Discount Freight Shipping in Australia
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
"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!
Australian Freight Shipping Melbourne Australia
Freight shipping, which is usually determined by weight, is the way to go when you have an extremely large package that won't be able to be delivered via traditional methods. A good example of this is furniture delivery - one cannot box up a sofa and bring it into the local post office.
While it is okay to bring some large parcels into a normal courier agency, most of them cannot exceed 70 pounds for overnight service. Freight companies on the other hand, can deliver several hundred pounds of merchandise. The mode of transportation for these services can vary and often include:
- Ocean liners
- Trucks and
The transit options you choose will greatly depend on the time frame you are working with as well as the item to be delivered. For example, if one is having a car delivered in the continental United States, it may very well arrive via train or freight truck. On the other hand, take this same car and move it to Europe and it may be delivered first by train then by cargo ship.
Freight costs fluctuate and are calculated by the weight and class of the item. Freight shipping is also determined by whether the shipment is a commercial or a residential one.
Commercial freight shipping
Commercial freight shipping is usually initiated by businesses. These companies usually have large amounts of heavy inventory to move all at once. This cargo can be construction site machinery, medical equipment of office furniture. Special discounts can be applied to companies who utilize freight shipping on a regular basis.
Residential freight shipping
Residential freight shipping is usually applied in situations where large items such as autos or home furniture are delivered to a home. Freight costs can be paid by the company you are purchasing your items from. For example, shipping costs may be added into the final purchase price when buying a living room or bedroom set from a furniture store.
International freight shipping
If one were going to Europe for an extended stay visit or moving there permanently, they would use a courier company that specializes in international goods shipping. These shippers are well versed providing service both domestically and abroad.
Reliability and Reputation
With both residential and commercial freight, you will want to ask around and find a reputable company with a good track record of on time delivery. You will also want call any references see if they have been held liable for damaging goods. Check to see if they offer a guarantee or insurance as well and go over the ins and outs of the contracts you sign to see what their accountability is should they fail to deliver or harm your items in transit.
There are hundreds of freight companies operating all over the country and internationally and all have the capacity to move an item from point A to point B. The true merit of a freight company however is in its customer service and attention to detail.
How effective would a company be if you can't get straight answers or have someone return phone calls regarding your shipments?
And suppose a package gets lost or misplaced - how will the company handle it?
These are all very necessary things to know about any shipping company before you sign any contracts or pay any fees.
Companies that offer freight services can easily be located on the Internet. Because there are several different types of courier services and modes of transportation available you may wish to do some comparison shopping for the best rates. Once you locate a company that seems fair make arrangements to have your valuable items processed and sent off as soon as possible.