The world of global trade offers massive opportunities for Indian businesses but expanding into international markets is complex. Even small mis-steps can lead to costly delays, fines and damaged customer relationships. At iKargos, a trusted logistics company offering complete supply chain solutions, we have seen the most common errors.
Here are the top seven mistakes exporters make and how leveraging professional freight forwarding services can help you avoid them.
1. Mis-understanding Incoterms® Rules.
Common Mistake: Using the wrong International Commercial Term (Incoterms) like FOB for containerized sea freight shipping or misunderstanding the crucial transfer point of risk and cost. This is a common error that leads to disputes over who pays for what - from air freight cost to terminal handling charges.
Solution: Always clarify the specific Incoterm in your contract. Work with a freight forwarding expert who can advise on the best term for your mode of transport, be it air cargo or ocean freight and ensure that your freight quote accurately reflects your responsibilities.
2. Documentation and HS Code Errors.
Common Mistake: Incorrectly classifying your goods with the Harmonized System (HS) code or submitting incomplete/inaccurate paperwork (invoices, packing lists, Certificate of Origin). This is the single biggest cause of delays in custom clearances and can lead to hefty fines and shipment seizures.
Solution: Treat documentation as the most critical part of the process. A reliable international freight service provider uses specialized logistics consulting to ensure the correct HS code is used, guaranteeing smooth entry.
3. Ignoring Cargo Insurance.
Common Mistake: Skipping freight insurance coverage to save money, assuming the carrier's liability is sufficient. International cargo shipping is inherently risky - accidents, theft and damage occur. An uninsured loss can wipe out the profit from an entire shipment.
Solution: Always secure comprehensive freight insurance. A professional logistics company will offer various insurance options to protect your goods fully, covering 110% of the CIF (Cost, Insurance, Freight) value for total peace of mind.
4. Poor Logistics Planning and Choosing the Wrong Mode.
Common Mistake: Defaulting to sea freight when you need speed or choosing air freight shipping when cost is the priority. Exporters often fail to create a strategic logistics transportation plan that aligns cost, speed and reliability. This is particularly true for complex routes like China to India shipping.
Solution: Get competitive air freight quotes and sea freight quotes from a digital freight forwarding platform like iKargos. Our platform helps you compare options and choose the most effective cargo transport method for your supply chain solutions.
5. Underestimating the Total Export Cost.
Common Mistake: Only accounting for the product cost and the main freight cost. Many new exporters are caught off guard by "hidden" fees like demurrage, detention, customs duties, local taxes, inspection fees and terminal charges etc.
Solution: Partner with a global freight forwarding partner that provides transparent, all-inclusive freight quotes. A good partner helps you calculate the total landed cost to ensure your pricing strategy remains profitable.
6. Neglecting Country-Specific Regulations.
Common Mistake: Assuming your product standards, labelling and packaging from your home market are acceptable everywhere. Every country has unique import laws, safety standards and labelling requirements.
Solution: Seek logistics consulting early in the process. Your freight forwarding services provider must have a strong global network to check destination-country-specific rules, preventing your cargo from being held up or rejected at the port.
7. Failing to Establish Clear Payment Terms.
Common Mistake: Proceeding with large orders without clearly defined, legally binding payment terms (e.g. Letter of Credit, Documentary Collection). Relying solely on open account terms exposes you to high risk.
Solution: Use secure and documented payment methods. While logistics companies do not handle finance, they ensure all shipping documents (Bill of Lading, Air Waybill) align perfectly with your bank's requirements for a smooth financial transaction.
The only Solution: Smart, Compliant Shipping with iKargos.
Successful exporting demands precision in documentation, expertise in freight logistics and robust freight management. Do not let these common mistakes erode your profits. Partner with iKargos to leverage our digital platform and expert team, turning global complexity into a competitive advantage. Get your next freight shipping quote today!