Discount Freight Shipping Service Melbourne
International freight shipping in Melbourne 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 Melbourne 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 Melbourne
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 Melbourne 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 Melbourne 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 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.
Australian Freight Shipping Service Melbourne 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!