International Logistics Rules and Regulations You Need to Know
Published on: March 29, 2024
In today’s interconnected world, businesses rely on international trade, imports, exports and other logistics to move supplies and materials from point A to point B. In this sense, international logistics are a particularly important component of the global supply chain.
At the same time, international shipping isn’t always so simple — and there are a lot of considerations that need to be planned for well in advance. This ranges from securing global shipping routes and ensuring proper shipping documentation to handling cross-border logistics and following international shipping laws.
As you can imagine, the logistics of getting things securely from one part of the world to the next can get very complicated. This is where logistics management professionals come in to handle the ins and outs, ensuring that all laws and regulations are followed while getting shipments moved efficiently.
Interested in a career in international logistics or logistics management? If so, one of the most critical things you’ll need to know is how to stay up to date on logistics industry trends and remain in compliance with ever-changing rules and regulations.
Understanding International Logistics
So, what is international logistics anyway? In simplest terms, this refers to the many ways in which goods and materials are moved from suppliers to other businesses (or from suppliers directly to customers) across international borders. This includes everything from managing supply chain operations and following export control regulations to facilitating cross-border trading and much more.
International logistics is critical to the movement of goods and materials that we use in our everyday lives. In many ways, the movement of the global supply chain depends heavily on logistical factors — and (as we saw during the mandated shutdowns and quarantines of the COVID-19 pandemic) it doesn’t take much disruption to create major problems. Global issues, politics, regulatory changes and even technological advancements can affect the realm of global logistics and the supply chain.
With so much at stake, the field of global logistics has a dire need for knowledgeable and experienced professionals to lead in logistics management, logistics risk management and more. These experts can help suppliers avoid costly compliance issues and ensure that materials are moved securely and efficiently along the global supply chain.
Key Rules and Regulations in Global Logistics
There are several regulations that come into play when it comes to getting goods and materials across international borders and through global shipping routes. Staying on top of things like trade agreements and other laws is critical for anybody working in logistics management or supply chain management, as these are critical to removing potential trade barriers and propelling economic growth across all participating nations.
You can view a detailed list of trade agreements, foreign regulations and United States export regulations on the International Trade Administration website. Examples of some of the most notable trade agreements affecting international logistics have included:
- North American Free Trade Agreement
- Regional Comprehensive Economic Partnerships
- European Union
- Central American-Dominican Republic Free Trade Agreement
In the interim, each country has its own regulations and requirements when it comes to customs procedures, documentation requirements for shipments, tariffs, duties, taxes and more.
Navigating Customs and Import/Export Procedures
Businesses and logistics managers need to be well versed in the various import and export procedures that will need to be followed when a shipment crosses an international border. Otherwise, this could result in businesses and suppliers facing heavy fines, penalties or even having their goods/materials seized.
Every country creates its own rules when it comes to customs imports and exports, especially as they relate to customs brokerage, clearance and valuation. Concurrently, these regulations may also be influenced by trade agreements in which the nation may participate. It is also worth noting that some countries may have restrictions or bans on certain goods or supplies.
Regardless of specific customs regulations, suppliers must also follow local requirements for shipping documentation. All shipping documents, such as invoices and packing lists, need to be accurate and readily available for inspection at all times.
Transportation and Freight Forwarding Regulations
International freight forwarding is another essential component of logistics management. Specifically, this refers to the act of moving goods and materials through coordination between different transportation services to ensure that supplies get from point A to point B. In some cases, shipments may need to make several stops and be forwarded to many different transportation services before reaching a destination.
Freight forwarders and logistics management teams, then, need to be well versed in the art of negotiating freight rates, consolidating freight to follow budgetary needs and other complex tasks. At the same time, all freight forwarding regulations need to be followed to ensure the security and protection of the global supply chain.
Compliance and Risk Management
In addition to understanding regulatory and freight forwarding compliance standards for international logistics, these professionals must also have a solid understanding of logistics risk management to minimize loss of materials and supplies during transport (which can be very costly).
Notably, logistics risk management teams work to prevent losses by making risk evaluation plans, mapping supplier networks, careful evaluation of suppliers and leveraging of threat data from different sources. When proper risk mitigation procedures are followed, it is possible for logistics teams to minimize losses and maximize profits.
There are also a lot of different innovations and technologies that are available to assist with risk management strategies. Global trade management solutions, logistics technology solutions and trade compliance software all offer risk management and risk mitigation features to help businesses protect their shipments and their bottom lines. The key is choosing the right solution for the company’s changing needs and taking advantage of all the features that are available.
Technological Advancements in Managing Regulations
Speaking of technological advancements, logistics management has also seen some great new resources emerge to assist in managing regulations and international laws. These can be difficult to keep up with, as they are constantly changing. Unfortunately, even a seemingly small issue with a shipment not following regulations can lead to significant fines and other penalties that can negatively impact the global supply chain.
Fortunately, technology solutions are now available to handle everything from screening shipments for restricted goods to providing alerts when a high-risk response is detected. This, in turn, makes it easier for suppliers to stay in compliance and to keep materials moving along the supply chain. Alongside this, valuable time and resources are freed up so that logistics management workers can focus on other crucial aspects of the job.
Future Trends in Logistics Regulations
While only time will tell what the future holds for the realm of logistics management and regulations, there are some trends that have been predicted to affect the industry over the scope of the next several years.
For example, it is anticipated that global labor shortages will continue to affect the global supply chain and contribute to higher costs of supplies and materials overall. Likewise, it is expected that suppliers across the globe will continue to turn to automation as a means of filling those labor gaps whenever possible.
Simultaneously, we expect to see a greater demand for more transparency and visibility as materials move through the global supply chain. This can be accomplished with the many technologies that are emerging, such as integrations between EDIs and APIs. When these systems are configured to work together, it is possible to provide more robust insights and greater transparency throughout the process while cutting down on errors and boosting productivity in the process.
Finally, as more consumers continue to shop online and the demand for quick shipping increases, it is expected that logistics suppliers will need to make smaller shipments on a more frequent basis. One proposed solution to this problem is a concept known as “Less Than Truckload” (LTL). This is a method where smaller shipments from various companies are combined to fill trucks. This, in turn, boosts efficiency and helps to cut down on shipping costs for all involved.
Interested in a Logistics Career?
As you can see, there’s a lot of work that goes into keeping the global supply chain running without sacrificing supply chain security or compliance. Professionals working in the field of logistics management or logistics risk management need to have an in-depth understanding of logistics compliance laws and regulations, as well as the kinds of logistics technology solutions and trade compliance software available to make the job easier.
At Park University, we’re proud to offer a bachelor of science degree in management/logistics designed to prepare students for careers in logistics management, supply chain management and more. No matter what area of supply chain management or international logistics you may be interested in pursuing, this undergraduate program can help you build the foundational knowledge you need to thrive in these dynamic fields. Plus, this program is offered not just on campus, but online for your convenience and flexibility — so get in touch today to learn more or get started.