Discount Freight Shipping in Australia
International freight shipping in Perth 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 Perth 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 Perth
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 Perth 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 Perth 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 Perth Australia
As a business owner, you would not agree to make a purchase that could impact your profitability without first understanding the cost associated with that purchase. Likewise, it is important to know and understand the true freight cost of shipping products and goods. Awareness of shipping procedures and rates can help prevent wasteful spending.
However, small businesses often can not afford to hire a logistics or supply line manager. So what can they do to stay competitive and informed about freight management? Enlisting the usage of a direct freight or freight matching service is both an effective way to control freight cost and manage inventory. Freight management involves controlling cost, maintaining accurate records, and sustaining warehouse inventory levels.
The actual cost of shipping cargo is much more involved than just the actual shipping cost associated with the transportation company. The total freight cost also includes the cost of storing inventory, packaging material, salaries of shipping clerks, computer system to track and monitor shipments, actual freight rates, and cost associated with delayed shipments. Each of these areas must be watched and monitored to ensure careless spending habits do not develop. Learning to package merchandise with the least dimensional space can be accomplished so that shipping costs are kept down.
Another very effective way to keep freight cost down is to employ the help of a freight management company or website. There are organizations that can help match a clients shipping needs to shipping companies looking for loads. This is a great way to approach freight management because not only does this type of service keep cost lower by promoting competition, but also because they often include the usage of an information database. Being able to track trends, inventory levels, and previous time and cost to ship cargo can assist companies in making future shipping decisions.
Keeping accurate shipping records is key to a smooth running supply chain. Understanding inventory trends can help control cost by insuring that a company is not stuck with a lot of overstock. Storing inventory is one of the most costly expenses in the shipping process. In addition, being able to track a shipment makes the trucking company more accountable to deliver their loads on time. Late shipments can affect customer satisfaction levels and thereby affect repeat customer sales. If a business wishes to grow and be financially successful they must have high customer retention levels.
Finally, in order to become profitable, a company should closely manage inventory levels of their own stock and the stock of their retailers and wholesalers. If a retailer can not get the products that they need from a business because inventory levels have dropped too low, then they will find another supplier for that product. However, on the contrary, if a manufacturer has overstock then the supply does not meet the demands and the products cost goes up. It is a delicate line to walk to controlling inventory to aid in cost-effective freight management.
Without controlling freight rates and cost and maintaining proper management guidelines and regulations, then a company's profitability will suffer. Whether freight management is done through a logistics professional or through a third party administer, it demands proper attention.