Shipping business, a few details you need to know about the suppliers

 

 

 

I am now shipping goods out of India and from China. These two countries have somewhat similar processed for export documentation. Only China is more strict on exporters. For instance in China you cannot pay by western union as the vendors would be penalised. Also all the payments needs to be in USD.

Whilst in INDIA, things are a bit Indian. You can pay by western union and can pay in Rupees.

 

Anyway, whilst the vendors from China are mostly upfront on their export certificates, the Indian ones are not

 

If you commission goods from India without checking if they have all the certificates for export ( like I did recently), then the major shipping agents will not be able to ship the goods out to Kenya or wherever. Your option will be the Somalis and they will not give you an Airway bill. They also charge a flat fee for shipping and customs....at 7.5 dollars a kilo

 

So how much do you pay for shipping with the main shipping agents who follow all the rules

Well – it costs me 3.6 USD a kilo for shipping alone and 40% custom on commercial invoice for customs .....there is also some 300 USD for charges on airport etc etc per shipment.

However, if you are Kenyan and serious about business, you should be able to have enough business contact for ‘more efficient’ custom charges...... which works much efficient. J

 

For instance for a cargo of 500 kilos you would pay USD 3750 to Somalis or USD 1800 shipping only for shipping and probably 100k (USD 1250) for customs using the more efficient customs agents.

 

Anyway, you do the math and see who is cheaper. However, for the cheaper shipping please ensure that the suppliers from India have the following before placing an order

-          Commercial Invoice

-          Bank AD code

-          Registration code for export

Without the above, none of the legit shipping agents will be able to ship your goods, but the Somalis will do.

 

If you are looking for a shipping agent for goods from India – contact sammulwa@gmail.com. Bear in mind my figures are from the past and these could have changed.