Many countries now insist that their importers use the country's own merchant fleet or flag line  for importing goods so as to conserve foreign exchange. Usually, as an incentive, a lower rate of import duty as well as lower consulate fee are offered.

When the foreign buyer arranges their own transportation, the exporter's only responsibility is to get the goods to the port of shipment.

Freight Forwarder

Many exporters, make their own transportation arrangements.

Others, delegate this task, on a fee basis, to specialized firms known as Freight Forwarders. These can be either ocean freight forwarders or air forwarders.

Freight Forwarders usually offers a variety of services:

• Advising on the best routes and relative shipping costs
   

• Booking the necessary space with the shipping or airline
   
• Consolidating shipments from different exporters
   
• Handling Customs clearance abroad
   
• Arranging marine insurance for the shipment
   
• Preparing the export documentation
   
• Translating foreign language correspondence
   
• Scrutinizing and advising on ability to comply with letters of credit
   
• Arranging with the exporter for packing and marking of the goods

According to the size of their firm, number of branches overseas, most freight forwarders will offer all or some of the above services.

However, all freight forwarders will advise on the booking of shipping space. Many freight forwarders handle both exports and imports and may also act as Customs brokers.
 

Alternative Shipping Methods

In shipping goods abroad, the exporter has various alternative methods. These include ship, truck, rail, air and parcel post.

The choice will depend on the nature of the product (light or heavy, fragile or sturdy, perishable or durable, high or low in value per cubic meter, etc); the distance to be shipped; available means of transportation; and relative freight costs.

Goods having high weight or cubic capacity or value ratio, the usual method of shipping overseas is by ocean cargo vessel.

However, when speed is essential, air cargo may be preferred, although more expensive. For example, ski jackets are shipped from Germany to Japan by sea but towards the end of the ski season, air cargo is used.

Next page 2/5 "...freight cost are computed by shipping company based on both weight and cubic size and charges"

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