FAQ's

A freight forwarder is a specialist in designing the best logistics solution for transporting a cargo from one point to another, e.g. from a factory in the exporting country to the point of reception in the importing country. A good freight forwarder knows every detail and specific regulation, both at origin and destination of the cargo transit route. Three types of entities perform maritime logistics in the industry. These are ocean carriers (VOCC, which means Vessel Operator Common Carrier), plus those who carry out freight forwarding activities, i.e. the NVOCC (which means Non-Vessel Operator Common Carrier) and the Freight Forwarders. Everyone must have a license from the FMC (Federal Maritime Commission). It is very important to verify that the entity you work with have their license in order, as many freight forwarders operate without the required license. To verify that an entity is FMC-licensed, go to https://www2.fmc.gov/oti/An FAQ section can be used to quickly answer common questions about your business like "Where do you ship to?", "What are your opening hours?", or "How can I book a service?".

An NVOCC is an entity that conducts freight forwarding activity upon receiving a Federal Maritime Commission license. An ocean carrier (VOCC) can offer its own routes or routes agreed upon with other VOCCs. This obviously limits its route offer. An NVOCC can contract with as many VOCCs it wishes. Of course, it can offer multiple options on the same route according to the convenience of the end customer and offer specific routes run by VOCC only. Further, the NVOCC issues its own Bill of Ladings and can do load consolidations. A licensed freight forwarder is trained to carry out logistics operations, however, it cannot sign contracts with the VOCCs and NVOCCs. Further, it is only authorized to invoice fees for its activity as a broker and cannot profit from ocean shipment. Undoubtedly, the NVOCC is the most versatile entity to carry out freight forwarding.

Thousands of freight forwarders offer their services. Many of them offer services on "any route," work "worldwide," and are true "lions" of the industry. Beware of them. Your best option is among those with the necessary experience on the routes where you need to move your cargo. Check how long they have been carrying out the activity and what infrastructure they rely on both at origin and destination. This is the collaboration that makes the operation economical, fast, and, above all, safe. It is also important to consider what services they offer to add value to your logistics operation: export procedures with the U.S. Customs, maritime cargo insurance, packaging services, and others. Also, it is relevant that they can offer an intermodal service from anywhere in the U.S. to the required destinations in any maritime transport mode: Full Container Load (FCL), Less Than Container Load (LCL), Roll on Roll off (machinery and self-propelled vehicles or towable) and break bulk (cargo that cannot or is not convenient to load in maritime containers).

International shipments require the following basic documentation: SLI (Shipper Letter of Instructions) Commercial Invoice, Packing List If applicable, and an Export License In specific cases, a Phytosanitary Certificate and a Certificate of Origin are also required. Freight180 will help you determine and obtain the required documentation.

Many shippers issue poor quality packing lists. They simply list the products to be shipped as they appear in the commercial invoice minus the price, specifying only the weight and total volume. In fact, the packing list should refer to the packaging not to the products to be shipped. A proper packing list specifies the detailed content of each product per package and the total weight and volume of each package. Obviously, a good packing list must mention the mark references of each package. For example, if 7 pallets are being shipped, it is customary to mark each pallet with the label 1/7, 2/7... until 7/7. Accordingly, the packing list should indicate that it contains the pallet 1/7 and provide for its measures and weight. The same indication must be given for the rest of the pallets. In the same way, the total weight and volume should appear. This will facilitate the work of the freight forwarder and any insurance claim in the occurrence of accident or damage.

By law, all carriers are required to offer a minimum amount of insurance. Usually, they are responsible for only $500 per unit of transportation and, of course, with limited coverage. Most of the time, carriers do a good job and their shipment reaches its destination undamaged and on time. However, accidents and robberies frequently occur. SensiGuard reported 649 cargo thefts in the United States in 2017, for an average value of $146,063 per theft, while an average of 568 containers (not counting catastrophic events) were lost at sea each year between 2008 and 2016. If catastrophic events (such as a shipwreck) are included, the resulting average is 1,582 lost containers each year. Statistically, that may not sound disastrous. However, what happens when it comes to your cargo and your business has to contend with losses that are potentially worth millions of dollars? This is where cargo insurance is necessary, let alone essential, especially when considering that the costs are not significant. A freight forwarder can provide you with cargo insurance and adequate coverage for your shipment, and you will be protected from any financial loss in the event of an accident, theft, and other risks.

The freight price of an LCL cargo is generally offered based on its weight and size, taking the highest value. In some cases, it is quoted for example $60 w/m (weight/measure). In other cases, it is quoted by weight and or volume, for example $80 by weight and $40 by volume, always taking the highest value. The metric system is almost always used. So the weight is expressed in tons (1,000 kg) and the volume in cubic meters (cu m). If we take the first example ($60 w/m) for, let's say, a pallet that measures 48' x 40' x 60' and weighs 300 lbs, then we obtain that the volume is 1.89 cu m and the weight 0.14 ton. In this example, obviously the freight cost would be $60 x 1.89 cu m = $113.40 since, by weight, the value would be lower ($60 x 0.14 ton = $8.40). In some cases, the consolidators establish minimums. For example, in the previous case, if the minimum is $150, then the value obtained by measure does not exceed it. Therefore, it is assumed that the value of the freight corresponds to the minimum, that is, $150.

The United States government requires that every time you export a single product that has an HTS Code / Annex B Number of more than $2,500 in value, you must register the EEI with the US Customs and Border Protection. To determine if you need to register your shipment, you must know the HTS Code (previously called the Harmonized Code, as well as an Annex B Number). If the total value of the products that share an HTS Code totals more than $2500, then you need to do an EEI registration. If no product that shares an HTS code totals more than $2,500, then the EEI registration is not required (this, even if the total value of what you are shipping is greater than $2,500). The freight forwarder can do this for you if authorized by a Power of Attorney or if you specify it in an SLI (Shipper Letter of Instructions)