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How To Start A Cargo Export Business FROM UK AND EU To Africa

How To Start A Cargo Export Business FROM UK AND EU To Africa

This article is centered around startups operating within the UK and EU zones. This is more of a general guide on how to start exporting goods on behalf of customers to African countries.

OVERVIEW

Most African countries are serious importers of goods from the Western countries, be it personal or commercial in nature and this needs to be recognized by anyone thinking about being a freight forwarder and specialising in African freight. This means that you would need to put up a very good business structure to handle the customers and beat the competition. It is worth noting that some of the export routes are  already saturated with freight forwarders that are highly experienced and professional. Take Nigeria, Kenya and South Africa for instance , these routes are well established export routes and heavily operated by loads of experienced forwaders. That said it is also a viable export route for any forwarder to come into taking  consideration of  the volume of shipping jobs happening on these routes. Meanwhile countries like Zimbabwe , Tanzania,  and Cameroun may have the export demand from UK and Europe but not enough forwarders serving them. This is why it is important to do research on this and make the necessary contacts to put your business in the right position.

It is true that the larger the economy the more business opportunities available but the job of a professional forwarder is to explore where the best profit can be made . I will strongly advice that you start with the routes you know best or where you have a reliable contact.

THE BASICS NEEDED

Company Registration: Is your company registered in the country  you want to start the business from? Have you fulfilled all the requirements needed to start a freight forwarding business? Have you chosen the best name for your brand? If you haven't done the aforementioned items then you are not ready yet.

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Why You Need to List Your Freight Forwarding Business in Transport Directories

Freight forwarding companies are becoming increasingly popular. Many shippers hire a freight forwarder to act as their delivery partner in full compliance with shipping documents and delivery prerequisites.

However, if you’re in the freight forwarding industry, you would know that finding clients that need your services can be difficult. Many go for reputable transporters because logistics is a complex process, and not everyone is equipped to handle it. Trust issues also keep new clients on the edge as they are afraid of being scammed. Fortunately, registering your freight forwarding business can help you deal with these issues and land clients.

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How Do You Identify a Fake Freight Forwarder?

How Do You Identify a Fake Freight Forwarder?

A freight forwarder is an effective service supplier for businesses exporting or importing commodities and for people who want to relocate their complete family or merely ship certain goods to another nation.

Although there are many legitimate companies, the sector has sadly been tainted by dishonest freight forwarders.

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Proof Of Export And VAT Refund Explained

Proof Of Export And VAT Refund Explained

We have deemed it appropraite to explain to our customers how the issue of Proof of export and VAT(Value Added Tax) refund works here for goods bought and exported outside the UK. Usually  most goods purchased in the UK and scheduled for export is entitled for a VAT refund as long as the Proof of export can be sent back to the supplier . We will take a little time to explain different scenarios that a customer may face.

What is proof of export ? Proof of export(PoE) is a document showing that the goods in question has been exported out of the country, this document is usually in the form customs entry done by your freight forwarder or the supplier that sold you the goods if they have the capacity to ship and declare the goods in the customs system as exported. Proof of export is usually required due the following transactions;

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Air Freight Versus Sea Freight: Which Should You Choose?

A business’s services as an international trader, importer, or exporter depend on the medium of transportation it chooses for smooth, quick, efficient, and profitable operations. However, businesses new to the idea of interstate or intercity transport often struggle to choose between air and sea freight for their companies.

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Explaining Volumetric Weight Billing in Air Cargo

Our Air freight customers usually go mad when they are charged by volume as against the dead weight of an item. Unfortunately most freight forwarders cannot help with this and why is this? This is because the airline will charge the dead weight or volume weight , whichever is higher.

Take for instance , you have a little van that makes a journey of 20 miles and fits 40 boxes weighing 300kg in total, then you have a van that makes the same journey with 20 boxes that filled the van and weighing 150kg. Assume your billing is in kg and billed at £1/kg x 300kg, you will be looking at £300 for the trip and the other van will be looking at £150 for the same trip. If the cost of running the service will cost about £200 to execute and the profit is £100 at 300kg, then obviously the other van with £150 bill wont be able to make the trip or would be at serious loss. This system also applies to airline billing .

The airline will calculate the length as L X W x H / 6000 = Volumetric weight.  Let us  examine the following ;

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The need for proper handling of goods by customers

Well here we are again, it has been a while since we penned something on MDS Cargo but we promise to be consistent these days. Over the years we have seen how handling have become a serious hassle with the increment of customers and which also comes with increment in the amount of goods to be handled. Most cargo businesses operate a storage and handling department which will oversee the correct and appropraite handling of customers goods. The problem here is the extra burden given to handlers by customers by being careless with their own goods, by having no clue on how to put their goods together for shipment. These problems cuts accross all types of customers male, female, old and young. With this in mind we have come up with the following advice for customers.

1. Treat your goods as if you are the shipping agent yourself - Ask yourself one question? How would you like your receiver to receive the goods? Your answer should be 'Well packed and intact'.

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Problem with Extra Luggage to Nigeria from UK

The fear of extra luggage at the airport when travelling from UK to Nigeria or from Nigeria to UK is always there for most of our customers and non customers . What you want to avoid is to get to the airport and find that you have gone far over the allowed luggage limit by your airline

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