How to Ship Goods Overseas?

Methods of Shipping to Foreign Countries

International Freight Forwarder

An international freight forwarder is an organization that accepts the entrustment of importers and exporters of goods to handle international cargo transportation and related services on behalf of the principal or in its own name, and charges for labor services. In short, it is referred to as a freight forwarder. The freight forwarder involves shippers, carriers, customs, entry-exit inspection and quarantine, crossing the national border or customs territory. Its main duty is to transport the consignor's goods from one place to another through the specified transportation route.

International freight forwarders are classified into: water transportation agent, land transportation agent, air transportation agent, and multimodal transport agent.

Based on the fundamental nature of international freight forwarders, the primary function is to accept entrustment from the principal to arrange matters such as customs clearance, transportation, transshipment, warehousing, and loading and unloading of goods.

Responsibilities of Freight Forwarders

1. Arrange appropriate cargo packaging, select the best route for cargo transportation with the fastest and most cost-effective means.
2. Advise clients on warehousing and distribution.
3. Select reliable and efficient carriers and conclude transportation contracts.
4. Arrange for the weighing and measurement of goods.
5. Arrange cargo insurance.
6. Consolidate goods.
7. Store goods before shipment or before distribution at the destination.
8. Arrange for the transportation of goods to the port, handle customs and related documentation procedures, and hand over the goods to the carrier.
9. Pay freight, tariffs, and taxes on behalf of shippers/importers.
10. Handle any foreign exchange transactions related to cargo transportation.
11. Obtain various signed bills of lading from the carrier and deliver them to the shipper.
12. Monitor the progress of cargo transportation through contact with the carrier and the freight forwarder's agents abroad, and keep the shipper informed of the whereabouts of the cargo.

The Four Major International Express Companies

The four major international express companies refer to: DHL (DHL Global Forwarding), FedEx (FedEx Express), UPS (United Parcel Service), and EMS (China Post Express).

Advantages and Disadvantages of the Four Major Express Companies

DHL has fast delivery speed but its price is high, which is suitable for small goods;

FEDEX is slower than DHL in delivery speed, but its price is lower, which is suitable for large goods;

UPS has a longer delivery speed, but its large goods channel is cheaper;

EMS has slow delivery speed and high freight, but its receiving range is wide.

Why Many People Choose Freight Forwarders to Ship International Packages

Many cross-border e-commerce sellers and foreign trade merchants have discovered that shipping DHL/UPS/FEDEX through a freight forwarder is cheaper than shipping directly from the official international express companies.

What's the reason behind this?

Freight Forwarders Ship in Bulk

Freight forwarders ship in bulk to international express companies, resulting in larger shipment volumes and discounted prices.

1. If foreign trade companies and factories want to ship goods overseas and choose to ship directly with the official international express companies, they can only get the official published rates without any discounts. This is because the shipment volume of foreign trade companies is relatively small for international express companies.
2. Freight forwarders consolidate shipments from various clients and ship in bulk to international express companies. With a larger shipment volume, freight forwarders can negotiate discounted rates with the international express companies. Therefore, the overall shipping cost is reduced, and long-term shipments can save significant logistics expenses. Consequently, the shipping rates offered by freight forwarders are cheaper than the official published rates of international express companies.

Other Advantages of Freight Forwarders

Apart from the price advantage, there are several other reasons why people tend to choose freight forwarders when sending international packages:

1. Simplified process and improved efficiency
   If foreign trade merchants ship goods on their own, they need to contact shipping companies or airlines themselves. However, shipping companies will not accept various types of bulk cargo when booking space.

• Foreign trade merchants have to be responsible for all the processes, including space booking, information declaration, cargo certification, route planning, customs clearance declaration, and a series of other tasks. For those who are not familiar with freight transportation, the process can be quite complicated, consuming a lot of time and energy.
• Freight forwarders will handle the business according to your business needs. To promote long-term cooperation between both parties, freight forwarders will consider more for foreign trade companies when providing logistics solutions, planning reasonable routes, and selecting more cost-effective logistics solutions.

1. Time and labor cost savings
   If foreign trade merchants ship goods on their own, they need to find a truck to pick up the goods from their company, transport them to the warehouse or the terminal for loading, purchase insurance themselves, prepare the necessary documents for customs clearance, and then send the goods to the shipping company for shipment after the customs clearance process is approved.

• Freight forwarders will be responsible for all the steps mentioned above, providing door-to-door transportation services for foreign trade merchants. Meanwhile, freight forwarders have modern logistics management systems, allowing cargo owners to directly query the status of their goods and logistics dynamics on the system.
• This not only saves time and labor costs for foreign trade merchants, but also reduces capital costs.