One example to simplify the difference between the two is to think of it this way: a carrier would be like an airline company (Delta, United, etc.), and the freight forwarder is the travel agent who plans the trip for you. 

Now, the service a freight forwarder provides is much more involved than a travel agent just buying a plane ticket to Las Vegas for you. International and domestic shipping is incredibly complex. Between shipping regulations, customs, time constraints, handling the paperwork, and insurance needs, it can quickly become overwhelming. That’s where the freight forwarder steps in and uses their expertise to make sure your cargo gets from point A to B without any issues or delays.

These are 11 standardized terms used internationally to avoid confusion in all matters related to international shipping. They’re published by the International Chamber of Commerce, with the most recent version being the 2020 edition.

A customs bond is essentially a payment made to the government that shows you’ll pay what you owe in duties and taxes when the time comes. In the US, you’ll need a customs bond for most commercial imports over $2,500 in value. You can get a single-use bond for occasional shipments, or a continuous bond if you plan on importing regularly. The bond typically costs about 10% of your annual duties and taxes. Skip this step, and your shipment could sit in customs limbo — not fun when you’re paying storage fees.

A NVOCC, such as Universal Cargo, is a Non-Vessel Operating Common Carrier. This means that in addition to arranging transportation, a NVOCC will actually issue its own bill of lading and take on carrier liability. They consolidate cargo from multiple shippers to get better rates.

With FCL (Full Container Load), you rent the entire container. It’s like having your own private moving truck. LCL (Less than Container Load) is more like sharing a bus with other passengers. 

FCL makes sense when you have enough cargo to fill at least half a container, or when you’re shipping valuable/fragile items that you don’t want mixed with other cargo. 

LCL works well for smaller shipments, but expect longer transit times since your goods will need to be consolidated with others at the origin and then separated out at the destination.

Ocean shipping is slow, but predictable (mostly). Asia to the West Coast typically runs 12-18 days, while Europe to the East Coast is usually 7-14 days. But don’t just count the days on the water. You need to account for port delays, customs clearance, and inland transportation. 

During busy seasons, like Chinese New Year or the pre-Christmas rush, everything slows down and gets more expensive.

To start, air freight can cost anywhere from 5-10 times more than ocean shipping. However, it can be worth every penny depending on the items being shipped. You’ll want to consider air freight for urgent shipments, high-value electronics, seasonal items, or anything that spoils. 

The decision-making process can usually come down to this: if the cost of the slower shipping methods (from lost sales, spoilage, unhappy customers, etc.) outweighs the air freight premium, fly it. 

It also makes sense for items that have a high value-to-weight ratio.

The prohibited items list for air freight is extensive and strictly enforced. Obviously, dangerous stuff like explosives and radioactive materials are out, but so are many everyday items you might not expect. 

Lithium batteries need special certification, perfumes are restricted, and even some cosmetics can be problematic. When in doubt, check with the experts at Universal Cargo early in the process. Discovering restrictions after you’ve already packed can be expensive.

The rates for shipping fluctuate constantly, similar to airline tickets. Supply and demand, oil/fuel costs, and unforeseen world events all impact the price of shipping. 

Ocean freight is typically quoted per container for FCL, or per cubic meter/ton for LCL.

Air freight uses volumetric weight calculations because the space inside a cargo plane is so valuable that every inch is accounted for. 

Trucking costs are influenced by a variety of factors, including weight, distance, density, and freight classification.

These additional costs can often be a source of sticker shock for new shippers, but they are a part of shipping.

In addition to the base rate (based on your method of shipping), you could also end up paying for pickup, export clearance, terminal handling, customs clearance, delivery, storage, duties and taxes, and even fuel surcharges.

Fuel surcharges alone can add anywhere from 15-30% onto the bill. Insurance is optional, but highly recommended, and runs between 0.1-0.5% of the cargo value.

The biggest savings usually come from sheer volume. Consolidate your shipments when possible, or use a freight forwarding company like Universal Cargo Management to consolidate your shipments for you! 

Plan accordingly to avoid shipping around the peak seasons when rates can spike. Consider the slower shipping methods when permissible. Using a freight forwarder can also save you money, as they likely have existing relationships with carriers and know how to best ship your items in a cost-effective manner.