How does FGX’s Global IT Shipping Service Compare with Courier Services (such as UPS, DHL, FedEx)?

Major couriers such as UPS, DHL, and FedEx have spent decades advertising that they can ship anything anywhere. These major couriers, along with smaller (and often local) couriers provide general shipping services for the average consumer (such as personal items without complex customs requirements) or simple business needs (usually unregulated, bulk goods, like documents, samples, replacement parts, etc.).

Unlike personal items and unregulated, bulk, goods, IT hardware is a high-value, mission critical commodity that governments regulate closely. It’s extremely difficult to successfully ship IT hardware internationally without a deep understanding of how to identify and fulfill a shipment’s requirements based on its origin, destination, bill of materials, and commercialization flow. In effect, shipping IT hardware requires a unique set of services that courier services don’t specialize in and often don’t even provide, including:

• Importer of Record services

• Customs clearance expertise for IT commodity HS codes

• HS and ECCN code analysis

• Integrated export and import trade compliance analysis

• Permit and license application

• Pre-shipment product compliance analysis

• IT specific project management (e.g., ability to plan ahead and work with data centers)

• Enterprise solutions engineering (B2B asset movements have finance and accounting implications that need to be taken into consideration prior to shipping)

• Pre-export staging and manifest services

• Insurance specifically underwritten for IT shipments that will actually pay out

Ultimately, transportation—which is what couriers provide you with—is not sufficient as a full global IT shipping solution. It’s just one phase in a more comprehensive process.

What is a global IT shipping service?

A global IT shipping service enables you to ship your IT hardware around the world, usually door-to-door. This includes advising customers on the many international business complexities specific to IT hardware. Our company, FGX, is one of few companies that provide a specialty global IT shipping service. Over the last decade, we have shipped hundreds of millions of dollars worth of hardware to offices, data centers, and colocations all around the world for cloud providers, high frequency traders, enterprises, and more. We’ve created our own private supply chain that enables enterprises to seamlessly ship their IT infrastructure all around the world, in compliance and catered to their company’s commercial requirements.

To further elaborate on how a global IT shipping service compares with shipping with courier companies, consider the following factors:

Deliverability: Shipping IT hardware to its destination

While major couriers claim that they can ship around the world, their capabilities for shipping IT hardware are much more limited because of strict customs clearance regulations. By comparison, our global shipping service takes into account each country’s specific IT regulations to ensure a shipment can clear customs.

Shipping coverage

A global IT shipping service (FGX) offers global customs coverage and ships to 174 countries, clearing customs for tens of thousands of shipments with a 99.98% success rate.

A courier service (UPS, DHL, FedEx) offers varying shipping coverage. Major couriers will advertise that they can ship around the world, but often will not be able to clear customs to countries with stricter regulations. Smaller couriers often only ship locally or domestically.

Logistical system

A global IT shipping service (FGX) sends a shipment directly to its final destination through direct freight such as a commercial or cargo airline.

A courier service (UPS, DHL, FedEx) consolidates a shipment with many other shipments and passes it through multiple hubs to be re-routed to the destination with a hub-and-spoke method.

Transportation method

A global IT shipping service (FGX) delivers shipments via dedicated, secure vehicles. With this dedicated transportation method, drivers can execute specific instructions, hold at a location and will provide live updates.

A courier service (UPS, DHL, FedEx) uses an on-route delivery method to deliver shipments with other parcels on a regular truck route. If the recipient isn’t available when the driver arrives, they’ll immediately move onto the next stop.

Documentation support

A global IT shipping service (FGX) manages all the required documentation—including paperwork, permits, & licenses—to import technology hardware internationally on your behalf. From encryption permits for firewalls and routers, to electrical conformity documents for PDUs and power supplies, we have you covered no matter the type of equipment or the most regulated destinations.

A courier service (UPS, DHL, FedEx) offers no documentation support. If any paperwork is missing, they’ll put your shipment off to the side and wait until you call—to maybe tell you what’s needed. In many cases shipments need a permit or license prior to shipping. If you ship with a hub-and-spoke shipper without the proper permits, your shipment may be blocked from entry, returned to the origin, or even confiscated.

Enterprise support

A global IT shipping service (FGX) will ensure that all of your company’s enterprise commercialization goals and requirements are taken into account.

A courier service (UPS, DHL, FedEx) offers no enterprise support. Couriers focus on transportation, and don’t care about your enterprise’s specific goals.

Importer of Record support

In order to reduce your costs and enable taxes to be reclaimable, a global IT shipping service (FGX) will offer Importer of Record support. FGX will work with you to figure out whether you can act as your own Importer of Record or—if you can’t—provide you with a 3rd party IOR service. 

A courier service (UPS, DHL, FedEx) offers no Importer of Record support. As couriers are more focused on bulk transportation, they do not provide guidance on whether your enterprise can act as an IOR. They also do not provide 3rd party IOR services if needed. If you ship to a foreign country and don’t have a business to import your shipment, you will likely have issues clearing customs.

Insurance coverage

Whereas courier insurance claims are typically rejected, a global IT shipping service (FGX) has underwritten a bespoke all risks insurance policy with Lloyd’s of London specifically for its global IT shipping service that won’t be voided whenever a claim is made. 

A courier service (UPS, DHL, FedEx) offers insufficient insurance coverage. Couriers, like FedEx, may advertise insurance coverage, but when you dig into the details, you’ll find that it’s often not adequate. Major couriers limit their liabilities through different clauses (e.g., FedEx does not actually provide insurance coverage). If you want insurance, you will need to purchase third-party insurance separately. Shipping insurance provider Secursus reports rates can vary from 0.5% to 4%, depending on coverage requirements.

Manifest process

Compliance experts at a global IT shipping service (FGX) will execute a detailed manifest process, physically reviewing each box and device in each shipment, ensuring what you’re looking to ship is actually there, and collecting crucial data points needed during customs clearance. 

A courier service (UPS, DHL, FedEx) will not manifest your equipment. They just ship it and expect that you have everything needed to clear customs.

Cost: Balancing between value and price

While courier services will generally send smaller quotes upfront, these quotes only cover a small aspect of the solution that you actually need to get your IT delivered. 

Quoting

When you move forward with an upfront quote for your shipment from a global IT shipping service (FGX), and none of the original parameters change, you'll never receive an additional bill. You’ll know exactly what you’re paying for with our detailed line item breakdowns, from logistical to compliance costs.

A courier service (UPS, DHL, FedEx) can provide an upfront quote for transportation services, but an uncertain cost for the entire shipment. When you move forward with a quote from a courier service, you’ll only see the cost for transportation. If you’re lucky enough that your shipment clears customs and is delivered, you’ll often see the majority of the real costs after your IT hardware has been delivered, known as a bill-back. This could be for taxes, duties, or import costs. Couriers will likely send this bill to your end user (or stakeholder), who often will not expect to pay any additional costs.

Tax reclamation documentation

The average IT shipment has an import tax rate of 20% and Importer of Record rate of 8% for non-US countries. A global IT shipping service (FGX) will work with you to prepare documentation for tax reclamation, ensuring you have all the documentation needed to reclaim your taxes when you act as your own Importer of Record, leading to cost savings ranging from thousands to millions of dollars.

A courier service (UPS, DHL, FedEx) provides no support for tax reclamation. They will not advise you or help prepare any documentation for tax reclamation.

Service: Project management for the unexpected

FGX’s global IT shipping service comes with world class customer service, project management, and support. Couriers also will not provide additional services or support for an IT shipment gone wrong. 

Project management support

With a global IT shipping service (FGX), you will work with a dedicated project manager and receive accurate cost estimates, custom transit timelines, and country-specific information relevant to any new deployment. 

Naturally, major couriers such as UPS, DHL, and FedEx can only offer general support because they process hundreds of thousands of shipments a day and a single shipment will not take precedence over anyone else’s. A major courier is not able to give the level of attention to detail that customers shipping IT hardware deserve. 

Tracking

The FGX platform has been designed specifically for enterprise IT shipping. It can act as a single source of truth where you’ll be able to access and manage all of your data, quotes, and shipments in one intuitive platform.

While couriers can offer labels and limited tracking, they will not provide a portal experience designed for enterprise shipping. Their goal is just to be able to get you a shipping label as soon as possible.

Audit support

Any time you ship with a global IT shipping service (FGX), you’ll be covered by its world class audit support. In the case that you receive an audit from an external party, FGX will provide you with supporting documents and guidance.

Couriers aren’t concerned with anything that happens to your company after they’ve printed their label. They provide no audit support. If there’s an audit, you’ll be on your own.

The best of both worlds

Despite all the indicators that couriers aren’t the ideal solution for moving high value IT hardware, they can still be a great option for cost-efficient shipping. On the infrequent occasion that it makes sense for the client’s requirements, we may recommend a solution involving UPS, DHL, or FedEx. For example, FGX offers a Managed Courier Service where we ship on our account, handle all of the shipping documentation and often add on an IOR service. We may recommend this hybrid service for the following scenarios:

• When you’re shipping less than USD $2,500 worth of goods to an open market (USA, EU, Canada, Singapore, Japan) to one of our business entities that will act as the importer of record.

• When you have a limited budget and don’t have a deadline for delivery, we can ship via courier. If any issues come up, our team of logistics experts will work on your behalf to resolve them.

In the rest of the scenarios, when the value of your shipment is above USD $2,500, your shipment is bound for a destination that is a more heavily regulated market, or your shipment has a deadline for delivery—FGX’s global IT shipping solution is more suitable.