Page 43 - Export and Trade

Freight and Logistics

and the nature of the goods insured, e.g. dangerous example, your goods may need to be packed into air or
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weight loss from drying out, or market changes are also port or airport. Customs clearance needs to be arranged
not covered. Neither are risks from war, strikes, riots in New Zealand and at the destination, and an airline or
and civil unrest but they can be covered at extra cost. shipping line needs to be engaged for the international
transit. Each of these services will probably be provided
by different companies. Your freight forwarder will
Do I need extra insurance?
arrange all this, as well as choose the best and most
If your cargo has special characteristics, you may need
cost-effective carriers, with the right service levels, for
additional insurance. For example, if your goods can be
your needs.
spoilt by changes in temperature, are of especially high
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How do I choose a freight forwarding company?
whose saleable value is limited to a particular occasion or
Taking your time to choose a freight partner is important
time of year and will be rendered worthless if there are
– they must become a partner in the process, and not
unforeseen or unavoidable shipping delays.
just ‘transactional’.
There is added cost if a shipment is considered fragile.
It’s a good idea to use a company that has a local
For example, even if glass is well packaged it is still
agent at your export destination. This means you’ll have
considered fragile and will need to be declared in order to
access to local information, the legal requirements and
avoid voiding the insurance.
market conditions. Freight forwarders often specialise
in the export of particular products, or in exports to
Are my goods packed well enough?
particular markets. Some of the larger companies
You must make sure that your cargo is adequately packed.
operate on a truly global scale, where New Zealand
Even if it isn’t very valuable, you still want to limit the risk
freight makes up only a small percentage of their
of having to urgently resupply any damaged items to an
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unhappy buyer. This will cost you and could make a dent
with expert knowledge of your product or destination
in your reputation as an exporter. There are companies
country; and who can tailor a solution for your particular
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needs. For example, you might need help in all or some
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of these areas:
remember that any packaging will add to your shipping
• Organising and negotiating transport from your
weight and volume. If you make your own packaging,
premises to the port or airport.
you need to make sure you buy wood that is compliant
• Packing your product onto pallets or into containers.
to international standard ISPM 15. The wood will usually
• Preparing the necessary export documentation,
be stamped as compliant. This standard is to guarantee
customs permits and licences.
the wood is disease and insect free. Goods wrapped in
• Advising the best terms of trade for you and your buyer
non-compliant packaging will be delayed and fumigated at
and specify where ownership and risk transfer occur.
most destinations.
• Arranging storage and warehousing or delivery in the
How do I get my products from A to B? destination country, based on the agreed terms.
This is where you’re likely to need a freight forwarding
company. Freight forwarders are essentially travel agents What does my freight forwarder need to know?
for freight. Your freight forwarder will coordinate all the Often, freight forwarders become ‘best friends’.
carriers that are involved in transporting your goods to Establishing a strong relationship early on will mean that
your overseas buyer – both in New Zealand and at the you have support if problems arise later. To do this, you
other end. They also take care of all the paperwork. For QHHG D JRRG ÀRZ RI FRPPXQLFDWLRQ
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NZ Export & Trade Handbook 2018 41