Background
A mid-sized timber flooring importer based in Sydney, import flooring products from manufacturers in China. The management team of the flooring importer has very limited knowledge regarding import logistics and require LHP to provide guidance walk them through the entire processThe Issue
International Logistics associated with importing timber flooring from China to Australia is a complex process, mismanagement could lead to lack of efficiency, potentially shipment could be hold by (Australian Border Force) ABF.1. Documentation
- Shipper in China has exported before but no to Australia, they have limited knowledge on what ABS would need on the commercial documents.
2. Understanding Ocean Freight Booking Process
- Unlike Uber, Ocean Freight space will need to be booked 2-4 weeks in advance subject to space available. The Timber Flooring had challenges planning ahead and need assistance from LHP to plan on their behalf.
3. Understanding the Complexity of Ocean Freight
- Ocean Freight can be extremely complex as anything can happen to your shipments once they are loaded onto the vessel.
Resolutions
As their logistics service provider, we cannot draft or amend documents on the importer and shipper’s behalf, the key to success here is to patiently go through the entire process with the them make sure they are able to do it in the long run.- Provide Guidance to Importer and Supplier: Explain the requirement to supplier on how to draft documents such as commercial invoice and packing list. Provide document template for importer to refer to. Conduct a full audit of HS code classification.
- Ocean Freight Procedure Introduction: Conduct an entire procedure tutorial for the importer and guide them through whenever something is stuck
- Explain the Business Risks Involved in Ocean Freight: Make sure importer under the following;
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- – Importance on planning ahead and book 2-4 weeks in advance
- – Understanding seasonal changes and trend that Ocean Freight Rate fluctuation follows
- – Pinpoint the key areas that may become potential risk factors and importance of purchasing Marine insurance
