A Comprehensive Guide to International Freight Shipping

The global supply chains are still reeling from the aftereffects of the pandemic disruptions. The global freight ecosystem is facing new challenges such as staffing shortages, inflation, and digitization for risk avoidance. Sustainability will continue to be a trend in the global freight industry, as searches for sustainable goods have increased by 71% since 2016.

Nevertheless, the freight and logistics market size continues to grow. It is estimated at 5.96 trillion USD in 2024 and is expected to reach 8.04 trillion USD by 2030, growing at a CAGR of 5.11% over 6 years.

In this article, we’ll dive into a comprehensive guide to international freight shipping and how Planimatik’s freight management software can transform your logistics operations.

What is international freight?

International freight shipping is the process of transporting goods across international borders using various methods like trains, planes, trucks, and ships.

A logistic manager coordinates the entire process from customs clearance to regulatory compliance to ensure that delivery is on time and meets customer expectations. It also involves managing international shipping services, understanding international freight rates, and handling international shipping rates effectively.

International freight plays a crucial role in the development and progression of international trade. By ensuring that goods are transported reliably and securely, freight operations contribute to economic growth and exchange globally.

When international freight shipping runs smoothly, these services can stimulate trade, boost industry productivity, and enhance consumer satisfaction. By increasing efficiency, reducing costs, and improving reliability, freight operations play a crucial role in global trade and logistics.

How does international freight shipping work?

The international freight shipping industry uses the Request for Proposal (RFP) process to secure contract rates with carriers or logistics providers, or both. It is like any industry’s procurement process - a key component of planning and budgeting for the year ahead.

As the shipper, you should begin the RFP process with a comprehensive look into market conditions and data and a detailed statement of the business need.

There are key steps in the RFP logistics and freight process, including:

• Have a formal invitation process.

• Diversify invites between freight and logistic providers.

• State clear scope of work in RFP.

• Set clear Key Performance Indicators (KPIs).

• Explain the submission process.

You can make the RFP process smoother by practicing open communication with all parties involved and leveraging the latest technology.

With Planimatik's RFP "Automated Planning" tool, you can now eliminate the manual input of repeated information; if you have lanes with recurring criteria, all information can be saved and the tool instantly applies it for the time frame needed. Automated Planning saves your valuable time in the RFP process and increases efficiency.

Preparing Your Shipment

Once you have selected a carrier from your RFP process, it is time to prepare your shipment for traveling overseas.

For documentation and packaging considerations for international transport, you will need:

• Bill of Lading (BOL) - a document that serves as a contract between the carrier and the shipper. It also acts as a receipt of cargo and document of title, allowing the holder to claim the goods upon arrival. A BOL is the most important document in international shipping ensuring your shipment is legally accepted.

• Commercial invoice - a document that includes complete details of the transaction necessary for customs clearance in international shipping. It serves as a formal request for payment from the buyer to the seller and includes vital information such as description of goods, unit prices, payment terms, and terms of delivery.

• Packing list - a document that provides a detailed breakdown of the contents of each shipment which assists customs officials during inspections. It includes information about item descriptions, quantities, weights, and dimensions. A packing list is used for a shipment to clear U.S. customs for inspections or if a dispute arises between a shipper and a carrier.

• Certificate of Origin - identifies the country where the goods were manufactured. This document must remain compliant because it is critical for customs clearance.

Choosing a Freight Forwarder

While shipping internationally provides strong business opportunities, it can be a complex process. That’s why many shippers hire a freight forwarder to help navigate the complexities.

A freight forwarder is a company that arranges the import and export of cargo.

Freight forwarders provide a variety of supply chain services including ocean or air freight transportation, preparation of documents, warehousing and storage services, and cargo insurance and customs compliance.

You need to choose the right freight forwarder for your shipping requirements. You should do some research and figure out which company has expertise on your shipping route, understand the company’s reputation, and the services it provides. Most of all, you should get a freight quote and understand what it entails.

Customs Clearance Process

Once you have chosen a freight forwarder, it is time to understand how the customs clearance process works as part of shipping freight internationally.

When importing or exporting goods, customs clearance is the process of ensuring all customs regulations and obligations are met for goods to legally enter or exit a country. Failure to clear customs properly can result in delays, penalties, or seizure of goods.

Customs clearance involves the following steps:

• Documentation - You must provide the necessary documents - such as invoices, packing lists, bills of lading (BOL), import/export permits - to the customs authorities.

• Customs declaration - You must submit a customs declaration form that provides detailed information about the shipment such as what kind of goods are being shipped, their value, quantity, and intended use.

• Inspection and clearance - Custom authorities may inspect shipments to verify the details on the declaration. This can involve physical inspection, x-rays, or laboratory tests.

• Payment of duties - As the importer, you are responsible for paying the duties, taxes, and fees. Once payment is made, customs authorities issue a “custom clearance certificate” or release order, and goods are allowed to enter or leave the country.

In customs clearance, compliance and proper documentation are important to avoid delays, prevent fines and penalties, and protect from legal liabilities. Proper documentation ensures that shipments comply with legal requirements, reducing the risk of shipment rejections and improving transit times.

Managing International Freight Operations

Efficient freight management is critical to the success of international shipping. It streamlines the movement of goods across borders, reduces costs, and ensures timely delivery.

With Planimatik’s solutions, logistics operations are simplified to make every international shipment a well-informed and well-managed journey. With the Stats (Analytics) feature, you can easily access your freight operation data with a comprehensive snapshot of your logistics performance including freight analytics data.

As a logistic manager, you can use Stats to pinpoint inefficiencies in processes and optimize operations without causing disruptions. You can track the costs of loads you’ve moved over specific periods staying on top of your financial performance. You can also understand your operational efficiency by monitoring the number of pick-ups and deliveries across different states or countries. With this insight, you can identify high-traffic areas, optimize your routes, and streamline your processes for maximum productivity.

When moving goods long distances, open lines of communication ensure smooth international shipping operations. With Planimatik’s communication tools, you are always connected to your team with transparent communication. TeamSync feature facilitates ongoing communication with freight forwarders and transportation coordinators, ensuring that all parties are aligned throughout the shipping process.

Tracking your international freight

Tracking is essential in international shipping with numerous benefits such as visibility, risk management, customer service, and operational efficiency. Planimatik’s Tracking feature provides real-time visibility into the location and status of shipments, allowing shippers to monitor progress from origin to destination.

If you need to check on the status of a delivery, you can use Planimatik’s Calendar View feature. It enables you to filter through different criteria such as project cycle or status providing a step-by-step practical operations checklist for international shipping logistics.

Planimatik: Unstoppable International Freight Shipping

As we have learned, international freight shipping is a complex process where every step is crucial to the successful movement of goods across countries. It encompasses various elements of the supply chain, regulatory compliance, logistics management, and the latest technology. Each country has its own customs regulations and documentation requirements making adherence to these protocols essential for smooth international shipping.

From strict compliance and regulations to selecting a freight forwarder, shipping logistics require precise knowledge and expertise to run efficiently. Among other important details, you must know how to follow the steps in the customs clearance process and how to effectively bid on an RFP to select the right carrier for your international freight.

Planimatik’s software has multiple features, including advanced analytics and communication tools, to empower logistics managers like you to optimize international shipping operations. By leveraging the power of Planimatik’s platform, you can streamline your freight management processes and achieve greater efficiency across the supply chain in any country.

Ready to transform your international shipping operations? Get a free demo today.