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Creating Your Export Plan :Transportation and Documentation

Published on 2/7/2017
For additional information  Click Here


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Creating Your Export Plan Section 5 Part 2

Transportation and Documentation

Role of the Freight Forwarder


Once you’ve pinpointed your target markets, you need to assess how you will get your product or service to your potential customers. There are many options for market entry strategies.

These include

  • Licensing technology abroad
  • Acquisitions of foreign companies through direct investment
  • Strategic alliances
  • Joint ventures
  • Exporting (direct and indirect)

The benefits and risks associated with each method are contingent on many factors, including the type of product or service you produce, the need for product or service support, and the foreign economic, political, business and cultural environment you are seeking to penetrate. The best strategy will depend on your firm’s available resources and level of commitment, as well as the degree of risk you are willing to incur.

Small businesses most commonly select exporting as their strategy for market entry. Start-up costs and risks are limited, and exporting is less complex than some of the other market entry methods.  Exporting can be done directly or indirectly.

Direct Exporting: Your products or services are exported through an export intermediary. Or, as assembles knowledge and staff to implement the plan; e.g., locating foreign buyers, getting the product and labeling ready, making shipping arrangements, and invoicing.

Indirect Exporting: Your products or services are exported through an export intermediary. Or, as part of a supply chain, your products are sold domestically as a component(s) of a larger finished product bound for delivery to a foreign buyer


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Role of the Freight Forwarder

A freight forwarder is a person who is hired to move shipments between foreign and domestic locations, or a portion of the way. Freight forwarders also handle many of the formalities involved in exporting such shipments. Interviewing potential freight forwarders can aid you in selecting the right one for your business and overseas market.

The international freight forwarder acts as your agent in moving cargo to its overseas destination. These agents are familiar with:

  • U.S. government regulations
  • Import export rules and regulations of foreign countries
  • Methods of shipping
  • The documents required/utilized in foreign trade

Freight Forwarders’ Capabilities

Freight forwarders can assist with an order from the start by advising you of the freight costs, port charges, consular fees, costs of special documentation and insurance costs, as well as their handling fees—all of which help in preparing the pro forma invoice and price quotations. The cost for their services is a legitimate export cost that should be figured into the price charged to the customer


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Freight Forwarder Services

Typically, these agents can:

  • Recommend the best type of packing for protecting your merchandise in transit, and arrange to have the merchandise packed at the port or containerized.
  • Review the Letter of Credit, commercial invoices and packing list when the order is ready to ship, to ensure that everything is in order.
  • Reserve the necessary space onboard an ocean vessel
  • Make arrangements with the customs broker to ensure that the goods comply with customs export documentation regulations.
  • Have the goods delivered to the carrier in time for loading.
  • Prepare a bill of lading and any special required documentation.
  • Forward all documents directly to the customer or to the paying bank after shipment

Other agents can provide both services and information as you look toward international shipping, especially if you are shipping smaller quantities. There are also several commercial shippers in the marketplace that can manage your international shipments.


Next: Mode of Transportation and Documentation

Before the Shipment


Thank you for stopping by!


You can download the full pdf.file here




Transportation and Documentation continued Part 6

Your Export Plan Section 5 Part 1

Creating Your Export Plan Sec 4 Part 2 B

Export Readiness Creating Your Export Plan Sec 4 Part 2 A

Export Readiness Creating Your Export Plan Sec 4 Part 1




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