freight forwarding industry Archives - Page 6 of 6 - Excelsior Worldwide Logistics Corp.

Things that You Should Know When Requesting Freight Rate Quote

excelsior on January 18, 2017

One of the first things that you should know when starting an importing and exporting business is how to get the right freight rate quote for your shipments. Referred to as the price at which a certain cargo is delivered from one point to another, getting the right freight rate quote is a critical step in achieving profitability in the shipping industry.

To maintain a relatively healthy cash flow, you have to make sure that the cost it takes to transport your goods from one point to other remains within your budget.

And to ensure that you get an accurate and affordable freight rate quote, there is information that you should collect and pass to your freight forwarder subsequently. To know the factors at play that can affect your freight rate quote, check our pointers below.

1. Mode of Transportation

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First and foremost, you have to consider the type of transportation required to transport your goods. For beginners, the most dominant type of transport in shipping process are aviation, ship transport, and land transport (rail, road, and off-road transport.). Each of these options has their own pros and cons. For instance, air is the fastest mode of transport, but also the most expensive, followed by ship transport, and then land transport.

2. Incoterms or Mode of Shipment

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Incoterms, which stands for International Commercial Terms, is a set of pre-determined commercial terms published by International Chamber of Commerce that serves as the basis of agreement between the buyer and the supplier. It details the risks, costs, and tasks that each party should assume with regards to the fulfillment of delivery and transportation of shipments.

If you are buying goods internationally, your best choices are Freight on Board, Ex Works, Cost and Freight, and Cost, Insurance, and Freight. These options offer the greatest control over shipping cost from your perspective as the buyer.

For instance, the FOB means that the seller leaves your shipments at the port of origin, all set-up for international transport. As a buyer, it gives you absolute control over all related expenses and coordination of delivery of your shipments to your warehouse or final area of destination. This option is the most recommended option for importers and buyers since it allows you to choose the shipping routes and times, as well as negotiate prices with the freight forwarder of your choosing.

3. Type of Goods You’re Shipping

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As obvious as it can be, knowing the specific type of goods is what many people forget to consider when requesting for a freight rate quote. This is critical because there are different pricing and handling rules that apply for each type of item you are shipping, so make sure to supply your freight forwarder with this information right away. For instance, how items such as raw pulp or lumber wood would be handled and stored inside the ship would be very much different for items like wooden furniture.

4. Details of Your Cargo

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Aside from the type of the cargo you’re shipping, your freight forwarder should also know the specific details about your shipment. This includes the following:

Dimensions – Typically observed in ocean freight shipping which utilizes containers. The usual sizes of containers are 40 ft. and 20 ft. As a rule of thumb, the larger the dimensions of your shipment, the higher the freight rate quote will be.

Weight – The weight of your shipments is important, especially if you plan to transport it via air. This because air freight prices are mostly based on weight, compared to ocean freight prices which depend mostly on size.

Hazard/ Toxic Cargo – Shipping hazardous items will require you to pass a Material Safety Data Sheet (MSDS) to avoid any issues while the container is being loaded. The MSDS entails all the data about your cargo such as the nature of toxicity, its chemical and physical properties, methods of storage and disposal, etc.

Pallet – If your shipments can be palletized, then it can be stored inside the container more efficiently and can reduce your transportation cost.

5. Delivery Options

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You have different options of how you want your shipments to be delivered. It’s best to choose the option that fits your budget can work well on the inland logistic network of your area and is in line with the needs of your business.

Door-to-Door – Offers the highest convenience to the buyer. In this option, the client is not involved with the sea freight container shipment as the shipper is tasked to handle everything.

Port-to-Port – The shipper handles the shipment from the port of origin to the port of destination.

Port-to-Door – Suitable for customers who have their own logistics networks, and can move their shipments from the port of origin to their warehouse.

6. Method of Loading

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There are several methods for loading your shipments in the container:

Live Load – In this option, an ocean freight container is loaded at your location. The trucker waits until you load, secure, and seal the container for the international shipment. There is a free loading time limit for live loads, which usually vary from one to two hours. Exceeding the free time limit means you have to pay a fee for every exceeding hour.

Drop and Pick – Like the live load, the ocean freight container is delivered to your place of load, but the trucker will leave the container for a few days. After it is loaded, it will be picked up and returned to your freight forwarder’s yard.

Commercial vs Residential – A surcharge is added to your quote when shipping to residence instead to a commercial place or location.

7. Cargo Ready Date

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The freight rate quote is volatile, meaning it is only available for a determined amount of time – usually about 30 days. Although planning ahead of time is good, you can never really get an actual quote for your shipments until your cargo is ready to be shipped. However, you can ask your freight forwarder an estimate to get an idea of what your shipment might cost.

8. Duty Rate

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Another factor that will impact your freight quote is the duty tax. This is a kind of tax imposed by the government on shipments and is determined by calculating a percentage of the value of the commodity. In the Philippines, the duty rates can vary from 0% to 65%, with an industry average of 10.5%. Related: Why Should You Pay the Correct Customs Duty and Tax?

These are the factors that can affect the final quote of your shipments. As much as possible, partner with an efficient and professional freight forwarder and communicate to them all the details so that you can get a quote that is accurate and fits your budget.

Contact Excelsior Worldwide Freight Logistics Corp. now and let us help you get an accurate and affordable freight quote today. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Import Facts: What Are the Benefits If Your Customs Broker and Forwarder is Efficient?

excelsior on January 11, 2017

Cost-efficiency is one of the primary goals of many businesses, and the same holds true in import and export business. As such, choosing the right customs broker and freight forwarder is extremely important to make this goal a reality.

In this infographic, we will discuss how an efficient customs brokerage and freight forwarder firm can help your import and export business grow and keep the cost low in the long run.

1. Your Business Will Reach New Markets

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A successful small business needs to put its product in front of customers, even if those customers are in the other countries. An efficient customs broker that provides intercontinental coverage is imperative to helping your goods reach those customers quickly and efficiently.

And if you’re importing parts and components, a broker with locations at all major ports and border crossings can help ensure your goods get to you in a timely manner. Ask your broker about their coverage and what services they can offer to help you reach new markets.

2. Your Business Process Will Improve

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While you keep your efforts focused on your business, you can look to your broker for expert advice on moving goods across the border. Your broker should be able to offer guidance on customs regulations, tariffs, valuation, classification and more – advice that can help you reduce shipping times and save money.

To provide this advice, your broker must have licensed or certified customs professionals available who can answer questions about the customs process – all you need to do is ask. Don’t hesitate to inquire and take advantage of any guidance or services your broker provides that can improve your processes, help with your record keeping and prepare you for customs audits.

3. Save Time and Money

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Technology and automation have had a huge impact on business in the 21st century. All brokers are required to have, at a minimum, automated systems that exchange shipment data with U.S. and Canada Customs.

Many brokers offer additional technology tools and/or use specific systems in-house that can help you increase your efficiency, control your costs, and reduce your risk of non-compliance. These include proprietary imaging solutions, Electronic Data Interchange (EDI) solutions, e-billing options, File Transfer Protocol (FTP) tools and more.

These solutions can reduce paperwork, simplify your accounting and help keep your business in good standing with Customs. Check with your broker about the technology offerings they have at hand and how they can help you improve efficiency and reduce costs.

4. Better Manageability

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Manageability and organization are incredibly important for businesses which need a sense of control over their supply chain and can recover quickly in the event of a loss. Many third-party logistics companies may be too bulky to offer the transparency and personal touch that international shippers need. If a shipment is lost it could take multiple departments, phone calls, and repeated questions to get the answers you need. On the other hand, freight forwarders utilize their wide-ranging networks to quickly trace the problem directly to its source, enacting immediate solutions.

5. Freedom from Contracts

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In our natural quest for reliability, we often insist on contracts and binding documentation that guarantees a certain level or quantity of service. But the shipping industry is full of moving parts (both literally and figuratively) and it could actually hurt your business to stay tied to one carrier for a year or more. Freight forwarders give you a lot more freedom to do what is best for your business, and the awareness that you could switch firms at any time drives them to keep you constantly satisfied.

6. Timely Arrival of Shipments

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Freight forwarders offer unique versatility which can come in handy for meeting tight deadlines or when dealing with unforeseen obstacles. A seasoned forwarder has the resources to handle unfortunate circumstances like rerouted shipments or delays at sea.

Imagine you’re shipping goods to Panama from China, Europe, and the United States, and one of your shipments is diverted to another port due to stormy seas. How prepared are you to react and handle that smoothly? To a freight forwarder, situations like this are just another day at the office.

As a business owner, having the right customs broker and freight forwarder to help you with your shipment is a wise business decision that will help you and your business remarkably. It is not only practical but also time and cost-efficient.

At Excelsior, we value your business and your time. This is why we want to offer you a customs brokerage service that is efficient, professional, and ethical. For more information about our customs brokerage services, call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Advantage of Having the Services of a Freight Forwarding Company

excelsior on October 29, 2016

Advantage of Having the Services of a Freight Forwarding Company

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In the shipping world, one of the most common catchphrases that we often hear is the freight forwarder or forwarding agent. As one of the most critical elements in the global supply chain, freight forwarder has the task to assist and support you in the importing and exporting process- ensuring that all your goods are delivered to your warehouse safely and efficiently.

As your business grow and expand, and the competition in the industry becomes stiffer, you must also keep up with the number of shipments that must be delivered to your customers locally and abroad. To achieve that, you can have the services of a freight forwarding company to manage the shipping function on your behalf, while you stay focus on the things you do best. Detailed below are some the key advantages of using a freight forwarder in your business.

Freight Forwarders Offers Services That Are Rather Complex for You to Handle

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Choosing a freight forwarding service instead of handling the whole logistics functions in-house or another type of logistics provider can bring in a lot of difference especially on the type of services that they can handle. A lot of small and medium enterprises doesn’t have the capability and resources to manage all the shipping requirements effectively, in which case a freight forwarder does have.

Using their knowledge and skills in the importing and exporting industry, they can transport your cargo to any destinations more efficiently. They have the resources to handle unexpected circumstances like redirected shipments or delays, saving you a lot of time and effort in the process.

Some of the services that a freight forwarding provides includes:

Inland Transportation Tracking- Freight forwarding firms track your shipments while they are in transit by truck, rail, or air.
Shipping and Export Documents Preparation- Because shipping a high volume of goods is just another day for freight forwarders, they have all the required skills in the shipping documentation.
Warehousing- They either have their own warehouse in several locations or lease one in an area they don’t service themselves.
Booking Cargo Space- They know which carriers are best at serving a location so they have the advantage when it comes to shipping abroad or even to various regional domestic markets.
Freight Consolidation- They can turn several small shipments into one large shipment at a lower cost.
Cargo Insurance/ Filing Insurance Claims- Because of their knowledge about the intricacies of shipments, they can obtain insurance coverage for your shipments as well as how to deal with insurance should anything go wrong with a shipment.
Freight Forwarders Offers a Specific Set of Services at an Ideal Cost

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Another advantage of having the service of a freight forwarding company in relation to other outsourcing logistics solutions, such as third-party logistics companies or freight brokers, is that they offer a specific set of services which prices are ideal and more cost-effective than 3PL companies that have a broader range of services and freight brokers whose scope of services is only limited to arranging the mode of transportation and does not issue their own bill of lading.Freight forwarders, because of their large network of connections for their services, can negotiate with carriers for lower cost due to the high volume of containers they ship. They can find better freight quotes and have the knowledge which carrier has the most cost-effective routes, allowing your shipments to reach their final destinations faster and at an ideal price.

Freight Forwarders Brings Simplicity

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Truth be told, the shipping industry is indeed full of complexities and volatility. Dealing with these by yourself might result into an expensive shipping process or worst- lost shipments. By having the services of a freight forwarding company, your shipments can move much easier because you are only communicating with one entity.
For one aggregated cost from a single freight forwarding company, you can save a lot of time, money and frustrations. You do not have to mingle with the different trucking company, air carrier, and an ocean carrier to negotiate for services and compare prices because freight forwarders combine these to give you more flexible shipping options.

Freight Forwarders Gives You Sense of Control

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Manageability and organization are one of the most important aspects for many businesses today, especially in logistics function. Freight forwarders give its clients a sense of control over their supply chain, allowing them to foresee the risks as well as to recover quickly in the event of loss of shipments. Compared to many 3PL companies who have a broader breadth of service and stiff structure, freight forwarders have a unique combination of services which allows you to modify the shipping plan to make sure all your shipments reach their destination safely and in a timely manner.

Furthermore, many 3PL companies, due to their wide-ranging scope of services, cannot offer transparency and personal touch that international shippers need. If your shipment is lost, it could take a very long time before you get the answer you need. Freight forwarders, on the other hand, utilize their wide range of networks to quickly trace the issue to its roots, acclaiming solution at first-hand.

These are just some of the many reasons why partnering with a freight forwarder can help your import or export business grow and expand. Knowing these benefits, what you should do now is to evaluate if your needs do qualify for a freight forwarding service since not every shipment demands this type of shipping arrangement.

Finding an Honest and Reliable Freight Forwarder?

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You’ve found one! As an international freight forwarder, Excelsior Worldwide Logistics Corp. ensures that each cargo arrives at its destination safely and in a timely manner. We act as your shipping agent to transport your cargo from point A to point B without hassle. Plus, our wide network of air, sea, and land carriers allows your shipments to travel on the most effective routes across different channels. Let Excelsior guide you in the world of shipment today. Call us at (+632) 525-9775 or send us an email at wecare@excelsior.ph