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Creating Your Export Plan Section 5 Part 3
Transportation and Documentation
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On the last post we looked at transporting your goods to your chosen destination and how the Freight Forwarder can make all of the necessary connections to make it all happen.
There are certain requirements that they have to meet before someone actually becomes a Freight Forwarder. They must obtain a FF number, insurance and a Surety Bond of 75 K. There are other candidates that you can use for your international needs, but be sure to check them out.
In this post we start out with the mode of transportation and documentation.
Mode of Transportation
In preparing your goods for international transport, you must first determine what mode of transport you will use.
- If shipping to Mexico and Canada, land transportation may be the preferred method. (Or, depending on what you are shipping, you might find that air service to these countries makes the most sense for your business.)
- Other methods of shipping internationally include sea and air transportation.
Maritime shipping is usually slower and less expensive than air freight. However, you must factor in the additional costs of sea freight, such as surface transportation to the dock. Another factor is the time value of money: payment may not be made until the ship reaches its destination—and ocean freight can take significantly longer than air freight.
Your international freight forwarder can assist in weighing the pros and cons of different modes of transportation. Once you have decided on the best option for transporting your goods, you must begin to compile the necessary documents.
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