International logistics

International logistics: everything needed for goods to get from a supplier in one country to a buyer in another. Carriage, transshipment, storage, insurance, customs clearance, documents and payment to every participant in the chain.

Participants

• the shipper and the consignee;
• carriers: a shipping line, an airline, a railway, a trucking company;
• a freight forwarder who organizes the whole shipment;
• a customs representative;
• warehouses, ports and terminals;
• an insurer.

Stages and documents

• Delivery terms. Incoterms determine who pays for carriage and insurance and where the risk passes to the buyer. For example, under CIF the seller pays for freight and insurance to the port of destination.
• Shipment. Invoice, packing list, certificate of origin.
• Carriage. A bill of lading by sea, an air waybill (AWB) by air, a CMR consignment note by road, an SMGS consignment note by rail.
• Arrival. Customs clearance, payment of duties and VAT, release of the goods.

Where the payments are

Besides paying the supplier, there is freight, forwarding services, port and warehouse charges, and insurance. Some of the payees are abroad and have to be paid in foreign currency. These payments are also made under an agreement and an invoice, and for currency control they need supporting documents.

What to watch for

• The Incoterms in the contract with the supplier and in the agreement with the forwarder must match.
• Check who issued the freight invoice, the carrier or the forwarder, and whose bank details are on it.
• Container idle time (demurrage and detention) is charged in foreign currency per day. Include it in your budget.

A foreign carrier or forwarder is paid by an agent from our pool, while we select the agent, prepare the documents and follow the payment through to execution: Freight payments.