The information provided here is part of Online business guide course
How to pack Export cargo? Importance of proper packing in International Trade.
After reading this article, you can also read How to get export order from foreign buyers?
This article explains about the importance of packing in export import trade:
I am going to explain about the importance of proper packing in export and import trade with some levels of example. While reading, you may feel very simple on the subject. However, after completing reading of this article, I hope you will have a clear idea about the subject – The importance of Packing in Export and Import trade.
Level – 1.
Let us take examples of some business men from street hawkers to higher level in domestic trade. Most of the products of street hawker are small in size and weight.
Here he packs his material in a small cover and delivers to the buyer. Either buyer may keep the same in a bigger bag he carries or he just carries in his hand, as his distance of travel to carry such small items is very less.
Level 2.
Imagine you are seller of chairs situated near your living town. You have sold out two chairs to a customer. You do a simple packing and carefully arrange to load in to a small vehicle and carefully unload the same at your home. Let us analyze the details of this transaction on the point of packing view:
a. Only two times handling happens -While loading and unloading.
b. You or your staff’s direct supervision is involved while loading and unloading.
c. The buyer is keen after unloading chairs in checking whether any damage is there, as the time required to check is less as there are only two chairs.
d. The distance to reach the material is very less.
e. If any damage, immediately the problem can be solved, as you and your buyer may be either known each other or can be known each other because of geographical location of both of you.
Level 3.
Now you are an exporter of a consignment to send to overseas.
Here the importance of packing in Export Import trade.
Now in exports, since the distance between exporter and importer is very far, the cargo is moved thousands of miles away from its origin. If the cargo is less container load, (Lesser than a container), chances are there to transship your cargo from different locations. So many times, the goods will be moved. For example, you need to move a cargo from New York to China. The cargo will be sent by truck to nearest CFS of your factory, unloading to warehouse, stuffing in to container, moving to New York, again unload at port, loading to container, moving to on board in to ship, unloading to transshipment point if any, again sorting, loading to container, vessel sailing Singapore, unloading in CFS, moving for inspection procedures, loading to truck after customs clearance. Apart from the above mentioned movements, in each warehousing point, there are chances of further movement of your goods due to re-arranging the slots, movements for survey, inspection etc.
If poor packing of goods, there are chances of damage, while handling with forklift, or other equipments even though proper supervision is available.
The quantity of goods will be more in export consignments, compared to local sales and physical attention of buyer or seller is impossible.
The distance of transit is more and damage can happened in transit, if poor packing. Compared to local sales, if damaged due to poor packing, claiming insurance is a lengthy procedures in international trade.
In a nutshell, your cargo has to be packed with best export quality to avoid the above mentioned risks. Also read How to prepare an Export Packing list. Contents of Export Packing list Consequences of wrong declaration of weight
I hope, I could satisfy with this article about the importance of packing in export trade.
Do you wish to share your experience and knowledge about this subject – Importance of Packing in export import trade?
The above information is a part of Guide on howtoexport and import
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