International transportation reading

The following web page contains a very comprehensive information about the international transportation issues.

Please check http://geocities.com/englishforinternationaltrade/

Transportation insurance

Cargo insurance is more important in international transportation than in domestic one. International carriers assume only limited liability for goods when shipping by air or sea. Terms of sale often make the seller responsible for the goods up to the point of delivery to the foreign buyer. For this reason, the buyer absolutely must have transportation insurance.

Marine transportation insurance protects both ocean and air-bound cargo. It also covers connecting land transportation. There are three main types:

Free of Particular Average (FPA) is the narrowest type of coverage. Total losses are covered, as well as partial losses at sea if the vessel sinks, burns or is stranded.

With Average (WA) offers greater protection from partial losses at sea.

All Risk is the most comprehensive, protecting against all physical loss or damage from external causes. In international transportation, it is important to remember that once the documents transferring title are delivered to the foreign buyer, the exporters are no longer liable for the goods.

Delivering the goods

The exporter must deliver the goods to the buyer in one of two ways:

- Physically, by delivering a legal document of title, such as a bill of lading;

- Symbolically, by delivering, for example, the key to where the goods are stored.

The contract between exporter and importers should specify where the delivery will take place. This is usually defined by using International Commerce terms, Incoterms. The most common are: Cost, Insurance and Freight (CIF), or Free on Board (FOB).

International logistics shipping documents

Shipping documents are prepared by the international trade company or your freight forwarder. They allow the shipment to pass through customs, to be loaded onto a carrier and be transported to the destination. Key shipping documents include:

A commercial invoice

It describes the goods in detail and lists the amount owing by the foreign buyer. This form is also used for customs records and must include:

- Date of issue

- Names and addresses of the buyer and seller


- Contract or invoice number

- Total weight

- Total number of packages shipping marks and numbers

- Terms of delivery and payment

A special packing or marking list

A certificate of origin

A certificate of insurance

This documents shows the goods shipped by sea, which are typically insured for 110% of their value, to compensate for the extra costs involved in replacing lost goods.

A bill of lading

It is used for land and ocean freight, and an air waybill is used for air freight. This the contract prepared by the carrier or the freight forwarder with the owner of the goods. The foreign buyer needs this document to take possession of the goods.

Logistics through Freight forwarders and brokers

Companies deal with a lot of documents when delivering products to foreign countries. They normally let freight forwarders and customs brokers to do this job.

Freight forwarders — a freight forwarder helps the international trade company to improve its delivery times and customer service. Many specialize in arranging shipments to certain countries, while others concentrate on particular types of products. In the case of arranging financing through letters of credit, a good freight forwarder can help the company to clarify the conditions of the transaction.

These agencies will negotiate rates for the international trade company with shipping lines, airlines, trucking companies, customs brokers and insurance firms. They usually handle all the company’s logistical requirements.

Customs brokers — brokers clear goods through customs prepare customs documentation and remit duties owing on exported and imported goods. They are also good sources of information on recent tariff changes and other customs related developments.

International Trade Promotion

Promotion refers to all the communications tools a company uses to convince people to buy its product or service.

They are:

Advertising — carefully select the media that have an ample circulation within the target audience. If few people have televisions, is radio a better bet? Or print?

Promotional materials — carefully select the mean of communication that can reach a large clientele. Is it necessary to redesign the marketing materials and packaging to remove elements that are inappropriate, offensive or meaningless in the target market? Is it necessary to translate these materials into the native language and hire a professional translator with experience in commercial and business writing?

Direct mail — a targeted direct mail campaign can be very effective. Is it the research and experience in place that helps the company to build a base of potential buyers and clients? What is the company’s message like?

Media — publicity via the media is a good way to establish awareness, profile and credibility. Is there a media kit that introduces a profile of the company, new products and services or newsworthy activities? Where are the articles published about the company profile?

Personal visits — personal contact with potential clients is perhaps the best means of promotion. Many cultures value such contact in their business relationships. Haven’t you gone yet?

Trade shows — attending or participating in international trade shows is an excellent promotional method. It also allows you to check out the competition and do market research. When is the company planning to attend one?

Internet — it’s generally assumed that a business will have a website. How well-designed is the company’s site?

International marketing tools list

They are crucially important for an international business venture. Bear in mind the following:

Business cards

• Design: professionally intended to remember and attract prospects’ attention;

• Material: high quality;

• Lay out: easy to read; distinctive and informative; up-to-date and complete with area codes, country, telephone and fax numbers, postal code, e-mail, website addresses and other electronic social networking and blogging sites such as Skype, Linkedin, Biznik, Digg, Stumbleupon, Twitter, Myspace, Facebook and others.

• Language: in the appropriate tongues the business are conducted;

• Uniformity: consistent throughout the company;

Brochures

• Design: creative and appealing and professionally printed;

• Lay out: informative and easy to read, highlighting the company’s uniqueness;

Customer testimonials

• Examples: show that the company is highly recommended; represent your best customers; be from top executives; and be included in your brochure.

News articles

• Clear in stating that your company is a recognized leader.

• Quoted in your brochure.

• Reproduced on your letterhead.

• Displayed in your office.

• Sent to potential clients.

Videos, Podcast and other non-textual blog styles related to music, art, sketches and photos

• Sophisticated and interesting.

• Professionally produced.

• Oriented to the quality and benefits of the company’s product or service.

• Clear and concise; and easily available.

Websites

• Design: professionally and visually pleasing with broad information, e-mail enabled and capable of allowing online purchasing (if appropriate).