DETAILED GUIDE TO SEA FREIGHT EXPORT PROCESS
International sea freight transportation is a long-established method that remains widely used across the globe. In Vietnam, exporting via sea is often the preferred choice for import-export shipments. So, what are the standout features of this transportation mode? What steps are involved in the sea freight export process? Let’s explore the details with Smart Link Logistics through this article!
1. What is International Sea Freight?
As oceans cover three-quarters of the Earth’s surface, sea freight has become the primary means of transporting goods between nations. It is an indispensable solution for global trade.
Countries with developed economies often boast modern, bustling port systems. Notably, about 80% of the world’s total cargo volume is transported by sea, far surpassing other modes of transport.
International sea freight services use large vessels to carry goods between countries, primarily along international shipping routes.
Characteristics of International Sea Freight:
- Main transport vehicles: Large-capacity vessels.
- Routes: Travels across seas, stopping at major ports worldwide.
- Cargo categories:
- General goods.
- Hazardous goods: Requires an MSDS (Material Safety Data Sheet), especially section 14.
Major Ports Worldwide:
- Europe: Hamburg, Rotterdam, Antwerp…
- Asia: Singapore, Shanghai, Busan…
- Americas: Long Beach, New York…
- Africa: Durban, Johannesburg…
- Oceania: Sydney, Auckland…
2. Advantages and Disadvantages of Sea Freight
Advantages
- High capacity: Suitable for bulky, diverse goods.
- Cost-effective: Generally cheaper than other transport modes.
- Promotes global trade: Facilitates international economic exchange.
Disadvantages
- Long transit times: Limited vessel speed.
- Higher risks: Relies heavily on weather and natural conditions.
- Complex cargo preservation: Requires advanced handling and storage techniques.
3. Sea Freight Export Process
Step 1: Sign the Contract
Both parties must negotiate and sign a contract with clear terms such as: product name, quantity, quality, price, payment method, and delivery conditions.
Step 2: Obtain Permits (if required)
- No permits required: For general goods.
- Mandatory permits: For goods under special management.
Step 3: Confirm Payment
Payments can be made via various methods such as cash, collection, T/T, or L/C. Each method has specific considerations to minimize risks.
Step 4: Prepare Export Goods
This includes sourcing, processing, or joint ventures to ensure the goods meet export requirements.
Step 5: Inspect Goods
Exported goods must be thoroughly inspected to ensure quality and quantity compliance with bank and regulatory standards.
Step 6: Charter a Vessel and Arrange Transport
Depending on the delivery terms (CIF, FOB, etc.), the exporter arranges the vessel and completes related procedures.
Step 7: Purchase Insurance (if needed)
Insurance is typically purchased for delivery terms like CIF or CIP.
Step 8: Handle Customs Procedures
Exporters must prepare essential documents such as customs declarations, export contracts, and certificates of quantity and quality.
Step 9: Deliver the Goods
Complete transportation, storage, and loading processes according to contract terms.
Step 10: Process Payment
Once the goods pass inspection and customs clearance, the next step is to process payments. Importers should:
- Check necessary documents such as commercial invoices, transport documents, customs declarations, etc.
- Ensure timely payments as per the contract.
- Account for additional fees like container storage or yard storage, if any, and settle them promptly to avoid penalties.
Step 11: Handle Complaints
In cases of issues such as damaged, missing, or non-conforming goods during importation, importers should:
- Gather evidence like photos, videos, or inspection records.
- Report incidents to exporters or carriers and request resolution.
- If unresolved, consider seeking assistance from legal authorities or trade arbitration bodies.
The above outlines the detailed process of exporting goods by sea, provided by Smart Link. If you need legal support or assistance with customs procedures in import-export, contact Smart Link Logistics for fast, effective advice. With over 14 years of experience in transportation, we are proud to accompany you throughout your journey.
Hotline: + 84 935 766 039 to know more about our services
If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.
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