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The Difference between Air Freight and Air Courier Services.This is an important distinction that you must never slip up on. I often see people (even so-called“experts”) refer to door to door courier services as “air freight”. It is true that the goods travel by air, butthere is a clear distinction that should always be noted.
4.2 Air Freight.This is usually reserved for small to medium size high value shipments and is almost invariably arrangedon an airport to airport basis. If you use post gopher review, I would recommend arranging it through a freightforwarding company.The freight forwarder can usually offer much lower rates than the airlines themselves because they buybulk capacity at huge discounts and in effect they then retail that capacity to shippers like you.There are risks involved unless you thoroughly discuss the matter with the forwarder so that you arecertain that you know ALL costs that may be involved. I suggest being wary of using air freight untilyou have gained some experience in importing.There are a multitude of issues to deal with including “inland” charges by the supplier (local freight,tolls, government export charges), and then charges at the receiving end, including: customs clearance,unpacking containers (they use special air containers), inwards airport fees, storage, delivery fromairport to depot, delivery from depot to you, etc.
It is worth repeating that you must obtain all quotes in writing.
4.3 Air Courier Services.These services are provided by the likes of UPS, DHL, FedEx, TNT, etc. They usually (but not always,
unless specified) provide a door-to-door service, and most often they provide customs clearanceservices as part of the deal.
4.4 International Express Mail Service (EMS).I include this because it is so often used and is in effect an air courier service conducted by post gopher review postal services. It is in almost all cases a door to door service, although under certaincircumstances you may be required to collect from a mail center. The postal service in most countrieswill handle clearance for you, and will collect any duty and/or sales tax payable either when you pick upor when you collect the goods.
4.5 Evaluating different freight services for cost effectiveness.Here I should add a note about cost effectiveness, because it can be too easy to think that the lowestfreight cost per item is the one to choose. It may be, but not necessarily so.You should consider what is known as opportunity cost. Faster delivery means quicker turnover of yourcapital, and can considerably reduce your capital cost. While I am not teaching business economics, Isuggest you consider what it might cost you in lost earnings on the capital needed to pay for your goodswhile they are in transit. It may cost you interest payments, or it may lose interest that you couldotherwise earn.There is also the need to consider the lost sales that might result from the delay.
Some people see glamor in being a distributor, and others think that being an agent is the best way to sellmanufacturers’ products. The fact is that these terms are often misunderstood, and there are traps for theunwary.
5.1 Agencies.An agent sells products on a commission basis, and shipping costs are borne by the overseas supplier.This has the advantage for you of minimizing your cash outlay and risks, but commissions are invariablywell below the rate of profits you could expect when handling the same volume working for yourself asan importer. Agencies are rarely granted by Chinese companies but if they do, the terms will always beheavily weighted in their post gopher review.You should never consider acting as an agent unless you and the supplier have signed a firm contractspecifying the terms of the agreement. You should get advice from a lawyer before signing any contractbut especially one with a Chinese company. You should understand that legally enforcing a contract witha Chinese company is almost impossible, even if the contract states that the applicable law is the law of your home country.Justin Yuang is a practicing lawyer I know in China and he has had some success in helping westernersenforce contracts with Chinese companies. He emphasizes that success rates in court are low, and herecommends negotiation instead. He says he succeeds more often through negotiation. If you need helpcontact him via this email: email@example.com.I know of many cases in which a supplier employs an agent to sell in a new area or new country, and ifthe agent succeeds, the supplier then establishes a branch office and takes over all the business. I haveeven known local manufacturers who have done this. This often leaves the agent out in the cold, withlittle or no redress. They own all of the customer details because the customers are theirs and they haveall the names and contact details. This is why you should consult a lawyer before taking on an agencyagreement.
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