In today’s fast-paced world, e-commerce has become a major economic driver. The U.S. e-commerce industry is projected to reach a staggering 1.2 trillion dollars in revenue in 2024 and an estimated 1.8 trillion dollars by 2029.
With so much value riding on this industry, a mishap that loses or damages your cargo can set you back significantly. Ensuring the security of your products and having proper protections in place is crucial, starting with your shipping contract.
Understand the costs
Look closely at how much the shipping company will charge you. Specifically, focus on the extra fees beyond the basic price. These might include additional charges when fuel prices rise or higher rates during busy times like the holiday season. Some companies may also charge special fees for large or unusual items. Knowing all these potential costs helps you set the right prices for your customers and avoid surprise expenses that could eat into your profits.
Check the shipping schedule
Pay attention to when ships will leave and arrive. This information is vital for telling your customers when to expect their orders. Find out how often ships sail to the places you need and how long it takes to get from one port to another. It’s also important to understand what happens if there are delays. This knowledge helps you manage your inventory and keep customers happy with accurate delivery times.
Review how they will handle the products
It is crucial to know how the shipping company will take care of your products. The contract should specify how to package your items and how they will be loaded on and off the ship. It should also clarify the parties responsible for product safety during transit, especially during any transfers or storage periods.
Know what happens if something goes wrong
Examine what the contract says about problems like lost or damaged items. You need to know the shipping company’s liability limits and compensation procedures. Pay attention to any exclusions or conditions that might affect your ability to claim compensation. Make sure to also look at the insurance requirements and consider whether you need additional coverage to protect your business interests fully.
Navigate your shipping contracts with ease
Each business has unique needs and potential risks. For tailored advice on how shipping agreements can protect your business, consider consulting with legal professionals.
