International trade logistics presents numerous challenges with its complex terms, qualifications, and unwritten rules. Drawing from 16 years of freight forwarding experience, we provide key insights to help businesses master global shipping processes.
EXW Terms: The Hassle-Free Starting Point
EXW (Ex Works) terms offer significant advantages for exporters. Under this arrangement, responsibility transfers to the freight forwarder the moment goods leave the factory premises. The seller avoids complicated procedures like pickup, customs clearance, and transportation, simply waiting for delivery at the destination.
Direct Booking with Shipping Lines: A Matter of Capability
Securing direct booking agreements with shipping lines requires two critical elements: Non-Vessel Operating Common Carrier (NVOCC) certification and substantial cargo volume. Shipping companies only consider direct contracts with partners demonstrating consistent, large-scale shipments. Market influence remains the decisive factor in these negotiations.
Booking Cancellations: Never Assume Finality
Obtaining a booking confirmation doesn't guarantee shipment completion. Customers retain cancellation rights until final payment, particularly during peak seasons when bookings may serve as placeholders. Financial clearance marks the true point of commitment, requiring careful management of each transaction.
Container Codes: The Language of Logistics
Mastering container identification codes enhances operational efficiency and reduces communication errors. Key examples include:
- K LINE: KKFU, KKTU, KLFU, AKLU
- APL (American President Lines): APLU, APSU, APZU
Freight Forwarder Tiers: Understanding the Hierarchy
The distinction between primary and secondary freight forwarders lies in direct contracting authority. Primary forwarders maintain direct agreements with shipping lines or airlines, while secondary forwarders operate through intermediaries. Businesses should evaluate forwarders based on specific operational requirements and service capabilities.
Breaking Into the Industry: Overcoming Information Barriers
Newcomers often face knowledge gaps when experienced professionals withhold trade secrets. However, sustainable success derives from developing unique approaches. Modern professionals should leverage digital platforms and networking opportunities alongside traditional methods to build client portfolios.
Import/Export Representation: Strategic Partnerships
Businesses lacking import/export licenses can partner with licensed local firms to handle regulatory requirements. This arrangement allows companies to focus on core operations while compliant specialists manage customs documentation and clearance procedures.
Supplier Selection: A Multidimensional Evaluation
Becoming a preferred supplier involves meeting diverse criteria including relationship history, pricing structures, service quality, certifications, and operational scale. The evaluation complexity increases with each additional requirement, demanding comprehensive capabilities from potential suppliers across all business scenarios.