What Does a Shipping Company Do?

What is a shipping company? Shipping companies ensure the safe and timely transportation of goods from one point to another on behalf of individuals or companies. Shipping companies play a vital role in transporting a manufactured product from the factory, to a store's warehouse or a customer's home. This process includes not only physical transportation but also pre- and post-transport operations. Shipping companies usually provide transportation by land, sea, or air. This allows global trade and the economy to function more efficiently.

How to Establish a Shipping Company?

To start a shipping company, you first need to prepare a detailed business plan. This plan should include your company's objectives, your services, your market analysis, and financial projections. Your business plan will both guide you and help you convince potential investors. So, how to start a shipping company?

The Process of Establishing a Shipping Company:

• Determine the Type of Company: You can establish your shipping company as a sole proprietorship, limited liability company, or joint stock company. Each type of company has its advantages and disadvantages.
• Name, Surname, and Trade Name Registration: Perform the name, surname, or trade name registration process by the type of company you have determined.
• Tax Office Registration: Register your company with the tax office and get your tax certificate.
• Chamber of Commerce Registration: Register your company with the chamber of commerce.
• Permits and Documents: Obtain the permits and documents required for transportation activities. These documents may vary depending on the type of transportation and the type of vehicle.
• Vehicle Fleet: You will need appropriate vehicles to carry out your transportation activities.
• Personnel: Employ a sufficient number of personnel according to the size of your company.
• Insurance: Get insurance against risks that may occur during transportation.
• Workplace: Find a suitable workplace for your company.

What are the Requirements for Establishing a Shipping Company?

Stepping into the shipping industry and starting your own business can be an exciting decision. However, this process requires detailed planning and preparation. Here's what you need to know to start a shipping company:

1. Market Research

Target Audience: Which sectors will you serve (food, automotive, textile, etc.)?

Competition: Who are your competitors in your region? What are their strengths and weaknesses?

Pricing: Create a competitive pricing strategy by analyzing competitors' prices and your costs.

Demand: What is the demand for transportation services in your target region? How can seasonal changes affect it?

2- Preparing a Business Plan

Vision and Mission: What are your company's long-term goals and values?

Services: What transportation services will you offer (land, sea, air, combined)?

Marketing: What methods will you use to find customers (cold calling, digital marketing, referrals)?

Financial Projections: Prepare a detailed financial plan including your revenue, expense, and profitability projections.

3. Company Type Selection

Sole Proprietorship: The simplest type of company established by one person.

Limited Company: A company with partners and the liability of the partners is limited.

Joint Stock Company: A more suitable option for large-scale companies with capital divided into shares.

4. Capital Determination

Incorporation Capital: The initial capital required to establish the company.

Working Capital: The capital required to cover day-to-day operating expenses.

Vehicle Purchase: Investment to build a fleet of vehicles.

Storage: If you are going to provide warehousing services, the cost of renting or purchasing a warehouse.

On top of this, there are many other issues such as staff recruitment and operations, marketing, and sales.

Documents Required to Establish a Shipping Company

Documents Related to Company Establishment

• Articles of Association: It is an official document containing information such as the purpose of the company, responsibilities of the partners, and capital.
• Residence Certificates of the Partners: Documents showing the identities and addresses of the company partners.
• Tax Certificate: A document showing the company's tax number.
• Trade Registry Record: A document showing that the company is registered in the trade registry.
• Signature Circular: This is the document indicating the signature authorization of the partners.

Documents Related to Transportation Activities

Ministry of Transportation Permits;

• International Transportation Permits: Required to transport cargo abroad.
• Dangerous Goods Transportation Permits: Required to transport dangerous goods.
• Special Transportation Permits: Required for transportation by private vehicles.

Vehicle Documents;

• Vehicle Licenses: This is the document for all vehicles to travel in traffic.
• Exhaust Emission Certificate: A document showing that vehicles are environmentally friendly.

Driver Documents;

• Driver's License: It is the document showing the authorization of drivers to drive vehicles.
• SRC Certificate: Known as a professional driver's license.

Insurance Documents;

• Compulsory Traffic Insurance: Compulsory for all vehicles.
• Casco Insurance: It is made to secure the vehicles in case of damage.
• Transportation Insurance: This is used to cover the transported goods in case they are damaged.

What are the Types of Shipping Company?

Transport companies are divided into different types according to the type of product they transport, the transportation distance, and the vehicle used.

International Transportation: Transportation between countries.

Domestic Transportation: Transportation within a country.

Partial Transportation: Transportation in which different shipments are transported together.

Complete Transportation: Transportation in which a single shipment is carried by one vehicle.

Road Transportation: Transportation by road vehicles such as trucks and trucks.

Sea Transportation: Transportation by ships.

Air Transportation: Transportation by airplanes.

Required Capital for Shipping Company

One of the most important issues for entrepreneurs who want to start a transportation company is how much capital will be required. Although it is not possible to give a clear figure, many factors affect this cost. The capital required to establish a shipping company varies according to the size of the company, its vehicle fleet, and the scope of its services. In general, however, a certain budget is needed for vehicle purchases, personnel expenses, and office costs.

Establishing a shipping company can be a profitable business, but it is also a challenging process. In this process, it is important to plan carefully, obtain the necessary permits, and have detailed information about the sector. In addition, you can be successful by prioritizing customer satisfaction in this highly competitive sector.