{"id":5192,"date":"2017-12-01T11:15:55","date_gmt":"2017-12-01T11:15:55","guid":{"rendered":"https:\/\/www.seedrs.com\/learn\/?p=5192"},"modified":"2021-05-13T22:24:56","modified_gmt":"2021-05-13T21:24:56","slug":"freight-basics-getting-your-products-on-sail","status":"publish","type":"post","link":"https:\/\/europe.republic.com\/insights\/investing-features-insight\/freight-basics-getting-your-products-on-sail","title":{"rendered":"Freight basics: getting your products on sail"},"content":{"rendered":"<p>So, you\u2019ve had your eureka moment, created a prototype, successfully raised and then found a manufacturer that can make your product for a price that will still leave a decent profit margin. There\u2019s just one issue: the factory that\u2019s making your products or the area that\u2019s growing ingredients for your food business is thousands of miles away. How will you get the freight to where it needs to go?<\/p>\n<p>We take a look at the things an entrepreneur will probably have to consider when arranging to get the items from an overseas manufacturer to your country \u2013 and beyond customs.<\/p>\n<p><strong>Watch out for (unexpected) freight restrictions<\/strong><\/p>\n<p>As the world continues to get a lot smaller, with items arriving from all over the globe, it can seem like you can easily get anything from anywhere, but there are some pretty peculiar rules on freight in place around the world, including a <a href=\"https:\/\/www.parcelhero.com\/blog\/expert-shipping-advice\/9-weird-wonderful-customs-laws\">ban on importing<\/a>:<\/p>\n<ul>\n<li><strong>Car horns into Saudi Arabia <\/strong>\u2013 in an attempt to keep noise levels low.<\/li>\n<li><strong>Chewing gum into Singapore<\/strong> \u2013 to help keep the country clean<\/li>\n<li><strong>Clown costumes to Vendargues into southern France<\/strong> \u2013 to prevent further panic being caused by people dressing up as evil clowns<\/li>\n<li><strong>Dental products into Algeria<\/strong> \u2013 because products that include fluoride are seen as poisonous.<\/li>\n<li><strong>Kinder eggs into the USA<\/strong> \u2013 the seemingly innocuous chocolate egg and toy combo is deemed a choking hazard in America. It now comes with a surprising gift: a $2,500 fine for each egg imported<\/li>\n<li><strong>Toothpicks(!) and wheelbarrows into Nigeria<\/strong> \u2013 in an attempt to protect local manufacturing<\/li>\n<li><strong>Shoes into South Africa, Mexico and India<\/strong> \u2013 to boost shoe manufacturing locally, imports of <em>matching<\/em> pairs of shoes are banned<\/li>\n<\/ul>\n<p>As well as looking out for unexpected importation regulations, it pays to be aware of products that will trigger surprise fees.<\/p>\n<h4><strong>Clearing Customs<\/strong><\/h4>\n<p>Customs generally control a country\u2019s borders, so you must be sure that your goods will be able to clear them. For example, from time to time, importers have products shipped to the UK, only for Trading Standards or Port Health Officers to deem them not fit for this market.<\/p>\n<p>And, if the goods can\u2019t be allowed into a country, the importer will often either have to pay to have them destroyed or pay to have them shipped back to wherever they came from. Either outcome represents a lot of wasted time and money.<\/p>\n<p>So, before you attempt to import anything, let alone export anything, perhaps it\u2019s a good idea to take a look at this handy checklist:<\/p>\n<ul>\n<li>Do you need an import license for your products?<\/li>\n<li>Is the product subject to anti-dumping duty?<\/li>\n<li>Will you need a certificate of origin?<\/li>\n<li>Do you require test certificates? (usually needed for electronic goods)<\/li>\n<li>Will the product pass product safety?<\/li>\n<li>Will I have to pay Duty and VAT?<\/li>\n<\/ul>\n<h4><strong>Test the waters first<\/strong><\/h4>\n<p>Before you start attempting to import containers full of product into your country, it\u2019s a good idea to have the factory send you some samples first. If the samples are fine (or need a little tweaking) perhaps you could request a trial order of just a few boxes of the product. If all is still OK, it may be time to scale-up your order to full shipping containers. But it would be wise to check that the quality of the product still matches expectations when you order it in larger amounts.<\/p>\n<p>If you\u2019re importing lots of small and lightweight items, express air cargo may be the way to go, but bulky and heavier items may well be best to transport via sea shipping container.<\/p>\n<h4><strong>Engaging a freight forwarder<\/strong><\/h4>\n<p>You may be tempted to agree if the manufacturer of your product offers to include shipping, but tread very carefully. The chances are that the price won\u2019t be particularly good value and may be seen by the manufacturer as an opportunity to increase their profits.<\/p>\n<p>Instead, it\u2019s probably a good idea to try and get recommendations from your contacts who have organised shipping\/forwarders in the past and get plenty of quotes. Consider if it\u2019s cost-effective to use air freight (best for a shipment of 1,000 pounds or less \u2013 and certainly quicker) or best to have the products come by sea.<\/p>\n<p>Before you start talking to forwarders\/shippers, it will probably useful to get the following details together \u2013 your supplier should be able to help:<\/p>\n<ul>\n<li>Supplier and buyer contact details + pickup and final delivery address<\/li>\n<li>Weight\/dimensions of each box\/pallet<\/li>\n<li>The total value of the goods and shipment date<\/li>\n<li>Product description<\/li>\n<\/ul>\n<h4><strong>Learn to speak the language of freight<\/strong><\/h4>\n<p>The forwarders will almost certainly ask about the terms of sales you&#8217;re dealing with, often known as incoterms. Some of the most likely freight terms you&#8217;re likely to come across are:<\/p>\n<ul>\n<li><strong>Ex-Works (EXW)<\/strong> \u2013 The forwarder arranges for shipping from the manufacturer to your premises, and is responsible for insuring against loss all the way<\/li>\n<li><strong>Free Carrier (FCA)<\/strong> \u2013 The seller arranges delivery from their premises to a transport hub, typically an airport or port. The risk of loss of goods is with the seller but passes to the buyer as soon as the goods are passed to the carrier.<\/li>\n<li><strong>FCL<\/strong> \u2013 Full Container Load<\/li>\n<li><strong>Free on Board (FOB)<\/strong> \u2013 The price quoted by the seller includes all transport charges up to placing the products on a ship at the port chosen by the buyer, for example, FOB. Shanghai.<\/li>\n<li><strong>FTL<\/strong> \u2013 Full truckload<\/li>\n<li><strong>LCL<\/strong> \u2013 Less than a container load.<\/li>\n<li><strong>Lift on\/Lift off<\/strong> <strong>\u2013 <\/strong>The carrier will move a full carrier load onto a lorry and then take it off the lorry at a specified destination.<\/li>\n<\/ul>\n<h4><strong>Take cover!<\/strong><\/h4>\n<p>Many carriers will provide a basic level of cargo insurance, but check what it covers because you may find it inadequate if your cargo runs into trouble. You may decide it\u2019s best to take out comprehensive insurance for peace of mind.<\/p>\n<h4><strong>Paperwork and clearances<\/strong><\/h4>\n<p>Once the forwarder has been appointed, they should control the paperwork and documentation as well as the clearances you\u2019ll need. This can be quite complicated and may involve multiple carriers and many customs controls. Imagine tracking a shipment across the world and then be sure to use a forwarder rather than trying to organise the shipping process completely by yourself.<\/p>\n<p>Then it\u2019s \u2018just\u2019 a case of selling the goods, processing the payments and fulfilling your orders.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>So, you\u2019ve had your eureka moment, created a prototype, successfully raised and then found a manufacturer that can make your product for a price that will still leave a decent profit margin. There\u2019s just one issue: the factory that\u2019s making your products or the area that\u2019s growing ingredients for your food business is thousands of<\/p>\n","protected":false},"author":32,"featured_media":5207,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[297],"tags":[301],"class_list":{"0":"post-5192","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing-features-insight","8":"tag-trends-updates"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Freight basics: getting your products on sail - Republic Europe Insights<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/europe.republic.com\/insights\/investing-features-insight\/freight-basics-getting-your-products-on-sail\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Freight basics: getting your products on sail - Republic Europe Insights\" \/>\n<meta property=\"og:description\" content=\"So, you\u2019ve had your eureka moment, created a prototype, successfully raised and then found a manufacturer that can make your product for a price that will still leave a decent profit margin. There\u2019s just one issue: the factory that\u2019s making your products or the area that\u2019s growing ingredients for your food business is thousands of\" \/>\n<meta property=\"og:url\" content=\"https:\/\/europe.republic.com\/insights\/investing-features-insight\/freight-basics-getting-your-products-on-sail\" \/>\n<meta property=\"og:site_name\" content=\"Republic Europe Insights\" \/>\n<meta property=\"article:published_time\" content=\"2017-12-01T11:15:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-05-13T21:24:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/newsroom-cdn.seedrs.com\/wp-content\/uploads\/2017\/12\/26200513\/iStock-663959138.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1357\" \/>\n\t<meta property=\"og:image:height\" content=\"773\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Steve Bates\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Steve Bates\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/europe.republic.com\/insights\/investing-features-insight\/freight-basics-getting-your-products-on-sail#article\",\"isPartOf\":{\"@id\":\"https:\/\/europe.republic.com\/insights\/investing-features-insight\/freight-basics-getting-your-products-on-sail\"},\"author\":{\"name\":\"Steve Bates\",\"@id\":\"https:\/\/europe.republic.com\/insights\/#\/schema\/person\/c18c309d0b4766f3599ac861ff366dcd\"},\"headline\":\"Freight basics: getting your products on sail\",\"datePublished\":\"2017-12-01T11:15:55+00:00\",\"dateModified\":\"2021-05-13T21:24:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/europe.republic.com\/insights\/investing-features-insight\/freight-basics-getting-your-products-on-sail\"},\"wordCount\":1066,\"image\":{\"@id\":\"https:\/\/europe.republic.com\/insights\/investing-features-insight\/freight-basics-getting-your-products-on-sail#primaryimage\"},\"thumbnailUrl\":\"https:\/\/newsroom-cdn.seedrs.com\/wp-content\/uploads\/2017\/12\/26200513\/iStock-663959138.jpg\",\"keywords\":[\"Trends &amp; 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