Exporting specialist Thomas Cook, speaking during the Innovation Theater education program at The Inspired Home Show 2023, outlined key terms, documentation and procedures for companies wanting to export.
Cook, managing director of Blue Tiger International, shined a spotlight on demurrage, which are extra payments made to a carrier, in a specific case, after cargo isn’t picked up in a specified period of time. Because they compile progressively, demurrage fees can be severe.
“Sometimes, after a week or so, the demurrage costs more than the freight itself,” Cook said.
Among major export considerations that all businesses need to understand, he said, is that export documents received in international ports that aren’t correct will create red flags. In that case, freight might be opened and inspected even in those countries where only a small percentage of freight is examined. Cook emphasized that exports come with controls, and documentation is the engine of global trade.
He said companies that want to export should work with their overseas partners in ensuring that documents and procedures are correct. Exporters should do their own research, however, not necessarily expecting the partner to be an expert in importing, and they should be careful of terms and conditions set with new partners. Such interaction can be important to build trust and relationships with international trading partners, Cook said.
Another important consideration is Incoterms, internationally recognized rules that define the responsibilities of sellers and buyers. Although set overseas and lacking some legal weight in the United States until included in contractual agreements, Incoterms are the basis for conducting global trade and have more weight elsewhere.
Cooks said resources such as trade.gov can help businesses get an understanding of how exporting works. He also said an experienced freight forwarder can be a great help in informing and working with businesses on export.
