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
Speaking of accounting and terms that are related to export import business; even if you have a bookkeeper or an accountant that will take a good care of your books, there are some things and terms that you should know. Before starting to talk about terms, I want to tell you mt story. When my husband and I just started this business, we had no experience in this field at all. We even didn't have any experience in running any kind of business, so all the financial and non-financial terms were new for us. When we first time went to talk to a custom broker I thought he was speaking in some different language with us. Even the word freight sounded very weird to me, "Why wouldn't you call that shipping??" I though. So, I know your pain when it comes to business slang.
FOB destination - title of the goods passes from a seller to a buyer AT destination. That means that seller is responsible for loss or damage of goods until shipment is delivered to a buyer. For example, you bought a car from Germany with FOB destination terms. In this case if anything happens to a car while it's been shipped, you have NO responsibilities for that, and you will not have to pay for any damage or loss of the car. You even don't have to buy the car when it arrives, if it is not in the acceptable condition. All expenses are handled by the seller.
Freight out (Transportation out) - the terms to record the transportation costs or delivery expenses, when the seller is responsible for delivery (FOB destination). (The seller will record the transportation cost as Freight-Out, Transportation-Out, or Delivery Expense.)
FOB shipping point:
FOB shipping point (FOB origin) - title of goods passes from a seller to a buyer at the seller's shipping doc. That meant that a buyer is has to pay for the delivery. Basically, If you bought a car with FOB shipping point or FOB origin terms, you are the one who is responsible for delivery and damage or loss of the car. If the car arrives in a poor condition because of an accident that happened WHILE the car was shipped, you cannot ask for money back.
- Destination Freight Prepaid - the seller pays and takes all the freight charges and. (Pretty much the same as FOB destination)
- Destination freight Prepaid and Charged Back - The seller pays the freight charges, but charges them back on the buyers invoice. (For instance, when you buy something from Amazon.com, they usually include the price of the shipment in the receipt. That means they pay for shipment, but they charge you back for that.)
- Destination Freight Collect - The buyer pays and takes all the freight charges. (However, the buyer pays all expenses, just when the car arrives to the destination.)
- Destination Freight Collect and Allowed - the buyer pays the freight charges, but the seller takes the charges in the invoice. (For example, you bought a car that cost you $5,000 and you paid for shipment $1000. Total: $6000. When the car arrives and you receive the invoice from the company that sold you the car, you see that they charge you just $4000, because they made an allowance of $1000 for shipment.)
Freight in (Transportation in) - the terms to record the transportation costs or delivery expenses when the buyer is responsible for delivery (FOB shipping point, FOB origin) (The buyer will record this cost as Freight-In or Transportation-In.)
Australia Freight Shipping in Australia
There are several differences between shipping items with an Air freight company and shipping with an LTL carrier. As you may guess, the main difference is the mode of transportation that is used to move product from the origin point to the final destination. LTL carriers use a network of trucks consolidating freight along the way through their break bulk points before the product is finally delivered. Air carriers use a group of local trucks to pick up and deliver the freight, but utilize a network of airlines (both commercial and cargo) to do the bulk of the freights movement. By comparing the basic transportation difference, you can probably also determine the next main difference in shipping with an LTL carrier vs. shipping through an Air carrier; that would be transit time.
Air carriers can also offer something the LTL carriers cannot, which is next day or 2nd day services from any origin point in the US to any US destination point. Due to the way LTL carriers network their equipment, it would be very difficult for an LTL carrier to provide next day or 2ND day services for shipments moving over 500 miles. Also, air carriers can provide guaranteed delivery dates for next day and 2nd day shipments. This is a very good service that fits a customer's need to get product to the final destination quickly and on time. This type of service does introduce us to the third main difference in shipping LTL vs. air and that is price.
Air carriers will provide very quick transit times and can easily guarantee delivery dates, but in comparison to the cost of shipping a product LTL, shipping via air freight can be very expensive. This type of service is not something a customer will use on a regular basis but can be very helpful in a time of need.
One other difference between LTL freight and air freight is how a customer's price is calculated. LTL carriers take into account the origin and destination zip codes, the products total weight and freight class. Air carriers calculate rates based on the origin zip code, destination zip code, and the products total weight and dimensions. Freight class is not used to calculate air freight. Air freight rate shipments based on a per pound rate based on the greater of either the shipments actual weight or the dimensional weight.
To calculate a products dimensional weight, you will multiply the shipments length, width and height (in inches) and then divide the total by 194. You then would compare that number against the shipments actual weight. The greater amount of the two is what you would use to calculate the total cost.
Dimensional weight example: A customer has a shipment that weighs 1000 lbs and is 48" long X 58" wide X 72" high. To find out which is greater, the dimensional weight or the actual weight, you would use the below equation:
(L) 48 * (W) 58 * (H) 72 = 200,488
200,488/194 = 1033 dim weight
In this example, the product's dimensional weight is greater than the products actual weight. One thing that LTL carriers and Air carriers have in common is the fact that they are renting out container space on the vehicle they are moving the product with. If a product has a dimensional weight that is greater than the actual weight, the carrier must be able to make up for potential lost revenue.
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