Freight forwarding can be overwhelming to understand for many. But if you deal with supply chain management, procurement and logistics for your company, you don’t have a choice but to familiarize yourself with it.
You have probably come across confusing proposals and quotations from freight forwarders. Or was surprised with high charges or last-minute changes in the pricing. You are not alone. In fact, this problem is quite common across all industries.
This article will give you tips on how to get accurate quotations for your freight forwarding requirements the next time you need it.
Provide the Correct Information
All freight forwarding companies will request for the following information for them to assess the freight mode and the cost:
a. Type and Value of Goods
In our previous blogs about inland freight, sea freight and air freight, we presented information about the types of goods that may or not be suitable for each mode of freight forwarding.
The declaration of goods will also help the freight forwarder compute for insurance cost, if necessary.
Misdeclaration can also lead to unnecessary causes of delay in clearing of the goods in the destination and may add up to penalties and surcharges.
b. Size and Weight
The size and weight are crucial in identifying how the goods will be moved. For sea freight, if you will be able to fill up the whole container or Full Container Load, then the cost is solely charged to your company. If not, Less Container Load rates will apply divided among all the shippers sharing in one container.
For air freight, chargeable weight is computed based on the Gross Weight or the Volumetric Weight, whichever is greater.
For land freight, costs depend on the type of truck your shipment needs aside from other factors.
The intended destination of your shipment is also vital. Primarily for the comfort of the recipient and the safety of your cargoes, it is best to discuss with your freight forwarder the best options in terms of the destination.
There are three schedule factors that may affect the rates:
a. How early did you get the quotation?
Most quotations are only valid for 30 days from the time it was issued. If you get it too early, you might be surprised with sudden changes in the rates and tariffs.
b. How soon do you need the goods being shipped?
If you are in a hurry, chances are, your freight forwarder will have to go out of their way to accommodate you. This may happen to LCL if they do not have available schedules or are still waiting for the containers to fill up. These freight forwarders they will resort to their networks and make things work at an extra cost.
c. Will the shipping schedule coincide with the peak season?
Port congestion is inevitable during the busiest months of the year, October, November and December. Companies literally lineup and even those who have their own ships will have to be scheduled.
Find a Freight Forwarder which is an All-in-One Logistics Provider
Do your own research as well. Not all freight forwarders can offer you the same services at the same price. Find the one with a wide network of carriers for sea freight and air freight and the one with a fleet of new and well-maintained trucks for inland freight.
Look for the one which can make things seem less complicated and the one which can tailor-fit solutions to your needs.
Ernest Logistics Corporation can provide you simple, easy to understand and transparent quotations for your freight needs. We are committed to providing our clients with competitive rates and seamless freight management solutions.
Get the information ready and send it over to us through the following channels and let’s start planning!
Phone: +632 709 7168
Mobile: +632 9162607549 / +632 9162607560