Whoever negotiates purchases and sales abroad, regardless of the chosen modal and the terms of the negotiation, needs a complete mastery of each of the steps, separately, of the logistics operation offered to them, avoiding headaches with the final result of the operation.
One of the knowledge that needs to have total control is the International Freight, one of the steps that most generate doubts in Foreign Trade professionals with little practical experience in import and export.
In this post, we will give essential tips for those who want to know more about this stage.
International Freight is the movement of goods between two countries, defined by an internationally accepted contract between the parties involved in the process.
These sets of international rules and standards provide certainty and establish the responsibilities of the buyer and seller in export and import procedures.
Among these standards, there is the obligation of the exporter, in the case of the use of containers, to make sure that the details inherent to the equipment itself are observed, avoiding frauds that often are only discovered upon arrival of the goods at destination, when, most likely, there is nothing more that can be done.
The strongest of them is the inspection of the Container given by the carrier to the exporter. This must verify dents, rusts and holes in it, which can only be noticed by entering the container and closing the door to verify the entrance of light rays through small holes, invisible to the naked eye.
Verified non-conformities, the same must be rejected by the exporter or accepted with reservations (notification to the Shipping Company) on the failures noted on the equipment. However, this practice is rarely required of exporters and many illegal charges are naturally made.
This is followed by other details on who is responsible for the logistics operation and where the transfer of responsibilities for freight, insurance and transport itself takes place, verifying the beginning and the end of each of these isolated acts that make up the process.
To perform an export and import procedure, you can choose between 5 modalities:
Some characteristics of the cargo, such as added value and the region where it comes from and where it goes to, suggest which modalities are more indicated:
For heavy loads, in large quantity, with low added value:
Waterway/Hydroway or Railway mode.
For high added value cargoes, light and low weight and dimensions or that need to reach the destination quickly:
For procedures with access to border countries:
For loads in solid and liquid bulk.
Pipeline Mode (pipes and/or tubes)
There are 3 ways to make international freight payments with the freight forwarder, shipowner, airline/road/railroad/ducts:
In this format the freight is paid immediately after the shipment, for withdrawal of B / L (sea shipment). Usually it is paid in the place or country of shipment, however, this is not an obligation, and can also be paid abroad.
Note: when the freight is at the seller's expense, it is possible to associate pre-paid freight with Incoterms.
However, since it can also be used with freight on the buyer's account, it should be noted that prepaid freight and Incoterms are separate things.
As the name implies, in this format the freight is paid by the importer, on arrival or withdrawal of goods.
In this format the freight can be paid anywhere in the world, and the shipowner will then be advised by his agent on receipt, in order to proceed to the release of the goods