How to get the export logistics process right

A multitude of aspects come into play during the logistics process, including shipping lines, ports at origin and destination, loading services, container freight stations, freight forwarders, customs brokers and insurance agencies.

Steps to follow
So, what are the steps that should be taken to ensure that this process is done in an efficient manner and in a way that can utilise costs as well as time better?

Sylvestor D’mello, Director-Operations, Freightwalla, says optimising the logistics process is very crucial to ensure a profitable and smooth export journey. He lists planning, effective people management and selecting the best transport mode as those that need to be deliberated upon carefully for good results. “Advanced planning helps deliver the product on time and save considerable revenue by avoiding last-minute surge charges. Besides this, since export is a labour-intensive job both on the dock and while shipping, it is crucial to effectively deal with the on-ground workforce. Then there is the mode of transportation, which is a vital part in optimising export logistics as it would directly impact profitability and costing,” he says.

In addition to this, aspects like proper storage to preserve the quality of goods and checking their perishability well in time will hold exporters in good stead.

Another relevant resource in logistics in the present day and age is digitisation. D’mello adds that the shipping and logistics industry needs to digitise to be more resource-efficient and customer-friendly. “Tech-backed digital freight forwarders have understood this need and provide end-to-end digitised services to cater to all requirements — from planning to real-time tracking of the shipment.Another critical feature that digitisation can help with is using artificial intelligence and machine learning to garner insightful and predictive data for better pricing and delay-risk analysis,” he says.

Documentation needed
Beyond the key steps that need to be kept in mind, getting the right set of documentation at the various phases of the process is necessary to make things seamless. Bhaskar Priyadarshi, Logistics Expert, Cogoport, breaks it down into arranging documents during the pre-booking, booking, post-booking and discharge stages. “Documents are necessary in international trade and shipping. A trade transaction involves having to deal with piles of paperwork.”

The pre-booking stage, Priyadarshi says, would include a packing list or an itemised list of the shipment’s contents, commercial invoice, certificate of origin of the goods. The booking stage would require a booking note, essentially a contract for reservation of carrier space and dangerous goods declaration if required; documents in post-booking such as gate pass, marine insurance, let export order (LEO) and bill of lading, among others. At the discharge stage, there is the bill of entry, delivery order, certificate of analysis and fumigation certificate to confirm that the wooden packaging material is free of pests.

Choosing the mode of transportation
Next comes knowing the various modes of transportation and what will work best for the consignment to keep costs and time manageable.

Ocean freight shipping accounts for almost 90% of international trade by volume. Large volumes of goods are packed into containers and transported in ships via this mode. Modes of ocean freight shipping comprise either less than container load (LCL) shipping or full container load (FCL) shipping. In contrast to shipping by sea, air freight shipping makes up less than 1% of the global trade volume. When it comes to rail, it acts as a big volume mode and is the most cost-effective and environment-friendly option. The other form of road transport — trucks and trailers — is another cargo transport solution, moving volumes on big and small routes. However, the high risk of accidents, weather disruptions and traffic snarls can act as a drawback for this mode. Another arm of inland transportation after trucks and trains is barges — long, flat bottomed cargo boats — to move cargo in bulk.

Cogoport’s Priyadarshi says the international shipping process often requires a combination of two or more modes of transportation between the origin and destination. “This is called multimodal or intermodal shipping. If, for example, you are sending a shipment overseas. The cargo might cover the main leg of its journey by a ship or a plane, but it will need truck transportation for the journey from your factory to the port/terminal of origin and then again from the port/terminal of destination to the buyer’s warehouse,” he says.

Export logistic tracking
Another vital step in the logistic process is accurate shipment tracking for smooth transport and to ensure proper delivery. Freightwalla’s D’mello says that going beyond the basic and conventional tracking system offered by freight forwarders could help exporters stay more updated. The conventional one usually offers two-level tracking at dispatch and arrival of the shipment with ETA (expected time of arrival). But new digital freight forwarders are changing the tracking system with technology by providing real-time information of the shipment and intelligent insights to avoid any delay or mishap,” he adds.

Following the export logistics process by taking note of such crucial aspects can help exporters gain a competitive edge as far as completion of orders is concerned. On the other hand, logistics management, if not done in the optimal way, will add to logistics cost and lead to bad service.