Hi, my name is
Jeff Coppersmith,
and I want to talk to you
about the importance
of using a licensed
freight forwarder
to help you with all
your export transactions.
Sometimes your buyer will make
all the arrangements,
but often it will be up to you.
And that's when a local freight forwarder
comes in handy.
A freight forwarder is a company licensed
by the Federal Maritime Commission
and/or the International
Air Cargo Association
to assist you with
your export transactions.
Think about your freight forwarder
as your international
transportation department.
From the very start
of any export sale,
you may want to consider
hiring a freight forwarder.
A freight forwarder will help you
stay in compliance
with United States export laws
and help you determine whether or not
you can ship your goods to your customer.
Most goods are bought and sold
freely around the world,
but there are certain restrictions on goods
and to whom those goods can be sold.
Some goods require
a U.S. government license.
So the first question to ask is:
Can I sell my product
to that person or company
in that particular country?
Once that has been determined,
the process begins.
Your customer will ask for a quotation
or pro forma invoice.
This document tells the buyer
what it will cost to get the item
and have it delivered
to him or her.
From the cost of the goods
at your warehouse
to the final cost of the goods
when they arrive in the foreign country,
a licensed freight forwarder
will ask the questions
that will enable you to provide
the cost to your customer.
For example:
What is the commodity?
Goods exported from the United States
require a commodity classification number,
and the transportation pricing
is based on that commodity.
This cell phone, for example, has
a unique 10-digit number or code.
Is your product breakable?
If it is, then it must be
carefully packed.
Packing is a cost to consider
when pricing your buyer's order.
Is your product
temperature sensitive?
If it is, then it must be shipped
in a special refrigerated container,
and that will add
to the transportation cost.
Does your product need
to get there in a hurry?
Air freight is the fastest way,
but it's also the most expensive.
If your product is not time sensitive,
then shipping via ocean is the way to go.
There are differences
in ocean freight costs as well.
A ship that goes directly
to your buyer's country in three weeks
costs more than a vessel
that makes several stops
and can take up to 6 weeks.
Your freight forwarder
will help you make the sale
by figuring out the best way to meet
your customer's delivery requirements.
Are you planning on shipping
enough for a full container
or just a few boxes or pallets?
The freight forwarder will help you determine
whether or not it's a full container
and consolidate your goods
with other shippers
to make a better transportation price.
Is your product hazardous?
Hazardous goods can be shipped,
but there are
very special requirements,
and your choice of transportation
may be limited,
and the cost is much greater.
Is your product super heavy
or super sized?
The freight forwarder may need
to make special arrangements
for permits and
specialized equipment.
Based on these questions,
the freight forwarder is able
to give you all the costs
to get your product
to the buyer.
The freight forwarder
gives you information needed
to prepare a pro forma invoice
to send to the buyer.
The buyer now knows
what it's going to cost
to buy your product and
have it shipped to their country.
Easy and reliable.
That's what exporting can be.
You know your product
and how to sell it.
Your freight forwarder knows how
to export it economically, safely,
and most importantly,
in compliance with U.S. export laws.
You're not required to use a freight forwarder
to make international sales,
but it sure helps.
In our next segment, we learn
how to make the freight forwarder
help you deliver
on the promises made
in a popular form
of export financing
called the letter of credit.
Thanks for watching.