International Shipping

10 International Shipping Documents You Should Know

About

From the bill of lading to the export license, discover 10 types of shipping documents
you will need to successfully ship your packages internationally.

By Jules
 
July 9, 2020
International shipping opens your business to new markets and exciting growth possibilities. However,
you need to make sure you understand the rules and regulations of exporting and importing, and
crucially, you need the proper shipping documents.

Photo
by Adeolu Eletu 

International commerce relies on documentation that fulfills the criterion and regulations set by the
country of origin and the destination country. It’s critical to be prepared with detailed information about
your shipment, business, and the reason why you are shipping. If required, you will need to obtain
proper licensing for your products as well.

The documentation process of international shipping is a vitally important part of assuring smooth
international transactions. International shipping documents decide the fate of your shipment, if not
properly done, could lead to shipments being delayed or held at the customs.

The 10 Documents You Need for International

Shipping

There are a variety of International shipping documents that can be included in shipments in order to
comply with both the U.S export regulations and legal requirements for the destination country. These
documents may also be required by different organizations helping the facilitation of movement of a
shipment, such as the logistics companies and the shipping couriers.
Below are 10 types of shipping documents you need for international shipping and why they are
important

Purchase order

A purchase order is the official declaration of receiving an order. This document contains the details
about the transaction, parties taking part in it, the type of products involved, and the date of the
transaction.

Why it’s important: A purchase order defines what the vendor will deliver and how much it costs.
Consider it the first understanding between the buyer and the seller regarding the order and its delivery.

Commercial Invoice

A commercial invoice includes the complete details of the sales transaction between vendor and buyer,
including the shipping terms. It is the official proof of sale. They differ from the purchase order as the
previous is the quote or placement of the order and a commercial invoice is a receipt or the purchase.
Easyship allows you to easily create a commercial invoice for each order.

Why it’s important: It includes complete details of the transaction which is required for customs
clearance in freight shipping.  

Bill of Lading
A bill of lading (BOL) is the official contract between the shipper or owner of goods and the freight
carrier. It’s the document used to confirm receipt of goods for shipment, and can only be signed by an
authorized representative of the carrier upon receipt in order for the shipment to be released. A BOL will
include detailed information about the shipping destination, the goods included, and how they should be
handled.

A non-negotiable BOL must be signed by the parties listed, while a negotiable BOL can be transferred
to a specified third party.

Why it’s important: A BOL is the most important shipping document in international shipping and must
be included no matter the form of transportation. It’s important to fully understand all the detailed
information to be included to assure shipments are legally received.

Export Packing List

A packing list is a shipping document containing an itemized detailed list of the cargo, including weight,
dimensions, safety measures, and packaging type. The courier company may use it to create the bill of
lading, and banks may also require it to be included in the documents for payment under a letter of
credit.

Why it’s important: A packing list is used by freight forwarders in order for a shipment to clear US
customers for inspection, and often will be used in disputes between a shipper and carrier.

Airway Bill
An Airway Bill (AWB) is a type of Bill of Lading that is the official contract between a shipper and an
airline carrier and contains detailed information of the goods shipped. It’s a non-negotiable shipping
document and acts as a receipt of goods for the airline upon arrival at the destination airport.  
Why it’s important: An Airway Bill is the most important document issued by an airline carrier for
shipping, so it’s critically important that all the information is detailed and accurate.

Related guide: The Definitive Guide to International Shipping

Letter of Credit

A Letter of Credit is issued by a creditworthy bank guaranteeing payment on goods sold from a seller to
a buyer. If the buyer is unable to complete the payment then the bank pays the remaining amount to
close the transaction.

Why is it important: International trade is complex due to varying rules and regulations by country, so a
Letter of Credit with its monetary guarantee has become one of the safest forms of economic
transaction.  

Dock/Warehouse Receipt

A Dock or Warehouse Receipt is a shipping document that proves a shipment of goods has been
received by the international carrier and includes all the critical information about the shipment including
characteristics, size, dimensions, and weight.

Why is it important: Receipt of the document confirms that the shipment has been received in good
condition.

Certificate of Origin
A Certificate of Origin (C/O) is a document declaring the country of origin for manufactured goods,
usually certified by the consulate or chamber of commerce. It is required by many treaty agreements for
international trade to assure the goods are eligible for export. The exporter is responsible for providing
the certificate of origin according to the laws and regulations of the destination country.
Why is it important: Since a rate of duty is determined by the country where the goods originated, it’s
critical shippers include this document to guarantee it meets all free trade agreements.  

Insurance Certificate

An Insurance Certificate is issued by an insurance company and certifies that the exporter has
purchased an insurance policy for the shipment of goods. It covers for liability and in the event of a loss
of the goods shipped.

Why is it important: International shipping carries certain risks for exporters so having an insurance
policy is critical to avoid monetary losses.  

Export License

This is a legal and official document issued by the government. Exporters need a license to ship certain
items and in certain quantities. Some countries only need this document under specific conditions while
for others, it can be a requirement.

Why is it important: An Export License may be required to export certain goods, so it’s crucial to verify
whether it’s required for a shipment.

Ace International Shipping with These

Documents

Developing a thorough understanding of the shipping documentation process will save you time in
delivering your cargo and eliminate potential delays in your shipments. Every country has unique
policies, regulations, taxes, duties, and shipping documentation requirements that can make
international shipping complex and time-consuming. Take the time to conduct the proper research and
seek out answers to any lingering questions.

Once you're ready, it’s essential to first acquire the proper shipping documents for export to foreign
destinations. Make sure you have all the required information to fill out each form as accurately as
possible. Even small discrepancies between documents can cause delays in your shipment. Thoroughly
preparing ahead of time will assure that your international shipping goes as smoothly as possible.
With over 200 shipping solutions, Easyship is your dedicated shipping partner. Our hybrid solutions
unlock international shipping for brands and eCommerce companies, getting your goods across the last
mile. We make document generation simple. Our tool generates shipping labels, packing slips and
customs declarations for you. You only print what the courier requires.

Warehousing & Fulfillment

The Rise of On-Demand Warehousing (and How It Can

Help Your Business)

On-demand warehousing is a flexible solution for companies looking to scale up their

businesses and handle inventory fluctuation.
By Jules
 
July 8, 2020

The growth of eCommerce and consumer demand for next day shipping has forced retailers and brands
to seek out new, flexible logistics and fulfillment solutions to stay competitive in a crowded marketplace.
Enter on-demand warehousing.

Photo by chuttersnap
On-demand warehousing is a driving force in how the sharing economy has changed the logistics world.
Such tech solutions fueling the introduction of shared warehousing, helps companies scale up and fulfill
demand rapidly to match the quickly changing market conditions.

On-demand warehouses provide retailers and brands with flexible warehousing solutions, making it
easier for companies to scale their businesses and handle inventory fluctuation. That said, shipping
companies should consider adapting to this seemingly new technological wave to better their
businesses. Taking advantage of on-demand warehousing companies coupled with an advanced
fulfillment solutions provider, such as Easyship, is the recipe for better shipping solutions.

What is On-Demand Warehousing?

While there is no perfect definition for on-demand warehousing, it can be framed as a warehouse
“AirBnB.” Retailers and brands that need flexible warehousing solutions can connect with warehouse
providers with unused space through easy to use app-based tools.

This option provides eCommerce businesses with the possibility of accessing warehouse services
anytime they require through a pay-as-you-go model, allowing them to avoid making long-term
commitments.

How Does It Work?

On-demand warehousing rides on the concept that even with the high demand for warehouse spaces,
eCommerce and shipping companies could not predict how they will use it. Whether small or
established, most companies often find challenges in meeting their anticipated growth levels and cannot
estimate the required storage space. At one point, there could be a surge in demand, especially
following a new product launch or during holiday seasons, followed by a sudden drop, leaving
warehouse spaces lying empty.

This model connects on-demand warehousing companies with excess storage space with shipping
companies and retailers looking for flexible warehouse space. With the on-demand pay-as-you-go
model, eCommerce businesses can easily find warehousing and shipping fulfillment solutions without
long-term contracts and expensive set-up fees.

What makes on-demand warehouses promising is their unmatched agility. Unlike 3PLs (Third-party
logistics) which operate under long-term leases with thousands of pallets, on-demand uses minimal
pallets for a flexible time period.
Essentially the core of on-demand warehousing is to use less space in more facilities. This blurring of
the line between warehousing and distribution centers enables shipping companies to fulfill their orders
within a few days compared to 3PLs.

Coupled with advanced tracking and product supply chain management, on-demand warehousing has
an edge in becoming the best warehousing option in a competitive marketplace.

Probably one of the best examples of on-demand warehousing is the Ware2Go application previously
launched by UPS. The application connects small and medium-sized eCommerce businesses with
warehouse solutions that streamline their order fulfillment. Large companies, such as Walmart, KFC,
and Ace Hardware, also embraced flexible warehouses during holidays and emergencies, helping them
cope with various supply-chain challenges.

While the rise of on-demand warehouses has offered more flexibility to the industry, they’re unlikely to
replace 3PLs completely. 3PLs are highly adaptable to advancing technology and benefit from the
experience of handling high-volume warehousing procedures., leaving flexible warehousing as a
supplement that fills the pre-existing warehousing gaps.

Who Uses On-Demand Warehousing?

Various industries, ranging from businesses dealing with fast-moving consumer goods, industrial
manufacturing to the hospitality industry, can benefit from on-demand warehousing. Both large and
small companies seeking to upgrade their supply chains can use this model. Below are how companies
can use and benefit it.

1.   Enterprises

Enterprise businesses can leverage on-demand warehousing to complement their already existing order
fulfillment infrastructure. It is a great option for rolling out new initiatives, managing potential supply-
chain disruptions that come with peak seasons and tariffs, and piloting new programs or product/service
promotions.

2.   Digitally established brands

Online born and bred companies can also leverage on-demand warehousing for various purposes. Most
online-dependent companies focus on acquiring customers and developing their business before the
supply logistics, which enables them to work them to grow worrying about finding physical warehouses.
 Photo by Marcin Jozwiak

Related post: Warehousing & Fulfillment - Definitions, Benefits, & Finding the Right Logistics Company

The Difference Between Traditional 3PL and On-

Demand Warehouse Providers

There are key differences between traditional 3PLs and on-demand warehousing solutions that you’ll
want to understand before making a decision for your business.

 Central vs. dispersed warehouse network

Traditional third-party logistics providers supply central warehousing solutions in a few select locations.
On-demand warehouses operate a series of dispersed warehouses and shipping fulfillment centers.

 Upfront costs vs. flexible billing

 Traditional warehousing solutions generally require significant upfront capital and long term contracts
while on-demand warehouse solutions offer flexible billing and contracts.

 Working directly with a warehouse provider vs a tech platform intermediary

With a 3PL, you work directly with a warehouse solutions provider while an on demand-warehouse
provider is a technology platform that allows you to connect to short-term available warehouse space.

 Long Terms Partner vs short term solution

A  3PL with proven logistics and fulfillment expertise offers stability and a long term partner willing to
understand and grow with your unique business. An on demand-warehouse offers short term flexibility
but there’s no guarantee of consistent service quality across the network.

Every eCommerce business is unique and needs different warehouse solutions to efficiently deliver their
products to customers. On-demand warehousing providers offer new, flexible solutions worth
considering for specific cases, while traditional 3PLs offer more stability and a long term partnership.

On-Demand Warehousing Offers a New Flexible

Solution

Deciding whether flexible warehousing suits your business model or not depends on various factors.
Just like when selecting an appropriate fulfillment arrangement, you should find companies that offer
ample space, have the necessary tools to handle your products, and observe appropriate order
distribution practices.

With costs becoming a growing concern in warehousing and fulfillment, on-demand warehousing is
likely to become an established option for retailers and brands as they grow their business. On-demand
warehousing attempts to solve various growing concerns of customers, such as scalability and inventory
fluctuation, which is a welcome industry developmentThat said, as you consider growing your business
leveraging on-demand warehouses, you should ensure that you find a solution that integrates 
Easyship as a shipping fulfillment solutions provider. Through this, you can be sure of a seamless
shipping and order fulfillment.