International Shipping Mistakes: Top 10 Errors Exporters Make

Indian exporters suffer millions of losses due to shipping errors every year. Documentation errors, misclassification, inadequate planning aren’t just a nuisance – they’re revenue killers. 

Avoid costly mistakes by following  below the top 10 shipping pitfalls that Indian exporting businesses make and how they can avoid them. Make it easy and save time and money.

Mistake #1: Incomplete or Incorrect Documentation

The scenario that occurs: A shipment was sent to Singapore, but the company name in the invoice is different from the name on its shipping documents, and this causes the shipment to become stuck for 7 days.

The reason is that customs officials point out discrepancies. One error may cause your entire shipment to be delayed.

How to avoid:

• All documents to be submitted will be cross verified 3 times
• Make sure of a consistent company name, address and IEC number throughout all the forms
• Follow the checklist template provided in a professional forwarder’s checklist

Cost of mistake: ₹20,000-50,000 in port charges + 5-10 day delays

Mistake #2: Commodity Misclassification

What they do: An exporter labels electronics as “general goods,” which means that the goods have to be re-handled, at a high cost and delays the shipment.

Why it is important to avoid misclassification:

• Excessive or inadequate freight rate (undershot rate, then surcharges)
• Not following the rules (safety, fire hazard)
• Rejections and re-inspections

How to avoid:

• Never assume the HS code of the commodity, always check with your forwarder
• In case of doubt refer to India’s customs HS code database
• Obtain certificates from your manufacturer if you are in the pharma/chemicals industry

There are extra costs involved in claim reclassification (from ₹30,000 to ₹100,000) and delays due to contentious claims.

Mistake #3: Mistaking Dimensional Weight

What happens: You send a box which contains foam cushions (5kg, but 2CBM). Air freight charges you for 2000kg equivalent and not 5kg actual.

Why it matters:

Airlines use the “chargeable weight” which will be either the actual weight or dimensional weight, whichever is greater. Expensive transporting of light, bulky goods is quick.

How to avoid:

• Always calculate: Length × Width × Height ÷ 6,000 (CBM) or ÷ 5,000 (cubic inches)
• Strive to minimize package size by using proper packaging
• If your items are of a large size consider sea freight

Cost of mistake: Air freight overcharge of ₹20,000-100,000+

Mistake #4: Bad Packaging & Labeling

The consequence: Goods are damaged on arrival, due to inadequate packaging. Or because it does not have labels or the labels are not clear.

Why it matters:

• Damage claim is a complicated and time-consuming process
• Lack of clarity in label results in customs delays
• If a package is negligently designed, it is unlikely that the insurance will cover the damages

How to avoid:

• Proper palletizing and strapping
• Label with shipping labels: Shipper’s name, consignee, destination, quantity of packages
• Include hazard words (if applicable)
• Take pictures of full load cargo prior to loading

Cost of mistake: ₹50,000-500,000 (depending on cargo value)

Mistake #5: Failing to Plan for Delays in Customs

The actual situation: You agree to ship in 15 days, but it takes 7 days to clear customs when you arrive at the shipping destination. Your buyer becomes frustrated.

Why it matters:

Delays affect customer trust and shipment timelines.

How to avoid:

• Please note that 5-10 days for customs clearance are to be added
• Have a customs broker in destination prior to importing
• Be realistic with timelines to buyers
• Monitor status of customs documents’ submission

Quality Control: Keeping client relationships, payment on time, a good reputation

Mistake #6: Ignoring Port Congestion & Peak Seasons

What you should do: Set aside a container for June (highest export month). It is at the port for 10 days due to congestion before it is allocated to a vessel.

Why it matters:

This is usually the period of June-August and November-December when there is a delay in the ports. No planning = no shipping windows.

How to avoid:

• Reservations are advised during busy periods 2-3 weeks ahead of time
• Discuss with the forwarder what to expect for port congestion
• Consider air freight or smaller consolidated shipments when shipping during peak seasons
• Monitor vessels by real-time port dashboards

The downside to the mistake is that it can delay the order by 5-10 days, making it possible for the customer to miss the order deadline.

Mistake #7: Using the Wrong Incoterms

What goes wrong: You say “FOB Mumbai” but you don’t say that you would have to pay for insurance. Your margin disappears.

Why it matters:

The terms (FOB, CIF, DDP, etc.) define cost responsibility. Choosing incorrectly leads to additional expenses.

How to avoid:

Before you enter into the terms of trade (Incoterms) understand what they are and how they impact the quotation process:

• FOB: You pay to port, and ocean freight & insurance onwards
• CIF: Ocean freight plus insurance cost is paid, customs & local cost is paid by the buyer
• DDP: Your customs and all are paid DDP (highest risk for you)
• Be sure to discuss Incoterms with the buyer in writing
• Calculate total landed cost, before quoting

Cost of mistake: ₹50,000-500,000 margin loss per shipment

Mistake #8: Not Having Real-Time Shipment Tracking

What happens: You are held up for 10 days and only after your buyer complains do you become aware of the issue.

What it means:

If you’re not transparent, you’re not communicating with customers, and trust is lost.

How to avoid:

• Employ forwarders that have digital tracking dashboards
• Automatic updates of status
• Be aware of vessels/flights inbound and outbound ahead of time
• Give shipment updates to buyers

Outcome: Client is unhappy, and they do not have the opportunity to buy the product/service again.

Mistake #9: Not Having Insurance for Valuable Cargo

The scenario: ₹50 lakh shipment breaks on the way. If you don’t have insurance, you’ll have to cover the entire expense.

Why it matters:

Damage in the ocean or air cargo industry occurs seldom (1-3%) but is completely devastating if it does not have insurance.

How to avoid:

• Cargo insurance for any cargo above ₹10 lakhs
• Consider ‘All Risks’ coverage (standard is limited)
• The cost will generally be 0.5-1% of the value of the shipment
• Please keep original invoices for claims

Loss of cargo value: 100% of the value of the cargo (could be ₹10-100 lakhs).

Mistake #10: Lack of Diversification of Forwarders

The risk: If your one forwarder is late one day, and you don’t have another back-up. There is a queue of orders and people are waiting.

Why it’s important:

Forwarders’ capacity limitations or underperforming performance. Having 2-3 trusted partners means that there are alternatives available.

How to avoid:

• Develop connections with 2-3 good forwarders
• Change up who’s doing what to ensure that relationships stay fresh
• Have a list of vendors in case they are not available
• Make use of multimodal players (sea + air + rail)

Cost of mistake: Business opportunity lost due to lack of capacity; need to pay additional freight for an emergency (last minute) call.

Key Takeaway

There is a lot that can be done to prevent most shipping delays and costs. Have everything documented, use professional forwarders, be prepared and plan ahead, and communicate. This is 80 per cent of the success of international shipping.

Are you struggling to find a reliable international cargo shipping service provider? FAK Cargo offers dedicated worldwide cargo shipping facilities for various industries, with your freight delivered safely and on time.

Don’t stress out, let the expert handle it.

Connect now and let us take care of the international shipping requirements for your business.