What is an International Freight Shipment?
International freight shipment refers to the process of transporting goods between countries.
It involves meticulous planning, execution, and documentation to ensure the safe, timely, and cost-effective movement of your international freight cargo across borders.
This process typically involves multiple parties, including the shipper (exporter), the co-signed (importer), freight forwarders, customs brokers, international carriers (airlines, ocean liners, trucking companies), and terminal operators at origin and destination ports.

What Is Freight Forwarding?
Freight forwarding is a specialized service offered by companies who act as intermediaries between shippers (business exporting goods) and international shipping carriers (airlines, shipping lines, trucking companies).
International freight forwarders help navigate the complexities of international shipping, handling:
- Customs clearance: Ensuring your shipment complies with import/export regulations.
- Documentation: Preparing and processing necessary shipping documents.
- Route selection: Choosing the most cost-effective and time-sensitive shipping method.
- Cargo insurance: Protecting your shipment against potential damage or loss.
- Cargo tracking: Providing real-time updates on your shipment’s location.
Benefits of International Freight Shipping
International freight shipment opens doors to a global marketplace, allowing businesses to:
- Expand their customer base: Reach new markets and sell products internationally.
- Source materials globally: Access a wider variety of raw materials at potentially lower costs.
- Increase sales and revenue: Grow their business by tapping into new markets.
- Improve product competitiveness: Offer internationally sourced products to compete effectively.
Types of Freight Forwarding
There are various types of freight forwarding services, each tailored to address specific logistics needs:
Air Freight Forwarding
This expedited service is ideal for urgent shipments or high-value cargo.
When time is of the essence and rapid delivery is critical, air freight forwarding is the preferred choice.
It is also commonly used for essential medical supplies, perishables with short shelf lives, and high-value electronics.
Ocean Freight Forwarding
The most cost-effective option for large shipments and non-perishable goods, ocean freight forwarding is the backbone of international trade.
Ocean liners transport massive volumes of cargo across vast distances, making it a practical solution for bulky or heavy items. Common ocean freight shipments include furniture, machinery, building materials, and raw materials.
Land Freight Forwarding
Used for regional or overland transportation, land freight forwarding relies on trucks and trains to move cargo.
This method is suitable for shorter distances or situations where connecting to a seaport for ocean freight is impractical.
Land freight forwarding is often used for automotive parts, textiles, and temperature-controlled goods that require consistent environments.
Multimodal Freight Forwarding
This comprehensive service combines different transportation modes to optimize efficiency for complex shipping requirements.
Multimodal freight forwarding might involve a combination of air, ocean, and land transportation, depending on the origin, destination, and cost-effectiveness considerations.
For instance, a shipment might be flown from Asia to a major airport in Europe and then continue by truck to its final destination in a landlocked country.
Freight shipment forwarders with multimodal expertise can navigate the complexities of coordinating different legs of a shipment using various transportation modes.
What Does a Freight Forwarder Do?
Freight forwarders act as a one-stop shop for international freight shipments, streamlining the process by handling various tasks including negotiating shipping rates to secure the most competitive prices with carriers, consolidating multiple shipments into one container to reduce costs, providing warehousing solutions for goods awaiting shipment or customs clearance, and overseeing the entire supply chain management process from the origin to the final destination.
Factors that Determine International Freight Shipping Rates
Several factors come into play when calculating international freight shippers rates.
Mode of Transportation
The chosen method of transportation significantly impacts costs. Air freight is generally the most expensive due to speed and capacity limitations on airplanes.
Ocean freight offers a more cost-effective option for large cargo volumes, while land freight can be suitable for regional shipments depending on the distance.
Weight and Dimensions of Cargo
Freight charges are often calculated based on a combination of weight and dimensional weight (dimensional weight considers the space a shipment occupies regardless of actual weight).
Heavier and bulkier cargo naturally requires more space on a vessel or aircraft, leading to higher costs.
Optimizing packaging to minimize wasted space can be a cost-saving strategy.
Origin and Destination
The distance between origin and destination significantly affects rates. Longer routes translate to higher fuel consumption, operational costs, and potential port fees for carriers.
Additionally, trade routes with high demand might command premium pricing compared to less frequented routes.
Fuel Prices
Fuel is a major expense for international carriers.
Fluctuations in global oil prices can directly impact freight rates. When fuel prices rise, shipping companies often implement fuel surcharges to offset their increased costs.
Customs Clearance and Documentation
The complexity of customs clearance procedures and required documentation can also influence states.
Shipments with intricate paperwork or those requiring inspections may lead to additional fees from customs brokers or freight forwarders to ensure smooth passage through customs.
Insurance
While not mandatory, cargo insurance is highly recommended to protect your shipment against potential damage, loss, or theft during transportation.
The cost of insurance varies depending on the value of your goods and the chosen level of coverage.
How To Determine Which Type Of Shipping To Use
If speed is your top priority, air freight is the clear choice, despite the higher cost. Perishable goods, urgent medical supplies, or time-sensitive documents often necessitate the speed of air travel.
When budget is a major concern, ocean freight is generally the most cost-effective option for non-perishable goods, especially for large volumes. Land freight can also be a cost-competitive option for regional shipments.
The type of cargo you’re shipping plays a crucial role. Perishable items that require strict temperature control might necessitate air freight, while bulky or heavy machinery might be best suited for ocean freight. Fragile items may require special packaging considerations regardless of the chosen mode of transport.
Consider the distance and trade routes involved. For shorter distances within a region, land freight might be efficient. For long distances across contents, air or ocean freight becomes the primary choice. Evaluate the efficiency of connecting routes if multimodal freight forwarding (combining air, ocean, and land transport) is a possibility.
When Should You Use International Freight Shipping Services?
International shipping freight services offer a strategic advantage for businesses of all sizes in various situations:
Businesses aiming to expand their customer base and reach freight overseas markets rely on international freight shipping to deliver their products to global consumers.
Companies can leverage international shipping to access a wide variety of raw materials, potentially at lower costs, from suppliers located around the world. This allows for diversification of supply chains and potentially improved product quality.
International shipping can be a complex process, especially for businesses unfamiliar with customs regulations, documentation requirements, and carrier options. Using freight forwarders with expertise in international logistics streamlines the process and ensures efficient movement of your goods.
How to Lower Freight Shipping Costs?
As mentioned above, choosing the right mode of transport and optimizing packaging is crucial.
Understanding Incoterms, as a standardized set of international trade rules defining responsibilities of buyers and sellers, is crucial.
Specifying Incoterms clearly in your sales contracts helps determine who is responsible for freight costs and customs clearance at various stages of the shipping process.
Depending on your location and the nature of your goods, you might be eligible for duty drawback programs. These programs allow businesses to claim partial refunds on duties or taxes paid on imported materials used in the production of exported goods.
Who Provides International Freight Shipping?
Several entities play a role in facilitating international freight shipping:
Freight Forwarders
These specialized companies act as intermediaries, managing all aspects of international shipping on your behalf. They handle tasks like negotiating rates with carriers, preparing customs documentation, arranging cargo insurance, and tracking your shipment.
International Shipping Carriers
Airlines, ocean liners, and trucking companies are the actual carriers who transport your goods across international borders. Choosing a reliable and reputable carrier with experience on your desired route is essential.
Logistics Companies
These comprehensive logistics providers offer integrated solutions encompassing warehousing, transportation management, distribution, and freight forwarding services.
They can be a good option for businesses requiring a one-stop shop for all their logistics needs.
Customs Brokers
Customs brokers specialize in navigating the complexities of customs clearance. Their expertise ensures your shipment complies with all import/export regulations and avoids delays or penalties at the border.
Common International Freight Shipping Destinations
International freight shipping spans the globe, connecting businesses and consumers across continents.
North America: The United States, Canada, and Mexico represent a significant trade bloc in North America, with a high volume of international freight movement.
Europe: Major European economies like Germany, the United Kingdom, France, and Italy are key destinations for international freight, with well-developed infrastructure for handling various cargo types.
Asia: China, Japan, South Korea, and India are major economic powerhouses in Asia, driving a significant portion of global trade and international freight movement.
South America: Brazil, Argentina, and Chile are prominent economies in South America, with growing demand for imported goods and increasing exports to other regions.
Africa: The African continent presents emerging markets with increasing international trade activity. Countries like South Africa, Nigeria, and Kenya are becoming important destinations for international freight shipping.