If you need to send shipments to locations worldwide then you want to avoid delays, extra costs, and potential legal issues I suspect.
Planning and organising shipments if you are not familiar with the process can mean that mistakes can occur in terms of the logistical planning, missing or the incorrect documentation can occur, and failure to comply with specific rules for each country can further drive up costs and the issues potentially faced.
With this in mind, the good news is that by being aware of the things to watch out for in international shipping, you can then use the practical solutions and tips that we discuss below:
Why International Shipping Mistakes Happen
International shipping involves numerous moving parts, from regulatory compliance to handling fragile goods.
Mistakes often arise due to a lack of preparation, insufficient knowledge of customs requirements, or over-reliance on outdated processes.
As a business looking to send freight, you will want to avoid these mistakes so let’s get started.
1. Improper Documentation
One of the most common issues that can occur if someone is attempting to plan their own freight shipment, rather than using a freight forwarder, such as RSJ International, is that it is otherwise very easy to provide incomplete or inaccurate documentation.
Missing forms, incorrect declarations, or typos in shipping labels can delay shipments or result in a fine.
Why This Happens: Documentation errors often stem from a lack of attention to detail or insufficient knowledge of what’s required for specific destinations.
How to Avoid:
- Cross-check all documents you are providing and this includes the invoices, detailed packing lists, and customs declarations.
- Work with a freight forwarder who is knowledgeable and experienced in managing shipping for international trade to ensure compliance.
- Use software tools designed to automate and verify document preparation.
2. Ignoring Customs Regulations
Every country or trading block has its own customs rules, and it’s important that you take these rules seriously because shipments are often held up or returned when this paperwork is not correct.
Why This Happens: It often happens with shipping that the regulations change because of new rules created by the countries involved. Rules can vary widely from country to country and this is one of the challenges in the shipping and freight business.
As a freight forwarder we keep up-to-date with all changes and trends but if you are a company who do not specialize in freight shipping as we do, then it can be difficult to follow all customs rules changes.
How to Avoid:
- Research destination-specific requirements before shipping.
- Ensure you have all of the certificates and documents needed such as the certificate of origin and any special permits needed.
- Consult a customs broker to handle complex regulations.
- Use a freight forwarder such as RSJ International to manage all forms and documentation and the whole process.
3. Underestimating Shipping Costs
Hidden fees such as tariffs, duties, or handling charges can inflate costs unexpectedly.
Why This Happens: Many businesses overlook the full overall costs that build up when shipping internationally.
How to Avoid:
- Obtain detailed shipping quotes that include taxes, duties, and insurance.
- Use tools to calculate total landed costs in advance.
- Regularly review your shipping invoices to identify discrepancies.
4. Improper Packaging
Poor packaging can lead to damaged goods, especially during international transit.
Why This Happens: Businesses often use inadequate or generic packaging that doesn’t consider the product’s specific needs.
How to Avoid:
- Use high-quality, strong and durable packaging materials.
- Properly prepare and package items such as perishables and think about the temperature and handling.
- Label packages clearly with handling instructions.
5. Failure to Track Shipments
Lack of visibility into your shipment’s status can lead to unnecessary stress and customer dissatisfaction.
Why This Happens: Some businesses rely on carriers that do not offer real-time tracking or fail to use available tracking tools effectively.
How to Avoid:
- Use a freight forwarder who can offer real-time tracking.
- Use shipment tracking apps or platforms for updates.
- Share tracking information with customers proactively.
6. Incorrect Tariff Classification
Not correctly classifying goods under the Harmonized System (HS) code can sometimes result in incorrect duties or penalties.
Why This Happens: The HS system is not easy to understand if you are not familiar with it, and many businesses tend to lack the expertise that enables them to classify products correctly.
How to Avoid:
- Use a reliable HS code database or consult a customs broker.
- Regularly review classifications to stay up-to-date.
- Train staff on the importance of accurate classifications.
7. Choosing the Wrong Incoterms
International Commercial Terms (Incoterms) are responsible for clarifying the exact responsibilities of both the buyer awaiting the shipment and the seller, in the shipping process.
Choosing the wrong Incoterms does sometimes lead to a dispute and this in turn can result in unexpected costs.
Why This Happens: Misunderstandings about what each Incoterm covers can result in poor choices and does not benefit anyone involved.
How to Avoid:
- Understand all Incoterms and their implications.
- Select terms that align with your shipping strategy and consult with trade experts if unsure.
- Review Incoterms annually as part of your shipping strategy.
8. Not Purchasing Insurance
Accidents unfortunately do happen sometimes such as because of freak weather and other unforeseen issues.
Uninsured shipments can result in significant financial loss and so we would always recommend insurance.
Why This Happens: Some businesses assume carriers will cover damages or underestimate the risk of loss.
How to Avoid:
- Always pay for appropriate shipping insurance, and especially so when sending high-value goods.
- Verify what the insurance covers, including loss, theft, and damage.
- Keep records of all insured shipments for easy claims processing.
9. Poor Communication with Partners
Miscommunication between suppliers, carriers, and customers can lead to errors and delays.
Why This Happens: Different time zones, language barriers, and lack of centralized communication systems contribute to this issue.
How to Avoid:
- Make sure to keep all parties involved, up-to-date on the shipping process progress.
- Use centralized systems to share shipping details and updates.
- Provide regular training to staff on effective communication techniques.
10. Failing to Plan for Delays
Unforeseen delays, whether due to weather, strikes, or customs inspections, can impact your supply chain.
Why This Happens: Businesses often underestimate the likelihood of disruptions.
How to Avoid:
- Build buffer times into your shipping schedule.
- Keep customers informed about potential delays and have contingency plans in place.
Final Thoughts
International shipping is complex but manageable with proper planning and attention to detail. By avoiding common mistakes such as improper documentation, poor communication, and underestimating costs, businesses can ensure smoother operations and greater customer satisfaction.
If you wish to have a company such as us here at RSJ International, handle all paperwork and every stage of the shipping process, we’d love to hear from you. Contact us today to discuss how we can plan the right and most effective shipping strategy to meet your needs.