Heritage bank business credit card. The limits, fees and need-to-knows
If you’re on the hunt for a suitable business credit card in Australia, there are several offerings available. A mutual or ‘customer-owned’ bank, Heritage...
In the first four months of 2022 over 9 billion USD worth of goods were exported from the US to Australia¹. With so many different products and suppliers available in the US, you may be wondering how you go about shipping goods for your business to Australia.
In this article we’ll take a look at what there is to know about shipping goods from the US including the general process, some of the costs and how long it might take. We’ll also give you an insight into how Wise can help make doing business overseas a little cheaper.
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When shipping goods to Australia you’ll need to choose whether you want to use air or sea transport. The option you go for will depend on the size and amount of goods being shipped, as well as your time frame for delivery.
Air cargo is the fastest way to ship goods to Australia, especially if you upgrade to an express shipment. In general, the type of goods and the size of the shipment play a big part in how it is transported as well as the cost.
There are two types of air cargo.²
General cargo are items that don’t require any special precautions or handling to be safe for transport aboard an aircraft.² This could include some of the following goods.
To organise the shipment of general cargo you could use a courier, logistics company, postal service or freight forwarder.
Special cargo shipments have specific requirements which need to be met in order for the goods to be transported.² This could include having additional safety measures, specific handling processes or special documentation requirements. Here’s an idea of some of the goods that fall into the special cargo category.
Keep in mind that many everyday items can fall into the category of special cargo, including adhesives, nail polish, loose batteries and lithium powered devices.
The type of special goods you have will determine which air cargo services you can use. Postal services and couriers will not ship some special goods, so you may need to engage a logistics company or freight forwarder to assist you. Also, if you’re shipping specialty items such as live animals or frozen food, you might want to engage a company with experience in that area.
Sea freight from the US to Australia is slower than air cargo but is generally a more economical option if you’re shipping large quantities.
The type of company that you’d employ to handle your sea freight generally depends on the size of the shipment. If you’re only sending a few boxes or pallets then a postal service or logistics company might make more sense. If you’re shipping entire sea containers, a freight forwarder or shipping agent is likely to be the better option.
There are many companies out there who’ll help ship your goods from the US to Australia. Here’s a few of the larger companies to get you started.
There are many factors that influence the cost of shipping goods from the US to Australia.
As an example, here’s what it can cost to airmail goods from New York to Sydney using FedEx.³
Company³ | Cost³ |
---|---|
FedEx International Economy (50kg) | $1912.45 USD |
FedEx International Priority Express (50kg) | $3,077.90 USD |
FedEx International Economy (250kg) | $14,871.44 USD |
FedEx International Priority Express (250kg) | $15,311.36 USD |
FedEx International Economy (1000kg) | $35,624.74 USD |
FedEx International Priority Express (1000kg) | $56,600.46 USD |
As you can see air cargo can get very expensive when you’re sending large weight/volumes or quantities of items. It’s best to contact a sea or air freight agency or freight forwarder to get a personalised price offer.
Aside from the cost of shipping, there are some other fees or duties you may need to pay to import your goods from the US to Australia.⁴
Another thing to keep in mind is that you may need to exchange AUD for USD to pay for the goods, shipping costs or some of the fees. The costs associated with this can add up, especially if your bank charges a mark up on the exchange rate or a fee for international transfers.
With Wise there are no hidden fees and your money is exchanged at the real exchange rate, just like you see on Google. It can end up being 6x cheaper than the old–school banks or 19x cheaper than PayPal.
When importing goods into Australia you may be required to provide some of the following documentation depending on what you’re shipping and how.⁵
Australia does place some restrictions on what can be imported from the US, generally based on safety or biosecurity concerns.
Some restricted goods require you to obtain an import permit for Australia to be allowed to bring them into the country.
Here’s a general idea of how long it can take to transport goods from New York, US, to Sydney, Australia.
Shipping Method | Approximate Time Frame |
---|---|
Express Airmail³ | 6 days |
Standard Airmail³ | 9 days |
Sea Freight⁶ | 60 days |
If you’re importing goods and doing business internationally then finding a trustworthy foreign currency exchange service is an important consideration. Wise is a secure online financial provider that specialises in sending money across borders.
With a Wise Business account you can convert and hold over 50 currencies in a single account. There’s no monthly account fees and like we mentioned earlier, your money is converted at the real exchange rate. For 10 of the supported currencies, including AUD, USD, EUR and GBP, you can order local account details making it easier to do business in those regions.
Paying your international supplier’s invoices can also be made easy. They don’t need to have a Wise account of their own and can simply receive the funds into their local bank account.
As an added bonus the Wise Business account can be attached to a Wise debit card. This card handles exchanges automatically making daily spending in foreign currencies simple. The account also has integrated business tools including batch payments and accounting integration options.
To see how a Wise Business account could benefit you, take a look for yourself - creating an account can be done in minutes.
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Sources:
Sources checked on: 29 June 2022
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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