Exporting is defined as a trade function that involves shipping to another country. It is considered to be the oldest form of economic transfer and usually occurs on a larger scale. Exportation offers your company valuable growth, particularly when it occurs between countries, and requires a special approach that often requires more than just planning. Increased sales and profits can be achieved but this is dependent on the success of the exportation venture: there are many risks involved and a company might find itself picking from nothing but bones.

So before commencing to sending that product abroad, know these four simple keys to successful exporting. Ready?

Factors for successful business
Image courtesy of KROMKRATHOG / FreeDigitalPhotos.net

1. Plan and plan ahead – always be a step in advance

Before going all-out on the export effort, make certain to draw and invest in a feasible business plan, identifying the best way to tackle the issues brought about by the global market as well as enumerating the financial risks, competition, and even company flaws that may prove as disadvantages in the long run. Have your goals set the first time and achieve them, slowly if you must but surely. Have your strategies ready. It’s also good to have a list of your next steps, future and possible endeavours, as well as back-up. You will need to grow eventually if all goes accordingly, but if your business does experience some missteps along the way, be prepared to take it in stride.

2. Improve on the product – undertake research to improve product quality, study the market and be prepared for fluctuations

Improving product quality may mean the need to build on the product’s most prominent characteristic and seeking to enhance its weaker points. This may also mean re-defining your product from time to time especially to better the features.  Remember that although it’s true that the “original recipe” might work (and be your success), it is not for every company. So enhance the product when and as needed.

Study the evolving market because what can be sold locally may need to be re-packaged, refined and reassembled to cater to the international taste especially if it’s needed to pass into the target country. Always seek to know more of the market, the cultures therein and their needs, readying your business for current and passing trends, fickle consumerism and competition in the form of other companies aimed at the same thing as you are.

3. Establish good connections and relationships

Establishing a good bond may take as short as a few months or as long as a few years to improve especially in exporting, but hard-earned loyalty has many rewards eventually. So retain your customers’ faith and trust, keeping in mind that an initial success in any transaction could also mean just the beginning of a long-standing association with your clientele. Be the company that “they’ll be used to”, the first they will call for needed products, without disappointing expectations through quality goods and excellent services.

Establish a good rapport with your partners as well, keeping the company processes as harmonious with them as necessary to build that success. This is especially true with Forwarding Partners since they will be your link to the international market. So treat each new contract as more than just a means for your business to survive. Be part of your partners’ success as even the smallest party involved in your processes will also be part of yours…

Take care of your employees
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4. Protect your business and the people in it

Besides the management and export customers, your workers – especially those behind your production – are also a driving force that propels your business forward, so it pays to look after them. Remember to compensate them for a job well done, with full benefits that address their needs at work, and a transparent administration that wins not only the customers’ loyalty but your members and staff as well.

Running a business is never easy, and bringing the product to an international landscape can spell either doom or bloom for a company, but with much persistence and heart, any effort invested will ultimately pay off.

The Reference Tariff Schedule will see increases in fees for the movement of containers and motor vehicles as well as for channel fees and the Channel Deepening Project Infrastructure levy.

A statement released by the PoMC said that a failure to meet forecast trade figures for 2012-13 (by approximately $3 million) had led to the ‘under’ recovery of the funds required to pay the Port Licence Fee and therefore the need to increase charges for the following financial year to make up the shortfall.

The impact on some specific fees and charges, as set out in the RTS, is as follows:

• Wharfage for loaded twenty foot containers will increase by $3.20 to $64.40 per TEU plus GST
• Wharfage charges for empty containers will increase by $0.80 to $16.00 per TEU plus GST
• Motor vehicle charges will increase by an average of $1.82 per motor vehicle to $37.96 plus GST
• Channel fees will increase on average by 5.2%
• The discount on channel fees provided to cruise vessels will decrease by 5% to 25%
• The Channel Deepening Project (CDP) Infrastructure levy will remain unchanged and will not be subject to a CPI escalation this year.

Read the PoMC media release: http://www.portofmelbourne.com/media/current-media-releases/2013/may/reference-tariff-schedule

Find out more on the PoMC website: http://www.portofmelbourne.com

The decades of combined staff experience offered by ICE means we always have an answer to your freight problems. Talk to us to discuss how these changes may affect you.

Mexico’s President Enrique Pena Nieto, from left, Colombia’s President Juan Manuel Santos, second left, Peru’s President Ollanta Humala, second right, and Chile’s President Sebastian Pinera, pose for an official photo during the VII Pacific Alliance Summit in Cali, Colombia, Thursday, May 23, 2013.

Known as the Pacific Alliance trade bloc, the alliance aims to lift trade barriers, and also to encourage the free flow of citizens working and living in each others countries. 90 percent of the commercial part of the alliance has been finalised, with plans in place to finalise the details before the end of 2013.

Much discussion was centred on issues such as how the Pacific Alliance plans to overcome the difficulties other similar trade agreements have had in the region, including lack of infrastructure to increase transportation of goods and services among members and education and training deficits in the member countries’ labour force.

Representing 215 million people and 39 percent of Latin America’s GDP, the Pacific Alliance will rank as the ninth largest economy in the world. According to the Ambassador of Colombia, the alliance represents more than just a trade agreement, “It is an ongoing process to create a deep integration among our nations so we can better engage with the rest of the world.”

Australian forwarders, however, are concerned that the proposed changes will increase the costs of Australian exports, potentially making Australia a less competitive trade country. The Australian Federation of International Forwarders (AFIF) believe that the proposed scheme will have a detrimental effect on a range of businesses, including freight forwarders, air cargo security and businesses seeking to export cargo by air.

Read more about the views of Australian freight forwarders: http://www.aircargonews.net/news/single-view/news/aussie-forwarders-attack-security-proposal.html

Read the Government’s information: http://www.infrastructure.gov.au/transport/security/cargo/securing_supply_chain.aspx

Port of Hastings

While the total cost of the Port of Hastings development project is estimated to cost several billion dollars, the government has committed $110 million over the next four years to finance a number of essential preliminary project aspects, including transportation planning, design work, and the cost of satisfying the environmental approvals process.

The ambitious plans for the Port of Hastings will eventually see the completion of a container port with a capacity of up to 9 million containers, which would represent twice the current capacity of the Port of Melbourne – though Melbourne itself is undergoing a $1.6 billion expansion project.

Announcing the funding, Victorian Premier Denis Napthine stated that container trade in Victoria was expected to quadruple by 2035 making the development of Port of Hastings a vital move in the economic future of the state.

“Decisive action is being taken to build a second Victorian container port and ensure this state remains the freight and logistics capital of Australia,” he said.

Port of Melbourne

Melbourne’s own container trade was worth more than $82 billion last year, and with growth of between 5% and 6% annually, the need to expand the capacity of the city and state’s container facilities has become acute.

Victoria Ports Minister David Hodgett said the multi-billion dollar development was an essential part of meeting the trade demands of the future.

“Without investing to meet future demand, the State will reach capacity by the mid 2020s, even with the benefit of current expansion projects,” Mr Hodgett said.

“The Port of Hastings is a critical project for Victoria and the Napthine Government is getting on with delivering the vital infrastructure our State needs.”

The State Government, which has also confirmed it will seek private investment to help fund the remaining stages of the project, stated that the announced funding package will finance:

• completion of preferred scope
• design work
• transport connection planning
• preliminary work to support environmental approvals processes
• business case development
• procurement and delivery strategies

The need for more significant port facilities at Hastings was foreseen almost 60 years ago, when the Bolte Government of the 1960s set aside a total of 4,000 hectares of land to facilitate future port expansion, and some of this land will now be utilized.

“With this land and Hastings’ status as a naturally deep port, there is no doubt that this is the best option for development to meet our growing freight needs,” Premier Napthine said.

According to the Port of Hastings Development Authority, which was set up in 2012, the ultimate goal is to create a world-class, competitive port by 2060.

Here are some things to remember from both ends:

The Freight Forwarders

1. Must make it their responsibility to clarify to their clients the trading conditions they have as a Freight Forwarder “…under which (trading conditions established) any service is provided and usually include limiting the forwarder’s liability in the event of a claim against them. Failure to do this could leave the forwarder with unlimited liability - which could prove very costly.”  (From lichfielddc.gov.uk)
2. The Forwarder who arranges to transport the customers’ cargo, even if he does not move or handle the goods physically, can still be held liable for damages, especially if they are “Operating a warehouse and performing local cartage services [which] creates a legal responsibility for the cargo while it is in your custody.” (From Roanoke Trade, International Insurance Brokers since 1935)
3. On behalf of their clients, a Forwarder acts to get their goods in the best possible condition to a destination on time. They are responsible for booking with the entities involved in the shipment process, while “other responsibilities include preparing and checking bills of carriage, arranging insurance, ensuring the lowest possible customs charges are levied and – where necessary – arranging storage.” (From gov.uk)
   

   Image courtesy of franky242 / FreeDigitalPhotos.

4. The Freight Forwarder is also responsible for getting further instructions and details from the customer before shipping, controlling the documentations and releasing of them, managing subcontractors, cargo security and insurance as well as handling dangerous or fragile goods. They must have control and care over the cargo from its point of origin to arrival. (From lichfielddc.gov.uk)
5. The “non arrival of a cargo, the later arrival of a cargo or the arrival of damaged cargo, usually entails legal claims against the entities in the logistics chain including the international freight forwarder.” (From gsglaw.co.il)

The Client or Customer

1. Must know that not all goods can be insured and that hiring a Forwarder does not immediately guarantee automatic insurance. Some claims “can be easy to invalidate the benefits of limited liability through carelessness or ignorance. Also, some risks are uninsurable – such as losses caused by terrorism.” (From lichfielddc.gov.uk)
2. Cost may differ from expected when getting goods transported, and “all transport is subject to national and international laws, and each mode has its own legal regulations that limit the liability of the carrier.” (From gov.uk)
3. That it may not be entirely the Freight Forwarder’s fault in the case of loss or damage. “Where goods are lost or damaged, it is possible that someone – during the transportation – has been negligent. If there has been negligence, there is likely to be a demand for compensation. The damage or loss might not have been the fault of the forwarder, but if it was caused by someone the forwarder is responsible for – such as a subcontractor – they will be liable as if it were.” (Also from gov.uk)
   

   Image courtesy of Stuart Miles / FreeDigitalPhotos.net

4. A client is responsible for supplying the Forwarder with complete and accurate information. “The Customer shall be liable to the Freight Forwarder for all loss or damage, costs, expenses and official charges resulting from the Customer’s inaccurate or incomplete information or instructions or the handing over by the Customer or any person acting on his behalf to the Freight Forwarder.” So all goods must be accurately declared, all particular details clearly stated and, if there are dangerous or fragile cargo involved, the Forwarder must be made aware as well. (From transportrecht.org)
5. It is the Client’s responsibility to pay the Forwarder what is due, as agreed, invoiced or contracted. But in the case of unforeseen circumstances whilst transporting the goods, when the Forwarder “acts in the best interest of the Customer (to protect the shipment in question), extra costs and charges have to be borne by the Customer”. (Also from transportrecht.org)

The demise of the small-medium freight forwarders was forecast, based on the assumption that big global shippers would prefer to deal with a single logistics partner throughout the world. This assumption, however, has not been borne out – big global shippers continue to tender business on a regional or lane segment basis, probably because the big forwarders are unable to provide either flexibility or a globally consistent level of service.

Small-medium forwarders such as ICE, on other hand, are able to provide an efficient, reliable and personalised service. Networks of similar minded forwarders encompassing the globe are the key – flexibility is possible due to both size and independence, as opposed to the big globals, for whom deviation from their listed services is diffcult, if not impossible, as a result of complex internal structures.

If you want engagement, care and independence from your freight forwarder, it looks like you can’t go past a small-medium forwarder.

You can read the full article here: http://www.aircargonews.net/news/single-view/news/why-mega-forwarders-have-not-always-realised-their-potential.html

We take pride in what differentiates us from our big global competitors – we’re locally owned, independent and provide a personalised service. Our size, and our global network, means that we can be flexible – customising solutions to individual requirements. Decisions, and changes, can be made quickly, reacting to changing factors and markets.

ICE offer a full range of services: air freight and ocean freight, customs and barrier clearance, fairs and exhibitions logistics, project management, logistics and supply chain management.

Ronald Spahr
ICE Managing Director

From the 29th April shippers will need to be registered in the “Known Shippers” EU database in order to send secured cargo from Denmark. Overseen by the national transport authorities, cargo will be x-rayed or manually checked at the airport if the shipper is not in the “Known Shippers” database.

Consolidated shipments

In the case of a consolidated shipment containing a mix of Known and Unknown shippers, the entire shipment will be x-rayed at the airport.

Deadlines and delays

Handling companies don’t expect this change to cause any delays – delivery deadlines remain the same – but no guarantees are being given.

X-ray specifics

Normal x-ray machines measure 180 x 180cm. Larger cargo will be inspected manually and, if cargo is not crated or packed to allow easy inspection, delays can be expected.

For more information please talk to our experienced and knowledgable staff.

Hanjin container ship

Announced in March, the decision was taken in an attempt to streamline shipping services incorporating Australia, Singapore, Malaysia and Indonesia. The introduction of larger 3,400-3,600 teu container ships means the number of ships is reduced from 8 to 5.

It is believed that consolidating these overlapping services and deploying fewer but bigger ships increases efficiency without reducing the quality of service to their customers.

The merger, which takes effect in mid-April, sees ASA (Singapore-Australia Service) or AUS (Australia Service for Hanjin Shipping only) combine with SAL (Asia-Australia Container Service), to create a new consolidated service named ASAL (Southeast Asia-Australia Service) or AUS.

The shipping lines involved are ANL, Hanjin Shipping, OOCL and RCL, which operate four 1,900 teu box ships covering Jakarta – Singapore – Brisbane – Sydney – Melbourne – Jakarta, and CSCL, HMM, Hapag-Lloyd and UASC, operating four 2,250 teu box ships rotating Port Klang – Singapore – Sydney – Melbourne – Adelaide – Port Klang.

The new service will be operated jointly by CSCL, Hanjin Shipping, Hapag-Lloyd, RCL, and UASC, with HMM and OOCL participating through slot purchase only.

Sailings will be weekly, serving all of the previous ports in one rotation: Port Klang ­– Singapore – Brisbane – Sydney – Melbourne – Adelaide – Jakarta – Port Klang.

The 5 Steps and the Important Questions to Answer

Image courtesy of Sujin Jetkasettakorn / FreeDigitalPhotos.net

1. Shipping Requirements – your products. Ask: Can the company handle my product needs or do they only do specialised cargo? What are their modes of transport? Are they adequate? Are they able to send it out on time?

The purpose of exportation is to be able to send your products out into the international market so, before hiring a Freight Forwarder, know first if the company is able to handle the shipment, if their operations are good enough to cater to the magnitude of your transaction or if they have placed certain restrictions when it comes to weight, size, etc due to factors like transportation partners. Know what type of goods they can manage, if they are able to deal with variable cargos (especially if your cargos may vary in type), are selective perhaps or deal in certain goods only since that helps determine the knowledge they have. Remember that specialisation can sometimes become a limit to what can be done or nothing can be done at all…Know as well how they would manage the task and the means by which they would transfer your freight. Will it be by cargo ship or cargo plane, and what about land travel once it reaches the next point? Ask if there will be a need for any or no, and, if there is, would they have ties to those who can deliver? The flow of their processing needs to be as smooth as possible.Last, there is the question of ‘how fast’ they can get from point A to point B, C, etc. Ensuring that the timing is right – that your goods arrive at the right destination at the right time – is crucial for your business.

2. Service Size – company strength. Ask: If the company is able, can they guarantee it? Are they financially stable and can they offer, beyond assurance, an insurance alternative for my goods and product shipments?

Accidents happen and chances are that, at some stage, you may incur some type of loss. Risk is a necessary evil when shipping abroad since your products may need to brave storms, transportation malfunctions, bumps, breakage and even the threat of pirates for those shipments crossing sea and ocean. Being guaranteed by the company is one thing, but insurance is another matter entirely. In case of such losses, the Freight Forwarder must have insurance options offered, the policy clear and specific as well as ready for discussion once such matters do arise during the transportation or transfer of your products, or even if delays happen due to their miscalculations. You should never be made to run after the Forwarder. They must be accountable at all times, prepared to explain or make compensation as necessary and applicable.

3. Price and Billing - the expenses. Ask: Is it worth my money? Can they care for the amount I invest in them?

Any business requires investment and hiring a Freight Forwarder can be considered as one. The Freight Forwarder you should choose is one that’s able to openly discuss financial matters with you, elaborating on details you can expect from your bill like customs processes, local and import charges, handling, freight activities and other possible amounts and components that will usually vary depending on the size of the cargo, the destination and other fees inclusive of the transaction. The forwarding bill needs to be timely, and clear to you, with the Forwarder able to explain any confusing portion that you might have questions about. They shouldn’t just be able to take care of transferring the products for you but must likewise be prepared to assist you with other concerns especially with regard to the amount you will surely have to spend. This way, tracking of finances is made easier on your end as well.

4. Communication – keep track. Does the company have the right networks and global partners? How often do they communicate and how fast can feedback or reporting be done?

Communication is always an essential part of doing business and is likewise important when hiring a Forwarder. Always check how communications are done before hiring, especially between foreign offices of the company. The information flow must be as dependable as their services, precise and also on time, allowing you to track and pinpoint your cargo’s location as well as condition on the globe easily. Feedback and reporting must also be available so that if further concerns arise, you can contact them and they can likewise contact you. A personalised service is a plus, the line to the Forwarder open so that you can contact them regarding even the minutest of details.

5. The issue of trust – has the company built its name? Can they be trusted to deliver? Who knows them?

It’s always a good practice to ask and be advised especially in choosing the Forwarder that will handle your import products. See if other previous customers are happy with the company, satisfied with the overall level of service. Get to know their business background, the reputation that comes with the name, be it good or bad. Do a little research of your own and compare one company with another. Remember, there will always be a better if not more suitable option to fit your needs so take enough time, choose wisely, and narrow your selections.

Further information:

• How to Choose a Freight Forwarder: http://morethanshipping.com/10-tips-on-how-to-choose-a-freight-forwarder/
• Selecting an International Freight Forwarder: http://www.inboundlogistics.com/cms/article/selecting-an-international-freight-forwarder/
• Choosing and Using [...] http://www.inboundlogistics.com/cms/article/choosing-and-using-a-freight-forwarder/
• Choosing a Freight Forwarder: http://www.creditmanagementworld.com/letterofcredit/freightforwarder.html
• How to Choose [...] http://www.dynamicbusiness.com.au/export/how-to-choose-a-freight-forwarder.html
• How to Choose [...] http://www.exportassistance.com/export-basics/faq/64-how-to-choose-a-freight-forwarder