Nuts & Bolts – Arranging International Freight
[Read our full Nuts & Bolts series]
Nearly 4,000 copies of Nut Hunt are on a cargo ship heading to the Panama Canal, and then onward to New York, backers across the globe.
This is Wan Hai 312 - carrying precious cargo of Nut Hunt & other goods
I figure it’s a good time to talk through the supply chain, along with a step by step guide for arranging international freight.
The Supply Chain
There are three main parties that will get your games from your mind, into consumer hands (assuming you are selling direct to consumer).
Manufacture (see my guide on finding a manufacturer)
Freight forwarder & customs broker (the topic of this article)
Fulfillment provider (see Stonemaier’s excellent resources on shipping & fulfillment)
Your freight forwarder takes your product from your manufacturer and delivers them to your fulfillment provider.
Your customs broker handles the customs process for your shipment and ensures that it clears customs in good order and with the appropriate documentation.
Ex-Work vs FOB
When you contract your manufacturer, you can arrange to take deliver ex-work (EXW), or free on board / freight on board (FOB).
Ex-work means that your party (freight forwarder) will take delivery of your games at the factory. Freight/free on board, means that your manufacturer will transport your games to a local port, where your freight forwarder will take delivery.
In both instances your freight rep and factory will be in communication over the minutia of the hand off logistics.
Documentation
Before we dive into the nitty gritty, you’ll need the following documentation. Some you will need before you can book a forwarder, and some will be generated by your manufacturer once you have a freight rep.
Documentation you need ahead of time:
Shipment CBM or container size: Coordinate with your manufacturer around how they will palletize your games (or floor load a container). You’ll need to know the number of cartons you are shipping along with the details we covered in our Shipping Mark article.
Preliminary Invoice & Value of Goods: You will eventually need a final commercial invoice that your manufacturer will provide once your freight forwarder takes your games. But, to book freight you’ll need a preliminary commercial invoice on file.
Manufacturer Address & FOB Port: Where your freight forwarder will take receipt of your goods.
Consignor: This the sender of the goods. Since you take ownership of your goods either ex-work or FOB – your company will be the Consignor. You’ll need a tax ID (EIN), address, and proof of address.
Consignee: This is the receiver of the goods. Again, since you retain ownership through customs – your company will be the Consignee.
Delivery Address: This is your fulfillment partner. You’ll need their address and a contact that can take delivery.
If you don’t have a tax ID (EIN), you’ll need to arrange another party to be your consignor & consignee. This will likely be your fulfillment partner, but make sure to have those conversations early.
Documentation & information required after booking a forwarding agent:
Once you select a forwarder, and begin the freight, export / import process, your manufacturer, freight forwarder and customs broker will create a few other important documents. You may need to provide additional information.
Type of Commodity: Board games fall harmonized tariff schedule (HTS) code 9504.90.6000. “Chess, checkers, parchisi, backgammon, darts and other games played on boards of a special design.”
Commercial Invoice: Your manufacturer will create the final invoice when they deliver your games to your freight forwarder.
Telex Release: Once you pay your invoice your manufacturer will issue a Telex Release or Original Bill of Landing (OBL).
Lots of other documents: Toxic Substance Control Act (TSCA) Certification, Arrival Notice, HBOL, ISF Certificate…
Stay on top of your communications with your manufacturer, freight forwarder and customs broker. They’ll undoubtably need more information, or have forms you need to fill out or sign.
Finding a Freight Forwarder & Customs Broker
We used Freightos to find our freight forwarder.
Freightos is an online marketplace for freight forwarding services (think Air BNB for international freight).
If you have the basic information about your shipment (departure location or port, value of shipment, delivery address, CBM, number of pallets or containers…), then it is fairly easy to brows Freightos to get an idea of the cost of freight.
In fact, I recommend getting initial freight quotes well in advance of launching your Kickstarter – so that you have an idea of costs when you price your game.
Freightos Baltic Index
In terms of locking in a specific freight forwarder, I’d recommend pulling the trigger about one month out from your games being done. You can only lock in rates for 2 weeks, so you might get a little price slippage, but having a forwarder lined up ahead of time will smooth the process.
It is also worth noting that Freightos partners with Clearit for customs brokerage. So, when you book your freight forwarder you have the option to simultaneously book your customs broker.
I am sure there are many other methods to book freight forwarding, including querying freight forwarders directly. However, Freightos worked well for us as an intuitive platform both for getting quotes, and managing the freight process.
After You Book Freight
After you book freight it is important to stay on top of communications with your freight forwarder, manufacturer, customs broker, and fulfillment provider. You should also have information on your container number, and ship…
…which allows you to track the progress of your shipment on sites like: marinetraffic.com, and vesselfinder.com - or the carrier’s site directly.
What questions do you have around manufacturing and distributing your game?
