When it comes to international ocean freight, there’s no such thing as a one-size-fits-all solution. Every company’s needs and circumstances are different, each requiring a unique approach in order to achieve an optimal outcome. In general, the best option for you will depend on what it is you’re sending, the size of your cargo, and its final destination. Below, we’ve outlined some of the most common either/or scenarios that companies encounter when developing an international shipping program.

Incoterms

Most international shipping contracts simplify the sea freight process by using Incoterms, a set of universally recognized phrases and concepts employed in international trade agreements. By stating each party’s obligation in a shared language, Incoterms help buyers and sellers in different countries better understand their specific obligations in a given agreement, reducing the likelihood of delays or disputes. Incoterms are standardized by the International Chamber of Commerce (ICC) — you can acquire additional information and guidance here.

While Incoterms have been in use since 1936, they have been updated over time to conform with evolving trade practices and international policies. For this reason, it’s always important to specify which version of Incoterms are actually being employed in a contract to avoid any possible confusion — for example, Incoterms 2010 (the latest version). The next update is currently slated for 2020.

Prepaid or Collect Shipping?

In a prepaid shipment, all of the expenses are covered by the shipper. It’s the opposite of a collect shipment, in which expenses are covered by the recipient. Depending on the nature of your relationship and any costs levied by the port of arrival, prepaid shipping might be more advisable. Regardless, neither option is more expensive than the other — the terms simply relate to who is on the hook for the bill.

LCL or FCL?

The final rate of an ocean freight shipment largely depends on whether it requires an entire container. Any load that can fill one or more containers is classified as a full container load, or FCL; any load that is smaller than one container is classified as a less than container load, or LCL.

FCL typically charges a flat, per container rate, making it an ideal choice for companies shipping heavy or bulk items, or large quantities of goods. LCL charges based on volume per cubic meter, which is typically a more cost-effective option for shipments that don’t require a full container, or that are being split between multiple destinations. It’s also important to remember that LCL shipments need to consolidated at their point of origin and then deconsolidated once they reach their destination, making FCL the faster option, generally.

Short Sea or Deep Sea Shipping?

As their names might suggest, short sea shipping moves through shallower, coastal waters, while deep sea shipping moves through transoceanic routes. If you’re operating in the United States, shipments to Europe, Asia, Australia, etc., of course, are deep sea, while shipments within North America are short sea. Because of the shorter distances involved, short sea shipping is considerably cheaper than its deep sea counterpart, but compared to other shipping methods, both are relatively affordable options.

The Primary Freight Difference

Whether you’re sending industrial equipment from Boston to Dubai or marble from Milan to New York, Primary Freight’s dedicated team has the requisite knowledge and expertise to help guide you through the process of optimizing your shipping program. With nearly two decades of experience in international and domestic sea freight logistics, we’re confident in our abilities to ensure the smoothest possible sailing for you and your cargo.

If you’re interested in learning more about our sea freight shipping services, or what makes Primary Freight stand apart from our competitors, give one of our dedicated professionals a call at (800)-635-0013.

Ocean freight shipping is a common choice for transporting goods in bulk, and it’s often the cheapest — depending, of course, on your unique situation and needs. However, even if you’ve determined that ocean freight is the best option for you, there are still a number of questions you need to answer in order to maximize the amount of value you’re getting out of each shipment. In particular, you need to determine whether to opt for Less than Container Load (LCL) or Full Container Load (FCL) shipping.

When You Should Ship LCL

LCL shipping allows you to transport amounts of cargo that aren’t large enough to fill a full container. There are pros and cons to shipping LCL regardless of your cargo size, but for many customers, it’s the superior option. So when should you ship LCL?

If you don’t need a full container, LCL allows you to send cargo as small as one cubic meter across the sea, which could be cheaper than relying on air freight to transport small shipments. LCL also makes it easier to split shipments if you’re shipping goods to multiple facilities. Many final destinations require a delivery appointment — LCL pickup and delivery is often faster than FCL, and shippers are given more leeway if they’re trying to meet a deadline. It’s also a better option for keeping your inventory low and limiting your financial risk.

When You Should Ship FCL

Shipping FCL is often cheaper than shipping LCL, since there’s usually a flat rate, and because LCL shipments can sometimes involve hidden fees, including Port Service Charges, Service Charges Due Agent, and Terminal Handling Charges. FCL shipments also tends to be delivered faster than LCL shipments because they’re immediately unloaded and delivered once they arrive at port. LCL shipments, on the other hand, require additional paperwork and deconsolidation steps because of the multiple shipments in each container.

FCL is also easier to track, since most shipping carriers allow you to track your container(s) through their website — this also means shipping FCL is typically safer and more secure.

Why Primary Freight?

Whether you choose FCL or LCL, the most important thing is finding a shipping partner you can trust and rely on to get your cargo to its final destination. As a professionally run, family-owned business that’s been in operation for almost 20 years, Primary Freight has extensive experience in both LCL and FCL shipping. Even more important than that experience, however, is our dedication to building strong relationships with our customers and supporting them when they need it the most.

If you’re trying to determine which ocean freight shipping option is best for you, give one of our dedicated experts a call at (800) 635-0013 — we’ll help guide you through the process and make sure you make the best possible decision based on your unique circumstances.

Though it’s a key part of the supply chain for many business, importing and exporting goods is always a daunting task — especially if you’re shipping overseas. International shipping is a complex maze of rules and regulations, with reams of paperwork, hidden costs, and logistical hurdles at every turn. This high degree of complexity may even force some businesses to rule out a potentially lucrative international venture.

That’s where a Non Vessel Owning Common Carrier (NVOCCs) comes in. By hiring an NVOCC, you can make international shipping as straightforward as shipping within the United States. Here’s how this arrangement can help streamline your international supply chain and boost your business without piling on an untenable amount of stress.

What Is an NVOCC?

An NVOCC simplifies the relationship between the business and their shipping service. They arrange all your shipments, using connections with the carriers — from ocean liners, to air shippers, to trains and trucks — to negotiate the best price possible. They help your business choose the most efficient and reliable type of shipping based on your cargo, your destination, and any other considerations you might have. NVOCCs can also provide insurance, warehousing, risk management, customs documentation, bills of lading, and international payments, to name just a few services.

Why Do I Need an NVOCC?

NVOCCs use their expertise in these kinds of shipments to make sure that regulations are followed strictly throughout the entire process, keeping your business off the hook for expensive fines and fees. Not only do they keep you from having to fill out confusing paperwork, then worry about whether you’ve done it correct, but they also ensure that the process happens the right way and the most efficient way.

They can also provide “dock-to-door” service, simplifying a process that can be particularly difficult for small- and medium-sized businesses. Not only will a simpler process help save a business time, it will also give them the opportunity to grow to an international market.

How Primary Freight Can Help

When you’re looking for NVOCC services, it’s critical that you find a partner with the experience and dedication necessary to provide real value and support. Customer service is incredibly important when you’re sorting out transactions as complex as those involved in international shipping.

With more than two decades in the international shipping community under its belt, Primary Freight is an ideal shipping and logistics partner. Our team of dedicated and experienced representatives will help ensure your goods get from Point A to Point B in the most efficient and cost-effective manner possible. If you’re looking for real value and reliability, look no further than Primary Freight.

Far too many shippers start to breathe easy as soon as their cargo is safely aboard a ship or aircraft — even without insurance. But as many have learned the hard way, shipping without cargo insurance means taking on a huge financial risk. For a lost shipment of just $1,000 in goods, a shipper would have to make $20,000 in sales to recoup their losses.

For those who believe that cargo insurance is a superfluous perk or luxury, here are some of the many reasons why insurance is a must — and how to get your shipment covered.

Carriers Have the Advantage

Each carrier is required to have liability coverage, but this coverage is far less significant than shippers might think. The maximum liability offered by steamship line is only $500 per unit shipped, while air shipping is offered at a mere $9.07 per pound.

Even if this your shipment is so small that this seems sufficient to cover it, the claims process puts the carrier at a significant advantage. Ocean shipments require that a claim is made within three days of the delivery date. Not only that, but the carrier also has 17 defenses under the Carriage of Goods by Sea Act (COGSA), a law that also makes carriers prove definitively that there was no negligence on their part before having to pay out claims. This leaves many claims unpaid, passing the bill onto shippers.

Theft on the Rise

In 2015, the FBI reported $27,872,130 in cargo goods were stolen, and only $5,492,273 worth of those goods were recovered. While shippers have mostly had to worry about false pickups and identity theft, carriers are also becoming increasingly concerned with piracy in international shipments. These rising thefts put your bottom line at risk and can pose logistical nightmares for your business.

Cargo Damage is Very Common

The complicated logistics of shipping cargo unfortunately provides plenty of opportunities for your shipment to become damaged or lost. A report by the UK P&I Club outlined how cargo damage and losses are still a very real problem for shippers and carriers alike. The Club states that “25% of damage is physical, 14% temperature related, [and] 11% containers lost overboard.” The last thing your company wants is to pay for someone else’s mistakes.

Release of Your Cargo

A General Average is a principle that makes all parties liable if an accident occurs to the vessel on which your cargo was shipped. Even if your cargo arrives safely and undamaged, you may be required to pay a deposit or bond in order to release your cargo after a General Average. Cargo insurance lets the insurance company assume liability so your cargo gets released quickly.

How to Get Insured

Primary Freight offers an All-Risk insurance policy for pennies on the dollar for shippers that not only covers your goods, but also the cost of transportation if problems arise. Our policies cover all provisions — you’ll never have to worry about General Averages again. Contact us to make sure your next shipment is completely covered.

In an era when workforce retention and employee experience are becoming true rarities, Primary Freight has managed to be an exception to this rule. That’s because we’ve come up with a more effective solution to the company culture “problem” that many businesses are facing: we invest heavily in our employees — not only in their ongoing happiness and general well-being, but also in their futures by providing them with opportunities and guidance to spur career development and personal growth.

This approach doesn’t just benefit the employees themselves: it’s also proven itself to be a great business strategy, bolstering loyalty, productivity, and ultimately, generating more value for our clients.

Plenty of Room to Grow

Katherine Karalekas is the perfect example of an employee who demonstrated clear ambition and was therefore provided with the necessary tools and opportunities to succeed.

11 years ago, Katherine joined the Primary Freight team as an Import Clerk — and we were immediately impressed by her work ethic, motivation, and drive. “I just made the decision to put my head down and work hard,” she recalls. “I had confidence that if I put in the time and effort, it would get noticed.”

After an eventful first year — which saw the birth of her first child — Katherine was promoted to Import Manager, and even traveled to Italy to meet with some of our key international partners and gain a more nuanced understanding of the complex network we operate within.

As Katherine’s desire to take on more responsibility persisted, Primary Freight provided her with leadership training and mentorship to help her achieve her goals. “The company doesn’t just encourage people who demonstrate an interest in moving up — they provide all of the necessary resources and guidance to help us get where we want to go,” she says.

Katherine’s training helped her gain key managerial skills in listening, innovative thinking, and developing customer connections — talents she combined with her loyalty, experience, and interpersonal skills to ultimately secure her current position as General Manager of the New York branch.

A Vision We All Share

Like many members of the Primary Freight team, Katherine has stayed on throughout the years because she knows it’s a place that truly values good ideas, hard work, and continued personal and professional growth.

Our culture emphasizes opportunity, support, and respect, and thus, Primary Freight employees feel encouraged and motivated to do the best job they possibly can, contributing to a vision we all share. As Katherine puts it, “Primary Freight’s leadership are true believers in the idea that a happy employee is a productive employee.” By providing team members with both the support and opportunity necessary to advance in their careers (and improve the quality of their lives), we’ve been able to cultivate a culture of employee retention, experience, and dedication — the foundation of any successful company.

Over the past two decades, Primary Freight has established itself as a visionary leader the shipping and logistics industry, providing clients with a wide range of services and solutions that span a network of more than 100 countries.

We specialize in LCL and FCL ocean and air freight shipping logistics, but we also excel in extended domestic, intermodal, warehousing, purchase order tracking, and on-forwarding services. Our many years of experience, along with an unwavering commitment to embracing innovation whenever and wherever possible, have enabled us to deploy cutting-edge, customer-specific solutions that maximize the visibility, accuracy, and value of each and every one of our clients’ shipments.

You may be sitting there saying to yourself, “There are so many shipping and logistics providers out there — what makes this one so special?” The truth is that Primary Freight has one massive competitive advantage that no other company can offer: our team.

How Our Culture & Values Boost Our Clients’ ROI

At Primary Freight, we’ve always understood that a company is only as strong as the sum of its component parts. Our idea was simple: take care of your employees, and they’ll take care of business. The decision to create a positive, dynamic, and supportive work environment has enabled us to attract not only the best and brightest employees, but also the most dedicated ones. Moreover, nearly half of our team has been with the company for more than a decade, which translates to more organizational expertise and, of course, value for our clients.

Below are some of the core values that describe who we are as a company, and that have helped us achieve the level of success we enjoy today:

• Forward-thinking: we’re committed to remaining at the forefront of our industry and focused on developing innovative solutions, identifying new markets, and embracing emerging technologies in order to provide the maximum amount of value for our clients.
• Professional: our team operates with the highest possible level of industry expertise and customer service. We treat our clients with the same consideration and respect we’ve come to expect from one another within the organization.
• Driven: for everyone on our team, Primary Freight is like a second family, and like any family, each employee is personally invested in its ongoing well-being and success. That value gets passed along to our clients in the form of commitment and customer service. We consistently go above and beyond the call of duty for our clients — for us, that’s just another day at the office.
• Committed: we’ve created an environment that encourages our team not only to enjoy their work, but also to grow on a personal and professional level. We strive to set realistic expectations and workloads, and to ensure each employee maintains a good work-life balance — we’ve found this translates to better results for us, and for our clients.
• Diverse: Primary Freight’s team represents a wide array of nationalities, beliefs, personalities, and backgrounds — we believe this intellectual and cultural diversity is a cornerstone of our success.
• Dedicated: we’ve built our company with a strong foundational belief in our services and abilities, our team, and of course, our clients.

If you’re not satisfied with your current shipping and logistics partner, we recommend putting a premium on long-term value over quick fixes and surface-level savings. To that end, Primary Freight promises to be a true partner and bring the full force of our team’s expertise and organizational values to bear for your business.

Australia isn’t usually a top priority for big shipping and logistics companies, and it’s no secret why — just look at the numbers: in 2016, the total monetary value of traded goods between the U.S. and Australia was approximately $31.7 billion. While that might sound like a pretty reasonable sum, consider that trade between China and the U.S. over the same period of time amounted to more than $578.2 billion.

It makes sense that giant, global entities wouldn’t pay much attention to Australia. After all, in order for their business models to work, they have to move the maximum volume of cargo possible, meaning that their primary focus will always be on major shipping markets like the U.S., China, and Japan.

But that leaves companies operating in the Australian market in something of a bind — they still have cargo to ship, and they shouldn’t have to sacrifice value, customer service, and speed in order to get goods from point A to point B. Luckily for them, Primary Freight has been operating in the Australian market for more than two decades, offering clients world-class services at an competitive price.

Why Primary Freight?

What sets Primary Freight apart is that Australia has been a core market for us from day one. We understood that in order to make a real impact, we needed to develop a variety of dedicated, high-value services for our partners shipping goods in and out of the region.

In addition to our air freight and full-container ocean freight services, what really sets us apart is our LCL consolidation program. We take partial goods, consolidate them, and ship them out on a weekly basis — and we’ve been offering this service for more than 18 years.

This has enabled us to compete with larger, global entities, and become a key player in the Australian market — we’ve carved out our niche by providing a consistent weekly service, a personal touch, and a dedicated and experienced team, which in turn has allowed us to remain competitive in an increasingly rate-driven marketplace.

A Commitment to Australia

But it’s not just our services that set us apart — when we launched Primary Freight nearly 20 years ago, we made the financial commitment to actually go there, educate people about the process of importing and exporting goods to and from the U.S., and work closely with our partners to develop new and improved services. We’ve built strong relationships with a number of key stakeholders within the market — partnerships that are still in place today.

At the end of the day, companies operating in the region deserve the same quality and array of services as any other market. At Primary Freight, we’ve always made Australia a top priority, and we will continue to do so in the years to come.

People have been transporting goods across the globe for centuries, but in today’s increasingly connected global economy, the task has never been more complex. The explosive growth of eCommerce and one-day shipping have ratcheted up pressure on companies to improve delivery times, even as barriers to expediency — from import/export regulations to customs complexities — become increasingly onerous.

With end-users exhibiting little tolerance for what they perceive to be excess shipping costs, companies need all the expertise they can get to determine the most cost-effective way to ship their commercial goods. In that spirit, we’ve created an overview of the various types of international shipping, each with its own usage and cost considerations.

Ocean

The ocean has long been the primary channel for international shipping, and with good reason: ocean freight gives customers flexibility by enabling them to reach multiple ports — for example, a manufacturer can deliver goods to one destination, where they can then be separated and sent off to various worldwide ports by the shipper. According to the World Shipping Council, liner shipping tops the list of most efficient transportation channels because of its ability to transport more and/or larger goods than most other options.

Air

Companies turn to air freight for time-sensitive deliveries. Whether the product has some kind of expiration date, or a customer simply needs goods shipped by a hard-and-fast deadline, air freight guarantees the fastest delivery time of any transportation option.

But speed isn’t the only benefit offered by air freight: for example, ground shipping typically involves transferring goods to different trucks and storage facilities, which increases the chances that an item is damaged or lost. Air freight minimizes the number of steps standing between the goods and their destination, which in turn means a reduced level of risk overall.

Ground: Rail and Truck

When shipping goods via ground transport, manufacturers typically choose between either rail or truck. While both methods are often used in combination with air or ocean freight, rail and truck transport can also be used for cross-border shipping throughout North America or Europe, for example. According to the World Industrial Reporter, trucks can transport a variety of load sizes, while rail freight can take larger shipments greater distances. As rail services are often connected to ports, rail can be used to get goods to an export destination or to a local market upon arrival.

Finding the Right Shipping Partner

While it may be tempting for companies in search of a shipping and logistics vendor to opt for the big name or the biggest cost-savings, it’s important to remember the role of customer service in transactions as complex as international shipping. When complications and challenges emerge, you want a partner you can trust to navigate them safely and cost-effectively.

As a professionally run, family-owned business that’s been in operation for nearly two decades, Primary Freight has experience working with customers in all facets of international shipping. But more importantly, we also concentrate on building strong relationships and support structures that add value when our customers need it the most.

Livelihoods often hang in the balance when you’ve got to complete a huge shipment, and you want to work with a shipper who understands the real human interests that exist beyond dollars and cents. One of Primary Freight’s founding principles is a regard for people over products — and its company culture shows it. Trust is built on an ability to foster and value human relationships, and one of the easiest ways to tell whether a company deserves your trust is to look at whether it treats its employees as real people, not digits on a ledger line.

Culture Counts

“That’s the big difference: we’re not numbers here,” says a calm and cool Ana Perez. A Primary Freight employee since 1999, Perez says she can’t imagine leaving the company that’s become her “home away from home.” A huge part of what makes Perez feel so comfortable and confident here is that her ranking has no bearing on her ability to enact change within the organization; Ana’s input is valued here, even when she’s discussing something outside of her department.

If someone notices a problem or has come up with a new solution to an existing issue, co-founders John Brown and Kathy Hogan make a point to listen to, learn more about, and often implement that person’s idea. It’s that openness to feedback that instills a sense of lasting purpose in employees, and ultimately betters both company culture and client services. It’s this same earnest belief in people that attracts Primary Freight’s customers, as well. “Honesty is what we strive for,” Perez says firmly. “We try to be honest with them, and that’s what keeps them coming back.”

The Bottom Line

Taking the time to invest empathic capital in your business is the key to fostering happy, trusting relationships with both employees and customers. “I enjoy coming to work still every day,” Perez notes. “And I think that’s a big deal.”

These days, the internet is abuzz with all of the amazing amenities trendy tech companies like Apple, Facebook, and Google offer their employees: free on-site baristas, rooftop lounges, concert tickets, midday naps — sounds pretty great, right? Not so fast.

Sure, in-office perks, and cushy benefits are all well and good, but they don’t help raise an employee’s children, offer emotional support when someone they care about gets sick, or hold their job for them when they have to put their career on pause to deal with a real crisis.

At Primary Freight, in addition to providing a number of wellness programs and other perks, we’ve found something to offer our employees that’s even more valuable: empathy. We employ real people living real lives and experiencing real problems. When a Primary Freight employee needs help or support, they receive it, plain and simple. There’s a reason over 41% of our team has been here for more than 10 years: we’re not just a company — we’re a company that cares.

Offering Support Where It Really Counts

What’s it really like to work at a family-first company? Just ask Monique Lewis, who has been with Primary Freight for 16 years.

Monique began her relationship with Primary Freight as a client, and would speak with President and Co-Founder Kathy Hogan on a regular basis — then one day she discovered that she was going to be laid off by her employer.

As Monique recalls, “Kathy happened to call me one day to see how I was doing. I told her that I was going to be out of work. She immediately said, ‘No, you’re not — come in and see me.’ So I went to see Kathy and I actually started work that same week.”

Kathy knew Monique was a diligent and dedicated worker, of course, but she also recognized her predicament as a fellow mother, and the incredible stress unemployment puts on a family — especially when you’re a single mother of three young children like Monique. “That’s the first thing Kathy told me when I was hired: family comes first.”

Since day one, Monique explains, Primary Freight has proven time and time again that this philosophy isn’t just a bunch of idle talk — they really walk the walk. “[CEO] John [Brown] and Kathy have both played an instrumental role in my children’s lives,” she says. “My oldest is getting ready for her first year at Howard University — without their help, both in terms of financial planning and general encouragement, I don’t think this would’ve been possible.”

The Business Case for a Family-First Culture

As John points out, a family-first approach isn’t just the right thing to do — it’s good for business as well. When an employer demonstrates to its employees that they genuinely care about their well-being, those employees tend to stick around longer, work harder, and care more. According to Monique, “It’s not about the money. It’s about knowing someone really cares, and that they’ll be there for you if anything happens.”

At the end of the day, when it comes to generating long-term value, building a support system that employees can really count on is always going to trump flashy perks and open office spaces. As Monique explains, “I’m motivated to do a great job every single day because I genuinely believe in what I’m contributing to, and I know it believes in me.”