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
Though sea freight shipping has proven to be the most effective, efficient and economic way of transporting heavy and bulky consignments over long distances, it also has a share of it shortcomings. The disadvantages that relate to sea transport shipping do not however render it as an inefficient service. They only become shortcomings when rated against other modes of transport which can score better in the field of transport. The following are some of the disadvantages that an individual may encounter when using sea freight shipping services.
Sea freight shipping is always considered as a slower means of transport when compared to road and air transport. This is due to the bulk of goods and the weight that it carries. Shipping consignments from one place to another, especially over long distances can take a considerable amount of time to arrive at the destination. Depending on how long the journey is, sea freight shipping can take even a couple of months. This makes sea freight shipping unsuitable when dealing with consignments that are very urgent. One would therefore have to resort to other means like road and air freight. Perishable goods cannot be transported via sea freight shipping especially where there are no special services like refrigeration. The goods may therefore reach their destination when they are stale.
Sea freight shipping is only suitable for heavy and bulky consignments. When dealing with smaller consignments, it will prove to be ineffective. This is because sea transport shipping has a minimum requirement for cargo that has to be transported. It sets the minimum load that one can transport using this service. This means that a consignee who has cargo that is below the minimum cargo requirement will have to pay extra rates to cover for the space and weight that is not utilized. In such a case, air freight can be deemed to be much appropriate.
In the recent times, sea freight shipping has been under the threat of pirates. The pirates hijack a ship together with its cargo and demand for a ransom before releasing it. This can take a considerable long duration before the ship is released. This will mean that there will be disruptions in the normal running of a business if the cargo on board was meant for business. For instance, if one was importing goods for sale in the local market, it means that the stock will be held up for long before the ship is released. Furthermore, goods that are perishable will end up going stale and this will be a big loss to the consignee. The threat of piracy has impacted negatively on the safety of sea transport shipping.
Another great disadvantage of sea freight shipping is that in case of an accident, it is always impossible to retrieve the cargo. Most of the consignment is unrecoverable as it sinks in the deep seas. In other cases, consignments like crude oil can cause water pollution when it spills into the sea in case of an accident. This therefore leads to environmental degradation and poses a threat to aquatic life.
Australia 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!
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