International Discount Freight Shipping in Australia
Freight shipping in Australia is the only way for businesses to survive if they depend on exporting their goods to foreign countries. However, international freight can be quite expensive – especially for smaller businesses and start-ups. Finding sensible shipping solutions that will save you money is important for any business that wants to survive and continue to grow. Despite what you might believe there are ways of saving money when freight shipping – without having to compromise on quality service and/or confidence in your shipper. Although your international freight provider might not readily offer you the best shipping rates – if you have a budget in mind, there are ways of making your shipment costs fit within it.
International Freight Shipping in Australia
One of the easiest ways of cutting down on shipping costs is to opt for the least expensive form of shipping. If you have an international freight shipping need, then sending your shipment by sea is the most economical. If you are connected by land bridges to your ultimate destinations, then shipping by road is often the cheapest option. Find out what Freight Shipping Company in Australia would best work for your needs money-wise and then request that option. However, bear in mind that if your shipment is time-sensitive, you will most likely have to compromise cost for expediency.
International Freight Shipping From Australia
There are different types of containers available an those that provide the greater amount of security and protection for your Freight shipping in Australia will cost more than the others. Here we will look at four options when it comes to containers:
1- Closed container: most secure and protected option, but most expensive. Most commonly used sizes are 20 foot and 40 foot – but if you have a small shipment you may not need so much space.
2- Sharing a container: If your shipment is too small to warrant a regular container you can save money by requesting to share the container with another shipment heading to your same destination.
3- Smaller container: There are smaller container options that are available, however, they are not the cheapest option, but are a good compromise if you want the protection without the very big price.
4- Open pallet: An open pallet is exactly what its name implies – a pallet onto which your goods are stacked and then secured using cello-wrap or something similar. It is by far the cheapest option available, however, your goods must be very securely packed and it is best if the goods were not breakable.
The next way to save money when it comes to freight shipping is to request a longer or more circuitous route. If you are not in any hurry for your goods to arrive at their destination, then you can booked them on a carrier that will make several stops before reaching its ultimate destination. It is a good way of freight shipping your goods without having to pay the full, high price-tag that comes along with a direct shipment with no stops.
International Discount Freight Shipping in Australia
"Cost and Freight". What does that mean? These were the very questions I asked when I first heard of it. Well today, I am going to give my explanation as best as I can about this shipping term.
Ok, I have previously gone through in my blog about Ex Works and FOB, if you have read about them, it will definitely help. CFR simply means you add your Ocean Freight cost, which is the cost you pay for booking a container to the other costs you are incurred when making a purchase. As I mentioned before, the container is a steel box that is used to contain all the goods you desire to ship. It comes in a 20 footer size, 40 footer size and 40 footer high cube size. I will dwell into that some other time.
So this is how CFR works. A buyer from Africa wants to buy 10 container loads of ginger bread man dolls from you and he asked you for a quote CFR (Tema Port). So what do you do? Well, firstly you calculate the quantity you can load, into the container, and then calculate the product's total price per container. This friend is ex works.
So now let's proceed to add the forwarding charges, which include the forwarding fee and also the haulage charges. Now with that done, you get yourself an FOB price.
Then we proceed by adding the ocean freight on top of the FOB price. This gives you the CFR price.
Recap: CFR = Product price + Forwarding and Haulage Charges + Ocean Freight Fee
So what is the benefit of quoting your customer CFR? The thing is, it will help your customer get the most accurate costing available to him at that period of time. If he is a serious buyer who needs to make a purchase confirmation within the next few days or week, then this is the most accurate cost he can rely on. Of course he will have to be aware of the import duties in his country to get a final nett price which he will be paying for your ginger bread man dolls.
Again, always remember to get your currency exchange rates correct and note the trend, is the US dollar going up or down these past few days, what's the movement going to be tomorrow and onwards, especially the time the products are meant to be shipped.
Remember to place a short validity to your CFR quote because it will protect you from the crazy fluctuations of transportation and ocean freight prices. Always double check your shipping costs before you make your delivery. Get a verbal confirmation AFTER you get a black and white or documented quote from your transporter, forwarder, haulier and forwarding agent. This way, you free yourself from the risk of quoting the wrong prices. Your ginger bread man dolls would really blow your business away!
So there you go, the meaning of CFR made easy for you. If you are new to shipping, make sure you consult your shipping agents to learn these terms better. If you do your homework, it will just make your job and theirs easier. Ultimately, making your customer's job of buying from you an easy as ABC 123!
Australia Freight Shipping in Australia
LTL or Less than Truck Load freight shipping provides shippers the convenience of transporting smaller volume shipments at affordable prices. This is an emerging trend that is fast becoming popular among shippers.
LTL Freight Shipping Process
LTL shipping takes place in several steps. First, the operator collects shipments from several customers. These shipments are then taken to a terminal where they are sorted according to their destinations. Consolidated shipments with like destinations are then placed in an outbound vehicle and taken to the regional terminal. Here, the shipment is unloaded and distributed to individual destinations.
LTL Freight Shipping as an Emerging Industry
Less than Truck Load freight shipping is a new trend in the shipping industry that is providing significant costs savings to shippers. However, it is a highly volatile segment of the trucking industry, since it involves frequent handling of packages. The process involves picking up, sorting, consolidating and the delivering of packages, making it a labor-intensive exercise. As a result, the LTL shipping industry works on smaller margins, covering fixed costs with huge shipment volumes.
Due to trucking deregulation, the industry is hypercompetitive. The increased competition has also forced many LTL shipping companies to buy trucks with modern technology, such as diesel-efficient engines and accident-reducing mechanisms. They also tend to employ the latest technologies to optimize the efficiency of their operations. Relative to the full truckload industry, the LTL segment requires more capital investment.
Benefits of Less than Truck Load Shipping
Less than Truck Load shipping of freight is beneficial to shippers because:
- Regional terminals facilitate delivery of shipments even to the remotest areas.
- Small shipments can be delivered cost-effectively with LTL freight shipping, since customers do not have to pay for the whole truck.
- Customers can ship their goods at discounted prices if they use the services of one LTL freight company for all their delivery needs.
- Most LTL freight companies provide modern tracking technology to help users track their shipment in real time.
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