RORO EXPORT, ACQUIRE THE LOGISTICS KNOWLEDGE BEHIND AUTOMOBILE EXPORTATION
The exportation of wheeled goods also known as RORO (roll-on roll-out) it’s totally a lucrative one, which could be exported via numerous options. However, since our focus is mainly on sea freight modes by which these goods are shipped, thus, falling in two dimensions, via RORO vessel or with the aid of a container.
Efforts are made to ensure that our analysis is centered around sea freight since roll-on-roll-out goods are predominantly shipped through the sea when it comes to global trade. Although, they’re exceptions when wheeled freights are been transported via air. Regardless, let’s focus on the steps and factors to be considered.
Firstly, factors to be considered while embarking on RORO exportation.
- Identify the category of wheeled goods to be exported (new, used, or damaged).
- Establish contact with manufacturers or other means, also with buyers and their locations.
- Obtain a license to export wheeled goods.
- Understanding the logistics process.
Goods classified under this category could be viewed as the easiest to export in terms of logistics, though thorough inspections are required in some cases coupled with verification from government authorities. RORO export logistics should be considered the easiest when compared with other forms of cargo export based on handling.
The first step to take here is to identify the category of wheeled goods (vehicles) you or your organization (as a freight forwarder) would frequently export, such as cars (saloon cars, CRV’s, SUV’s, either new, used, or damaged), trucks and heavy equipment (plants, cranes, and other machines). However, with regards to volumes, the United States, Europe, and Asian countries are locations where massive volumes of roll-on-roll-out freight actually originate, though they’re other locations.
Exporting used cars could be easy depending on your location since private car owners or companies would occasionally want their cars or vehicles changed.
Your focus at this point should be on foreign buyers, precisely those that buy in bulk. Of course, they are all over the world, and this explains why this export service isn’t restricted to a particular continent. Alternatively, in this sphere of trade, one could equally function as a shipper within a continent.
In a bid to extend your tentacle, establishing contacts with foreign buyers of these categories of freight could be achieved in this ways;
• The first thing to do here is to source for these goods (either new, used, or damaged), and have a place where these goods could be stored, and as well be showcased online.
• Alternatively, develop a website strictly to advertise and sell these goods, while buyers would have to bid via your website. In this case, you may not own where these goods (vehicles) are parked, but only showcase these goods with their locations on your website and as well, do the sale.
• Third option is to source for these goods (vehicles), establish contact with buyers (dealers) of these goods. So when you buy or if vehicles are available within your location, you notify your clients, then render its export logistics, ship to them, and get paid.
Once you are done with the stages above, the next step is to draft an application letter with all relevant documents required by government authorities in your country, for the purpose of eligibility and credibility to export such freight.
“SAMPLE OF APPLICATION LETTER TO BE DRAFTED WITH YOUR AGENCY DEFAULT FORMAT”
ABC EXPORT LOGISTICS LIMITED
Ports and Trade Center
14 February 2019
Your Ref: *******
Our Ref: ********
Standard Organization of Vehicle Approval
APPROVAL TO EXPORT VEHICLE
In our letter dated 22 December 2018, we introduced our freight company to you and as well, stated our goals and objectives in the area of freight logistics that was honored and approved.
Today, we are pleased to inform you that our organization has a good number of vehicles to be exported, the reason you have to take us seriously as a freight forwarder, and as we know, vehicles exported from our country are highly recommended globally.
Attached here are our firm’s documents and that of the vehicles, we, therefore, request your agency approval and will be delighted to bring along, all relevant documents for screening.
For: ABC Export Logistics Ltd
At this point, it is assumed you’re already equipped with the knowledge of RORO export logistics. Work out all the necessary modalities to have wheeled goods (vehicles) shipped with a shipping company or shipping line, this may require these goods shipped with the aid of a container, which could be deployed based on security reason or shipped along with other goods as full container load, alternatively, ship in form of a less than container load. But in most scenarios, wheeled goods are shipped directly onboard a RORO vessel.
After you have purchased or sourced vehicle(s) to be exported, either new, used or damaged, while in some cases due to the level of vehicle damage, which may be towed on-board and unloading from the vessel. In this case, it will require extra handling costs.
The shipping company or liner contacted for the carriage of these vehicles would as part of its logistics, issue a bill of leading for that vehicles, while its manifest, draft bill of lading with other shipping documents will be transmitted to the company’s agent (for delivery) at the port of unloading, this will require the presentation of vehicles’ invoice with other document relating to that vehicle. Freight charges are meant to be paid to the shipping company or liner, while shipping charges will be paid to the agent (shipping company at the port of unloading), the terminal charges are to be paid to the port or terminal owners where these vehicles will be unloaded and stored. Lastly, make sure all paper works are correct.
Customs will need to know the year the vehicle was produced (for example, 2017 Toyota Camry) and its current state in order to ascertain its value. The freight forwarder of the vehicle will have to submit copies of the vehicle’s documents and its export documents to customs for inspection and verification purposes, and once customs and other law enforcement agents are done with their inspection and verification, and if all parties are satisfied! Then the vehicle will be authorized into the port to be exported, precisely into the port terminal where it will be stored as roll-on-roll-out export (RORO) or shipped directly onboard.
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