Liability and Insurance Logistics Shipments by AIR Although air freight is the fastest mode of transport, it can be very expensive, particularly for larger consignments. It should also be remembered that most regular cargo flights are between major airports, so you may have to consider how you are going to get your goods to the airport of departure, and from the airport of arrival to the actual destination. Security is a very important factor and goods must be x-rayed, examined and check-weighed prior to departure, all of which takes time. Consequently, it’s very important to ensure that correct details and documentation are provided if delays are to be avoided. It is advisable to discuss the nature of the goods (size and weight of packages) and the urgency of the delivery with the shipping agent or carrier before deciding which type of air freight service is the most appropriate. Documentation (for transit and Customs clearance) In terms of exports from the UK, the basic requirements for documentation (for non-hazardous and non-controlled goods) fall into three categories: Consignments to other EU member countries - No documentation required from exporter, as no Customs formalities are involved. Consignments to countries which have bilateral trade agreement with the EU - The exporter may need to provide a Certificate of Origin, stating that the goods are of EU origin, as well as an example of the commercial invoice relating to the goods. All other countries - The documents required are usually specified by the government of the destination country. The most common types of documents specified by foreign governments are Commercial Invoices, Certificates of Origin and Packing Lists. Prior to selling, or concluding contracts to supply goods to, a foreign customer, exporters are strongly advised to investigate requirements for Customs clearance, import duties and import taxes in the destination country. Although the exporter may not be responsible for the costs of these procedures, there will normally be an obligation to provide correct details, descriptions and appropriate documentation to the overseas importer in order to avoid problems and delays when goods arrive in the country of destination. A few sources of information regarding these requirements are shown below: - The shipping agent or carrier handling the consignment. - The foreign customer. - The UK embassy of the destination country. - UK Trade & Investment www.ukti.gov.uk - Croner’s : http://www.croner.co.uk/croner/productDetails/category/Sectors-we-serve/ International-Trade/product/Croner-i-International-Trade
Delivering Service Tel: Web:
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Westhaven Worldwide Logistics. Delivering Service Westhaven Worldwide Please note that the UK government Logisticsrestricts the export shipment of certain types of goods (e.g. paramilitary goods, works of art, plants ) and can also prohibit the supply of goods to certain countries. Exporters are responsible for establishing that their goods do not fall under these headings, see: http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1074185375 Exporters are also responsible for declaring details of export shipments, in order that the government can, amongst other things, compile trade statistics. For goods going to countries outside the European Union, exporters must provide information to the shipping agent or carrier so that an export declaration can be completed for each shipment, see: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal? _nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000260&propertyType=docu ment#P26_1450 For goods going to countries within the European Union, exporters must provide information to HM Revenue & Customs, See: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_ pageLabel=pageImport_ShowContent&id=HMCE_PROD1_024570&propertyType=document