International Marketing Practices

helps producers save both time and effort by lessening or eliminating their involvement in transportation. Freight forwarders take legal responsibility for the shipment, alleviating risk to the exporting firm. Along with handling many organizational aspects of international commerce, freight forwarders are familiar with rules and regulations as well as required documents [23]. They often handle documentation and insurance to ensure that fines are avoided, and efficient processes are maintained. International freight forwarders provide ocean and air services. The Federal Maritime Commission licenses Ocean Freight Forwarders (OFF) or Non-Vessel- Operating Common Carriers (NVOCCs); they must have three years of experience in forwarding duties in the U.S., as well as possess a valid surety bond [168]. International freight forwarders specializing in air transport or air cargo agents must receive a license administrated by the International Air Transportation Association (IATA) [23, 169]. Freight and Port Issues Despite the benefits of bulk transportation and port efficiency, there are challenges associated with international transportation. Firms must identify the most economically feasible and timely mode of transport, as well as consider the frequency of shipments from a port, as a fair amount of time can pass between when the shipment leaves port and the arrival of the cargo [20]. This can lead to charges to the exporter for taking up space, product damage, and loss of profit from late delivery [20]. Due to variable costs of shipping and uncertainty with shipping schedules, firms may consider the benefits of making reservations through freight forwarders (see previous section on International Freight Forwarders) [20]. There is also a certain level of concern regarding the validity and accuracy of dock receipts that inventory the product condition; if this receipt is incorrect or has not been issued, there is risk to the importer and exporter. In addition, dock receipts only account for a container’s exterior condition; they do not include interior inspection and, therefore, do not indicate whether freight shifted in transit and incurred damage that was not noted [20]. Loading and unloading vessels can cause extensive damage to freight, as forklifts can drop or run into product [18]. Risks associated with forest products transportation and storage largely involve temperature and moisture content, as evidenced in research done on three South American manufacturing plants and three containerized ships to the U.S. [84]. The equilibrium moisture content was estimated throughout the studies, and the results ultimately depict a change in moisture content large enough to cause quality issues in products, like hardwood flooring and assembled items (e.g., doors, case furniture).

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