What Influences the Cost and Timing of Your International Shipment?

What Influences the Cost and Timing of Your International Shipment?

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Local business has grown exponentially so much that even foreign customers have expressed their desire to order from you. But then you wonder, are you really ready to expand overseas? And since you would be definitely using the services of customs brokers you must also be aware of the factors that influence international shipment.

Knowing this aspect will help you reach more customers and ultimately, see profits that you need not only for your business to stay afloat but to ensure its sustainability and stability as well.

So what are these factors?

  1. Transportation costs are usually pegged at 10% of the actual amount of the freight. If the contents of your freight cost a thousand dollars, expect to pay at least a hundred dollars on transportation cost. However this cost may further be affected by other factors such as: geography, type of product, energy, mode, competition and regulation, and surcharges.
  2. Customs and duties. This will be dependent upon what your shipment contains, its value, the country of origin and other factors. Be aware that there are no standardized assessment of customs and duties. Each country has its own set of regulations when it comes to importing goods.
  3. Customs Brokers. Think of customs brokers as bridges that will connect you to the US Customs Service. They will give you advice as to what requirements are needed for your shipment, prepare and fill out documents for entry. Customs brokers will also get the needed bonds, pay duties, and ensure that your shipment is delivered to your home, office or warehouse.
  4. Finances and insurance. Also affecting shipment rates are insurances and other related fees. These are paid before shipping. These fees ensure that in the event of loss or damage, the insurance company will be responsible for your goods.
  5. Unexpected costs. There are times when other costs are necessary – especially when you do not provide your customs brokers all the necessary information they need to expedite the processing of your shipment. These may or may not include:
    1. Per diem
    2. Detention
    3. Missing documents
    4. Customs clearance issues
    5. Penalties
    6. Others

Yes, international shipping is a complicated process, but it doesn’t have to be your headache. This is why it is highly recommended to hire the services of experienced customs brokers to ensure that your shipment will arrive safely and securely in a timely manner. Let the professionals do what they do best so that you can continue to do what you do best.