For business owners, searching for ways to cut costs is second nature – and optimize freight costs is an excellent place to bring down operational expenses. Navigating the world of international shipping rates may seem like a tough objective, but the reduction in price is worth giving some of these strategies a try. We’ve compiled some methods that you might be able to use in order to optimize ocean freight cost, mainly when shipping Less than Container Load (LCL). Let’s take a look at them:
It’s not uncommon for shippers receiving quotes to think, “How can I get this price to go down?” Don’t worry, you’re not the only one. It’s just a matter of fact that businesses are constantly on the lookout for ways to reduce operation costs, including shipping. Freight forwarding is a complicated industry, and for most laymen the math surrounding the cost calculations will be a mystery. Nevertheless, there are some elements that shippers should consider when searching for a cheaper quote: Continue Reading
When you transport your goods overseas, your trust over your freight forwarder is key to ensure your goods arrive to their final destination. Yet, trust is not something you develop from one day to another. Therefore, you should ask freight forwarders a few questions to analyze whether they are reliable enough to organize the transport of your goods. In many occasions, these companies do not even see your cargo, since they hire other 3PL (third logistics parties) to take charge of all the parts of, sometimes, complicated shipping processes.
How do you know if you are working with legitimate freight forwarders?
Due to globalization, the number of freight forwarders is quickly increasing. There is a bigger pool to choose services from, but not all of the options available can be trusted. The forwarding business is not simple, and it takes more than calling a business a freight forwarder to successfully ship goods internationally. The business of freight forwarding requires a lot of experience and a complex knowledge and network. Continue Reading
In the past, payments to freight forwarders were mostly handled via a Letter of Credit, involving a lot of paperwork and banking bureaucracies. Nowadays, the three most common ways to pay your freight forwarders are: wire transfer, 15 or 30 day credit, and credit cards. Let’s take a quick look at each one of these payment methods. Continue Reading
Whether on purpose or not, very often there are things freight forwarders exclude from their quotes. Shipping rates are very complicated, and change due to market trends, which make it easy for some freight forwarders to leave out not-so-common fees altogether in order to increase a quote’s easiness to read. However, it can greatly help you in the near future to know what kind of fees you might have to pay, which you haven’t yet seen in a rate proposal. Continue Reading
The estimates for this month’s ocean freight rate are here. The rates are port-to-port on for popular trade lanes between China – US and they will be effective until at least March 15th.
When you give out a standard set of information, as you would when gathering quotes, you expect a standard – or at least similar – type of quote back from each individual freight forwarder. But, as you’ll soon find out, your quotes are not all going to look exactly the same. Not all quotes are created equally, why? Continue Reading
In order to receive the price and quality of service that you want from a supplier, it is vital to negotiate. This can prove troublesome for some business owners – after all, not everyone is a born negotiator. That’s why we’ve put together the following tips on about negotiating with your suppliers overseas.
When it comes to international shipping, there are two main options: ocean freight or air freight. Air freight is basically moving cargo in airplanes from point A to point B. Ocean freight means moving the cargo in ships, either in a full container (Full Container Load: FCL), or sharing space with other shipments in order to fill a container together (Less than Container Load: LCL). Small ocean shipments will always be an LCL load.