Overseas shipping always seems to be an easy way for international business but it has some frightening prospects too. It was never so easy to supply your products at international level. With advancement in technology and globalization, over shipping has got new ways and it has progressed a lot but still business industries are facing different problems. There are two ways of shipping, air freight and sea freight. Each has its pros and cons. If you have to supply your goods urgently, air freight is the best possible way, because it takes less time, while sea freight takes weeks to reach on destination. In expenses terms, sea freight is best and more economical.
Overseas shipping has never so easy because of the following possible reasons found in most of the business cases.
Packing and security risks in overseas shipping
1. Packing problems:
The most common problem is packing. Exporters should pack their products correctly and efficiently because many potential problems occur duringoverseas shipping. Most of the time due to breakage, moisture, pilferage and excess weight the shipped product reaches in unstable condition. It’s not so easy to send supply overseas, one must be careful about the packing of the shipping crate. Usually cargo is carried in containers however in some cases it is shipped as break-bulk cargo. Such cargo is transported by sea freight and it is usually loaded in a net or by a sling which damages the pack inadvertently. The products are also dragged, rolled, pushed and dropped during uploading which is also treacherous prospect of shipping because it can spoil the shipped good.
2. Theft and pilferage:
They are some other risks of overseas shipping. If goods are not packed, sealed, palletized, containerized and stored well, they can be stolen by thieves. Thievery is the most possible worriment.
Labelling and tariff requirements
3. Labeling should be done properly:
Specific labeling must be used on the supply goods because most of the time, it creates countless problems. Sometimes labeling is not done properly and it doesn’t meet shipping regulations and laws. Because of improper labeling, shipping can be stopped by the legal authorities. If the items are not identifiably concealed, they would not be safe enough to reach their destiny. Exporters can use identification marks for their supply. Sometimes the cargo doesn’t reach the dealer because they are not specifically marked. Cargo must be marked through weight marking, country marking, shipper’s marks and precautionary marks.
4. Tariff problems:
Overseas shipping has never easy because of some tariff problems. It is essential to know all tariffs before shipping. Overseas shipping is expensive because it has port handling fees and taxes which make the product more expensive.
Insurance, payment and other shipping challenges
5. Inadequate insurance of the products:
Inadequate insurance is provided for the supply goods and products by the couriers. Different hazards and incidents can damage the shipped goods.
6. Payment problems:
Overseas shipping has never easy because of the payment problems too. Payments are not sent in proper time or through proper channel.
7. Other problems:
It also faces very common problems like no time management, navigated customs, commodity codes, restrictions, weights, costs, and protocols for specific countries. Overseas shipping has also found new business strategies and processes, which are also complicated to deal.
Summary
This article sets out common problems exporters face when shipping goods overseas, comparing faster but pricier air freight with cheaper but slower sea freight. It covers risks from poor packing, theft and pilferage, incorrect labelling that can breach shipping regulations, unexpected tariffs and port fees, inadequate insurance cover, and payment delays. It also notes wider issues such as customs delays and country-specific restrictions.
Questions this article raises
- How do exporters choose between air freight and sea freight for a given shipment?
- Which incoterm best protects a small exporter against these listed risks?
- What insurance level is actually adequate for high-value overseas shipments?
