Without cross-border logistics, international shipping quickly becomes a major headache for smaller businesses. Luckily, your logistics partner has remedies to help facilitate the movement of products from country to country.

It would be fair to say the international trading landscape is becoming more complex. But considering global transportation and supply chain industries are constantly evolving, a more appropriate statement recognizes that the nature of cross-border shipping has never stopped changing to begin with.

Let’s have a look at how logistics fits within the global supply chain, and possible solutions to effectively managing international shipping.

What is Cross-Border Logistics?

Cross-border logistics is an integral section of the supply chain that focuses the efficient flow of products as they pass from country to country. Along with providing transportation services, its purpose is to facilitate compliance with legal and tax regulations as products are shipped across international borders.

Types of Cross Border Freight Shipping

Cross-Border TL/LTL

Whether you have full truckload or less-than-truckload cargo to import into and export out of Canada, we have the logistics expertise to expedite freight shipments and reduce the risk of costly border delays. We can even help expedite imports into Canada valued at $3,300 or less.

International Freight Forwarding

We can help manage the import of goods into and export of goods out of North America and facilitate delivery into the Canadian market. We pick up shipments offshore and load containers onto ocean liners for delivery into Canada.

What are the Challenges to Cross-Border Logistics?

The problem is: how to seamlessly manage courier, freight, freight forwarding, air cargo and associated international supply chain needs. The solution is: through cross-border logistics.

The very nature of logistics involves the handling and tracking of goods as they move through your supply chain. When your products need to move through another country, cross-border shipping multiplies the complexity of getting your products to their destinations. Additional paperwork, the potential for customs delays and multi-carrier handoffs are just a few of the issues that make moving products across borders much more complicated than is reasonable for smaller business.

Every business wants to main a competitive edge in the marketplace. A firm can help improve its operational position by maximizing logistics strategies that affect the movement of products as they navigate across borders.

Logistics partners with experience in cross-border freight management must have professional people, systems and processes in place to help facilitate the transition of goods from one country to another.

Without help from a third party logistics professional, critical tasks quickly wind up outside a small company’s capabilities. Some of these tasks include:

• Shipping
• Order tracking
• Tracing
• Liabilities
• Carrier handoffs
• Meeting expected delivery times
• Returns and Reverse Logistics
• Customs paperwork and clearance

Cross-Border Shipping vs Local Shipping

The need to move products across borders arises from one of two conditions: products on their way to final destination or, materials are being transported to facilitate the manufacturing process. For example, one shipping path would be a smart phone on its way from the manufacturer to the distributor or retailer, whereas the other would be the import or export of components and raw materials that constitute the smart phone itself.

Anyone who’s run an inventory-based business knows that, when bringing in significant quantities of supplies from another country, duties become a serious consideration when budgeting and projecting costs. It’s usually more cost effective to try and source local fulfilment for the products you need. Drawing from inventory that is stocked regionally gets around a host of cross-border complications in that duties, customs, trade tariffs, shipping and associated international paperwork has already been taken care of.

Not only can a business leverage the current trend of “locally sourced”, there’s the added benefits of supporting local economies and keeping working capital within the region itself. But as much as it may be preferred to find sources locally within your own borders, this isn’t always possible.

Still, the flow of goods across borders shows no signs of any serious degradation. If anything, international shipping and logistics is booming:

“”Overall, the value of global trade reached a record level of $28.5 trillion in 2021,” the report says. That’s an increase of 25% on 2020 and 13% higher compared to 2019, before the COVID-19 pandemic struck.”

source: UNCTAD’s Global Trade Update

Logistics Shipping and Technology

In today’s business world, particularly with the rise of e-commerce, the mere thought of trying to manage shipping without the aid of technology is a non-starter. Technology effectively helps provide end-to-end supply chain visibility and reduce operating costs. On the international front, electronic data solutions provide easier management of logistics functions such as:

• Route planning
• Warehouse management
• Coordinating shipping partners
• Freight preparation
• International commercial terms management
• Other required import and export documentation

For businesses on the receiving end of cross-border shipping, implementing a system that allows products to arrive Delivered Duty Paid (DDP) helps to reduce friction from unexpected charges at end points. But capabilities such as this depend on improvements derived from actionable data provided by digital operations.

Additionally, being able to respond effectively to customer demands also requires international logistics networks to have transparent systems in place. Better logistics providers incorporate international tracking systems to monitor basic shipping needs such as end-to-end order tracking and in-flight delivery changes.

Problems Facing International Trade

Due to the sheer number of globally recognized borders, the challenges facing international logistics are immense. Inherent roadblocks arise from how each country administers their own international customs and border management.

To try to make importing and exporting processes as seamless as possible, efforts are constantly being made to harmonize, simplify and standardize cross-border trade procedures. One solution is to lessen restrictions on border controls by shifting certain responsibilities to suppliers and end users through supply chain security. But these same efforts would also have to incorporate contingencies that curb the ability of less scrupulous entities looking for ways to manipulate the system by way of loopholes. Without proper governance, these unintended consequences carry the possibility of undermining public safety and economic security.

Ultimately, the goal of smooth cross-border logistics operations should minimize the regulatory burdens placed on businesses. For government controlled agencies, efficient border management implies the best use of inspection resources and encourages good compliance behaviour. The downstream benefits resulting in a healthier business environment and wider range of social and economic benefits.

Additionally, relying on cost-effective outsourcing from other countries depends on a consistent cross-border supply chain. But over time, this consistency occasionally gets disrupted as laws governing international trade change. Let’s say for example, you manufacture types of wooden furniture from a certain species of tree that, through regulatory change, becomes internationally protected. Suddenly your source is an endangered species.This is what happened with various flora and fauna species that fell under the CITES treaty in 1975 and was ratified by over 180 countries:

The objective of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is to control the trade in species of wild animals and plants that are, or may be, threatened with extinction as a result of international trade.

Furthermore, as we’ve seen in the news, geopolitical landscapes affect trade regularly, which winds up compromising existing trade capabilities. Take for example the recent conflict between Russia and Ukraine. With Ukraine being one of the world’s largest grain producers, its ability to export the commodity was seriously hobbled when Russia restricted access to Black Sea ports.

Unfortunately, regional and bilateral trade regimes continue to become normalized, particularly in emerging markets. This results in a host of tariff and non-tariff conditions, varying degrees of shipping standards, complicated rules of origin and regulatory compliance issues which make it difficult and costly for businesses to navigate. Since it began life in 1995, The World Trade Organization (WTO) continues to struggle with equalizing multilateral trade efforts due to differing political policies.

How Can Brimich Logistics Help?

Today’s cross-border shipping is facing higher demand and expectations for fast, seamless delivery. Your business deserves the capacity it needs to operate, flexible transportation models, and the expertise needed to navigate regulations and processes without delays.

If timing is critical and your budget is under fire, trust Brimich Logistics and Packaging to help you navigate the complexity of shipping between countries.

What role does freight logistics play in making sure your products are delivered on time, and on budget?

What Is Freight Logistics?

Freight logistics comprise the core systems and infrastructure of an estimated $270 billion global business.

At any given point, the knowledge of shippers and carriers, the technology, experience, and human resources make possible the smooth and efficient movement of goods around the world.

One major example, international maritime shipping, accounts for about 90 percent of world trade, and without these logistical mechanisms, simply would not be possible.

The following is a useful look into the key components of freight logistics including: communication, tracking and tracing, warehousing and distribution, customs, and insurance.

The Seven Rs of Logistics

To understand the complexities of strategically coordinating the elements and functions necessary to the efficient operation of the international maritime shipping industry, it’s helpful to understand the basic principles represented by:

1. The Right Product

2. The Right Place

3. The Right Price

4. The Right Customer

5. The Right Condition

6. The Right Time

7. The Right Quantity

In practice, making sure the correct cargo reaches its intended destination safely and on time is priority one.

The logistical systems of freight management are equal parts mechanical and organic. In order for their respective supply chains to properly function, each  must pull its weight in perfect synchronicity.

To get a better idea of how massively intricate the global flow of freight is, the interactive map below illustrates just how much the world relies on coordinated logistics systems:

How Freight Forwarders Play Their Part

Managing the specific needs of such a highly coordinated system requires a freight logistics team dedicated to:

• Negotiating freight rate contracts
  
• Ensuring continued customs compliance and insurance protection
• Maintaining relationships with steamship lines
• Minimizing empty miles by coordinating efficient shipping routes

Freight forwarders oversee the following logistical responsibilities:

1. Communication

2. Tracing and Tracking

3. Warehousing and Distribution

4. Customs

5. Insurance

Logistics Communications

Logistics companies partner with businesses to make the right decisions impacting finance, production, engineering, marketing, transport, warehousing, purchasing, and inventory management.

What does this do for your business’s bottom line?

By minimizing the amount of connections needed to link a variety of economic players, third party logistics providers help reduce costs.

Tracking and Tracing

Freight Forwarders typically utilize specialized software called a Transportation Management System, or TMS, to trace and track shipments, making any freight’s journey transparent. This helps logistics management to:

• Develop more efficient procedures
• Improve customer service
• Save money

An integrated TMS reports crucial data about carrier performance, transportation costs, and market trends.

Though the goal is always in smooth logistical operations, the TMS detects hiccups that may defer delivery, facilitating prompt notification for any customers who may be affected by the delay.

This enables freight forwarders to continually refine their strategies in creating a cost-effective supply chain.

Warehousing and Distribution

Diligence in warehousing and distribution pays dividends for your supply chain. There are many opportunities that can cause costly mistakes, there are just as many to excel.

Freight is the life’s blood of both buyers and sellers, therefor faithfully adhering to regulated warehousing and distribution procedures help logistics partners earn trust and strengthen relationships.

A breakdown of value-added warehousing and distribution services include:

• Cargo Packing and Crating
• Pick and Pack
• Labeling+ Barcode schema:
  + Label materials
  + Label placement
  + Complementary technologies
• Vendor Assembly and Consolidation
• Kitting
• Visual Inspection Services:
  1. Inspect the carrier for cleanliness, dryness, ventilation, and cargo separation to be sure the vessel is appropriate for its designated cargo.
  2. Report on markings, type of packing (bulk, cartons/drums, etc.) and a count of goods.
  3. Confirm that a valid mate receipt (document signed by an officer of a vessel evidencing receipt of a shipment on board the vessel) was received.
  4. Verify that units match those listed on the order description.
  5. Check packages and labels for correct dates and batch numbers as well as supplier certificates.
  6. Document when and where product was loaded, and the processes used to do it.
  7. Maintain a time log that includes dates and times of arrival, departure, loading, and delays (citing the reasons for the delays). Descriptions of loading gear and weather conditions should also be listed.

Managing Customs

In simple terms, customs brokers produce documentation for shippers to prove that the required customs procedures have been performed and the goods have cleared for shipment when entering or leaving a country.

If warehousing procedures aren’t complied with properly, the warehoused freight waiting for clearance might instigate extra fees. This can add up to hundreds or thousands in avoidable shipping costs.

Whether importing or exporting, the documentation is extensive, plus laws vary from country to country and port to port.

Time, money, and relationships can be compromised without the proper attention from a licensed customs broker as logistical errors can easily be made.

Required documents for importing or exporting cargo are:

• Purchase order from buyer – The terms include:
  • Price
  • Quantity
  • Quality
  • Description
  • Latest ship date
  • Mode of transportation

• Sales Invoice – An example sales invoice may include:
  • Clear description of the item
  • Quantity
  • Value, in foreign currency and U.S. dollars
  • Country of Origin
  • Where it was purchased
  • Names and locations of buyer and seller
  • Address of the person or business the goods are being shipped to

• Packing list – A packing list may also:
  • Accompany an insurance certificate
  • Be used to issue a Bill of Lading
  • Contribute to electronic export information (EEI)
  • Help customs officials verify goods

• Shipping bill
• Bill of lading
• Bill of entry
• Certificate of Origin

Other requirements may include other documentation specific to the buyer, or financial institution, or Letter of Credit terms per importing country regulations.

When negotiating for an appropriate freight forwarder, it’s imperative to exercise due diligence and research whether a given forwarder has experience and is knowledgeable enough to handle your particular customs brokerage needs.

If not, consider splitting the tasks between a separate customs broker and forwarder. Though the costs may rise, the price of inadequate or negligent customs brokerage is not worth the risk.

Insurance

Due to the inherent nature of unforeseen problems arising despite best hopes, whether accidental or instigated, the need for insurance is a must in freight logistics.

Industry experts cite that, cargo theft is a $30 billion a year business. While this is indeed a serious potential threat to your freight, it’s far from the only bad thing that could happen to your cargo.

Also adding to the potential for loss or damage are:

• General Handling
• Bad weather
• Long extended voyages
• Continuous moving and shifting of cargo

Therefor protecting your cargo from its point of departure to final delivery warrants insurance coverage.

Because of the broad scope of goods that require transportation, it’s imperative you work with a partner that can set you up with a plan that best suits your cargo’s, and your business’s needs.

What Is The Most Important Part of Freight Logistics?

As you can see, freight logistics is a multi-faceted and intricate balance of elements all designed to help move your business forward. But the most important thing to remember is that it always involves engaging the right people with the right expertise at each step along the way.

Freight forwarding is the coordinated shipment of goods from one destination to another through the use of freight carriers either by air, rail, highway, or waterway.

With the increasing importance of global trade, it has more become evident that freight forwarding, whether by land, water, rail or air requires coordination, regulation and evolving best practices.

Since 1948 the Canadian International Freight Forwarders Association (CIFFA) recognized the need to ensure that goods flow in a timely and proficient manner across borders and throughout the world.

What Does a Freight Forwarder Do?

A freight forwarder acts as an intermediary between a shipper and various transportation services.

A freight forwarder handles the details of your international and regional shipping, such as oceanic shipping, moving goods by rail, highway transport, and air freight, but does not necessarily move your freight itself.

A freight forwarding service leverages established relationships with multiple carriers in order to negotiate the best possible price to move goods.

By working out various bids and choosing those that best balances speed, cost, and reliability, the most economical routes are maximized.

Freight Forwarders handle the considerable logistics of shipping goods from one international destination to another that would otherwise be a burden for their client.

Export.gov explains it like this:

To comply with export documentation and shipping requirements, many exporters utilize a freight forwarder to act as their shipping agent. The forwarder advises and assists clients on how to move goods most efficiently from one destination to another. A forwarder’s extensive knowledge of documentation requirements, regulations, transportation costs and banking practices can ease the exporting process for many companies.

x

x

How do I find freight forwarder?

Of course the internet is a great tool to find a good freight forwarder. Here are just a few:

• The Port of Los Angeles
• Forwarders.com
• FreightGate.net
• freightnet.com

What is a freight forwarder?

In a nutshell, a freight forwarder is a company that arranges importing and exporting of goods for a client. But to be more definitive, a freight forwarder handles the following individual tasks:

• Arranging storage and shipping of merchandise on behalf of its shippers
• Tracking inland transportation
• Preparation of shipping and export documents
• Warehousing
• Booking cargo space
• Negotiating freight charges
• Freight consolidation
• Cargo insurance, and filing of insurance claims

Freight forwarders will also usually ship under their own bills of lading or air waybills (called house bill of lading or house air waybill).

At the destination, their respective agents or associates (overseas freight forwarders) provide document delivery, freight collection services, and deconsolidation.

What is a Freight Forwarding in Logistics?

As mentioned previously, freight forwarding is the coordination and shipment of goods from one place to another.

To accomplish this, freight forwarders are experts in managing the logistics necessary to ensure that goods arrive on time whether through single or multiple carriers via air, marine, rail or highway.

What are the benefits of using a freight forwarder?

A freight forwarder is not necessarily required for importing or exporting goods, but, importing and exporting can involve specific documentation and many regulations.

Moreover, these regulations and required documentations can vary from country to country, Therefor many of the better importers and exporters partner with a commercial freight forwarder for logistical reasons.

Their expertise is in knowing the shipping companies, the documentation, and customs laws of various countries so you don’t have to. The benefits for you are massive time savings and insulation from potential headaches while at the same time, providing reliable transportation of products at more competitive rates.

A good freight forwarder will more specifically negotiate tariffs, customs regulations and be fluent in the requirements of shipping through virtually all methods: land, sea, rail, and air.

Freight forwarders also manage the risks and benefits of shipping both nationally and internationally using the latest advances in information technology.

Overall, a freight forwarder is a valuable asset to nearly any company dealing in international transportation of goods. This is especially helpful when in-house resources lack experience in international shipping procedures.

What is freight forwarding and clearing?

Understanding customs procedures is integral to ensuring successful shipment and delivery of goods. Knowing how to properly clear though customs regulations is an important component for any freight forwarder.

Negotiating customs regulations and logistics of freight forwarding is a complex task. Freight forwarders will also ensure that their most qualified personnel are available to tailor and develop a comfortable shipping experience for their clients.

Can a Freight Forwarding Company Handle Business to Business Shipping?

In short, yes.

As a B2B company, you want a shipping chain you can trust to get your cargo to your business partners. Your best choice of freight forwarder will ensure all the required documentation is in order and ready to present at every step when needed.

What is Freight Logistics?

Freight logistics is a further subcategory of logistics involving only freight. There are two types of logistics, namely inbound logistics and outbound logistics.

Inbound logistics is a primary component of logistics and involves the procurement, transportation, and storage of products, materials, or parts from various locations for assembly or production.

Outbound logistics refers to all the supply chain activities involved in the transportation of the finished product to the distributor, to the retailer and, ultimately, to the end consumer. Transport can be carried out via air, sea, rail, or roads.

There are several other subcomponents of logistics, including:

• Procurement logistics, for example, market research and supplier management
• Distribution logistics, which involves the delivery of the finished product to the end consumer
• Reverse logistics, which is all the activities related to the reuse of products
• Production logistics, which refers to all logistic processes within a value-adding system

What is the Difference Between Shipping and Logistics?

There is often some confusion as to the difference between shipping and logistics. The essential difference between shipping and logistics has to do with scope.

Shipping refers to the transfer of goods from one place to another via air, sea, road, or rail. To understand logistics, one has to take a step back. Logistics is the administration of the process of acquiring goods, storing them and, finally, delivering them to the end user.

The logistics of physical products involves the coordination of specific areas of specialization, including information flow, production, inventory, and storage. Shipping is one of these areas of specialization that forms part of logistics and is, therefore, an integral part of logistics.

Logistics and shipping are both key components of a supply chain. If one or the other is lacking, chances are that the business will experience problems relating to inefficiency.

What is Freight Forwarding in Logistics?

Freight forwarding is a critical element of logistics and involves the movement of goods around the world by making use of a combination of sea, road, rail, and air shipping services.

Say, for example, you want to ship products from your warehouse in Dallas to a customer in London. The freight forwarder will pick up the product at your warehouse and pack it, place it into a container, and arrange for all necessary export permits.

The freight forwarder will then book the shipping, deliver the product to the port or airport, handle handovers between shipping companies, receive the product at the airport in London, take care of nationalization, and deliver the product to your customer’s door.

Freight forwarding differs from shipping in that shipping only involves transporting the product from point A to point B.

Contact Brimich Logistics

Brimich Logistics specializes in supply chain management and third-party logistics. If you are interested in learning more about freight logistics, or if you need high-quality logistics solutions, contact Brimich Logistics today.