A small business that is shipping freight internationally suffers from a big disadvantage. Every time you book cargo, you compete for transportation capacity with companies that dominate global trade and ship hundreds of thousands of containers each year. In 2024, Walmart imported 960,000 TEUs of cargo into the U.S., according to the Journal of Commerce.
Huge volume wins shippers huge advantages. They can negotiate the best freight rates available. Steamship lines, trucking companies and railroads return their calls without fail. And during high demand periods, when everyone is queuing up to secure scarce space, those giant companies roll to the head of the line.
International shipping for smaller businesses — companies that ship maybe a few dozen containers a year, or even a few hundred — means a lack of clout. A freight forwarder can help fill this knowledge gap by walking small shippers through unfamiliar aspects of global shipping, such as Incoterms, documentation, compliance requirements, and load preparation, so nothing gets missed.
This guide will explain the challenges and describe practical steps you can take to survive in the marketplace, and even thrive.
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Request PDF VersionStep 1: Borrow Some Negotiating Power
Two shippers approach a steamship line, each asking for a break on the rate for moving a container from Hamburg to Charleston. One will ship 500 containers between those ports in the coming year, the other just 25. The bigger shipper wins the better deal — every time.
As a small company, you'll never get the best transportation rates available if you go it alone. But you can save money on transportation if you work with a logistics partner to combine your volume with other shippers. This is why steamship lines often advise small businesses to use a freight forwarder or Non-Vessel-Operating Common Carrier (NVOCC), because they already have negotiated contracts in place that small shippers could never secure on their own.
An NVOCC moves thousands of containers a year across its base of customers. As a result, it gets discounts on ocean freight rates and passes those savings to you. The forwarder takes a markup, of course. But even so, you pay less for transportation through a forwarder than you would if you shopped for rates on your own — sometimes as much as 10–15% less.
"There are cases where the ocean line either needs containers in a specific country, or needs to have them taken out. Then we may be able to get things like a discounted fee to pick up an empty, or we'll get a discounted drop-off fee. Or we may be able to negotiate a little bit of extra free time at the destination port."
— Andrew Rozek, President, I.C.E. TransportStep 2: Consider All the Shipping Options
Along with a lack of negotiating power, there are several more reasons why you might pay more than necessary.
You don't choose optimal routes. Should you truck the container to a Polish port, from which it would sail to a major European port such as Hamburg for transloading onto a transatlantic vessel? Or should you send the container by truck or rail directly to Hamburg? Routing decisions have a big impact on your total cost of transportation. NVOCCs routinely evaluate routing options and can model different port pairings, inland moves, and carrier combinations to find the most cost-effective solution.
You don't load containers effectively. A steamship line charges the same price whether you fill every square inch of a container or leave the box half empty. Maybe you think you're allowed to ship only 44,000 lbs in a 40-ft container (as steamship lines often claim), when in many cases you can legally load up to 55,000 lbs. An NVOCC will confirm container weight limits, inland trucking restrictions, and whether your load triggers special permitting requirements.
You work with too many partners. The more service providers you engage to manage different segments of your door-to-door shipments, the more handling charges you pay and the more chances you create for an important detail to slip through the cracks. Some NVOCCs simplify this by managing everything — trucking, rail, ocean, and customs — under one coordinated plan.
Step 3: Evaluate Different Options to Ship Smaller Loads
Sometimes you just don't have enough volume to fill a 40-ft container, or even a 20-footer. In many cases, the cost-effective solution for smaller volumes is less-than-container load (LCL) service. You transport your freight to a Container Freight Station, a consolidator loads it into one container with cargo from several other customers, and you pay just a fraction of the cost — perhaps as much as 60% less.
In certain cases, air freight might be an alternative. While air freight rates are higher than LCL, an ocean consolidator usually tacks extra fees onto its per-pallet rate. By the time you're done paying fees for handling, documentation, unloading and release, the cost to ship via LCL could more than double. A freight forwarder can help determine whether LCL or air freight is the better option, particularly when hidden CFS fees might erase the cost advantage of consolidation.
How to Get the Best Service
Your needs aren't their top priority
When you ship an ocean container, you might be tempted to let the steamship line take charge of the whole move, including over-the-road transportation. But if you're a smaller shipper, you probably won't have a rep at the steamship line whose job is to look out for your interests. When capacity gets tight, you could wait a long time for a truck to pick up your container.
Freight forwarders, on the other hand, maintain strong relationships with multiple truckers at every major port, ensuring small shippers aren't dependent on a single carrier's capacity.
They could increase your storage charges
If your container is waiting for a truck at a marine port or rail terminal, that wait could cost you serious money in demurrage charges. Even if it's the steamship line's decision that keeps you waiting, the line will charge you a storage fee for the days your container spends on the property.
"Where we have control over it, it's our job to make sure that the container comes off the rail terminal or the port terminal within the free time. We do our best to minimise that exposure by pre-pulling the container and getting it off the terminal so the shipper doesn't have to pay the high storage fees."
— Andrew Rozek, President, I.C.E. TransportHow to Clear Customs — Without Tears
Often, customs clearance is a painless formality. But sometimes things get complicated. The simple answer is to work with an experienced Customs Broker. They ensure all required documentation is completed, from commercial invoices to packing lists.
What can possibly go wrong?
Through no fault of your own, your shipment may get picked at random for inspection. Or maybe something about your import raises a red flag. A customs agent might decide to x-ray your container, charging you about $300. Or you might have to pay a trucker to transport the container to an inspection facility, where U.S. Customs will conduct an intensive exam and charge you $1,000 or more.
You could also hit a snag if you:
- Choose the wrong HS code — resulting in paying duty when none was required, or getting in trouble for not paying duty that you do owe.
- Wait too long to give your broker all the necessary data. Without complete data, the customs broker can't file your Import Security Filing (ISF) on time, risking a $5,000 fine.
- Try to import a product that's prohibited or restricted — without the right licences or permits.
Basic Steps in the Customs Clearance Process
Every shipment you bring into the U.S. must clear Customs. Here are the basic steps:
- Choose the correct HS code for each product in your shipment. This 10-digit code identifies the product so U.S. Customs can determine what duties, if any, you must pay.
- Complete and transmit the ISF at least 24 hours before the shipment leaves the port of origin. If you miss the deadline, U.S. Customs might hit you with a $5,000 fine.
- Obtain an ISF bond and a customs clearance bond, guaranteeing that you will meet the ISF deadline and pay all required duties and fees.
- Transmit the customs clearance documentation about a week before your vessel arrives at the destination port.
- Make the necessary payments — duties, the Merchandise Processing Fee (MPF) for all imports, and the Harbor Maintenance Fee (HMF) for ocean entries.
How to Find a Truck When You Need One
For companies managing international shipping, trucking capacity is often the biggest choke point. Nearly every international shipment starts and ends with a trucking move. Small companies often have a tough time finding proven, reliable carriers when they need them, especially when capacity is tight.
It's even harder when you ship heavyweight or oversize freight, hazardous materials, products that require temperature control, or other specialised cargo. Only a limited number of carriers have the equipment, trained drivers, and legal authority to carry those kinds of loads.
"We know that it's somebody who can reliably do what we're asking them to do. It's not some fly-by-night company that will use the wrong equipment to move the container. That's not something a small shipper will have access to without doing a lot of legwork and a lot of trial and error."
— Andrew Rozek, President, I.C.E. TransportOne final way for a smaller business to secure truck capacity when you need it is to work with a trucking broker or freight forwarder that has relationships with an extensive network of truckers across all equipment types — reefer, flatbed, heavy-haul, hazmat. They work with far more carriers than you do, day after day.
Global Shipping for Small Businesses: Team Up and Bulk Up
Freight forwarders like I.C.E. Transport manage the nuts and bolts of global shipping every day. They have extensive connections with the steamship lines, railroads and every variety of motor carrier. Even when capacity gets tight, they can usually find the space you need. Thanks to the aggregate volume they ship, they can get you good rates.
All freight forwarders aren't created equal, of course. It helps if your partner is an NVOCC that has good freight volumes, has experience serving your key lanes, can offer expert guidance to save you money and, importantly, offers a highly personalised level of service.
Just because you're small doesn't mean you have to get shoved to the back of the crowd in the transportation marketplace. Team up with the right partner, and you'll gain the muscle it takes to ship cargo like a company many times your size.