Before getting international shipping, you should have some necessary information for shipping quotation. There are five most types you should know that we want to discuss in this article. If you stick this five-point in your mind, you will have more confidence when asking for a quote.
Shipping details
One necessary information you should know is the standard shipping information for any shipment, such as the number of pieces, weight, and each piece’s dimension.
Its package (skids, crates, boxes, cartons, etc.). If it needs to be delivered, you should have a complete address and Zip code for some destination. Suppose your cargo has a battery, magnet, or it is liquid, gas, powder, or any other dangerous substance. In that case, you should have a DGR report (Dangerous Goods Regulations) or MSDS (Material Safety Data Sheet).
Mode of Transportation
There are many ways for shipping internationally, for example, Air, rail, sea or ocean and truck it depends on your destination and location. Also, there are different method for these ways (Express, Door to Door), freight ), among them, the Door to Door services are best because you are not worried about the customs and Duty and tax; you just pay one price to one company (like DDPCH.com ), and they do everything for you. Ocean (sea) services take more time than air services but are cheaper. Express is faster than Door to Door by Air or air freight but is just for small cargoes. You should know which one is suitable for you and our consultants in DDPCH.com can help you too.
Origin and Destination:
The price of freight also depends on whether the cargo is delivered in a residential or commercial place. When shipments are provided from a residential location or to a residential destination, freight rates increase because freight companies find these roads less controllable and more complex than a Facilitate easy pickup. We always suggest our customers use the workplace if possible or take the cargo to the nearest cargo terminal where the shipment is used.
Incoterms
One of the necessary information for shipping quotations is determining who is responsible for the freight shipment. Incoterms (International Commercial Terms) is an agreement between the seller and customer.
The trademark of the International Chamber of Commerce, the first INCOTERMS, was issued in 1923 and has been regularly updated since 2010, with the latest set of terms published in 2010. Incoterms are used in contracts in the form of 3 letters followed by the specified location in the agreement, such as the port or place where the goods are picked up.
The latest update outlines 11 general rules applied to any mode or mode of transportation and specific rules for shipping and inland waterways.
Look at all incoterms rules.
EXW: Ex Works
The seller does not deliver the products to the buyer’s location. The seller delivers goods at the seller’s place or another specified location. It’s not required for the seller to transport the goods on any collection device, and there is no need to clear the goods for export.
FCA: Free Carrier
The seller delivers the products to the agent or another person specified by the buyer at the seller’s location or another named place.
FAS: Free Alongside Ship
The seller delivers the products besides the vessel specified by the buyer at the particular shipment port. The loss or damage risk to the products transfers when the goods are beside the ship, and the buyer pays all payments from that time onwards.
FOB: Free Alongside Ship
The seller delivers the products onboard the ship determined by the buyer at the specific transportation port. The loss or damage risk to the products passes when the products are on the vessel, and the buyer pays all payments from that time onwards.
CPT: Carriage Paid To
The seller delivers the products to the agents or another person determined by the seller at the specific place. The seller must pay the payment of carriage necessary to bring the products to the destination.
CFR: Cost and Freight
The seller delivers the products onboard the ship. The loss or damage risk to the products passes when the products are on the vessel. The seller must catch for and pay the payment and freight necessary to bring the goods to the named port of destination.
CIF: Cost, Insurance and Freight
The seller delivers the products on the ship. The risk of loss or damage to the goods is transferred while the goods are on board. The seller must conclude and pay the costs and freight required to transport the goods to the destination port. The seller also covers the insurance contract against the buyer’s risk of loss or damage to the goods during shipment. The seller only needs to get the minimum insurance coverage. However, if the buyer wants more insurance support, he or she must either agree with the seller or make additional insurance arrangements.
CIP: Carriage and Insurance Paid To
The seller delivers the goods to the shipping company or another person on behalf of the seller at an agreed location. The seller must pay the shipping costs to deliver the goods to the destination. In addition, the seller is required to obtain the minimum insurance coverage. If the buyer wants more insurance support, he must either agree with the seller or agree on additional insurance policies.
DAT: Delivered At Terminal
The seller delivers the goods when unloaded and is provided to the buyer at a specific terminal in the port or destination. The seller bears all the risks of bringing and unloading the goods at the specified port terminal or destination.
DAP: Delivered At Place
The seller gives the goods to the buyer by means of the goods are ready for transport unloading at the destination. The seller bears all the risks of bringing the goods to a specific place.
DDP: Delivered Duty Paid
In the Delivered Duty Paid (DDP) Incoterm rules, the seller Accept all responsibilities and charges for delivering the products to the determined place of destination. The seller must pay both export and import customs, fees, duties, and taxes.
The seller is not forced to insure the products for pre-carriage or main carriage.
The buyer is free of any risk or cost until the products are unloaded from the carrier at the specific place of destination, regularly the buyer’s place of business.
DDP is the only Incoterms rule that places responsibility for import clearance and payment of taxes and import duty on the seller.
These last needs can be challenging for the seller. In countries with complex or bureaucratic import clearance systems, a seller with local knowledge may prefer to take on these responsibilities.
Documents
Among the necessary information for shipping quotation Documents are so important such as:
- Air Waybill (for Air Freight)
- Shipping label (for Sea Freight)
- Bill of Lading (for Sea Freight)
- Packing list (Customs invoice)
Please note that according to your goods you may need some other documents and also each country’s customs rules is different, your freight forwarder will help you in all your requirements.
Air Waybill
Air billing is required for all airfreight shipments. This is the most important document because it contains vital information such as the sender’s address and delivery. A copy is usually attached to each piece in your shipment.
Shipping label
The shipping label must be attached to all shipments. This includes essential information about your shipment, including the sender’s address and delivery. After your order, we will send you your labels.
Bill of Lading
A bill of lading is needed only for sea freight. This allows a specified party to receive the goods shipped at the port of destination. After the ship leaves, we will prepare the bill of lading for you – we will send a copy to the recipient.
When the Telex release version is available, bulletin boards are issued electronically instead of the original versions. However, a print version is available upon request when booking.
Packing list
A packing list or customs invoice is a document that details the contents and value of your goods for customs purposes. A packing list must accompany all shipments. We can prepare these for you, although commercial carriers may use them if they wish.
In Conclusion
With this necessary information, you can get the correct quote from your freight forwarder.
The shipping companies such as DDPCH provide all your needs and help you find the best way and method for shipping. Feel free with DDPCH shipping company in all your shipments.
Air billing required for all airfreight shipments. This is the most important documents because it contains vital information such as the sender’s address and delivery.
The shipping label must be attached to all shipments. This includes essential information about your shipment, including the sender’s address and delivery. After your order, we will send you your label.
A packing list is a document that has complete information about the contents and value of your goods.