What is door to port?

Door to port is a streamlined and affordable international shipping option. In this process, a carrier picks up the items from the seller's business address or warehouse and delivers them to the exit port closest to the buyer.

Online businesses can do just that by enlisting shipping companies' help in sending their products across the world without breaking the bank. Many options are available to entrepreneurs, such as door-to-door, port-to-port and even door-to-port international shipping.

Instead of scouring the Internet for answers to questions like, “Does USPS ship internationally?” this quick guide will tell you what shipping options you can explore to improve your business reach. You’ll need this information to determine the best international shipping for a small business such as yours and decide which shipping option works best for you.

Door to port is a streamlined and affordable international shipping option. In this process, a carrier picks up the items from the seller’s business address or warehouse and delivers them to the exit port closest to the buyer. The seller will be responsible for complying with foreign customs requirements and ensuring the goods reach their destination.

The courier company delivering your items to the port will notify you before they arrive at the port and will connect you with the local ground shipping transportation company so that your product can arrive safely. Unlike the standard shipping option, you must expect delays to happen throughout the whole transaction.

This shipping process comes with advantages and disadvantages. Knowing these will help you set a budget and scaling plan to help your small business thrive.

Sellers who organize their shipping independently find better shipping and customs rates. They get the best price for international shipping in the market because they have a trusted forwarder and customs broker at the port.

If you are a small business owner selling luxury items such as artwork or jewelry, you need to be more hands-on in the delivery of your merchandise. Thus, having a forwarder waiting at the port is better than taking the risk of your luxury items passing through many hands.

If you're new to international marketing and want to get in touch with many shipping companies, then door-to-port international shipping is the way to go. With their trusted network of shipping companies, you are bound to find a company that best suits your needs.

Despite being an affordable option, all international shipping options passing through a port are likely to be delayed by unfavourable weather conditions, such as storms and fog. In cases when bay waters’ depth increases, loading and unloading become more challenging, affecting port and ship assignments.

Due to the waterway limitation and port shipping accessibility, shipping options like these aren’t known for their versatility. There is often the need for bottom surface transportation systems to cooperate and complete the whole cargo transportation process.

The ship’s size is among the challenges in international shipping. Aside from that, the winds and currents must be considered. Not many ships can resist strong winds and waves, thus the need for larger ships in international cargo transport.

Door-to-door shipping is the most common form of shipping that businesses use. In this process, the courier picks up the item directly from the seller and sends it straight to the buyer's home.

You have the option to choose between standard international shipping or economy standard shipping. The logistics company handles all of the customs and freight dealings, making things easier for the seller and giving you the best value for your money.

Some items cannot be kept over long periods inside ports or warehouses. Examples include things with an expiry date, such as food items or plant matter. Items such as these must be delivered immediately to the buyer.

Even though email is a norm now, some documents must be delivered the old-fashioned way. If you need to ship over personal records such as a birth certificate and marriage license, this is the best option for you.

Because the shipping company deals with the middleman for you, you save priceless time you can use to improve your business.

If you have an e-commerce business, it's crucial that your items arrive on time and at the correct doorstep. This convenience is how door-to-door delivery helps you retain customers and keep them satisfied. A smart e-commerce entrepreneur looks after their sales and logistics because they know how intertwined these two are.

Even with the technology to track your products in real time, you will always find yourself worrying whether or not your products are in the right hands. You can't say for sure if your products are safe and intact when you opt for door-to-door international shipping.

There's no guarantee that your items will arrive at the time specified on your order. Thus, it's always good to leave enough wiggle room in your shipping schedule. Communicate with your chosen shipping company to ensure that your package arrives on time.

Port-to-port shipping refers to the middle leg of the shipping journey in which your items are transported via shipping containers from the port of loading to the port of discharge. This service does not include on-carriage and pre-carriage transportation services. It is recommended for companies that understand how shipping works.

If you send products in bulk to another country, you should take advantage of this option, especially if you have a trusted shipping company waiting at the destination. Communicating with them helps you ensure the item is safe and secure during the entire shipping process.

Even if you have a trusted freight forwarder, having connections with other forwarders allows you to compare prices and determine if you're getting a competitive price. Companies offering port-to-port shipping often provide clients with a list of prices to compare and contrast prices.

One of the disadvantages of port-to-port international shipping is that it takes more time to send your package than air shipping to ensure your package arrives safely. Often, this type of shipping takes at least a month, assuming nothing delays the process. While faster vessels are currently available, it won't do if you need fast shipping.

If customer satisfaction is your priority, then port-to-port international shipping might not be for you. With inevitable delays caused by the weather and other logistical problems, it can lower customer satisfaction with your business, making it more difficult for your business to thrive.

While it’s possible to infer what they are from their names, there is much more you need to inform yourself about when it comes to these different movement types. Learn how these work, what they are used for, pros and cons, as well as the suitable Incoterms to use for each movement type in this comprehensive article.

In the door-to-door movement type, the freight forwarder handles most of the transport process and leaves little responsibility for the importer and exporter. The freight forwarder picks up the goods from the door or premises of the seller/ exporter and delivers them to the door or premises of the buyer/ importer.

This movement type requires the freight forwarder to make use of multiple transportations, which usually include trucks and vessels. Because this is a more direct and comprehensive option, it’s typically more expensive compared to other movement types. But the benefit is evident, considering that it provides convenience for the exporter and importer, relieving them of the responsibility of contracting their own transport services.

The door-to-port shipping term refers to the middle course of door-to-door and port-to-port shipping. The freight forwarder takes charge of the pre-carriage and main run of the shipping process.

This means that the goods will be picked up at the exporter’s premises and delivered to the ocean port or airport of origin. The freight forwarder will use multi-modal transport, such as a truck and vessel to handle the beginning of the shipping process. The importer will be in charge of inland transport at the destination port.

The door-to-port international shipping type is favorable for exporters who don’t have the capacity to arrange transport from their premises to the selected port of origin. But it is essential that the importer on the other end of the carriage has the means to arrange inland transport at the destination.

This movement type is beneficial for exporters because they have the liberty to decide their mode of transport for international shipping. The freight forwarder can also offer solutions tailored to their needs.

In the port-to-port shipping movement type, the freight forwarder only moves the cargo or goods from the airport or ocean port in the origin country to the airport or ocean port in the destination country. The goods are usually shipped in containers, either via less than container load or full container load.

The freight forwarder or carrier does not take charge of inland transport at origin or destination. This responsibility is on the part of the importer or exporter. This shipping service offers the shortest movement that the freight forwarder is responsible for. Because of that, it’s the cheapest movement type, requiring payment for only the middle leg of the shipping process, i.e. from the port of origin to the port of destination. However, it is also the shipping option that carries the most unpredictability, given that the middle leg of the shipping process is where most precarious situations happen.

Port-to-port shipments are best for shippers who are experienced and knowledgeable about the ins and outs of the shipping process. Because they know how to navigate international shipping, they can take charge of managing the needed documentation, carrying our customs clearance requirements both at origin and destination and arranging for inland transportation services.

When choosing the port-to-port movement type, it’s recommended that importers and exporters take the following factors into consideration:

Inland transport - The exporter will have to arrange transportation from their premises to the port of origin. This is the same case with importers who have to arrange the transport of the goods from the port of destination to their premises.

Port schedule - The exporter is in charge of ensuring that they know the schedules of transport and make sure that they deliver the goods at the right time. Some schedules to take note of include the transit schedule and the port’s operating hours.

Customs clearance - In port-to-port shipping, the exporter handles customs clearance at origin and shoulders the costs. This can prove to be a tedious process, especially with all the paperwork involved, which is why it’s recommended to hire a customs broker at origin and destination.

Cargo insurance - Port-to-port shipping services only include a minimum coverage on carrier liability. Exporters should obtain their own cargo insurance to protect themselves in case of loss or damage to the goods during shipment.

Local charges - Port-to-port shipping costs also do not include the costs of local charges. Exporters and importers would have to shoulder bill of lading release fees, wharfage, and other port charges.

In the port-to-door movement type, the transportation that the freight forwarder is in charge of begins only at the port of destination and ends when the goods have been delivered to the warehouse or premises of the importer. The freight forwarder takes charge of the inland transport at the destination to complete the shipment.

The differences between these movement types call for the use of different Incoterms. Knowing the best Incoterms to use for particular shipments can allow exporters and importers to further optimize their shipments and determine who is responsible for the goods during transport.

The best Incoterm to use for the door-to-door movement type is the DAP Incoterm or Delivered at Place. This obligates the seller to deliver the goods at the destination nominated by the buyer. Through door-to-door shipping, the seller can guarantee that the goods are delivered and shoulder the costs for the entirety of the shipping process.

The best Incoterms to use in door-to-port shipping are the following:

DPU (Delivered at Place) - The cost and risks in door-to-port shipping are shouldered by the seller, making the DPU incoterm suitable and the simplest option.

CIP (Carriage and Insurance Paid To) - CIP divides the risks and costs to the seller and the buyer, with the former being responsible until the goods are unloaded. The seller also obtains insurance to cover the transport from door to port.

CPT (Carriage Paid To) - In this Incoterm, the seller bears responsibility until the goods are loaded and the buyer is in charge of the inland transport at the destination, similar to how door-to-port shipping works.

CFR (Cost and Freight) / CIF (Cost, Insurance, and Freight) - The buyer is responsible for contracting carriage and inland transport at the destination. They should also obtain insurance to cover the transport from door to port in case of CIF.

For port-to-port shipping, it’s recommended that sellers use the CIF Incoterm, or Cost, Insurance, and Freight. Because they are responsible for bringing the goods to the port of destination and transfers risks when they load the goods to the shipping vessel, the port-to-port movement type gives them access to the port of origin and the freight forwarder handles the middle leg of the process and delivers the goods to the destination port.

Incoterms where the seller is responsible for ensuring the goods are delivered to the buyer’s premises suit the port-to-door movement type the best. These include:

Exporting and Importing can often be an extremely complicated and mundane process as there are so many rules, regulations as well as countless  number of procedures to adhere to. This, many a times, may require to prepare and submit documents for import and export. Usually, freight forwarders would prepare it  for us, but it is also good to know for ourselves as to how to complete the relevant documents by understanding what the terms mean.

As such, in our new article series titled “Export Terms”, we would  introduce you to all the various terms used in the international trade, be it through air, land or sea freight. We would roll out one related article on a regular basis, which would help you to get a comprehensive understanding as to the document preparation for the purpose of doing trade internationally

Port to Door Shipping refers to a type of shipping where the logistics service provider or freight forwarder is responsible for the freight process from the port of shipment until the goods reach the point of destination where th goods need to be delivered to. This means that from the door of the exporter at the point of shipment, the exporter needs to make sure that he arranges for a way to transport the goods to the port of shipment.

For Port To Door Shipping, it is actually rather similar to a door to door shipping service, albeit slightly different, where the exporter has to make sure that the goods are at the port of shipment through his personal arrangement instead from his doorstep.

A door to port shipping service is essentially the opposite of a port to door shipping. In this case, the exporter does not have as much responsibilities as the latter. Instead, the logistics service company or freight forwarder is responsible for the shipment from the doorstep of the exporter up until the point where the goods have reached the port of destination. After which, the importer is responsible for arranging his own mode of transportation, where he has to collect the goods that have been shipped to the port of destination. As such, this mode of shipment is rather similar to the previous mode of shipment, just that one type allows the shipper to leave the goods at his doorstep while the other is where the shipper needs to leave the goods at the port of shipment instead.