2ND EXPORT – REVISION LESSONS

Export of Corporate Gifting to USA.

Product:	Wooden Multi Utility Desk Organizer
Quantity:	100 Pcs
Weight:	200 Kgs approx.

Since the weight of cargo was sizable, options of sea courier were also analysed, but the shipment timing of 33 days least to 45 days max was the deterrent factor. Also, the rates of DHL and FedEx were compared and finally, FedEx was shortlisted and Spot rates offered were finalised.

First mistake - Cost of Fumigation not calculated

There were different views related to the requirement of fumigation process for wooden items. Finally, to avoid any risk of shipment rejection, supplier was instructed to carry out fumigation process. The cost of which was not included at the time of price quote to Buyer.

Shipment was booked and documents were generated with the help of FedEx Technical department.

Second mistake – Freight shown separate in Invoice

In that case, Invoice and Airway bill will never tally, which otherwise is very much necessary. Online Airway bill generated was scrapped and revised manual AWB was generated, due to which there was huge mess for switching of loaded spot rate from old AWB to new one.

Third mistake – Freight cost increased by 1.5 times

Weight of product without packing was confirmed from the supplier and basis that price quote was confirmed with the Buyer. This was the biggest goof-up in the entire export costing. The size of the master carton was finalised and products were packed. When shipment was lifted, volumetric weight was calculated by FedEx, which was 1.5 times the actual weight.

The major lesson learnt in calculating CBM was that google showed CBM calculation as CM’s/6000, whereas every courier company calculates CBM for air cargo as CM’s/5000. This was again major factor that proved all the past calculations wrong.

Freight Cost increased by 1.5 times – Profits decreased.

Again a happy ending – left with loads of experiences.

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