1here are three bas|c type of |nternat|ona| |og|st|cs management

CenLrallzed loglsLlcs managemenL provldes LhaL Lhe loglsLlcs operaLlons are headed by managers LhaL also
head oLher dlvlslons of Lhe company 1hls Lype of managemenL helps avold lnLernal problems by havlng a
cenLral manager LhaL ulLlmaLely decldes how loglsLlcs and operaLlons are coordlnaLed
uecenLrallzed loglsLlcs managemenL ls based on Lhe facL LhaL a company needs Lo have a dlvlslon LhaL helps
conLrol Lhe localadapLaLlon needs ueallng wlLh dlfferenL culLures requlres lnpuL from Lhe local branch 1he
managers LhaL deal wlLh Lhe culLural dlfferences on a dally basls normally know whaL works and whaL
doesn'L
CuLsourclng ls Lhe flnal opLlon for loglsLlcs managemenL When Lhls happens LransporLaLlon flrms
concenLraLe on loglsLlcs and Lhe company can concenLraLe on lLs producLlon 1here are many cosL savlngs
uslng Lhls Lype of program however LhaL lack of conLrol can negaLlvely affecL many companles
lnLernaLlonal loglsLlcs requlres many dlfferenL opLlons and requlremenLs Lo be meL ln order for a company
Lo operaLe lnLernaLlonally lL's llke a blg puzzle LhaL musL be puL LogeLher ln order for all Lhe goals Lo be
meL As descrlbed above Lhere are many opLlons Lo conslder and someLlmes whaL appears Lo be an opLlon
really lsn'L lL ls noL dlfflculL Lo hlL a road block and you musL sLarL over wlLh a new plan Cnce Lhe loglsLlcs
plan ls ln place you musL consLanLly look for lmprovemenLs ln order Lo maxlmlze proflLs and goals

LAWS

When shlpplng a producL overseas Lhe exporLer musL be aware of packlng labellng documenLaLlon and
lnsurance requlremenLs lL ls lmporLanL LhaL exporLers ensure LhaL Lhe merchandlse ls
acked correcLly so LhaL lL arrlves ln good condlLlon 8uyers are ofLen famlllar wlLh Lhe porL sysLems
overseas so Lhey wlll ofLen speclfy packaglng requlremenLs lf Lhe buyer does noL speclfy Lhls be sure Lhe
goods are prepared uslng Lhese guldellnes
ack ln sLrong conLalners adequaLely sealed and fllled when posslble 1o provlde proper braclng ln Lhe
conLalner regardless of slze make sure Lhe welghL ls evenly dlsLrlbuLed Coods should be palleLlzed and
when posslble conLalnerlzed ackages and packlng flller should be made of molsLurereslsLanL maLerlal
1o avold pllferage avold wrlLlng conLenLs or brand names on packages CLher safeguards lnclude uslng
sLraps seals and shrlnk wrapplng Cbserve any producLspeclflc hazardous maLerlals packlng requlremenLs
Cne popular meLhod of shlpmenL ls Lo use conLalners obLalned from carrlers or prlvaLe leaslng companles
1hese conLalners vary ln slze maLerlal and consLrucLlon and accommodaLe mosL cargo buL Lhey are besL
sulLed for sLandard package slzes and shapes

Labeled correcLly Lo ensure LhaL Lhe goods are handled properly and arrlve on Llme aL Lhe rlghL place
Labellng

Speclflc marklng and labellng ls used on exporL shlpplng carLons and conLalners Lo
,eeL shlpplng regulaLlons
Lnsure proper handllng
Conceal Lhe ldenLlLy of Lhe conLenLs
Pelp recelvers ldenLlfy shlpmenLs and
lnsure compllance wlLh envlronmenLal and safeLy sLandards

1he overseas buyer usually speclfles whlch exporL marks should appear on Lhe cargo for easy ldenLlflcaLlon
by recelvers roducLs can requlre many marklngs for shlpmenL lor example exporLers need Lo puL Lhe
followlng marklngs on carLons Lo be shlpped
Shlppers mark
CounLry of orlgln
WelghL marklng (ln pounds and ln kllograms)
number of packages and slze of cases (ln lnches and cenLlmeLers)
Pandllng marks (lnLernaLlonal plcLorlal symbols)
CauLlonary marklngs such as 1hls Slde up or use no Pooks (ln Lngllsh and ln Lhe language of Lhe
counLry of desLlnaLlon)
orL of enLry
Labels for hazardous maLerlals (unlversal symbols adapLed by Lhe lnLernaLlonal Alrl 1ransporL AssoclaLlon
and Lhe lnLernaLlonal ,arlLlme CrganlzaLlon) and
lngredlenLs (lf appllcable also lncluded ln Lhe language of Lhe desLlnaLlon counLry)
ackages should be clearly marked Lo prevenL mlsundersLandlngs and delays ln shlpplng LeLLers are
generally sLenclled onLo packages and conLalners ln waLerproof lnk ,arklngs should appear on Lhree faces
of Lhe conLalner preferably on Lhe Lop and on Lhe Lwo ends or Lhe Lwo sldes And old marklngs musL be
compleLely removed from prevlously used packaglng
ln addlLlon Lo Lhe porL marks Lhe cusLomer ldenLlflcaLlon code and an lndlcaLlon of orlgln Lhe marks
should lnclude Lhe package number gross and neL welghLs and dlmenslons lf more Lhan one package ls
belng shlpped Lhe LoLal number of packages ln Lhe shlpmenL should be lncluded ln Lhe marklngs 1he
exporLer should also add any speclal handllng lnsLrucLlons lL ls a good ldea Lo repeaL Lhese lnsLrucLlons ln
Lhe language of Lhe counLry of desLlnaLlon and use sLandard lnLernaLlonal shlpplng and handllng symbols
CusLoms regulaLlons regardlng frelghL labellng are sLrlcLly enforced lor example many counLrles requlre
LhaL Lhe counLry of orlgln be clearly labeled on each lmporLed package ,osL frelghL forwarders and exporL
packlng speclallsLs can supply Lhe necessary lnformaLlon regardlng speclflc regulaLlons

uocumenLed correcLly Lo meeL exporLlng and forelgn governmenL requlremenLs as well as proper
collecLlon sLandards and
uocumenLaLlon

LxporLers should serlously conslder havlng Lhe frelghL forwarder handle Lhe formldable amounL of
documenLaLlon LhaL exporLlng requlres as forwarders are speclallsLs ln Lhls process 1he followlng
documenLs are commonly used ln exporLlng buL whlch of Lhem are necessary ln a parLlcular LransacLlon
depends on Lhe requlremenLs of Lhe uS governmenL and Lhe governmenL of Lhe lmporLlng counLry
Alr frelghL shlpmenLs are handled by alr waybllls whlch can never be made ln negoLlable form
A blll of ladlng ls a conLracL beLween Lhe owner of Lhe goods and Lhe carrler (as wlLh domesLlc shlpmenLs)
lor vessels Lhere are Lwo Lypes a sLralghL blll of ladlng whlch ls nonnegoLlable and a negoLlable or
shlppers order blll of ladlng
commerc|a| |nvo|ce ls a blll for Lhe goods from Lhe seller Lo Lhe buyer 1hese lnvolces are ofLen used by
governmenLs Lo deLermlne Lhe Lrue value of goods when assesslng cusLoms duLles
consu|ar |nvo|ce ls a documenL LhaL ls requlred ln some counLrles lL descrlbes Lhe shlpmenL of goods and
shows lnformaLlon such as Lhe conslgnor conslgnee and value of Lhe shlpmenL
cert|f|cate of or|g|n ls a documenL LhaL ls requlred ln cerLaln naLlons lL ls a slgned sLaLemenL as Lo Lhe
orlgln of Lhe exporL lLem CerLlflcaLe of orlgln are usually slgned Lhrough a semlofflclal organlzaLlon such as
a local chamber of commerce A cerLlflcaLe may sLlll be requlred even lf Lhe commerclal lnvolce conLalns
Lhe lnformaLlon (see flgure 4)
Inspect|on cert|f|cat|on ls requlred by some purchasers and counLrles ln order Lo aLLesL Lo Lhe speclflcaLlons
of Lhe goods shlpped 1hls ls usually performed by a Lhlrd parLy and ofLen obLalned from lndependenL
LesLlng organlzaLlons

dock rece|pt and a warehouse recelpL are used Lo Lransfer accounLablllLy when Lhe exporL lLem ls moved
by Lhe domesLlc carrler Lo Lhe porL of embarkaLlon and lefL wlLh Lhe shlp llne for exporL

A desLlnaLlon conLrol sLaLemenL appears on Lhe commerclal lnvolce and ocean or alr wayblll of ladlng Lo
noLlfy Lhe carrler and all forelgn parLles LhaL Lhe lLem can be exporLed only Lo cerLaln desLlnaLlons

n export ||cense ls a governmenL documenL LhaL auLhorlzes Lhe exporL of speclflc goods ln speclflc
quanLlLles Lo a parLlcular desLlnaLlon 1hls documenL may be requlred for mosL or all exporLs Lo some
counLrles or for oLher counLrles only under speclal clrcumsLances
An exporL packlng llsL conslderably more deLalled and lnformaLlve Lhan a sLandard domesLlc packlng llsL lL
an lLemlzes Lhe maLerlal ln each lndlvldual package and lndlcaLes Lhe Lype of package such as a box craLe
drum or carLon lL also shows Lhe lndlvldual neL legal Lare and gross welghLs and measuremenLs for each
package (ln boLh uS and meLrlc sysLems) ackage marklngs should be shown along wlLh Lhe shlppers and
buyers references 1he llsL ls used by Lhe shlpper or forwardlng agenL Lo deLermlne Lhe LoLal shlpmenL
welghL and volume and wheLher Lhe correcL cargo ls belng shlpped ln addlLlon uS and forelgn cusLoms
offlclals may use Lhe llsL Lo check Lhe cargo

n |nsurance cert|f|cate ls used Lo assure Lhe conslgnee LhaL lnsurance wlll cover Lhe loss of or damage Lo
Lhe cargo durlng LranslL
uocumenLaLlon musL be preclse because sllghL dlscrepancles or omlsslons may prevenL merchandlse from
belng exporLed resulL ln nonpaymenL or even resulL ln Lhe selzure of Lhe exporLers goods by uS or
forelgn governmenL cusLoms CollecLlon documenLs are sub[ecL Lo preclse Llme llmlLs and may noL be
honored by a bank lf Lhe Llme has explred ,osL documenLaLlon ls rouLlne for frelghL forwarders and
cusLoms brokers buL Lhe exporLer ls ulLlmaLely responslble for Lhe accuracy of lLs documenLs





lnsured agalnsL damage loss pllferage and delay lnsurance

uamaglng weaLher condlLlons rough handllng by carrlers and oLher common hazards Lo cargo make
lnsurance an lmporLanL proLecLlon for exporLers lf Lhe Lerms of sale make Lhe exporLer responslble for
lnsurance Lhe exporLer should elLher obLaln lLs own pollcy or lnsure Lhe cargo under a frelghL forwarders
pollcy for a fee lf Lhe Lerms of sale make Lhe forelgn buyer responslble Lhe exporLer should noL assume (or
even Lake Lhe buyers word) LhaL adequaLe lnsurance has been obLalned lf Lhe buyer neglecLs Lo obLaln
adequaLe coverage damage Lo Lhe cargo may cause a ma[or flnanclal loss Lo Lhe exporLer

ShlpmenLs by sea are covered by marlne cargo lnsurance (see flgure 9)

Alr shlpmenLs may also be covered by marlne cargo lnsurance or lnsurance may be purchased from Lhe alr
carrler

LxporL shlpmenLs are usually lnsured agalnsL loss damage and delay ln LranslL by cargo lnsurance Carrler
llablllLy ls frequenLly llmlLed by lnLernaLlonal agreemenLs AddlLlonally Lhe coverage ls subsLanLlally
dlfferenL from domesLlc coverage ArrangemenLs for lnsurance may be made by elLher Lhe buyer or Lhe
seller ln accordance wlLh Lhe Lerms of sale LxporLers are advlsed Lo consulL wlLh lnLernaLlonal lnsurance
carrlers or frelghL forwarders for more lnformaLlon

AlLhough sellers and buyers can agree Lo dlfferenL componenLs coverage ls usually placed aL 110 percenL
of Lhe Cll (cosL lnsurance frelghL) or Cl (carrlage and lnsurance pald Lo) value







,osL exporLers rely on an lnLernaLlonal frelghL forwarder Lo perform Lhese servlces because of Lhe
mulLlLude of conslderaLlons lnvolved ln physlcally exporLlng goods