Step-by-Step Guide to Global Shipping: Challenges and Winning Strategies

Shipping is an extremely dynamic industry. The globalization of shipping began to increase in the 1950s and grew even more rapidly with the creation of the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA) in 1994.

In recent decades, technology has advanced faster than ever, causing huge disruptions in all areas of the economy. Amazon revolutionized consumer expectations for delivery times. Retail digitization made eCommerce the norm, with COVID-19 forcing a more rapid and widespread adoption than predicted.

These were huge paradigm shifts that shook the shipping industry and forced it to adapt. Right now, the shipping industry is as dynamic as ever. It’s also on the precipice of the next paradigm shift. Artificial intelligence (AI) and machine learning (ML) have recently seen huge breakthroughs.

These factors, among countless others, promise more changes and present even more challenges. They also present shippers and retailers with invaluable opportunities. With the right strategy, there are numerous opportunities to thrive in the advancing climate.

In this guide, we’ll explain global shipping and global shipping services, discuss challenges currently facing the industry, and provide steps to take to navigate the ever-changing global shipping landscape.

What is Global Shipping?

According to the Institute of Supply Chain Management (IoSCM):
“Global shipping is the pillar of modern commerce. It lets shipments travel across borders, connecting businesses to customers around the world.”

It’s a network of international shipping services that allows businesses to ship products anywhere in the world.

Key Challenges in Global Shipping

Global shipping is a huge advantage to businesses. With the right global shipping services, brands can expand their business into markets they could never reach before. While it’s a huge benefit that can lead to unparalleled success, it isn’t without its challenges. It’s vital to be aware of them and find methods to overcome them.

Let’s go over the most pressing global shipping challenges that businesses are facing right now.

High Shipping Costs

Supply chain disruptions, such as the pandemic, created a massive chain effect of issues, including capacity limitations and labor shortages, leading to major shipping delays and causing costs to soar.

Additional global events, such as weather and conflicts, also contribute to disrupting the supply chain, making it difficult to stabilize. Global shipping is strongly interconnected, and disruptions create a ripple effect of challenges that trickle down into high shipping costs.

Demand for global shipping services continues to rise, and so do the costs, as supply struggles to keep up and overcome global supply chain disruptions.

Navigating Complex Custom Regulations

Customs regulations are something you have to deal with when you use international shipping services. These regualtions can be complex due to the differences from country to country. The different duties, tariffs, paperwork, and rules for each nation or region can be difficult to understand and comply with.

While many companies try to handle customs compliance themselves to minimize expenses, this can often be the more costly option. Errors in paperwork, unfamiliarity with recent changes, or incorrect form submissions can result in costly fines and extensive delays that hurt your reputation and cost you customers.

It’s best to get help from a customs clearance and compliance expert to get it right the first time and limit potential costs from fines.

Ensuring Timely & Safe Delivery of Goods

When using global logistics shipping services, you should ensure that each stage is optimized. Managing lead times and having reliable shipping partners with a good reputation for timely and safe delivery are steps you can take to ensure that products arrive when they’re supposed to and in good condition.

It can also help to work with local third-party logistics (3PL) providers and keep inventory nearby to speed things up.

Managing Documentation & Compliance

Depending on your industry, you may have higher or lower documentation and compliance requirements. Regulations change regularly, and environmental regulations are on the rise. Many companies have been caught using problematic sourcing methods and using child or slave labor in their supply chains.

Buyers are becoming more ethical and environmentally conscious. They won’t hesitate to drop a brand seen as using unethical practices or being bad for the environment. They want the brands they use to be able to prove that their products are free from controversy, so they can feel good about using that product.

Good documentation and compliance practices are necessary to stay within the law and avoid costly fines. However, they can also help you maintain quality standards, improve your products, and prove to customers that your business is in line with their values.

How to Efficiently Ship Globally

Global shipping is a complex process with a myriad of moving parts. It can be difficult to stay on top of everything and maintain an efficient system. However, there are steps you can take to help keep you on track and give you the best odds of success.

Step 1: Assess Your Shipping Needs

Before you can ship anything effectively, you need a comprehensive analysis of your shipping needs. Evaluate your product requirements and destinations to map the needs you have to meet. Where are they going? How far do they have to travel? What shipping methods are best for each product? International freight forwarding services may be able to help.

It’s also important to consider your packaging requirements. To keep products safe, your packaging may need to change based on the mode of transportation you’re using.

Step 2: Choose the Right Packaging

Packaging is vital for any enterprise. It needs to be compatible with your products, strong enough to arrive safely, and within your budget. This includes all the different types of packaging. Primary, secondary, and tertiary packaging must all be right for your products and shipping methods.

Eco-friendly options for sustainable shipping can help you reach eco-conscious consumers, reduce waste, and save money. Your packaging strategy can also save you money on shipping costs.

Step 3: Plan Your Shipping Route

Once you understand your shipping needs and choose the right packaging, it’s time to plan your route. Choosing the right carriers and routes can save time and eliminate extra costs. You need to get your packages to their location in the least amount of time possible and for the best rate.
Working with a logistics expert can help you plan your routes. They’ll make the right decisions on the best carriers and routes for your specific needs.

Step 4: Manage Documentation and Compliance

Accurate documentation and compliance are vital. One missed form or compliance error can cause massive hold ups or fines. Customs can delay delivery for weeks if they don’t have the right paperwork. This can result in angry customers and negatively affect your business.

This system can be hard to navigate alone. Working with an expert who can provide customs brokerage services to help handle the paperwork for you is often the best option. They can help you understand the world of regulations and how they vary by region.

Step 5: Track and Monitor Shipments

Once your packages are in transit, you want to ensure that they’ll arrive on time. There’s a wide range of tracking software available to monitor your shipments, and new software is constantly being released. Today, businesses have access to real-time shipping data and updates, along with automatic delivery notifications.

Keeping the customer informed about their package’s expected arrival date and time is vital for a good customer experience. Working with the right partner can ensure you have the supply chain visibility tools you need to proactively manage delays and ensure timely delivery.

Working with a Global Shipping Expert

It’s important to acknowledge the limitations of your expertise when it comes to business operations. Trying to do everything yourself isn’t practical and can distract you from the parts of your business that need your attention most.

Partnering with a global shipping expert is the best way to solve this issue. They’re experts when it comes to various international shipping services, which can provide immediate and long-term benefits to your business.

Custom Packaging Design

Every business and product has distinct packaging requirements to maintain its integrity and quality. However, it’s also important that your packaging aligns with your brand identity. Custom packaging design can help achieve this by creating packaging that meets both your product’s specifications and brand image. While custom packaging may require a higher initial investment, it can offer significant long-term benefits that contribute to your business’s overall success.

Container Decoration

Custom product labels and container designs can captivate customers and bring that wow factor to their unboxing experience. Having uniquely designed labels and packaging items also helps with brand awareness. When you deliver a great product in great packaging, customers will often share photos and videos on social media, giving you free advertising. Collaborating with the right partner might even help you cover the initial cost of design asset creation to get your business, lowering your initial purchase price.

Global Warehousing

Global warehousing and third-party logistics (3PL) services offer substantial benefits. Strategically located warehouses enable faster and more cost-effective deliveries. Additionally, choosing the right warehousing and 3PL partner can provide the flexibility to store both raw materials and finished products. As your business grows and your needs evolve, upgrades can be easily managed, allowing your company to remain agile and dynamic.

Inventory Management

Inventory management is vital for any business. Engaging inventory and supplier management services can streamline sourcing, procurement, and inventory management processes. The right partner can help you minimize time and expenses associated with sourcing and storing materials and products.

Regardless of the complexity of your supply chain, they will develop a tailored plan that ensures you have the optimal inventory levels at the right time.

Freight Logistics

Freight logistics is difficult to master. You have to balance speed, reliability, and total cost with reliable partners and routes to know what options are best for each product.

International freight forwarding and logistics service providers already have all the experience and information to get the job done right. Whether your needs require air freight, sea freight, rail freight, or road freight services, they can find the ideal solution every time.

Also, not being the owners of all the equipment and vehicles means savings on the total cost of ownership (TCO) and not having to be responsible for additional costs like repairs and maintenance costs. Outsourcing your freight logistics creates cost savings for you as you aren’t paying for those additional indirect costs.

Customs Brokerage

Customs brokerage services can simplify and expedite the customs clearance process. These professionals possess extensive knowledge of the intricate rules and regulations governing shipments around the world. They’ll ensure the accuracy of your documentation, helping you save time, avoid unnecessary fees, and prevent costly penalties.

Streamlining Your Global Shipping Needs Today

International shipping requires extensive planning and expertise. Due to the numerous variables and challenges, ensuring a seamless process requires extensive effort and expertise. To navigate these complexities efficiently, partnering with a reputable global logistics and shipping services provider is key.

At Paramount Global, we offer integrated and extended services for a comprehensive solution that streamlines your packaging and shipping operations. Since 1976, our services approach has helped businesses like yours reduce overall costs while delivering on our commitment to timely and safe delivery.

With over four decades of expertise in global shipping services, our team will provide you with ongoing support. Contact us today to discover how we can be a partner to you.