Container ships are cargo ships that carry all of their load in truck-size intermodal containers, in a technique called containerization. They are a common means of commercial intermodal freight transport and now carry most seagoing non-bulk cargo. Every day numerous containers arrive by air as well as seaports from countries around the world. Each shipment determines a specific supply chain whether it is handicrafts from India or types of equipment from other countries.
Process of shipping container business
- Importer requests quotes and orders goods
The first step in the shipping process is when an importer orders goods from a supplier. In a usual import, buyers will generally ask suppliers for a quote when looking at goods to purchase. The quote can often be accompanied by, or be in the form of, a proforma invoice. Once the quote has been approved, the consignee will often create a purchase order. Depending on the business, a comprehensive purchase order will also contain a projected shipping date, origin, and destination addresses as well as the freight dimensions. - Freight forwarder arranges export
If you are working with an independent forwarder, the agent you have been dealing with will then contact their overseas partner to arrange the collection of the goods. The overseas representative will in turn contact the relevant supplier and arrange for the export of the buyer’s goods. This will involve the preparation of several key documents used in the international shipping process which are required for customs purposes. - Booking of freight
Once the required documentation is in order, the supplier must make a booking for the export container shipment. It is critical for freight to be booked early to avoid disappointment, especially if the goods are going to be transported in peak shipping season. - Goods to travel to international depot/port
Once the goods are packed and ready, they will be transported to a depot or port for export. Depending on the shipping incoterms, this will either be arranged by the supplier or by the consignee through their freight forwarder. Export clearance can then commence. - Goods processed through export customs clearance and placed in transit
Prior to departure, the goods will be processed through export customs clearance. This is where all documentation is reviewed and checked by government agencies. As mentioned above, suppliers will typically be required to complete an Export Declaration. If the export is cleared, those goods will then be placed in international transit (where, as mentioned, a separate bill of lading may be issued).
There are several modes of transport a buyer can select to transport their freight when shipping by sea, including
- Full Container Load (FCL): this is where the shipment of one buyer takes up a full container;
- Lesser Container Load (LCL): where a buyer’s goods don’t take up the whole container (instead, the goods take up less of the container) and are stored with other buyers’ goods;
- Reefer: A reefer is essentially a large fridge used to refrigerate goods while in transit — reefers are normally used to transport goods like fruits, meat, vegetables, dairy, and fish;
- Out of Gauge (OOG): also known as break bulk, these are loads that are basically too big to fit into a container (and usually come with an extra surcharge);
- Flat Racks: As opposed to using standard shipping containers, buyers can instead choose flat racks — these are great for goods that do not fit in normal shipping containers
Goods arrive in the buyer’s country for import clearance
Once a buyer’s goods arrive in the country of destination, the goods undergo an import clearance. There are several regulations you must follow depending on the goods you are importing, whether they are motor vehicles, animals, human remains, or even intellectual property. Imported goods may be subject to certain taxes, tariffs, and/or charges. Depending on the commodity the goods may also be subject to quarantine inspection on arrival.
Goods are transported from the port to the buyer
Once the goods pass through customs and are good to go, they will then be delivered to the buyer or agreed with the delivery point. Once, again, the incoterms on the shipment will determine who arranges this. The receiver should discuss with the transport company or forwarder beforehand how they would like to receive the cargo for ease of delivery.
