During the logistics process, many factors come into play, such as shipping lines, ports at the point of origin and destination, loading services, container freight stations, freight forwarders, customs brokers, and insurance agencies.
Steps to follow
In order to make sure that this process is conducted efficiently and in a manner that utilizes both time and costs more effectively, what steps should be taken?
According to Sylvestor D’mello, Director-Operations at Freightwalla, optimizing the logistics process is essential for a successful and trouble-free export journey.
He lists careful consideration as being required for planning, effective people management, and selecting the optimum means of transportation. “By eliminating last-minute surge charges, advanced planning helps deliver the goods on time and saves significant money.
Additionally, since export requires a lot of labor both on the dock and during shipping, it’s critical to manage the local workers well. The form of transportation is also important for optimizing export logistics because it has a direct influence on costs and profitability, he says
Additionally, exporters will be well served by factors like adequate storage to maintain the quality of goods and verifying their perishability well in time.
Export Logistics: What is it?
Export logistics refers to the whole supply chain channel, including the streamlined handling of orders, shipping, inventory management and handling, storage, packaging, and clearance of the export goods.
By processing orders better and shortening product cycles, the business can gain a competitive edge through effective export logistics management.
However, inadequate logistics management frequently results in higher logistics costs and subpar service.
Process of Export Logistics
The logistics procedure formally begins once the product has been approved for dispatch. Choosing the ocean freight forwarder and the manner of shipping is one of the first tasks exporters must complete.
The logistics procedure will be greatly facilitated by choosing a competent freight forwarder, export logistics company/agent, and clearing and forwarding (C&F) agency.
The agent will arrange for the shipment of the exporter’s choosing to convey the product, handle customs clearance, and make sure the final delivery is made to the target destination.
For instance, if one is exporting goods by sea or ocean, they must decide between options for transportation services like consolidation, less than container load, full container load, project cargo, etc.
The shipment of the items must be “export-ready” packed, which includes the appropriate labeling and labeling of the cases, packages, or cartons. If more than one box is to be dispatched as part of the lot, a packing list is necessary.
After completing the necessary excise formalities, the items are then released from the exporter’s facilities (if any).
Export Logistics Documentation
There is a list of documentation for the logistics process’s actions by nature:
3.Bill of lading
4.Certificate of origin
12.Free trade document
13.Shipper’s letter of instruction
14.Destination Control statement
Let’s examine the full export logistics tracking procedure in more detail:
• The exporter or the customs house agent packages, labels, and marks the goods in accordance with the accepted shipping practices when the pre-shipment inspection and quality checks are completed and the goods are created.
• Subsequently, the exporter or the freight forwarder arranges for the pick-up, stuffing, and sealing of the containers and obtains a delivery order that must be obtained for the containers.
• They organize intermodal transportation to get the items from the exporter’s location to the loading dock.
• The exporter or their agent makes arrangements for the customs clearance, paperwork, and physical verification after the products arrive at the port. They also make arrangements to pay any port fees.
• The shipping line receives the papers and the mate’s receipts and issues a bill of lading to the exporter. The exporter must deliver the buyer’s consignee or agent the original bill of lading and additional papers. Later, the buyer or their agent will need these documents in order to take possession of the items and obtain import clearance at the port of destination.
• In the interim, the cargo is loaded onto the carrier, which then leaves the port of origin.
Selecting a mode of transport
Knowing the several transportation options and which one will suit the consignment the best is the next step in managing costs and time.
In terms of volume, ocean freight shipping makes up roughly 90% of global trade. This approach involves packing large quantities of cargo into containers and shipping them in ships.
There are two types of maritime freight shipping: less than container load (LCL) and full container load (FCL). Compared to shipping by sea, the volume of air freight shipment accounts for less than 1% of worldwide trade.
Rail is a huge volume option that is also the most economical and environmentally friendly.
According to Priyadarshi of Cogoport, combining two or more means of transportation between the origin and destination is frequently necessary for international shipment.
Intermodal or multimodal shipping is what this is. Suppose, for instance, that you are shipping something abroad.
The goods may fly or sail for the majority of the journey, but truck transportation will be required to convey it from your plant to the port or terminal of origin and then again from the port or terminal of destination.
Tracking export logistics
Accurate shipment tracking is essential for a seamless delivery and for the logistic industry as a whole. According to D’mello of Freightwalla, going beyond the fundamental and traditional tracking method provided by freight forwarders could aid exporters in staying more current.
The traditional one often provides ETA and two-level tracking upon dispatch and arrival of the shipment (expected time of arrival). However, modern digital freight forwarders exist.
Following the export logistics process and paying attention to such important details can give exporters a competitive edge in terms of order fulfillment. On the other hand, poor logistics management will raise the cost of logistics and result in subpar service