The shipping industry or freight industry is an extremely valuable and profitable trading industry that contributes over ninety percent of the world trade. Shipping industries specialize in the transportation of freight or cargo from one place to another. The role of shipping companies encompasses customs clearance, inventory management, distribution, and local delivery. They also provide door-to-door services. Shipping companies offer multiple modes of transportation depending on the characteristics of the freight, time, and cost. Modes of transportation include road, rail, sea, and air. The mode of transportation through the air is the most expensive as the transit time is generally short. The transit time for transportation through the sea is longer as compared to road, rail, and air. The shipping industry plays a crucial and integral role in the supply chain of cargo/ freight. It is impossible to imagine trade between countries and within countries without the services provided by the shipping companies.
Shipping between Canada and the United States is a good example to demonstrate what steps are involved in the shipping process and what things you need to consider when shipping between different countries.
Canada and the United States are the largest trading partners in the world. It is also the most profitable trading business in the world.
Freight to Canada from the US – If you want to ship freight to Canada from the US, you need to consider the following things. First, you have to choose the mode of transportation. Your mode of transportation will depend on the characteristics of the parcel, time, and cost. Based on these factors, you can choose from one of the following three modes – sea freight, air freight, and express. Airfreight is the most expensive whereas sea freight and express are probably the most cost-effective. Another thing you have to consider in order to ship freight to Canada from the US is the “customs clearance” part. For customs clearance, you have to provide the correct paperwork. You would require legal documentation to get clearance from the customs officials. Some of the documents that you need to provide are the commercial invoice and the bill of lading.
Freight from the US to Canada – If you want to import freight from the US to Canada, the things that you need to consider during the shipping are the mode of transportation, customs clearance, customs duty, and GST, freight rate, and insurance.
The mode of transportation can be decided as per the customer’s choice. Your shipment will go through customs clearance. Customs officials will check the items and the paperwork and then only the cargo will be allowed to leave/enter the border. The required documents are the commercial invoice and the bill of lading. The commercial invoice contains all the details from the name and address of the shipper and the consignee to the date of shipment as well as the details of the items being shipped. Generally, a customs broker is hired by the shipping company to help with the customs clearance.
You will also have to pay customs duty and GST to import goods from the USA. The most important thing that you have to consider while shipping freight from the US to Canada is to have insurance. Insurance will be able to cover your cost in case the ship goods are damaged or lost. You can either contact a third-party insurance agent or the freight company will provide you with one if you request them.
- Posted by WiserTech Solutions
- On July 13, 2021