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How to Start a Cargo Shipping Business

Updated March 23, 2017

A cargo shipping business deals with the transportation of goods from one destination to another. This usually involves legal requirements, a carrier and a mode of shipment. A cargo shipping business usually takes care of all the logistics involved on behalf of the client and makes it easy and fast for the client to undertake the shipping process. They also usually works in liaison with other parties such as trucking companies, rail and ocean liners. They may also work with freight brokers and customs agents.

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  1. Research and come up with the business logistics. This will help to keep your business organised and help clients to understand the shipping process and costs involved. Some of the logistics you will need to compute include the shipping costs involved to transport the cargo from one point to another. You also need to factor in the cost of freight and custom duties. It is also important to consider how you will package the cargo for transportation.

  2. Obtain the required business licenses. This depends on the regulations of the country you are planning to operate in. It is suggested that you seek advice from a lawyer on the required licenses in your area of jurisdiction.

  3. Find a suitable carrier. Choose the most appropriate carrier depending on your business needs. You have the option of choosing carriers on land, water or air. The carrier you choose also depends on the amount of funding you have. You should have enough funds to finance the carrier you choose. You should also take into consideration the maintenance cost of the carrier, the fuel efficiency and work force involved in working on the carrier such as drivers and mechanics.

  4. Find storage. Come up with a storage solution of where the cargo will be stored during delivery. This can either be when the cargo reaches its destination or during transit. Find the best option that is not very costly in order to reduce your operating expenses since storage plays a major role in cargo shipping.

  5. Get a warehouse. You have the option of renting if you do not want to purchase a warehouse. Contact commercial real estate agents as they will provide you with the best advice and guidance on where to find the most suitable property.

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About the Author

Martin Muchira

Martin Muchira has been writing content for online businesses since 2008. He has written content for major companies like Air Asia and Comcast. Muchira graduated at the top of his class from Moi University with a Bachelor of Science in wood science and industrial processes.

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