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Freight and Logistics

When exporting goods, transporting your product to an overseas market efficiently and competitively is vital. Using a high quality and reliable freight forwarder is very important, these companies are expert in documentation, freight rate negotiations and finding the most economical way to get your product to the buyer. It is also essential to understand the basics of shipping terms, pricing and documentation.

Depending on your product, it may be suited only for ocean shipping or for airfreight. It is necessary to understand the basic principles of both sea and air cargo as rates can vary when new capacity is offered on trade routes and when new markets are serviced, often with a range of intermodal services.

Sea and airfreight have a well-ordered series of conventions and these need careful study. A good starting point is to learn what are known as INCO terms (International Commercial Terms). Introduced in 1936 and modified since, INCO terms are critical for the consignment and payment of goods shipped internationally, and have precise definitions.

Export documents require careful preparation to avoid delays in customs clearance at their port of discharge and also to comply with documentary letters of credit that specify conditions such as precise product descriptions, packing lists and attestations including quarantine certificates and certificates of origin. Electronic documentation has made a complex process much easier, but mistakes can be costly. It is imperative to understand the export documentation process and to ensure that the preparation of documentation is carried out with meticulous accuracy.

Finding a freight forwarder
CargoHound connects exporters and importers with dozens of reliable freight forwarders and carriers reducing the time, cost and risk of shipping products internationally.

Sensis Australia Sensis provides access to a range of databases, including the Yellow Pages, which lists about 1000 freight forwarding companies, many of them offering international services.

Tradegate The site has details on a range of export transportation services.

For further information please go to http://www.austrade.gov.au/Freight-and-logistics/default.aspx

Useful websites

Where do I start to learn about shipping?

The Australian Freight Councils Network - Provides references to state and territory-based freight organisations covering both air and sea cargo. Check the websites of members for information on services.

The Supply Chain & Logistics Association of Australia - Provides some useful background on logistics.

Cargohound offers guidance on a range of topics in international freight for those new to import or export.

What do all these shipping terms mean?

Cargohound has a useful Infographic on Incoterms 2010® and also a fact sheet title "Common Freight Costs Explained"

Australian Export Online You will find an explanation and a tutorial on Incoterms at this website.

International Chamber of Commerce (ICC) Has a detailed review of Incoterms.

How do I negotiate the best freight rate for my cargo?

CargoHound allows you to request quotes from dozens of service providers.

Isn't export documentation complex?

The Australian Institute of Export AIEX provides hands-on training in export practice.

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