Getting Started with International Shipping

Introduction

International trade offers exciting opportunities for small businesses to expand their reach – but navigating the world of shipping can be overwhelming at first. From documentation and Incoterms to freight mode selection and compliance, the learning curve is steep. This guide will walk you through the basics so you can ship with confidence.

1. Key Documents You’ll Need

International shipping involves a number of documents, and getting them right is essential to avoiding delays or penalties. The most common include:

• Commercial Invoice – Details the sale and is used by customs authorities to determine duties and taxes.
• Packing List – Describes the contents, dimensions, and weight of each package.
• Bill of Lading (B/L) – Acts as a contract of carriage and a receipt for goods.
• Certificate of Origin (if required) – Identifies the country where the goods were manufactured.
• Import/Export Licenses (if applicable) – Depending on the goods, special licenses may be required.

2. Choosing the Right Incoterm

Incoterms® (International Commercial Terms) define who is responsible for transportation, insurance, and customs clearance at different stages of the shipment. For small businesses, choosing the right term is critical.

Examples:

• EXW (Ex Works):Buyer handles everything from the seller’s door.
• FOB (Free On Board): Seller delivers to the port; buyer covers ocean freight onward.
• DDP (Delivered Duty Paid): Seller handles everything including customs and delivery.

Tip: New shippers often choose FOB for imports and DDP for exports to maintain visibility and cost control.

3. Understanding the Costs

It’s easy to underestimate the total cost of international shipping. Beyond freight, there are other components to budget for:

• Freight charges (air or ocean)
• Fuel surcharges
• Terminal handling charges (THC)
• Import duties & taxes
• Customs clearance fees
• Local delivery costs
• Insurance (optional, but recommended)

Freight forwarders can help you calculate your landed cost – the total cost of getting goods to your door.

4. Working with a Freight Forwarder

Freight forwarders act as logistics coordinators, guiding you through every step of the shipping process. For small businesses, this is especially valuable because:

• They coordinate bookings with carriers and handle documentation
• They offer guidance on compliance and customs clearance
• They provide access to global agent networks
• They help resolve in-transit issues (e.g., delays, inspections)

At Refresh Global Logistics, we specialize in working with small/medium-sized importers/exporters who need a hands-on partner to navigate the process.

5. Final Tips for First-Time Shippers

• Start small. Run a test shipment before scaling up.
• Ask questions.Don’t be afraid to lean on your forwarder’s knowledge.
• Stay organized. Keep track of documents and shipping timelines.
• Know your product. Some goods (like electronics or perishables) require special handling or compliance checks.
• Plan ahead. Lead times for ocean shipments can vary greatly – and peak season congestion is real.

Ready to Ship?

The world is waiting – and with the right knowledge and support, your business can thrive in the global marketplace. Reach out to Refresh Global Logistics for expert help every step of the way.