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Cost Effective International Shipping Tips for Businesses

Jul 31, 2008
International shipping company can be expensive under any conditions. Today, with the cost of oil going up almost daily, business owners and managers need to seek out more effective strategies for transporting their goods and services overseas. Scheduling, bulk shipments, ports of exit and entry, and outsourcing are all cost effective solutions in specific situations. If you are running a business that utilizes international shipping on a regular basis you should familiarize yourself with all of these options.

Proper scheduling of your shipping company pick-ups and deliveries can help you determine a fixed cost and avoid unnecessary expenses. If your shipping company picks up multiple packages in the same week or day that are going to the same destination then those packages should be combined into a single item. International shipping companies like Fed-ex and UPS charge you every time that they visit your office. If you are doing business with one client in another country who you need to ship multiple items to, prepare a bulk shipment and ask your client to have a distribution system at their location to send individual items to the proper departments. You'll still pay for the weight but you'll save on the pick up and delivery charges.

Ports of exit and entry can be the cause of significant difference in prices for international shipping. Door to door international shipping service involves a combination of sea, land and air shipment methods that can be changed to be more cost effective. If you are using an international shipping company like Fed-ex, UPS, of DHL you may not have options for exit and entry ports but if you are arranging shipping yourself, as you would with a large cargo of manufactured goods, study the route carefully and make sure that your port of entry is as close to the final destination as possible. Overland transport is where most costs are incurred in the international shipping process. A good rule of thumb is to lengthen the sea route so you can save money on the truck route.

Outsourcing is an increasingly popular way of doing business that can save you money or even eliminate completely the cost of international company. If you do a lot of business in another country that involves the international shipping of manufactured goods, check into manufacturing them right there. Often the cost of labor in the target nation is lower than it is at home. This situation can offer you double savings because you'll eliminate international shipping costs and lower your labor costs. If you contract out to an existing company with their own employees you can also save on benefits like health care and pension funds. It may sound heartless but that's not stopping your competitors from doing it.

Information on international shipping, outsourcing and managing costs is available on the internet and through your local Chamber of Commerce or Better Business Bureau. The world is getting smaller and companies are finding new and creative ways to be more productive and profitable. Being aware of how to do this can be the difference between success and failure.
About the Author
Nir Dotan is a writer and promoter of
International Shipping services, and
Omega Shipping Local as well as International Moving.
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