Managing Finance & Risk Protection

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Freight, Logistics & Documentation

Sea or air freight are the two modes of transportation in which goods can be exported to their destinations from Australia. Speed and costs of transportation, destination, business requirements, and the types of goods are the key factors that will influence your decision on the choice of transportation mode.

To ensure the efficiency and cost-effectiveness of the transportation process of your export operation, it is best to research and have a clear understanding  of the basic principles behind both sea freight and air freight.

Due to the complexity of rules and regulations governing international transport and logistics procedures along with the lack of expertise in arranging and managing the process, it is becoming increasingly common for companies to hire a freight forwarder or logistics operator to manage their transportation and logistics procedures.

Freight, Logistics and Export DocumentationFreight forwarders provide various services such as:

  • Evaluates and identifies the most economical and suitable mode of transportation
  • Arrange bookings with shipping companies and airlines
  • Arrange export documentation
  • Advise on overseas market conditions, tariff schedules or duty rates, i mport regulations and other various international trading process

Selecting and managing a freight forwarder

As there are many freight forwarders available, you should be selective in choosing one to manage your procedures. You should also be aware of your rights and responsibilities when dealing with freight forwarders.

Some key factors to consider include:

  • Their experience in shipping to the firm's country destination
  • Their experience in transporting the firm's type of goods
  • Costs, payment terms, reputation for quality service and reliability

Incoterms

International commercial terms (or Incoterms) is an internationally accepted system of trading terms such as FOB, CIF or DDP and are used to define transaction costs and responsibilities between buyer and seller.

To learn more about Incoterms 2000, visit International Chamber of Commerce(ICC).

Export Documentation

Freight, Logistics and Export DocumentationCorrect and valid export documentation is crucial for transporting your product to the importer smoothly and efficiently, which in turn allows you to receive prompt payments.

Some common and crucial export documents are:

  • Certificates of Origin (COO)
  • Bills of Lading (BL)
  • Air Waybills (AWB)
  • Letters of Credit (L/C)

To view more information on export document, visit Business Victoria.

Build your Export plan

Build your business plan by answering the questions below. A plan will automatically be generated based on your responses. Avoid changing your answers offline as they will not be saved to your profile.

Freight, Logistics and Documentation

Q.1 What will be your mode of transportation? Give Answer
Q.2 Will you be using a freight forwarder or logistics manager? If so, identify and describe. Give Answer
Q.3 What potential issues may arise in regards to freight and logistics? Give Answer
Q.4 How will you prevent or minimise the effects of these issues? Give Answer
Q.5 Identify and describe any documentation required to export your product. Give Answer