Whether you move goods around the UK or internationally, knowing the shipping process inside out is important. How else can you make sure your consignments get to where they need to be in one piece?
Here we cover what to expect the whole way through the shipping process.
The Roles & Responsibilities Of Those Involved
Let’s start with defining what each party is and what they do.
Shipper
The shipper is the person who holds responsibility for packing and preparing the shipment ahead of transport.
This might be you. Or it might be a supplier who is sending your business parts for the end product you make and sell. The shipper bears the shipping cost and signs the Bill of Lading when the carrier arrives to collect it.
Freight Forwarder
A freight forwarder looks after all the different aspects of transporting a shipment from its point of origin to its final destination.
This means that the responsibilities of a freight forwarder, which could be a person or a company, are vast. Freight forwarders sort out documentation, manage risks, organise one or multiple carriers and hunt down the most reliable and cost-effective modes of transport to meet your needs.
Shipping Company/Carrier
Carriers are individuals or companies who physically move your goods from A to B by land, water or air. And they’re legally responsible for them whilst in transit.
Consignee
The consignee is the importer and is responsible for paying duties and freight charges.
Most often, the buyer of the goods is the consignee.
The Shipping Process
Now we’ve got the definitions sorted, let’s look at how it all works.
1 – The Quote
First, the importer, or consignee, orders goods from the supplier, or consignor.
The buyer will generally request a quote which can include a proforma invoice; this type of invoice can be subject to change. Once the quote is given the green light by the buyer, the supplier will create a purchase order. This is a contract that describes the details of the order and how much it’ll cost.
2 – Incoterms
The purchase order should state which one of the many incoterms it is agreeing to.
Incoterms are internationally recognised codes that detail the tasks, risks and costs for the buyers and sellers of a shipping transaction. You can read more about why we use incoterms and what they are in this blog.
The right set of incoterms must be chosen for the transaction. If not, the buyer may need to stump up more hard-earned money than they originally thought.
The incoterms also determine which party is responsible for sourcing a freight forwarder. For the sake of this run-through, let’s assume the consignee has purchased goods on EXW terms and is therefore in charge of all stages of the shipment’s journey.
3 – Pick A Forwarder
With a purchase order, the buyer now needs to organise transport for their goods. By bringing a freight forwarder on board they relinquish all of the stress and admin that comes with organising carriage themselves, as it’s the forwarder’s role to arrange the best method and route for the shipment.
The forwarder will require documents from the supplier. These can include the packing list, a certificate of origin and a dangerous goods form. (Not sure what dangerous goods are? Read this).
4 – Cargo Collection
One of the responsibilities of a freight forwarder is to instruct a carrier.
Once the goods are packed, the carrier will be booked to collect the cargo at a specific time on a specific day.
5 – Bill Of Lading
When the carrier arrives, they will issue a Bill of Lading, or BoL. This complex logistical shipping document plays a vital role in moving goods because it is a contract between all parties, serves as proof of ownership whilst the goods are on the move and acts as proof of receipt at the other end.
For more information about the role of the BoL, click here.
6 – On The Move
Next up is the journey. Your goods will be carefully loaded and taken via road, rail, sea or air to their destination. If they’re leaving the country, they will be processed through export customs and placed in transit.
7 – Customs Clearance
When your consignment arrives in its destination country, it must first be cleared through import customs before it can continue on its way to the consignor.
Every country has different rules for importing and exporting, and this means that the documents you need can vary – as well as the amount of duties and tax. For more on what to expect from clearing goods through customs, including what documentation you’ll typically need and how long it should take, read this blog.
8 – Delivery Day
The final step after clearing import customs is the onward travel towards the delivery address provided by the buyer.
Tracking Your Cargo
It can be a worrying time when your goods are in transit. What if something goes wrong?
Technology plays a big part in tracking and can provide peace of mind as well as information about potential issues ahead of time. Professional carrier companies should provide a robust tracking service that will give you a real-time location of where your goods are.
Unexpected Issues
Sometimes things crop up that can cause problems with the progress of your shipment’s journey. Situations that cause delays might include:
Weather
Adverse weather conditions can prevent planes from taking off, carrier ships to get thrown around at sea and trees to fall and block essential roads. And all of these instances can cause huge delays.
Port Congestion
Traffic at sea, when container ships must wait outside an already full port due to lack of space, can have a disastrous knock-on effect on lead times.
Strikes
Whether it’s port workers, customs workers or warehousing staff, a lack of manpower makes loading, unloading and processing consignments a lot slower.
Mislabelled And Improperly Packaged Goods
Shipping labels must be clear and correct because they show vital information about your cargo. This means that improper labelling can bring about customs delays or even get your packages lost for good.
Incorrect Documentation
Missing paperwork, inaccurate descriptions and blurry or illegible writing are all things that can go wrong with the documents side of things, and this can mean your goods are held whilst you track down the right pieces of paper – and pay for the privilege.
Extreme Circumstances
Sometimes crazy things happen that have a butterfly effect in the shipping world. Did you read about the container ship that ran aground in Maryland, US?
Global Events
Events happening around the world can cause big problems for exporters and importers alike. The COVID-19 pandemic, for example, caused freight rates to rocket and containers to get stuck in the wrong places and is still affecting the shipping scene today.
Though most shipments arrive where they should in good time, it’s always possible that something might go wrong. Read all about what you should do if your shipment is lost or damaged in this blog.
How Long Should It Take?
Okay, okay. The question is a little how-long-is-a-piece-of-string. But here are some approximates.
Shipments travelling by road can get to their destination extremely quickly if they are within the UK or a little further afield in Europe. Door to door in the UK, your goods could be anywhere in a couple of days. To get to Germany, you’re looking at up to 5 days.
Sea freight is typically the slowest mode of transport, with goods taking up to 45 days to get to their destination port.
Rail freight is quicker than shipping by container vessel, but slower than air. Transporting goods by train usually takes at least a couple of days depending on the distance of the journey. Longer journeys, like China to the UK, can take weeks.
Moving goods to other countries via plane is incredibly fast and cargo can be flown anywhere in the world. To get a shipment from China to the UK, you’re looking at 4-8 days.
Wondering how long your freight might take? Read this blog.
Knowing What To Expect Will Save You Time
Understanding what goes into getting your goods from A to B will ensure you are as prepared as possible, in turn saving you time and money.
But shipping should be stress-free, especially with a freight forwarder taking care of things for you.
Have you got some freight-related admin to sort out? Let us help. Contact Millennium today.