Discount Freight Shipping Service Wollongong
International freight shipping in Wollongong is a complex procedure that requires the services of an international freight forwarder.
A freight forwarder is essentially a company or a person whose duties are to organize shipments of corporations or individuals, and to get large orders from manufacturers to the market or to the final point of distribution.
Freight Shipping Company in Wollongong contract carriers to facilitate the shipment of goods. The forwarder himself is not a carrier per se, but is skilled in supply chain management. Basically, these forwarders can be thought of as a travel agency for the cargo industry or as a third party logistics provider.
Australian Freight Shipping Service Wollongong
Freight Shipping can be booked for a whole host of carrier types, which include ships, trucks, planes and railroads. Some shipments can use multiple carrier types on route before it reaches its designated destination.
Freight shipping in Wollongong calls for very specific documentation as it has to go through multiple custom checks before being allowed to pass through. The forwarder would organize the carriage of your international shipment, along with helping the handling and processing of all the necessary paperwork. International forwarders also make sure that your shipment is arriving at the correct place at the specified time.
An international freight Company in Wollongong should traditionally guide you through the complicated process of international shipping, as they are the experts on the international freight shipping process. This way you can understand and aid your shipment and your freight forwarding company can benefit from this information.
A day in the life of a freight forwarder would consist of the following tasks:
The primary task of a Freight Shipping Company at work would be conversations and negotiations with clients and warehouses that they deal with worldwide. This is because they need to gather information for the purpose of passing it on to the concerned parties that they are doing business with or need to report to as authorities. These would include an SSL – Steam Ship Line, the United States Customs or they might even be the customer themselves.
International Discount Freight Shipping in Australia
There are lots of individuals who are not aware of the fact that there are some hidden Freight shipping charges which come along with the shipping and handling of an item from one point to the other. Most of these charges may not be included in your first original billing, but you will need to pay such charges when you goods will be retrieved from the delivery point. It is very important to be aware of these charges so as not to create conflicts between you and the freight shipping company.
In order for you to reduce freight shipping charges by as much as you want, you need to have skillful negotiation techniques with freight shippers, and you must constantly monitor freight movement right from the collection point to the delivery point. If you fail to monitor freight charges and inventory, you will likely pay more in hidden charges especially when you have it on your mind that Inventory costs will be included in your freight shipping charges. Most companies increase or decrease inventory costs base on the preferences of their clients, thus you must be in constant talk with the freight shipping company from the point of collection to the point of delivery.
For the freight shipment company, freight shipping charges can be reduced by through centralization procedures in which the shipping company head instructs all the departmental staffs to route all inbound and outbound freights into a centrally controlled point where the actual amount of freights and the amounts of expenditures can be clearly controlled. This will help in reducing human errors that may lead to extra shipping charges. The automation of freight movements can help a shipping company analyze, and review freight charges on a constant basis, this can be done with suitable automation software and a shipping company can make use of data retrieved from such software to make necessary corrections.
Conducting an audit of freight movement on a monthly basis is another way of reducing freight shipping charges, with this system, items are classified in terms of weight packages and rates which are payable on them, the shipping company needs to convince its suppliers on the need to send separate bills for freights and products rather than the duty delivery paid products, when suppliers send separate bills for products and freights, you will definitely avoid some additional charges and surcharges that may arise.
A shipping company can also reduce shipping charges by simply weighing and classifying all items within the premises before handling such items to the shipping line or carrier. You need to have a copy of the classifications made so that any discrepancies in weight can be adequately checked to avoid additional charges that may come from the shipping company.
One of the most effective ways of reducing freight shipping charges on items is by re-negotiating with a shipping company on the costs of shipping to some frequently shipped locations. An individual shipping an item can hire a freight broker who constantly negotiate with a shipping company with the view of cutting down on freight shipping charges as much as possible.
Australian Freight Shipping Service Wollongong 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!