At Ship4wd, we support SMBs ship their goods across borders easily and cost-effectively. We know that freight shipping is not easy for a small business that may lack a dedicated logistics team and adequate infrastructure. Still, there are many different things you can do to facilitate and optimize your international freight shipping operations.
Managing freight shipping can feel overwhelming for the average importer. With lower volumes and fewer resources, it may be hard to navigate the complexities of international trade – let alone getting favorable shipping quotes.Typical roadblocks in small business shipping include:
- High per-unit costs
- Limited carrier and shipping options
- Difficulty consolidating loads
- Cargo space shortages
- Lack of resources and in-house expertise
- Frequent delivery delays
- Confusing paperwork
- Freight classification issues
- Lack of visibility into the shipment’s progress
- Complex customs and regulations
- Changing international regulations
According to industry experts, balancing speed, cost, and reliability while meeting customer expectations is an ongoing challenge for small-scale shippers.
But in a growing market, where U.S. imports increased 6.6%, reaching an impressive $4.1 trillion compared to the year before, getting a piece of the pie makes sense.
So, how do small businesses ship products? With some extra reading, better organization, and the help of reliable carriers and freight forwarders, you’ll be well on your way to success!
Here are some small business shipping tips to consider.
Choose The Right Shipping Method (Air vs. Ocean) & Consider All Options
Not all transport is created equal (thankfully!). So, consider the trade-offs of air vs sea freight for every type of shipment. In short:
- Ocean Freight is often the most economical option for large volumes or heavy goods, particularly for international shipping, though transit times are much longer than air freight.
- Air Freight, typically the most expensive per kilogram, offers significant speed and reliability, and it’s a good option for small shipments.
Shipping Goods By Air – Benefits For Low-Volume Shipments
Incorporating air freight into your shipping strategy can be a powerful tool.
Speed is the core advantage here. Thanks to shipments arriving in as little as 24 to 72 hours and priority customs clearance, you can reduce lead times, prevent stock shortages, and improve cash flow through quicker product turnover.
Despite the higher costs, air freight helps you ship low-volume quantities more frequently.
Ocean Shipping – LCL For Small-Scale Importers
Less-than-Container Load (LCL) shipping solutions for small businesses offer many different options concerning costs and space availability – especially when you don’t have enough volume to fill a container.
Paying just for the space your cargo occupies leads to considerable savings over time.
Ocean freight may take longer to arrive (2 to 6 weeks on average), but it’s a cost-effective and flexible option, with inherently easier container space allocation during peak seasons – though shipping off-peak grants you better freight rates.
The Power Of Consolidating Shipments
Combining multiple smaller shipments into fewer, larger ones is a powerful strategy for reducing freight costs. Consolidating shipments allows you to potentially benefit from lower LCL or FCL rates per unit than shipping each batch individually.
This approach can substantially reduce freight costs and streamline your supply chain.
Decoding Incoterms For Clear Responsibilities
Small business freight shipping may come with lighter loads, but getting clear on your trading responsibilities and rights is just as crucial as for large organizations.
Size doesn’t make a difference here; understanding Incoterms (International Commercial Terms) is essential for any importer.
This set of 11 internationally recognized rules defines the responsibilities of sellers and buyers concerning payment, freight management, insurance, documentation, customs clearance, and other logistical activities.
Some Incoterms apply only for ocean freight, so it’s worth knowing them in detail:
FAS – Free Alongside Ship (+ named port of loading): the seller delivers goods at the port of export, handles export clearance, and provides shipping documentation. The buyer is then responsible for loading the goods, along with all costs, risks, transportation, cargo insurance, and import clearance.
FOB – Free On Board ( + named port of loading): used for bulk/non-containerized cargo. Here, the seller covers all costs and risks until the goods are loaded onto the vessel, including export clearance, documentation, and loading charges. Once loaded safely, the buyer assumes control over the main carriage, import duties, and final delivery.
CFR – Cost and Freight (+ named port of destination): the seller is responsible for covering the transportation costs and handling all export procedures until the destination port. However, once the goods are loaded onto the vessel at the port of origin, the risk shifts to the buyer, including insurance and managing import customs clearance.
CIF – Cost Insurance and Freight (+ named port of destination): the seller handles and pays for transportation and basic insurance coverage against major risks until goods reach the destination port. However, once goods are loaded on the vessel, the risk transfers to the buyer, who’s also responsible for import duties, taxes, and final delivery.
Navigating The Paperwork
Freight shipping involves essential documentation that must be completed accurately and swiftly to avoid delays and extra costs.
- Bills Of Lading (BOL): This document acts as a contract between the shipper, carrier, and recipient and includes details about the goods, origin, destination, and terms.
- Other Documents: Depending on the shipment and destination, other documents like commercial invoices, packing lists, and potentially special permits or licenses may be required.
Accurate documentation is a make-or-break in international shipping. Essential paperwork includes filings like the Import Security Filing (ISF) for imports into the US, which can incur significant fines if not submitted on time.
Planning Ahead
Planning your shipments as a small business may take up more time and effort than you are willing to spend.
However, it’s a worthwhile process that helps you optimize your shipping processes and expenses now and in the long run. Thoughtful planning lets you take advantage of the most cost-effective options, avoiding expensive last-minute arrangements or capacity restraints.
It also adds an extra layer of flexibility with pickup and delivery dates, which can also open up opportunities for more carrier options and better rates.
Ensuring Visibility Every Step Of The Way
Often overlooked, visibility is one of the best shipping tips for your small business.
Especially because you lack the time and resources to always be on guard or have frequent communications with suppliers and carriers overseas, you need to know where your shipment is and when it’s expected to arrive at any given moment.
Visibility and real-time tracking tools help you plan your import schedule, anticipate any issues, keep your team and customers informed, and work with more peace of mind.
Today, most carriers offer tracking portals or updates. At Ship4wd we go a step further. Our all-in-one shipping dashboard not only gives you detailed, real-time information, but also lets you purchase extra services, like freight insurance and customs clearance, quickly and affordably.
Partner With Experienced Freight Forwarders
Working with an experienced logistics partner, such as a freight forwarder or a Third-Party Logistics (3PL) provider, simplifies the complexities of international shipping for small businesses.
These partners can help you compare different carriers and rates, negotiate on your behalf, manage transportation across different modes, handle documentation and customs clearance.
They often have established networks and can leverage their aggregate volume to secure better rates than an individual small business might get alone.
At Ship4wd, we offer next-gen shipping solutions especially designed for small businesses. Our digital freight-forwarding platform helps you choose among thousands of carrier options, get the best quotes, and book your shipments in minutes.
Plus, our experienced staff is there for you 24/7, supporting you all the way from origin to destination. Start today!