Freight 101 for SMBs

Freightos new brand colors illustrated in modern design for freight industry resources

Top 10 Common Shipping Mistakes Newbies Make and How to Avoid Them

Jude Abraham

Guide

Shipping freight as a beginner can feel overwhelming. With so many logistics to coordinate, it’s easy for newbies to make costly mistakes that disrupt supply chains. But don’t worry – we’re here to help! As leading digital freight experts, Freightos has compiled the top 10 most common shipping errors and actionable ways you can avoid them. Learn from others’ mishaps and get your cargo delivered without a hitch. Let’s dive in!

Mistake #1: Lack of Advance Planning

One of the biggest shipping mistakes is failing to plan adequately. Booking last-minute leads to limited carrier options, sky-high rates, rushed paperwork, and potential delays. 

How to avoid it:

  • Start planning your shipment at least 2-4 weeks ahead
  • Compare quotes from multiple carriers early on
  • Have all required documents ready to go
  • Build in buffer time for unforeseen issues

Mistake #2: Inaccurately Declaring Shipment Value 

Undervaluing your freight to save on import duties, or overvaluing it for insurance purposes, can land you in serious trouble. Customs inspections may lead to heavy fines, penalties, or even seizure of goods.

How to avoid it:  

  • Always declare the true value of contents
  • Keep detailed invoices of the cost of goods
  • Understand de minimis value thresholds by country
  • Consider applying for duty drawback if you qualify

Instantly Compare Freight Quotes

Get real-time rates from top carriers.

Mistake #3: Insufficient Packaging

Improper packaging materials and lack of cushioning can result in goods being damaged during the bumpy journey. Freight that shifts around in transit is highly susceptible to breaking.

How to avoid it:

  • Use sturdy, high-quality boxes and pallets suited for transport 
  • Fill all empty spaces tightly with packing peanuts or air pillows
  • Secure moving parts and fragile items to prevent jostling
  • Label boxes as “Fragile” when needed and affix “This Way Up” stickers

Mistake #4: Errors in Shipping Paperwork

Mistakes or omissions in shipping documents can cause major headaches and holdups in customs clearance. Even minor inconsistencies like a misspelled name may be flagged.

How to avoid it:  

  • Carefully check that all fields match across forms like the BOL and commercial invoice  
  • Ensure weights and dimensions are accurate to avoid reweighs and remeasures
  • Use detailed goods descriptions – “FAK” won’t cut it
  • Get familiar with HS codes and Schedule B numbers to properly classify products

Mistake #5: Selecting the Wrong Mode of Transport

While ocean freight is cheaper, it’s significantly slower than air cargo. Temperature-sensitive items may not fare well on lengthy sea voyages. And misrouting can severely delay deliveries.

How to avoid it:

  • Consider both cost and speed in relation to your freight’s needs
  • Protect perishables and urgent shipments with reefers or air freight  
  • Work with experienced forwarders to optimize routes and transit times
  • Have a clear understanding of your Incoterms and delivery deadlines

Mistake #6: Forgoing Cargo Insurance

Accidents and losses happen, and without adequate insurance, you’ll be left footing a hefty bill. Many carriers have very limited default liability coverage that may not fully protect you.

How to avoid it:

  • Always purchase additional all-risk cargo insurance for peace of mind 
  • Ensure coverage amounts match your shipment’s actual value
  • Carefully review policy exclusions, limitations, and deductibles
  • Keep records of all insurance documents and correspondences

Mistake #7: Not Tracking Shipments

If you’re not proactively monitoring your freight movements, you won’t be able to foresee or quickly respond to delays and disruptions. Unpleasant surprises may await you on delivery day.

How to avoid it:

  • Request clean tracking numbers from carriers as soon as they’re generated
  • Use online freight visibility platforms to get real-time location updates 
  • Set up automated email or SMS status alerts for milestones and exceptions
  • Have a backup plan ready to implement when issues inevitably arise

Mistake #8: Communication Breakdowns 

Poor communication with suppliers, carriers, brokers, and other partners can create confusion and complications. Everyone’s expectations need to be aligned for smooth operations.

How to avoid it:

  • Establish clear timelines, standards, and procedures upfront with all parties
  • Share key information promptly, especially if changes occur
  • Provide specific contact people for urgent situations and escalations
  • Follow up swiftly if you don’t receive a timely response or update

Say Goodbye to Freight Headaches

Let Freightos handle the heavy lifting.

Mistake #9: Overlooking Additional Costs

Shipping quotes may not be all-inclusive and can omit certain accessorials and surcharges. These extra fees can add up quickly and strain your transportation budget if you’re not prepared.

How to avoid it:  

  • Familiarize yourself with common add-ons like fuel surcharges, lift-gate fees, duties, and taxes
  • Ask carriers and marketplaces for comprehensive all-in door-to-door pricing
  • Set aside funds for customs exams, demurrage, detention, and other potential penalties 
  • Use Freightos’ free calculators and tools for more accurate cost estimates

Mistake #10: The DIY Approach

Freight shipping has a steep learning curve that takes time to master. Inexperience can lead to a lot of stress as well as wasted time and money. Partnering with seasoned professionals is often a worthwhile investment.

How to avoid it:

  • Connect with reputable, vetted freight forwarders to guide you
  • Compare full-service marketplace solutions like Freightos for convenience
  • Look for providers with proven track records of success and industry expertise
  • Ask experienced shippers in your network for recommendations and referrals

By keeping these 10 common newbie freight shipping mistakes in mind, you’ll be well on your way to becoming a supply chain pro. Remember, careful upfront planning and meticulous attention to detail go a long way in avoiding delays and ensuring smooth shipments. And if you ever feel in over your head, don’t hesitate to bring in expert reinforcements to have your back.

At Freightos, our mission is to make global trade frictionless by simplifying shipping from start to finish. Our cutting-edge digital platform empowers everyone to instantly compare quotes, seamlessly book shipments, effortlessly track cargo, and efficiently manage documents – all in one intuitive place. Let us handle the complex logistics so you can focus on growing your business and serving your customers. 

Start with Freightos.com today for instant freight quotes and experience how easy shipping can be!

Simplify Your Shipping

Compare, book, and manage freight in one place.

Jude Abraham

Jude Abraham is Freightos’ Content Marketing Lead, a seasoned high-tech storyteller and marketing strategist who has created award-winning content for global brands. Off the clock, Jude revels in the complex flavors of spicy curries, savors the balanced notes of an Old Fashioned, and spends countless hours indulging his fascination with ancient esoteric books.

Ready to Simplify Your Shipping?

Get free quotes and make a booking in a few clicks

Complete this form to request a free demo

Back to top