International Shipping & Freight Forwarding Blog

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Lessons from a 30-year freight forwarding veteran:

With the US currency doing well, forwarders & shippers alike have experienced a surplus of imports. Yes, the value of the dollar impacts trading in a big way. The shift is quite telling of the conditions of our global economy, because there are very specific changes occurring. Notably, international forwarders are witnessing a shift in imports coming from the United Arab Emirates and South Korea.

This shift is altering the landscape considerably. It's very different than when importing from places like China, and that comes through with rates AND service levels.

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Different freight shipments come with different rules

Last week, we wrote about C & F versus CIF destination (more here). This week, we have a quick tutorial for shippers who are sending freight to their destinations via air or ocean consolidation services with two very important terms in mind: Delivery duty paid (DDP) versus delivery duty unpaid (DDU).

Although it's not all that common for shippers to export all the way to their international customers’ site, it happens when affiliated or when a buyer requires a price to its final destination door, which, as you probably know, happens enough to care about getting these details right.

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What does CIF stand for, you ask?

If you're shipping products overseas or importing to the United States, you're faced with a flurry of industry jargon that can get really confusing really quickly. But knowing these terms will likely prove quite valuable to you, so you are getting the best relative prices while meeting the demands and resources of your organization.

This is a term that we use and see quite a bit, so let me help you understand a little more about the acronymn itself and why exactly it exists, so you can identify whether it's right for you.

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Asking for "approved freight forwarders" is like asking for beef in your hamburger... 

If you're biting into a hamburger for the first time, and never knew what they were made of before sinking your teeth in, you're very likely to ask, "what's in it," right? After all, we don't want to take any chances with the food we put into our bodies, because what if it's something we have an aversion to or know that our bodies can't handle?

The same should go for your frieght shipping. If you've never done it before, you should ask about what is involved. Are you using secure facilities? Are your shipments properly crated and packed? Are your freight forwarders approved by the Federal Maritime Commission? And are they doing everything you need and expect them to do?

If you don't ask these questions, you may find yourself in a sticky predicament, so let me help you understand their implications and other questions you should be asking.

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