Exporters vs shippers

Exporters and shippers are both essential parts of the export process. Exporters are responsible for getting goods ready to be shipped out of the country, while shippers are responsible for getting those goods from Point A to Point B. There are a few critical differences between exporters and shippers, though.

Licensing

Exporters need to obtain a license from the Department of Commerce to export certain goods. Shippers, on the other hand, do not need a license.

Documentation

Exporters are responsible for ensuring that all necessary documentation is in order before goods are shipped. It includes things like commercial invoices, export declarations, and bills of lading. On the other hand, Shippers do not need to worry about documentation. They need to get the goods from Point A to Point B.

Insurance

Exporters are responsible for obtaining insurance for their goods to protect against damage or loss during shipping. Shippers are not responsible for insuring goods, although they may offer insurance as an add-on service.

Packaging

Exporters are responsible for packaging the goods properly before they are shipped. It includes things like using the proper materials and labelling the package correctly. Shippers are not responsible for packaging, although they may offer packaging services as an add-on.

Freight Charges

Exporters are responsible for paying freight charges when goods are shipped. Shippers may charge a fee for their services, but this is separate from the freight charges.

Shipping Methods

Exporters need to choose the correct shipping method for their goods. It includes things like whether to ship by sea, air, or land. Shippers need to get the goods from Point A to Point B and are not responsible for choosing the shipping method.

Customs

Exporters are responsible for ensuring that their goods meet all customs requirements before they are shipped. It includes getting the proper permits and paying any tariffs or taxes. Shippers are not responsible for customs, although they may offer customs clearance services as an add-on.

LCL shipping

Exporters may use LCL shipping when sending goods overseas. It is a type of shipping where the goods are consolidated with other shipments to save on costs. Shippers do not typically offer this service.

When will you use an exporter to ship your goods?

You will use a licensed exporter when you need to get a license from the Department of Commerce to export certain goods. You will also use an exporter when you need to ensure that all of the necessary documentation is in order before goods are shipped, obtain insurance for your goods, or package the goods adequately.

When will you use a shipper?

You will use a shipper when you need to get the goods from Point A to Point B. Shippers do not need a license and do not need to worry about documentation. They need to get the goods from Point A to Point B. Shippers may also offer insurance and packaging as add-on services.

How to choose between the two

Determine if you need a license

The first step is to determine if you need a license from the Department of Commerce to export your goods. If you do, then you will need to use an exporter. If you do not, you can use either an exporter or a shipper.

Determine what type of services you need

The next step is to determine what type of services you need. Do you need help with documentation? Insurance? Packaging? These are all things that exporters can help with. Shippers can also help with these things, but they may charge extra for these services.

Get quotes from both types of businesses

The next step is to get quotes from both types of businesses. Be sure to ask about all of your services, such as documentation, insurance, and packaging. Be sure to also ask about the fees for these services.

Choose the right business for your needs

The final step is to choose the right business for your needs. If you need a license and help with documentation, insurance, and packaging, then an exporter is the best choice. If you do not need a license and only need help to get the goods from Point A to Point B, then a shipper is the best choice.