Complete Shipping Process from India to the USA

Introduction

This is Anil Aggarwal, and today I had the opportunity to meet Reena Sharma, who works at S & S Brokerage Inc. She provided valuable insights into the shipping process, including key cost factors and logistics. Below is a detailed recap of the process, covering the movement of a 40-foot container from India to the USA and the steps involved in customs clearance, warehousing, and distribution.

1. Drayage (Pickup from Supplier to Port)

• Step 1: Supplier prepares shipment and loads containers.

• Step 2: Drayage provider picks up the container from the supplier’s location.

• Step 3: Container is transported to the origin port.

• Step 4: Container goes through port entry procedures and documentation checks.

• Step 5: Container is staged for loading onto the vessel.

2. Ocean Freight (Port-to-Port Shipping)

• Step 6: Container is loaded onto the cargo ship.

• Step 7: Ocean freight transit begins (can take days or weeks depending on the route).

• Step 8: Real-time tracking and monitoring of the container during transit.

• Step 9: Container arrives at the destination port.

3. Customs Clearance (Import Process at Destination Port)

• Step 10: Container is offloaded from the ship and placed in the customs yard.

• Step 11: Import documentation is verified (Bill of Lading, Commercial Invoice, Packing List, etc.).

• Step 12: Customs duties and taxes are assessed and paid.

• Step 13: Container undergoes inspection (if required by customs authorities).

• Step 14: Container is released from customs for further transportation.

4. Drayage (Port to Distribution Center or Warehouse)

• Step 15: Drayage provider picks up the cleared container from the port.

• Step 16: Container is transported to the distribution center or warehouse.

5. Distribution (Breaking Down and Shipping to Customers)

• Step 17: Container is unloaded at the distribution center.

• Step 18: Goods are sorted, repackaged (if needed), and labeled for final destinations.

• Step 19: Goods are sent out via trucking, air, or last-mile delivery services to retailers, wholesalers, or customers.

6. Warehousing (Storage & Inventory Management)

• Step 20: Remaining goods are stored in the warehouse for future distribution.

• Step 21: Warehouse team updates inventory records.

• Step 22: Orders are processed from stored inventory as new shipments arrive.

• Step 23: Continuous monitoring for replenishment and demand forecasting.

This is the standard shipping process covering drayage, ocean freight, customs clearance, and final delivery. Let me know if you want additional steps or modifications.

Real-World Example Based on Reena Sharma’s Insights

Container Shipping from India

• A 40-foot container costs approximately $2,400 for shipping from Navasheva or Mundra ports in India.

• If shipping from Delhi to Mumbai (port transportation), there is an additional cost.

Customs Clearance & Paperwork

• Once the container arrives at the USA port, customs clearance is required.

• Duties & Taxes: Payment depends on the commodity being imported.

• Custom Bond Charges:

• One-time bond: $275

• Annual bond: $650 (allows multiple shipments in a year).

• Port Terminal Reclaim Process:

• The container must be picked up within four days from the port, or else penalty charges apply.

• Driver Costs & Additional Charges:

• Small transportation and handling fees (~$125, $45, etc.), totaling $1,000–$2,000 extra.

Transport to Warehouse

• Once customs clearance is completed, S & S Brokerage Inc. can move the container to Harrison Warehouse.

• At the warehouse, the container is de-stuffed (emptied and sorted).

• After de-stuffing, goods are cleaned and prepared for final delivery.

Final Distribution & Delivery

• Once the inventory is sorted, Reena Sharma and her team generate invoices based on the delivery locations.

• Packaging & Palletization:

• If pallets are pre-arranged in India, this saves significant costs, as palletization in the USA is expensive.

• If pallets are not pre-arranged, goods must be palletized in the USA before further shipment.

• Less than Truckload (LTL) Shipping:

• If the shipment is not a full truckload, it is classified as LTL (Less Than Truckload).