Australian businesses are expanding to sell their products beyond our borders and distribute their products to markets all over the world. Sometimes a company will import products from where they manufacture, such as China, and then export them from Australia to customers in the United States (US) or other markets.
Alternatively, many businesses will transport their products direct from the country of manufacture to the country where the customer is without bringing the product into Australia. Many international freight forwarders and 3PL providers have established relationships with global partners to facilitate seamless cross trade services.
As a leading 3PL freight forwarder, BCR is often approached by businesses that require air freight quotes for cross trade services. Also known as a triangular shipment, cross trade services enable customers to have cargo moved between an origin and destination without it entering the country where the company is registered.
Read on to learn 3 common mistakes found with an air freight quote for cross trade services that your business can benefit from.
1) Wrong pick up and delivery address
Regardless of location or country of origin, most businesses tend to have a head office address and a separate warehouse and/or storage address. When requesting your cross trade air freight quote, it is best to ensure you supply your freight forwarder the full origin details including the warehouse address and full destination delivery address details. An expert international freight forwarder or 3PL provider will cross check the pickup and delivery address to ensure you have supplied appropriate details to enable them to transport your goods seamlessly.
2) Confusion between buyer and seller on the ICC Incoterm
When sending cargo from one destination to another, the buyer and seller must agree on the ICC Incoterm before a freight forwarding company can prepare your air freight quote, as who pays what regarding the transportation and duty costs differs based on the ICC Incoterm chosen. It’s important to understand different documentation may be required based on the chosen ICC Incoterm and country or origin and destination. For example, if you are transporting from China to the US, a written Power of Attorney (POA) is required from the seller (your business) or the buyer (the consignee) - whichever party has agreed to pay the duty on the goods. If there is confusion from an incorrect ICC Incoterm provided or you are missing required documentation such as a POA, your goods may be delayed and incur detention and costs.
3) Shipment incurred additional air freight costs
As mentioned above, goods can be delayed and incur detention costs if things are not perfectly planned. To ensure the goods are not held up on arrival, you and your seller will ideally determine the ICC Incoterm and communicate the chosen term upfront when securing the air freight quote to avoid the cargo being held and accruing detention fees.
Point 1 focused on providing the correct and full origin warehouse and final delivery destination addresses to your freight forwarding company. If you have, they can accurately calculate duty rates and any specific fees you may be required to pay at destination within the air freight quote. If a mistake is made with the address on either end, it is likely that the shipment will incur additional changes based on the goods being delivered to the wrong place.
Delays and detention fees can also arise from not being familiar with destination laws, duty rates and restrictions that may apply to your goods. An experienced international freight forwarding company should be familiar with destination laws, duty rates for the relevant country and restrictions the country may have on imports and this knowledge will assist you to not incur fees after your air freight quote is processed.
To ensure you receive an accurate air freight quote for cross trade services, engage an international freight forwarding company or 3PL provider that has a vast network of global partners and a capability to process complex sea and air freight transportation services on your behalf. As an established air freight forwarder accredited by the IATA, every day BCR provides customised freight forwarding solutions including global cross trade services to small, medium and large businesses located in Sydney, Melbourne, Brisbane, Adelaide and Perth, plus businesses located in regional and rural areas of Australia.
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