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Understanding the International Shipping Process

Whether you are importing or exporting goods for the first time, understanding the shipping process can help you avoid delays, reduce costs, and ensure a smooth cargo journey.

Step 01

Request a Freight Quotation

The shipping process begins when the shipper provides shipment details, including:
  • Cargo description
  • Dimensions and weight
  • Origin and destination
  • Preferred shipping mode (Sea, Air, or Land)
  • Required delivery timeline
Based on this information, a freight quotation is prepared.
Step 02

Booking Confirmation

Once the quotation is accepted, cargo space is secured with the carrier or shipping line. Booking details are confirmed and shipping schedules are arranged.
Step 03

Cargo Collection and Documentation

Cargo is collected from the supplier or delivered to the designated warehouse or port terminal. Required shipping documents may include:
  • Commercial Invoice
  • Packing List
  • Bill of Lading
  • Certificate of Origin
  • Import/Export Permits (where applicable)
Step 04

Customs Clearance

Before cargo can be exported or imported, customs declarations must be submitted to the relevant authorities. Proper documentation helps prevent delays and penalties.

Step 05

Transportation

The cargo is transported via sea freight, air freight, or multimodal solutions depending on customer requirements.
Step 06

Arrival and Delivery

Upon arrival, customs clearance is completed at the destination. Cargo is then delivered to the consignee’s warehouse, distribution center, or final delivery point.

Faith Logistics Pte Ltd manages every stage of the process, ensuring efficient coordination and clear communication throughout the shipment journey.

Incoterms® Explained

Incoterms® (International Commercial Terms) are globally recognized rules published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international trade.

Understanding Incoterms helps determine who is responsible for transportation costs, insurance, customs clearance, and risk at each stage of the shipment.

EXW Ex Works

The seller makes the goods available at their premises.

Buyer is responsible for
  • Collection
  • Export clearance
  • Freight costs
  • Import clearance
  • Final delivery

FOB Free On Board

The seller is responsible until the cargo is loaded onto the vessel at the port of origin.
Seller is responsible for
  • Export clearance
  • Delivery to port
  • Loading onto vessel
Buyer is responsible for
  • Ocean freight
  • Insurance
  • Import clearance
  • Final delivery

CFR Cost and Freight

The seller pays for ocean freight to the destination port.
Buyer is responsible for
  • Insurance
  • Import clearance
  • Final delivery

CIF Cost, Insurance and Freight

The seller pays for
  • Ocean freight
  • Minimum cargo insurance
Buyer is responsible for
  • Import clearance
  • Duties and taxes
  • Final delivery

DAP Delivered At Place

The seller arranges transportation to the named destination.
Buyer is responsible for
  • Import duties and taxes
  • Import customs clearance

DDP Delivered Duty Paid

  • The seller assumes maximum responsibility, including transportation, customs clearance, duties, and taxes until delivery to the buyer.

Which Incoterm Should You Use?

FOB

Common for sea freight shipments.

EXW
Maximum responsibility for buyers.
CIF
Suitable when sellers arrange freight and insurance.
DAP
Flexible door-to-door delivery option.
DDP

Simplest option for buyers.

Faith Logistics Pte Ltd can advise on the most suitable Incoterm based on your shipment requirements and trade arrangements.

Common Shipping Documents

Commercial Invoice

A document issued by the seller detailing the goods sold and their value.

Packing List

Provides details of cargo quantity, weight, dimensions, and packaging.

Bill of Lading (BL) / Airway Bill (AWB)

A transport document issued by the carrier that serves as proof of shipment and ownership.

Certificate of Origin

Certifies the country where the goods were manufactured.

Import and Export Permits

Certain products may require license from relevant authorities before shipment.

Frequently Asked Questions

What is a Freight Forwarder?

Incoterms® (International Commercial Terms) are globally recognized rules published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international trade.

To prepare an accurate quotation, we typically require:

  • Cargo description
  • Weight and dimensions
  • Number of packages
  • Origin and destination
  • Preferred shipping mode
  • Incoterm
  • FCL (Full Container Load) — One customer utilizes the entire container.
  • LCL (Less than Container Load) — Multiple customers share container space.
Transit times depend on origin, destination, carrier schedules, customs procedures, and mode of transport.
While not mandatory, cargo insurance is strongly recommended to protect against potential loss or damage during transit.
Yes. We assist customers with import and export customs clearance requirements and documentation.
The appropriate Incoterm depends on the responsibilities agreed between buyer and seller. Our team can provide guidance based on your shipment requirements.
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