Step #1: Request quotes and order your product
First, you'll need to order your goods. Approach suppliers and manufacturers overseas and negotiate a deal to purchase the products you want. We recommend you to read our blog Why You Shouldn't Rely Only on Your Supplier to Handle Your Imports.
You should negotiate not only on price, the minimum order quantity, and the deadlines but the terms of your purchase (incoterms) you will use. This is the most important thing to define at this stage, as the chosen incoterm will define who pays for what in the shipping process, from the moment it leaves the supplier's warehouse, until it gets delivered to your premises. The incoterm also states who is responsible for insurance or is liable for risks (supplier or buyer) at each stage of the shipping journey.
Step #2: Consider the right transport mode
Ocean transport solutions take longer than air transportation, making sea freight less suitable for time-sensitive shipments.
If your cargo is urgent or perishable, air freight should be the right choice.
Businesses must plan their logistics accordingly to accommodate longer lead times. Typically, you can expect your goods to be at sea from 15 to 60+ days to Australia.
To compare sea freight with other forms of transport, read our article on air freight vs sea freight.
Step #3: Book your freight
Once your cargo is prepared, book your freight with the chosen shipping company. Your freight forwarder should be able to provide a few carrier options according to your requirements.
Shipping lines offer different ETAs and pricing depending on the type of goods you are shipping and how quickly you need your goods. Faster direct services are usually more expensive than longer ones, with transshipment.
Consider arranging marine insurance with your freight forwarder or insurer for extra peace of mind in case your goods get lost, damaged or get caught in an incident.
Step #4: Freight forwarder arranges shipment
A sea freight forwarder will then arrange the transportation for every leg of the journey, door to door. They will liaise with the shipping lines, transport operators and port authorities to book every movement of your shipment.
They will also handle your shipping documentation and communicate the status of your shipments so you know when to expect receival and prepare for the unload of your goods.
Freight forwarders help to mitigate risk and offer established relationships with trusted carriers and providers to handle your cargo as smoothly as possible.
Step #5: Goods go through import customs clearance while in transit
After your cargo leaves the country of origin, it undergoes import customs clearance. This step ensures compliance with international trade regulations and is how countries control what comes into the country. Australia has one of the strictest biosecurity import regulations in the world.
A customs broker needs to be engaged at this stage as they are the licensed professional authorised to liaise with government authorities to arrange all documentation necessary to clear your goods. The process starts while goods are still in the water.
They will review your goods classification, arrange the correct import documentation and calculate the right amount of duty and GST you need to pay upon import.
Once cleared, your goods are allowed to be collected at the port by a transport company (also arranged by your freight forwarder on your behalf).