In international shipping, time is money and the transfer of cargo is key. If countries with established diplomatic relations had to issue clearances for all international freight shipments, it would waste time and the flow of goods would slow to a trickle. This is the problem that a bonded carrier can solve in North America. These entities have legal authority that allows for getting freight through customs without first obtaining clearance from the destination’s customs office. In the United States, the benefit of shipping with bonds often involves quicker travel across the Canadian border without any upfront payments for customs and taxes. Bonds can be acquired for virtually any mode of shipping, from ground to sea to air. Let’s investigate the finer details of bonds to ascertain whether this is the right option for your shipping logistics.
Legal Workings and Regulations
A bond can be defined simply as an agreement of trust with legal and/or financial backing. In this context, the government grants trustworthy logistics providers special status that allows them to skip some of the most laborious aspects of getting freight inspected by customs. Bonded carriers offer pre-clearance services, submitting paperwork and documentation in advance so that goods spend significantly reduced time in processing. In general, bonded status proves that a logistics provider has the legal expertise to navigate customs regulations and documentation without issue. This is where the relationship of trust comes into play. It is important to note that bonded shipments traveling to Canada cannot have any portion of their shipment outside of the bonds they carry. Since the bond in question involves a posted financial security to act as insurance, carrying non-bonded freight in the same shipment poses an immense liability.
The Logistical Benefits of Shipping Bonds
There are several benefits to shipping using bonded carriers. One such perk is the clear financial advantage. Saving money crossing international borders gives any company an advantage over its competition with international freight shipments. Another benefit of working with bonds is the ability to reduce shipping time by clearing customs with fewer delays. Faster shipping times often incentivize customers when choosing their preferred vendor, so this can also assist with customer draw and retention. An understated yet crucial benefit of bonds is risk and penalty mitigation. The guarantee that your shipping partner will navigate compliance, security, and contingency in a professional manner not only benefits your work financially but also provides you with peace of mind to apply to the primary aspects of your business. In other words, you can ship with bonds to ease the work of getting freight through customs with minimal intervention required.
Expediting Transit and Customs
Pre-clearing customs documentation means that bonded carriers are capable of getting international freight shipments through borders at a much faster rate than any other shipping option. The main restriction of this approach when it comes to speed is not much of a drawback at all. Bond authorization only applies when shipping from a port of entry to a bonded warehouse, or between two bonded warehouses themselves. Since this is easily anticipated, a company dealing with bonds will only establish bonded warehouses in locations with high access to multiple transportation options. For example, Heavy Weight Transport has bonded warehouses in New Jersey and California, both coastal states with dense coverage from their road networks and access to several interstate highways. When shipping with a method like drayage, bonded warehouses become even more convenient since there aren’t additional penalties and time delays imposed by using alternative methods of crossing international borders.
Serving All Shipping Needs
The benefit of a bonded arrangement extends to the method of shipping as well, since any form of shipping can apply. The essential forms of bonded shipping are trucking, oceanic shipping, and air cargo. Trucking is the bread and butter of ground shipping. One of the biggest downsides of trucking, logistical delays, is lessened by bonded carrier arrangements. While bonds can’t do anything to improve traffic conditions, they can vastly quicken the process of depositing goods across the border using the road network, which is more flexible than railways. Shipping across the ocean is primarily feasible using boats. Since ocean freight carriers are already so experienced in dealing with port regulations and International logistics, introducing bonds makes for a much speedier process. Lastly, air transport is much more expensive but is the go-to answer for time-sensitive, heavy international freight shipments where cost is less of an issue.
Security, Compliance, and Shipping Challenges
Security is essential for bonded carriers. Since bonds are representative of trust, endangering that trust and showing signs that it is ill-placed can be disastrous for any logistics company. For this reason, there are high compliance and security standards in place to ensure that getting freight through customs is accomplished safely and legally. These standards are also true for the bonded warehouses themselves. International shipping, especially shipping for heavier and overweight cargo, involves hurdles and complexities. Customs procedures vary in every country, and regulations vary in every location. While bonds assist with the brunt of these complexities, they only do so thanks to the specialized nature of the business and the expertise with which they can navigate regulations.
Carriers You Can Trust
When it comes to fulfilling trust in the shipping industry, there is no other company quite like Heavy Weight Transport. Our founder, Ralph Ippolito, has been a trusted name in transportation and intermodal shipping for over 30 years. In this business, trust always has to be earned. This adage holds especially true with bonded carriers. Our custom-designed chassis and tractors make it easier for customers to ship higher cargo weights at lower container volumes for less money overall. These common-sense solutions are what allow us, year after year, to better ourselves in our business practices and improve our drayage services for all who need them. If you are looking for intermodal heavy-weight shipping, get a custom drayage quote today. We serve all major marine seaports coast to coast in the United States, and we look forward to working with you.
