International shipping can be daunting, yet freight forwarders alleviate concerns by offering diverse service and movement options tailored to the preferences and requirements of importers or exporters. Terms such as door-to-door, door-to-port, port-to-port, and port-to-door movement types are integral in this realm.
Although the names provide some insight, understanding these movement types entails delving deeper. Exploring their functionalities, intended purposes, advantages, disadvantages, and the appropriate Incoterms for each movement type is essential. This comprehensive article aims to provide insights into how these movement types operate and their respective uses, enabling a better understanding for individuals involved in international trade.
Door-to-Door Shipping
In the door-to-door movement type, the freight forwarder handles most of the transport process and leaves little responsibility for the importer and exporter. The freight forwarder picks up the goods from the door or premises of the seller/ exporter and delivers them to the door or premises of the buyer/ importer.
This movement type requires the freight forwarder to make use of multiple transportations, which usually include trucks and vessels. Because this is a more direct and comprehensive option, it’s typically more expensive compared to other movement types. But the benefit is evident, considering that it provides convenience for the exporter and importer, relieving them of the responsibility of contracting their own transport services.
Door-to-Port Shipping
The door-to-port shipping term refers to the middle course of door-to-door and port-to-port shipping. The freight forwarder takes charge of the pre-carriage and main run of the shipping process.
This means that the goods will be picked up at the exporter’s premises and delivered to the ocean port or airport of origin. The freight forwarder will use multi-modal transport, such as a truck and vessel to handle the beginning of the shipping process. The importer will be in charge of inland transport at the destination port.
The door-to-port international shipping type is favorable for exporters who don’t have the capacity to arrange transport from their premises to the selected port of origin. But it is essential that the importer on the other end of the carriage has the means to arrange inland transport at the destination.
This movement type is beneficial for exporters because they have the liberty to decide their mode of transport for international shipping. The freight forwarder can also offer solutions tailored to their needs.
Port-to-Port Shipping
In port-to-port shipping, the freight forwarder’s responsibility is limited to moving cargo or goods solely between the airport or ocean port in the origin country and the respective port in the destination country. Typically, goods are transported in containers, either via less than container load or full container load.
The freight forwarder or carrier does not handle inland transport at either the origin or destination. This responsibility falls upon the importer or exporter. This service covers the shortest leg of the shipping process for which the freight forwarder is accountable. Consequently, it’s the most cost-effective option, involving payment solely for the middle phase of the shipping process—from the port of origin to the port of destination. However, this method also holds the highest degree of unpredictability, as most uncertainties tend to occur during this middle phase.
Port-to-port shipments suit experienced shippers well-versed in shipping procedures. Their familiarity with international shipping enables them to manage necessary documentation, handle customs clearance requirements at both ends, and arrange inland transportation services, navigating the complexities of the process proficiently.
