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
What is FOB? This is a common question among those new to the shipping industry and a great inquiry, indeed. Failure to properly understand this concept can result in the loss of hundreds of dollars.
The best FOB definition is found in the meaning of the acronym itself, which is Free on Board, although some prefer to use the FOB definition of Freight on Board. Either way, this term signifies to the ship crew at what point during the shipping process the buyer of the product is not responsible for charges.
Some may wonder what the importance of understanding the FOB definition is, and there are many reasons why understanding this concept is important. The terms FOB determines the risk of loss involved as the product is transferred from the seller to the buyer. Furthermore, the buyer can lose a lot of money in being ignorant of these terms as they stipulate the amount of money owed for the shipment, and this can add up to a large sum of money especially for larger cargo.
Many are still confused at their options upon hearing the general definition. There are four standard choices in FOB. First, the seller can be responsible for paying for all of the shipping charges while the buyer is responsible for insurance on the product, and this method is known as CF Pay Freight to Destination. Others prefer to establish an FOB Destination which places a higher responsibility on the seller as they are responsible for both the cost to ship as well as the risk of loss. FOB Shipping Point is the exact opposite; the buyer is responsible for charges and possible damage. Finally, the choice of Pay Insurance and Freight to Destination stipulates that the seller is responsible for acquiring insurance on the product to protect it during the shipment.
Buyers of imported products who have been doing so for some time and have never been presented with their FOB options should inquire as they are subject to the terms set by the shipper, and these are often not to their advantage.
In the event that the product becomes lost or stolen during the shipping process, the buyer may be responsible for covering such damage. Often buyers will carry insurance on the shipment, but again this is something that should be determined beforehand in the terms and conditions. For this reason, all buyers of shipped goods should understand the concept of FOB.
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