Global Shipping 101 -...
Transcript of Global Shipping 101 -...
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Global Shipping 101A Step‐by‐Step Guide
Frank A. Cebello‐ USPS
Director, Global Business Solutions (A)
Darren D. Lamb‐ Colography Group Inc.
Director, Research & Business Development
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• The Global Marketplace• Trends
• Top Destinations & Products in Demand
• Customer Expectations
• Customs and Customs Forms
• USPS International Services
• Pricing
• USPS International Network
• Resources
eCommerce is growing•Global e‐commerce has shifted toward an increase in small, lightweight shipments directly to consumers homes.
•New markets are becoming more available to US businesses.
•Buyers are demanding more flexibility, visibility shipping options.
•95% of consumers live outside the USA so there are opportunities for growth.
0
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40
60
80
100
$43B$46B
$55B
$80B
2012 2013 2014E 2020E
Global market for internationalexpress and small parcels ($B)
Range of estimates:2020 market expected to be
between $60–100B
Global Marketplace
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The growth of mobile commerce outpaces overall ecommerce sales growth
SOURCE: IBM ONLINE COMMERCE INDEX
eCommerce Is Becoming More Mobile
Global Parcel Market ForecastWorldwide Parcels Market Forecast by Region 2014-2020 ($Millions)
Region 2015 2016 2017 2018 2019 2020 CAGR
Africa $4,558 $4,898 $5,236 $5,599 $5,946 $6,297 6.7%
Asia Pacific $81,296 $89,659 $97,051 $104,621 $112,371 $120,054 8.6%
Europe $62,036 $64,514 $67,316 $70,566 $73,032 $75,350 4.1%
Middle East $8,703 $9,168 $9,664 $10,190 $10,763 $11,400 5.5%
North America $79,850 $82,250 $85,130 $87,950 $90,850 $93,725 3.3%
South America $9,657 $10,506 $11,246 $12,073 $12,735 $13,403 6.7%
Total $246,101 $260,995 $275,644 $290,999 $305,696 $320,230 5.6%
Source: Apex Insight
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Changes In U.S. Air Export Top 10 Destinations (2012 vs. 2016)
Canada20%
United Kingdom
7%
Australia7%
Japan6%
China5%
Germany4%
France3%
Brazil3%
South Korea3%
Singapore3%
Other39%
Canada12%
United Kingdom
10%
China7%
Australia6%
Japan6%
Germany6%France
4%South Korea
4%Netherlands
3%
Hong Kong3%
Other39%
FH CY-2012Business Cross Border Destinations
FH CY-2016Business Cross Border Destinations
Source: The Colography Group, Inc. ©2017 CGI all rights reserved. Note: Colography estimates of carrier non-household shipments were distributed to destination country using a combination of data from the U.S. Air Export Hinged Supplemental Add-On Survey to The Colography Group’s National Survey Of U.S. Expedited Cargo and various secondary sources (including the U.S. Postal Service billing determinant data). Note: Includes GXG, PMEI, PMI and FCPIS. The report follows USPS guidance by considering Puerto Rico as a domestic destination.Note: Hong Kong and the Netherlands replaced Brazil and Singapore in the FH CY-2012 top 10 total countries.
Top Cross Border e‐Commerce Products From The U.S.
Examples of Products
BOOKS, DVDs, CDs
TOYS &HOBBIES
COSMETICS &BEAUTY PRODUCTS
FOOD (GROCERIES & DELICACIES)
SPORTING GOODS
CELLPHONES &ACCESSORIES
CLOTHING & ACCESSORIES
COMPUTER HARDWARE & SOFTWARE
FLOWERS &GIFTS
AUTOMOBILE PARTS
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Importance Of Options When Checking Out Online
Source: Secondary empirical researchNote: Respondents may choose more than one option. N=5,849
35%
43%
31%
51%
37%
51%
63%
62%
50%
54%
81%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Free shipping options
Having a variety of payment options in addition to a credit card
Order history, so I can see everything I’ve bought
Estimated or guaranteed delivery date
Provide estimated delivery date and shipping costs early in the process
A login so the site can remember my purchasing preferences (e.g., credit card number)
Ability to select delivery location that is convenient to me
Remember me so I don’t have to refill my shopping cart or rekey information if I already started an order
Show me other items I might be interested in
Flat rate shipping options
Expedited shipping options so I can get my purchase faster
Reasons For Abandoning Online Shopping Cart
Source: Secondary empirical researchNote: Respondents may choose more than one option. N=5,849
25%
24%
50%
58%
57%
0% 10% 20% 30% 40% 50% 60% 70%
I was not ready to purchase, but wanted to get an idea of total cost with delivery
Shipping costs made the total purchase cost more than expected
My order value wasn’t large enough to qualify for free shipping
I wanted to complete the purchase, but got distracted and forgot
My preferred payment option was not offered
N = 5,241
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Catering to a New Generation
What Is Customs?
• An law enforcement agency that safeguards the interests of a country with respect to what can enter and cannot enter
• Collects customs duties and taxes for a government
The import or export of some goods may be forbidden by restrictions or stimulated by trade agreements
Levy tariffs and taxes on the import of goods to protect jobs and industries in a country
Customs uses the Harmonized Tariff Code to determine the amount of duty and tax to be assessed upon entry
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Harmonized System
• The Harmonized Commodity Description and Coding System (HS) is an internationally standardized system of names and numbers for classifying traded products
• A tax rate is assigned to each Harmonized Tariff Code (HTC); these rates make up the Tariff Schedule
• The HTC is what the US Census Bureau uses to track trade statistics between countries
• U.S. Census Bureau Regulation
Harmonized System
• Harmonized Codes, although extremely helpful to the Customs agent in the destination country, are not mandatory on Customs documents.
• Verbal descriptions can be used as long as they explain:
What the commodity is (i.e. Short Sleeve Shirt)
What its used for (Men’s Golf Shirt)
What its made of (Polyester 60% - Cotton 40% Blend)
• You must also use the retail value at which it was sold for to the buyer. Not the cost to produce or replace the item.
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Harmonized System
1234567890The first six digits of the HTF code describes what the item is.The next two digits describe where the commodity originates.The last two digits describe where the commodity is going.
Anatomy Of A Harmonized Tariff Code
Printing Customs Forms
System Click-N-Ship for Business PC Postage Vendors Global Shipping Software (GSS)
Key features Free
Use from any desktopcomputer
Address book(unlimited names)
Customs form with round-date provided
Pay with Credit Card
Easy installation
Rate comparison between USPS and competitors
Typically offers a 30-day free trial and savings analysis
Duty and Tax estimation
Tracking
Web-enabled toolfor large USPS
volume shippers
Postage manifesting
Prints Customs and shipping labels
Duty and Tax estimation
HTS Assistance
Tracking
For more information
usps.com usps.com Local International Sales Executive
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PS Form 6182, Commercial Invoice
Use only with GXG
PS Form 6182 is used
Only for GXG letters and packages
Refer to Global Express Guaranteed Service Guide, Publication 141 for more information
Form PS 2976 / CN22
Form PS 2976 for FCMI or FCPIS:• Have a maximum value of
$400• Weigh more than 16 ounces,
or are parcel shaped• Contain goods• Also may be used on certain
PMEI items, M‐Bags, ISAL and IPA parcels, and the PMI Small Flat Rate Box and Flat Rate Envelope.
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Form PS 2976‐A / CP72
Form PS 2976‐A for:
• Items valued over $400
• All PMI parcels, regardless of weight or contents
Form PS 2976‐B / CP72
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USPS Delivers Reliable Service With Many Shipping Options
• Nearly 1 billion pieces delivered annually by our Postal partners around the world.
• We have the widest range of services available to US shippers.
• Largest member of the Universal Postal Union (UPU) which governs Postal operations.
• Alliance Partners that enhance global delivery and scanning performance.
• Flexible Pricing Options.
USPS has the largest partnership network worldwide - giving you choices
Shipping Services Offered In The Marketplace
Higher
ServiceFasterSlower
Lower
Price
PMEI
PMI
FCPIS
GXG
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USPS International Package Services
Global Express Guaranteed(GXG)
Priority Mail Express International
(PMEI)
Priority Mail International(PMI)
Delivery 1-3 business days 3-5 business days 6-10 business days
Guarantee Money-back guaranteeMoney-back guarantee to 16
destinations*None
Date-Certain DeliveryDate-certain delivery to about
180 countriesDate-certain delivery to select
destinationsNone
Tracking Tracking
Discounts Discount option from Retail with Commercial Base and GEPS Pricing
Insurance $100 insurance includedInsurance included: $200 – merchandise and
$100 – documents
Features
Our fastest door to door delivery.
Overnight to most major markets in Canada.
Affordable and fast international delivery.
No dimensional weight charges.
Free return of undeliverable packages.
Flat-Rate options available.
No dimensional weight charges.
Flat-Rate options available.
*PEMI Guaranteed destinations are Australia, Canada, China, France, Germany, Hong Kong, Israel, Japan, New Zealand, Singapore, South Korea, Spain, Sweden, Switzerland, Thailand and the United Kingdom
USPS International Package Services
First-Class Package International Service (FCPIS)
First-Class Mail International Service (FCM)
Delivery Varies by Destination Varies by Destination
TrackingUSPS Electronic Delivery
Confirmation (eDelcon) and tracking available to 23 countries.
None
Features
Ideal for cross-border e-Commerce.
International shipping for lower-value, lightweight items.
Discount option with Commercial Base and Commercial Plus Pricing.
Economical shipping for letters, postcards, and flats weighing up to 4 lbs.
Starting at $1.20 for any 1-oz. Letter or postcard to anywhere in the world (includes 2-oz letters to Canada).
Registered Mail service available.
Can be used with authorized PC Postage vendors.
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Published Transit Times Of USPS Expedited Package Services vs. Our Competitors
1For many major markets, the average number of business days may vary. See Publication 141 for more information.2For many major markets, average number of business days may vary based upon origin and destination.
U.S. Air Export Comparison: Expedited
Note: The above rates are 2017 published commercial rates. May 2017 international fuel surcharges for FedEx (3.5%) and UPS (5%) are included in the above rates as well as residential surcharges for FedEx ($3.85) and UPS ($4.00). All other surcharges excluded.
Service Rate (2lbs.) Transit
USPS PMEI $47.03 5
FedEx IE $83.06 2
UPS Expedited $86.52 2
New York, NY to Toronto, Canada
Service Rate (2lbs.) Transit
USPS PMEI $64.03 5
FedEx IE $116.63 5
UPS Expedited $117.57 5
Baltimore, MD to Beijing, China
Service Rate (2lbs.) Transit
USPS PMEI $63.41 4
FedEx IE $108.01 4
UPS Expedited $111.60 4
Miami, FL to London, United Kingdom
Service Rate (2lbs.) Transit
USPS PMEI $67.93 5
FedEx IE $104.57 4
UPS Expedited $102.78 4
Los Angeles, CA to Tokyo, Japan
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Application Of Overlooked Export Costs
• Shippers often overlook costs that can significantly increase their rates.
Sources: USPS, FedExNote: The above rates are 2017 published commercial rates. The declared value of the merchandise in the above example was $40. The FedEx international fuel surcharge for the week of May 1, 2017 is 3.5%.
Example
Weight: 4lbs.
Value: $22.00
O&D: B2C
From: New York, NY
To: Toronto, CAN
ChargeBase Rate (4lbs.)
+ Residential Surcharge
+ Fuel Surcharge
Transportation Only
Other Fees
+ Harmonized Sales Tax
+ Clearance Entry Fee
+ Duties and Taxes
Total Cost
PMI$37.43
$0.00
$0.00
$37.43
$0.00
$0.00
Unknown
$37.43
International Ground$22.86
$4.00
$0.94
$27.80
$1.48
$11.38
Unknown
$40.66
Surcharges * SURCHARGES USPS UPS FEDEX DHL
Fuel Surcharge N/A4.25% (thru
6.3.15)4.50% (thru
5.31.15)0.00% (thru 5.31.15)***
Additional Handling N/A $8.50 $8.50
Address Correction N/A $12.00 $12.00 $11.00
Certificate or Origin (Per shipment) N/A $10.00 $10.00
Customs Brokerage Fees (Optional)Merchandise Processing (DHL) 0.3464% N/A
Min. $25.25 for Canada
Greater of $10 per shipment or
$0.50 per lb.
Min. $25 –Max $485
per shipment (0.3464%)
Declared Value (amt. per $100.00 in value) Minimum Charge (over $100 in value) N/A
$0.85 per $100 min $2.55
$0.85 per $100 min $2.55
$0.90 per $100 min $2.90
Delivery Signature N/A $2.00 $2.00Delivery Signature, Adult N/A $4.75 $4.50Delivery, Direct Signature Req’d N/A $3.75 $3.50
Dimensional Weight Factor:( (L x H x W) / __ ) = DWRound up to nearest pound
166 applies toGXG Only 139 139 139
Electronic Export Information (per shipment) N/A $10.00 $10.00Excessive Tracking, Tracing and Refund Requests N/A $3.00
Extended Area / Out-of-Delivery Area Surcharge N/A
Greater of $30 per shipmentor $0.26 LB
Greater of $30 per shipment or $0.26 LB
Greater of $30 per shipment or $0.26 LB
* Does not include all published surcharges
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•Rolling 12 months: April 2016 – March 2017
Source: PMI/PMEI Outbound data – April 2016 – March 2017 ISBDS Scanning Performance ReportFCPIS Outbound data – FCPIS_Outbound_Scan_Performance_Report: IPC Flat Files from the Item Tracking Data Download Centre
International Product Scanning Performance for U.S. Exports *
Updated: March 2017, quarterly
PMEI PMI FCPIS
1 AU AUSTRALIA 97% 97% 93%
2 BR BRAZIL 87% 96% 97%
3 CA CANADA 97% 98% 98%
4 CL CHILE 95% 93% na
5 CN CHINA 96% 86% na
6 DK DENMARK 92% 91% 90%
7 FR FRANCE 96% 95% 89%
8 DE GERMANY 91% 91% 94%
9 GR GREECE 97% 94% na
10 HK HONG KONG 99% 97% 100%
11 IN INDIA 92% 74% na
12 IE IRELAND 95% 97% 97%
13 IL ISRAEL 97% 89% 94%
14 IT ITALY 94% 94% 95%
15 JP JAPAN 98% 99% 98%
16 KR KOREA, REPUBLIC OF 98% 98% na
17 MX MEXICO 61% 36% 44%
18 NL NETHERLANDS 97% 98% 96%
19 NZ NEW ZEALAND 94% 93% 95%
20 NO NORWAY 97% 97% 82%
21 PH PHILIPPINES 93% 60% na
22 RU RUSSIAN FEDERATION 95% 93% na
23 SG SINGAPORE 97% 97% 97%
24 ES SPAIN 79% 77% 98%
25 SE SWEDEN 98% 98% 98%
26 CH SWITZERLAND 98% 98% 97%
27 TW TAIWAN, PROVINCE OF CHINA 98% 98% na
28 TH THAILAND 98% 95% na
29 AE UNITED ARAB EMIRATES 98% 94% na
30 GB UNITED KINGDOM 97% 98% 94%
% w Delivery Scan
OUTBOUND
Country
PMEI
PMI
FCPIS
Allegiances And Agreements
International Post Corporation (IPC)24 Postal Operators from Europe, North America, Asia/Pacific that manages PRIME, INTERCONNECT Programme, and cooperates
with KPG.
Universal Postal Union (UPU)
Specialized UN agency that establishes uniform processes for the exchange of international mail and packages among 192 member countries; establishes international rates for delivery of letters and
parcels; and sets service standards and performance measurement systems.
EMS Cooperative
Optional UPU program that establishes rate framework and standardized processes for EMS (170 members).
Kahala Posts Group (KPG)International alliance focused on providing high quality EMS
through enhanced processing, logistics, visibility, and date certain guarantee.
BilateralAgreement between USPS and a foreign post that may set rates,
improve service standards, introduce new products, facilitate cooperation to grow revenues and market share, and integrate IT
and accounting systems.
INTERCONNECTThe IPC e-Commerce INTERCONNECT Programme (eCIP) lays down
the foundation for a global seamless network allowing posts to offer consumers and e-retailers, tracked, end-to-end delivery service.
PRIMEAgreement for light-weight packages (FCPIS) that sets bonus rates
based on delivery scanning score and on-time delivery performance.
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ISC Worldwide Distribution
*Note – Approximate times shown. Transit times depend on specific products and destinations. Routings shown do not represent specific flights and/or destination countries.
PMEI - 3-5 Business Days
PMI - 6-10 Business Days
USPS uses a combination of Commercial Airlines and Freight Carriers to move product from the 5 ISC’s to the world. Our carrier network provides guaranteed space and allows us to react quickly when faced with challenges moving packages whether they be weather, carrier or destination country related.
FCPIS/CeP- No Published Transit Times
Global Direct Entry: Features
• Door-to-door service in 4-8 days
• Integrated shipping platform for package preparation
• Customs clearance
• End-to-end visibility
• Courier level expedited shipping service
• Competitive pricing well below courier rates
• Provider as single point of contact for customer service
• Shipments have look and feel of a domestic shipment
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How Does Global Direct Entry Work?
GDE Life Cycle
• Pick up parcels from offshore customers
• Print labels and postage using USPS Global Shipping Software or PC Postage equivalent
• Consolidate parcels-by air or sea
• Arrive at destination and clear customs (no duty for parcels valued at $800 or less going to 1 addressee on a single day)
• Hand over parcels to the USPS for final delivery
Two Methods To Send Multiple Packages To The U.S.
One-to-One Shipments One-to-Many Shipments
x x
Steady (5-8 days)Faster (1-4 days)
EconomicalExpensive
Transit
Price
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Full‐Service Shipping Worldwide
• No fuel surcharge
• No delivery area surcharge
• No extended delivery area surcharge
• No residential surcharge
• No dimensional weight charge
• Comprehensive delivery network
With shipping to over 180 countries across the world, USPS® can help you:
Helping Customers Grow
• Our goal is to help customers grow their business by expanding beyond U.S. borders.
• We have implemented world class mailing solutions:
Reliable track and trace
Service performance
• Provide enhanced Global Network.
• Grow your share of the e-Commerce Market.
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Resources
• USPS International Welcome Page
https://www.usps.com/international/welcome.htm
• Customs Forms & Requirements
https://www.usps.com/international/customs-forms.htm
• International Mail Manual (IMM)
http://pe.usps.gov/text/imm/welcome.htm
http://pe.usps.com/
• USPS Service Pricing
http://pe.usps.com/text/dmm300/Notice123.htm#wp1116072
• Export Regulations, Harmonized Tariff Codeshttp://www.export.gov
Thank You