What is International Freight?
With an estimated size of more than $30 billion USD—and an impact on just about every industry conceivable—it’s hard to overestimate the importance of international border freight shipping.
The carriers, freight forwarders, logistics managers, and other supply chain professionals who handle international freight shipping play a key role in keeping the world economy running, supplying both businesses and, ultimately, consumers.
If you’re considering going into international freight shipping, we’ll walk you through what you need to know.
Transportation Modes for International Freight Shipping
First, let’s cover the key terms and concepts you need to know when moving involves loading cargo internationally.
International Freight Shipping: Modes
You’ll have a couple of different modes to choose from when shipping your cargo internationally. Each has its pros and cons, so select carefully. Additionally, to get your cargo all the way from origin to destination, you’ll likely leverage several methods of intermodal freight, so it’s good to be familiar with all of them:
Air Freight
Air freight offers you two main advantages: 1) it’s generally the fastest way to move freight and 2) it subjects your cargo to minimal handling. Keep in mind that you’ll have a several service levels to choose from, including the most cost-effective option: air freight consolidation.
Ocean Freight
Ocean freight forwarders are your most budget-friendly option for moving goods internationally, although it offers the slowest transit times.
Ocean freight service falls into two categories:
- FCL: Full-container-load service, usually reserved for larger cargo shipments. If you’re moving high-value goods, you may decide to choose FCL service, regardless of your shipment’s size. FCL service guarantees that your cargo gets its own, dedicated container for maximum protection and security.
- LCL: Less-than-container load service, also called a consolidation. Freight forwarders offer this service, collecting smaller loads headed to the same destination to create a full load. If you don’t have enough to fill a container, LCL service offers a cost-effective shipping method for smaller international freight loads.
Not sure whether air freight or ocean freight is right for your shipment? Check out our guide to ocean freight vs. air freight.
Rail Freight
Rail freight can be a cost-effective method to move freight across long distances—and it can also lighten your environmental footprint. Where international shipments are concerned, rail often is leveraged as part of an intermodal solution that combines rail transportation with another mode, such as ocean freight.
Trucking
Trucking (a.k.a., road freight) will also play a role in your international freight shipment. Trucks will move your shipment to/from a forwarder’s warehouse; to/from the airport/seaport; and to/from the final destination. Although it may not be the primary mode of transportation for most international freight, trucking offers a vital link that keeps your cargo moving.
International Freight Shipping: Key Players
As you dive into the world of international freight shipping, it’s critical to know who’s who—and how the logistics industry refers to each party:
Shipping
The person who’s packing and preparing the shipment to turn over to the carrier. (Think of the “from” line on a package. That’s the shipper.)
Carrier
The party actually moving your cargo: the steamship line, the trucking company, or the airline, for example.
Consignee
The person who’s designated to receive the shipment. (Think of the “to” line on a package. That’s the consignee.)
Freight Forwarder
An individual or a business that organizes shipments on behalf of their clients. Freight forwarders act as intermediaries between shippers and carriers to coordinate freight movement from origin to destination.
Customs Broker
An individual or a business that facilitates the clearance of shipments through customs. Customs brokers may represent either shippers or consignees in clearing cargo.
Who Pays for What? Know Your Incoterms
As you arrange your first international shipment, you’ll need to negotiate who pays for what. For example, if you’re buying a container of goods from a vendor in China, you’ll need to agree on who pays for the ocean freight, trucking, insurance, etc. The same is true if you’re selling a container of goods to a customer in Mexico.
That’s when you turn to the Incoterms® rules, a simple way for buyers and sellers to dictate who will pay for loading and unloading costs, customs export procedures, insurance, freight charges, import costs, and more.
Discover the 5 most common Incoterms. We’ll show you how each impacts your expenses and, in turn, your profits.
International Freight Shipping: Cost Considerations and Surcharges
Your international freight costs depend on your cargo, route, and timeline. This is where partnering with an expert freight forwarder makes all the difference—we’ll help you explore options that fit both your needs and budget.
As you plan your international shipment, remember:
- Balance cost and speed – Faster shipping typically means higher costs. Getting ahead of your timeline helps manage expenses effectively.
- Plan early for peak demand – Moving cargo during holidays or back to school season? We’ll help you navigate busy periods to avoid delays and control costs. Shipping from Asia? Don’t forget about Lunar New Year impact on schedules and pricing.
- Know your landed cost – Ocean freight invoices include various standard charges like drayage, fuel surcharges, terminal handling, and wharfage. (See a full list of ocean freight charges here.) Ask for quotes with all potential fees to understand your true total cost.
Ready to dive into the international shipping process? Let’s walk through it step by step.
How to Ship International Freight in 7 Steps
Step 1: Choose the Right Mode of Transportation & Prepare Your Shipment
As you solicit quotes, keep your ideal timeline—and budget—in mind to guide you as you decide which transportation mode is right for your shipment. As a quick reminder:
- Air freight: Best for time-sensitive shipments, high-value shipments, and lightweight shipments.
- Ocean freight: Likely your most cost-effective mode. Well-suited for large or heavy shipments. Ocean freight may be your only option for certain types of hazardous shipments.
Packaging Your Shipment
Once you decide on how you’ll move your international freight shipment, your next step will be packaging it properly:
- When you’re shipping via air freight, it’s important not to over pack, since your shipment’s weight and volume both impact your cost. Check out our best practices for shipping and packaging air freight.
- When it comes to ocean freight, keep in mind that your shipment will be subject to a number of different forces along its international journey—loading and unloading, waves, wind, etc. Make sure you package your freight carefully so your freight arrives in perfect condition.
For more on proper packaging, check out our tips for avoiding costly freight damage.
Documentation
Great paperwork keeps your international freight moving smoothly—both through transit and customs. Don’t worry, we’ll help ensure everything’s in perfect order!
Here’s what you’ll typically need:
- A commercial invoice shows what you’re shipping, including quantity and value. This helps determine any duties or taxes.
- A bill of lading is your shipment’s passport—we’ll create this using your information. It identifies the shipper, consignee, and special instructions as your cargo moves.
- A packing list breaks down all the specifics: quantities, dimensions, and weights.
- A certificate of origin verifies where your goods were made, which is crucial for customs and tariffs.
Shipping something special? You might need extra paperwork. For example, hazardous materials require a material safety data sheet (MSDS).
Not sure what you need? Just ask! We’re here to guide you through the documentation process.
Ask your freight forwarder for assistance regarding the necessary documentation for your international freight shipment.
Step 2: Accept Your Quote & Get Your Freight in Motion
Once you’ve decided how you want to send your international freight shipment, you’ll formally accept the winning quote. This gives your forwarder the green light to officially book your freight with the carriers who will move it.
Don't Forget to Ask About Insurance
Work with your freight forwarder to choose the right cargo insurance. While we take every precaution, having insurance protects you financially if the unexpected happens.
Keep in Mind: Some Incoterms like CIP and CIF specify who covers insurance and what type. Double-check your contract’s Incoterms to stay compliant and avoid duplicate coverage.
Once your paperwork is complete, your freight’s journey begins! As the shipper, you can either have your cargo picked up or drop it at our warehouse. If you’re the consignee, your supplier handles this export haulage step. Then, your shipment prepares for international departure.
Step 3: Export Procedures: Taxes & Customs Clearance Procedures
Export procedures vary by country, typically including inspections and any duties or taxes. Don’t sweat the costs—Incoterms make it simple to know who’s responsible for what.
Run into a bump? Our customs brokers are pros at getting things back on track.
Once your shipment clears export, it’s on to the exciting part—heading to the airport or seaport to start its international adventure!
Step 4: Tracking Your Shipment
Talk to your forwarder about monitoring your shipment during its journey from origin to destination. Your forwarder may offer you access to an online portal that allows you to keep an eye on your shipment’s progress.
It’s also a good idea to ask your forwarder to confirm the email address and phone number for your point of contact, in case you have any questions along the way.
Step 5: Import Procedures: Taxes & Customs Clearance
When your shipment arrives at its destination country, it needs to clear customs.
Exact freight forwarding procedures will vary based on the destination. While security screening and compliance checks are standard, timing can vary. Some shipments breeze through, while others may need extra inspection or get held up due to paperwork issues.
Good news: just like with exports, our customs brokers are here to help smooth out any import hurdles you might encounter.
Step 6: Final Delivery
After customs clearance, your freight moves to a nearby warehouse for import haulage or drayage.
Then comes the final stretch! Your shipment might be transloaded directly onto a truck for delivery. Or, if you’ve chosen an intermodal solution, it’ll hop on a train first, then switch to a truck for its final destination.
Inspect Your Freight Carefully on Arrival
If you’re the consignee, make sure to inspect your freight for damage immediately on arrival so it can be noted on your bill of lading. It’s important to report damage as soon as possible to facilitate an efficient claims process.
Step 7: Evaluate & Optimize
After your shipment arrives, take a moment to reflect on your experience. What were your wins? Your challenges? Your ‘next time’ strategies? Jot these down to help optimize future shipments and save time and money.
Share these insights with your international freight forwarders, too! Let’s put our heads together to make your next shipment even smoother. After all, your success is our success.
Your Next Steps in International Freight Shipping
International freight might seem complex at first—but don’t worry! With the right partner by your side, it becomes a seamless part of your logistics flow. Partner with a trusted freight forwarder to transform your shipping processes into a well-oiled machine.
Ready to simplify your international freight? Let’s chat! Reach out for your complimentary quote, and we’ll take care of the rest.
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