A sea and air cargo company will engage in the act of transporting goods from a specific place of origin to another international location. This is also most commonly known as freight forwarding. Nowadays, such shipping companies are very popular among businesses since they gain you high profit but also can be very risky. So here are the steps you need to follow when starting up a shipping and air cargo company.
- Know your business and industry
Studying the freight forwarding industry is vital in this business. Since the risk is high as mentioned above, you should be very mindful on what you are investing in, which market are going to operate in and what kind of tools and equipment would you need. Freight forwarding is a very complicated market with various rules and procedures. You need to have a sound knowledge of international law, trade theories, foreign policies, customs and regulations etc. Since this industry can be a very difficult one to enter into, you may experience many market barriers with massive competition among the current cargo companies. You need to have a strategy as to how you could overcome such problems and competition.
- Get sea licensing and air certification
It is no child’s play operating at sea and on air. You need to have the necessary authorization by the government carry out your activities. Visit your country’s aviation office and get all the necessary details about the requirements to obtain the license. Those may include your financials, insurance papers, professional qualifications of the pilots and captains etc.
- Get insurance coverage
Insurance is a must in the cargo business. You can never trust the ocean and the sky, so the best is to be prepared for any kind of natural disaster since one shipping container Perth you transport can hold millions of worth goods. You need to obtain liability insurance for your employees and marine insurance for any loss or damage of shipments.
- Choose a shipping type and purchase your airplanes
There are two types of sea shipping. First is where you own the ship and also its containers and will take full responsibility of the shipments. This is known as an ocean freight forwarder. Buying shipping containers and ships is not an easy task obviously. However it has its own benefits. The second option is only providing the cargo service and not owning the vessel or containers. This type is known as a NVOCC. Here you may experience less risk and also less profits.
The type of airplane you purchase will depend on how much cargo you are planning to transport and how many pilots you are planning to hire. You may also lease an airplane rather than buying. Either way, your plane will undergo various checks by the relevant authorities before granting you the license.