For decades, exporting products has been vital to the Philippine economy, allowing entrepreneurs to increase profits through global trading. Despite its downward trend recently, exports still account for more than $5 billion of the nation’s GDP. The continuous expansion of digital trading can provide new opportunities for Filipino business owners to export their products to various countries, potentially increasing export rates moving forward.
And despite being an essential part of the economy, numerous exporters face unique issues that can hinder their operations in the long run. For starters, not partnering with an international freight forwarding company can significantly risk the packages getting lost or damaged while in transit. But what remains one of the top issues exporters face on a day-to-day basis is foreign exchange, which constantly fluctuates for several reasons.
Understanding Currency Fluctuations
International forwarding invoices are often complex, with many factors contributing to freight rates around the globe. And one of the significant ones is currency exchange, which mainly refers to how much of each currency is needed when people exchange them. Some factors that lead to currency fluctuations are economic conditions, market sentiment, and political situations.
Currency exchange rates have always been a massive part of calculating freight costs, and even a tiny change in the rates will significantly affect shipping prices. Besides freight prices, currency fluctuation can negatively impact a company’s potential revenue and profit margins. This can decrease an enterprise’s competitiveness in the market, especially if most of its competitors come from countries with stronger currencies.
Mitigating Currency Exchange Risks
The risks of currency fluctuations when it comes to shipping prices are not a new thing. Many organizations have already implemented different techniques that allow them to reduce the impact of fluctuating currency rates when shipping their products.
1. Use Forward Contracts
One of the most straightforward solutions to decrease the complexities of shipping costs is to use forward contracts. This means that the merchant and buyer will agree to a fixed exchange rate that they can use for future transactions. This will allow both parties to know exactly how much the payment would be without worrying about changes in the currency rate.
2. Understand the Currency Adjustment Factor (CAF)
The concept of CAF is mainly used by freight forwarders, enabling them to mitigate the risk of currency fluctuations, especially for long-term contracts. Here, the shipper will have a flat percentage surcharge on the invoices sent to their clients, and this usually is based on the currency where the freight will depart and arrive. Exporters must know this concept to help them plan out their finances in the long run.
3. Currency Options
Apart from forward contracts, it will also help if companies consider currency options strategies when exporting their products. Many enterprises have used this risk management technique to protect themselves against currency fluctuations.
Like forward contracts, this hedging strategy gives businesses the right to export at a fixed price in the future. But the main difference is that the parties are not forced to finish the transaction when the deadline arrives. This is beneficial if the exporter believes they will get a more favorable currency rate, allowing them to mitigate the risks of financial losses.
Conclusion
With digital platforms opening up new opportunities for merchants to sell their products to international customers, exports are expected to continue to rise in the coming years. And so, firms must know the risks they might encounter when exporting products, such as the ever-changing foreign exchange rate. By understanding this, they can implement the proper currency fluctuation management solution that will protect them from financial losses in the long run.
Excelsior Philippines, the country’s top freight forwarding and customs brokerage company, has been in the industry for more than two decades, providing our clients with peace of mind that their shipments will arrive at their destination safely. We can also help you negotiate freight charges for the best shipment value. To learn about our services, contact us now by clicking here or calling (+632) 8525-9775.
The COVID-19 pandemic has crippled various industries worldwide. This led to many companies scrambling to keep their business afloat amid uncertain times. Contactless transactions have become the norm, and the adoption of modern solutions has significantly increased as organizations pivot to remote work and digital commerce.
It’s been more than two years since the first wave of the pandemic hit the globe, and freight forwarder international firms have slowly recovered since then. But a recent COVID-19 outbreak in China has brought new uncertainties in the global supply chain, with the sudden increase in cases causing worker shortages in ports and important factories across the country.
The Latest COVID-19 Outbreak in China
After easing their harsh zero-COVID policies amid the wide protests in big cities, China has faced what many experts consider the worst COVID-19 wave recorded. Authorities in the country estimated that almost 250 million individuals contracted the virus during the first 20 days of December 2022, making it the fastest rise of COVID patients in the nation since 2020.
This unprecedented situation has led to businesses needing to close down again, as most of the workforce is infected or exposed to an infected individual. Reports also said that medical establishments are overwhelmed by the situation, most of which are struggling to cope with the sudden spike in COVID cases right after the government became lenient with their COVID prevention policies.
Effects on the Global Supply Chain
As home to some of the biggest ports around the world, there is no wonder that the latest COVID surge in China significantly affected the world’s supply chain. Some crucial ports like Shanghai and Shenzhen have recorded a notable increase in shipment cancellations rate, with reports expecting it to go up to 31%. This came as factories found it hard to operate with limited people, especially with many reporting that more than half of workers were infected with the virus.
The latest COVID surge in China also further decreased the demand, which was already down before the fiasco, for goods and raw materials coming from the country. This led to domestic and international factories experiencing delays in procuring products and consumers seeing a shortage in supply for some necessities.
The lack of workers and reduced demand has also led to shipping companies decreasing the number of cargo ships sailing. The delays in the acquisition of freights have significantly contributed to the growth of blank sailings, referring to shipping firms skipping one port or altogether canceling their ship’s voyage. This causes delays in the delivery not only of goods but also consumer parcels in many parts of the globe.
Conclusion
As economies continue to bounce back from the crippling effects of the COVID-19 pandemic three years ago, new disruptions brought fresh challenges to the global supply chain. China’s latest COVID surge led to factories operating at limited capacity and ports experiencing bottlenecks. Countless Chinese manufacturers could not complete orders in time, and freight rates plummeted along with it.
The fear of another COVID-19 outbreak is already expected, especially with the country celebrating the Lunar New Year in late January 2023. But reports show that port congestion and freight procurement have improved in recent weeks, with pickup charges increasing by almost 10%. This can be a good sign that the supply chain will gradually go back to normal, despite the worries of another COVID surge in China.
Looking for a Reliable Freight Forwarder in the Philippines?
The whole shipping fiasco can be daunting for Filipino importers and exporters, but partnering with a reliable freight forwarding company can help you navigate the possible hurdles you’ll encounter. Excelsior Philippines has been in the industry for more than two decades, providing our clients with peace of mind that their shipments will arrive at their destination safely. To learn about our services, contact us now by clicking here or calling (+632) 8525-9775.
Import and export of goods via trade is the heart of every economy in the world, which is why international freight forwarding organizations are some of the most importance firms around. International freight forwarders closely work with sellers and buyers in different countries to make sure that goods get where they need to go.
International freight forwarding companies act like the middlemen of the trade, helping both sides ensure the success of shipping. They strictly follow freight forwarder international standards which helps guarantee that the goods will be delivered on time. So, if you are a merchant or consumer that wonders how freight forwarders work, here is a step-by-step guide to help you out.
Stage One – Export Haulage
Export haulage is the process when an exporter moves their cargo to the freight forwarder’s warehouse. The forwarder use trucks or trains are used to move the cargo and might take a few hours to a couple of weeks depending on the location and other external factors.
Stage Two – Checkpoint
Checkpoint is the process of checking goods for damages or irregularities. When the export haulage stage is over, the freight forwarders who are getting the goods will check the shipment to make sure that the goods aren’t damaged in transit.
Stage Three – Export Customs Clearance
Every cargo requires clearance from the country of origin before being transported to another nation. Custom brokers do this by submitting details and supporting documents about the cargo. If a freight forwarding company does not offer this service, it is required to find a third-party customs broker service to help with the process.
Stage Four – Import Customs Clearance
The country where the shipment is going has to check the import customs documents once the shipment gets there. The freights forwarder or the customs broker chosen by the shipper can get this done before the cargo arrives as doing so can expedite the next steps of the shipment.
Stage Five – Destination Arrival and Handling
This is the stage where the cargo finally arrives and is taken care of by the freight forwarding company. Once the cargo arrives, international freight forwarders will receive documentation about the shipment from the office at origin. Here, the shipment is also transported to the forwarder’s warehouse before getting delivered or picked up by the buyer.
Stage Six – Import Haulage
This operation moves the merchandise from the warehouse to the intended receiver’s final location. Freight forwarders usually help deliver the merchandise to the shipping address. However, the consignee can also choose to pick up the shipment directly from the warehouse should they wish to.
How do Freight Forwarders Work?
Many people would think that freight forwarders have planes or ships they use to transport cargo vessels. However, this is not always the case. Instead, these companies simplify the process for both importer and buyer as they act like the main point of contact for these people throughout the shipment process.
The freight forwarder takes care of all the details of the shipment from start to finish. This includes tracking the arrival of the cargo ship and getting in touch with trucking, airline, or shipping companies to make sure the shipment is picked up and delivered on time. The freight forwarding partner handles all of these details and tells clients what they need to know.
Deliver Your Goods Using an Experienced Freight Forwarder
Excelsior is an international freight forwarder with 20 years in the industry. Our company is present in across Luzon, Visayas, and Mindanao and will make sure that your cargo is being transported at the right time safely whether by land, air, or sea. If you want to have your goods delivered by professionals, you can contact us at (+632) 8525-9775 or visit our website at https://excelsior.ph.
The Philippines is a strategic trading location as it shares maritime borders with many different countries, including China, Taiwan, Indonesia, Malaysia, Vietnam, Japan, and Palau. Its top import partners aren’t limited to its neighbors as it also imports goods from Korea and the United States. Because the Philippines continues to comply with ASEAN-wide economic integration, the opportunities for both importers and exporters will only continue to grow.
Importers and exporters will need to rely on experts knowledgeable on the latest updates in the shipping scene. For example, if any crises affect trade routes, customs brokers will be critical to ensure that products can still be imported and exported promptly.
Written below are the top things to keep in mind when importing products. Knowing how to import to the Philippines will ensure that businesses will have smooth customs clearances.
How can New Importers Start?
New importers will need first to submit the following relevant documents, as listed by the Bureau of Customs, to be accredited:
Duly notarized accomplished Application Form and signed by the owner, for Sole Proprietorship, Responsible Officer, for Corporations, the Chairman, for Cooperatives, or authorized partner, for Partnerships
Bureau of Customs Official Receipt or BCOR showing proof of payment of the Php1,000.00 processing fee
Corporate Secretary Certificate for Corporations / Affidavit for Sole Proprietorship / Partnership Resolution for Partnerships / BOD Resolution for Cooperatives designating its authorized signatories in the import entries
Two (2) valid government-issued IDs of Applicant, President, and Responsible Officers
Passport
Driver’s License
SSS ID
UMID Card
For aliens, Alien Certificate of Registration and Alien Employment Permit
Applicant’s NBI Clearance, issued within three (3) months preceding the application
Photocopy of either DTI Registration or SEC Registration / Articles of Partnership and Latest General Information Sheet or Cooperative Development Authority Registration and latest Cooperative Annual Progress Report
Applicant’s, President’s, and Responsible Officers’ Personal Profile
Proof of Lawful Occupancy of Warehoouse and Office Address
Updated Lease Contract under the Corporation or Proprietor’s name
Affidavit of Consent from the owner and the Title of the Property under their name
In case of Sublease, certification from the Lessor or Owner allowing the sharing of office
Printed Client Profile Registration System or CPRS of the Company and updated notification of “STORED” status
BIR Form 2303 or Certificate of Registration
If applicable, Income Tax Return or ITR for the past three (3) years duly received by the BIR
Valid Mayor’s Permit certified by the Bureau of Permits and Licensing Office
Proof of Financial capacity to import
Bank Certificate or other financial certification
The Top 1,000 Taxpayers and those under SGL Companies are exempt
If applicable, endorsement from the District Collector
Detailed sketch map ofthe office and warehouse address
Company Profile with geotagged pictures of the office with proper and permanent signage and pictures of warehouse or storage area
After getting accredited, businesses can start importing products to the Philippines.
Documents Required when Importing Products
Businesses importing products must provide the following required import documents, as shown here, once their goods arrive:
Duly endorsed Airway Bill or Bill of Lading, or certification by the carrier or agent of the vessel or aircraft,
Commercial Invoice or any other verifiable commercial document proving payment if there is no sale for export
Packing list
Duly notarized Supplemental Declaration on Valuation or SDV
Certain documents as may be required by certain rules and regulations, including:
Import Permit or Clearance
Authority to Release Imported Goods or ATRIG
Proof of Origin for Free Trade Agreements or FTAs
Copy of an Advance Ruling, if the ruling was used in the goods declaration
Load Port Survey Reports or Discharge Port Survey Reports for bulk or break-bulk importations
Document evidencing exemption from duties and taxes
Other relevant documents like a Tax Credit Certificate or TCC or Tax Debit Memo or TDM
When importing animals, plants, food, medicine, or chemicals, importers must also obtain a Certificate of Product Registration from the Philippines’ Food and Drug Administration.
Knowing how to import to the Philippines involves plenty of technical know-how that reliable licensed customs brokers should know. Businesses must look for a reliable customs broker in the Philippines to ensure that their shipments will arrive on time without difficulty.
After multiple countries restarted their economies after years of being under lockdown, the maritime industry saw an increase in demand as businesses wished to press on and leave behind the turbulent times of the pandemic. This led to increased fuel costs that negatively affected the shipping industry as high fuel costs resulted in high shipping rates.
Shipping and freight forwarding companies had to raise shipping rates in response to high fuel prices as early as the last quarter of 2021. Even though shipping costs rose after economies reopened, this was still a sign that international trade was starting to return to normal. Still, another crisis popped up in the early months of 2022 that hit international freight.
On February 24, 2022, under the guise of a special military operation, Russia essentially invaded Ukraine. Russia was then struck with different sanctions that affected a lot, including Russian oil getting cut off from the market and further driving both oil and gas prices up. The current war did not only affect oil and fuel prices as international freight took a bigger hit thanks to the sanctions, cancelled flights, extended flights, and inflation.
In addition to the war in Ukraine, the current tensions in Taiwan can also affect the current state of global shipping as China’s People’s Liberation Army continues its military drills that simulate a blockade on Taiwan. This is after US House Speaker Nancy Pelosi visited Taiwan.
Ukraine War and Chinese Military Drills of Taiwan
War in Ukraine
Air transport is by far the most affected by the Russia-Ukraine War as multiple airlines reduced or stopped their operations between Europe and Asia. Those that continued their operations had to use extended air routes as both Ukrainian and Russian airspaces are currently closed. Thanks to extended air routes, airlines had to use more fuel, contributing to both higher fuel prices and skyrocketing prices of goods.
A screengrab of the current state of air traffic in Ukraine. Note the lone aircraft in the middle of the Black Sea. Due to sanctions, all airlines either avoid or skirt the Black Sea to avoid going into Russian airspace. Any aircraft in the middle of the Black Sea are likely military aircraft. Photo from live flight tracker Flightradar24.A screengrab of a longer flight path taken by a BELAVIA Boeing 737-8K5flying from Antalya to Minsk. Photo from live flight tracker Flightradar24.
Land freight that relies on routes going through Russia, Belarus, and Ukraine to go to and fro the European Union, China, and South Asia no longer has any safe overland routes. This means that international freight forwarding companies will need to use different routes through the UAE, Serbia, Turkey, or Romania. Customs brokers will also need to adapt to the different language barriers and document processing procedures.
The war on Ukraine also affected maritime routes in both the Sea of Azov and the Black Sea, as the routes are no longer safe. Several merchant ships have been attacked off the coast of Ukraine, making it certain that sea freight will be unreliable until the war ends. Although Russia and Ukraine recently signed a deal to allow grain shipments to move through the Black Sea to mitigate the risks of worldwide famine. Whether this means that the sea lanes will be safe for now is unknown, but Shephard Media noted that the tentative nature of the grain deal might not significantly shift the current security situation in the Black Sea, so it might not still be safe to set sail.
Like how land freight will need to rely on other routes, sea freight will also need alternative routes, making air routes a more viable option for shippers and freight forwarders.
Military Drills Around Taiwan
The blockade on Taiwan also further limited the remaining available air routes as China warned airlines to avoid flying in areas around Taiwan where the military exercises are currently held. China has also designated certain six areas of airspace as danger zones that all civilian aircraft must avoid.
Graphic representation of the areas where the People’s Liberation Army (PLA) plan to hold military drills. Photo provided by the People’s Liberation Army.
While airlines have cancelled flights to Taipei and have rerouted other flights to avoid the airspace in the past few days, air traffic has just returned to normal, at least on August 8, 2022.
Even if air traffic has returned to normal, some disruptions are still expected as military drills continue around Taiwan. The extended military drills can herald a “new normal” for freight and shipping off Taiwan.
The ClarkSea Index is a barometer of shipping fortunes, and during the War in Ukraine, it’s seen that the earnings of the shipping industry improved as the cost of shipping increased. The chart focuses only on tankers, bulkers, containerships, and gas carriers, but it’s safe to say that even the cost of shipping through the air has also increased.
The flight restrictions in Ukraine and Russian airspace effectively removed about 10 million miles of airspace and international freight routes utilized by 20% of the world’s air cargo. This resulted in longer flights and lower air capacity as carriers took alternate routes or canceled flights altogether.
If the military drills off Taiwan continue, there is a chance that the supply chain will further be negatively affected by increasing the cost of goods and causing certain shortages.
Skyrocketing prices
As shipping and freight forwarding routes were negatively affected by flight restrictions and the redrawing of route maps, the cost of transporting goods also increased as freight forwarders, and shippers had to use different routes and use other means to adapt. Longer and alternative routes will jack up fuel costs and then jack up the cost of the goods themselves.
The cost of fuel and energy reliant on fossil fuels already rose due to the higher oil prices, and the cost of other goods will only continue to skyrocket as transportation routes remain restricted. Some food prices, for one, have already eased but still remain high, but things can change if more routes end up getting closed off.
When the war in Ukraine started, there was speculation that electronic vendors might raise prices while using Ukraine as an excuse. PC Gamers didn’t exactly see this change in prices as both GPU prices and cryptocurrency crashed, and other PC parts didn’t see any price increase, at least not significant enough to warrant attention if there was any. However, because Taiwan is export-focused and its main products include electronics, there is arguably a bigger chance of prices increasing if exports are disrupted. Taiwan’s other products include the following:
electronics
information
communication and audio-video products
base metals
plastics & rubber
machinery
Taiwan’s chip manufacturing industry will also be affected as China halts its sand exports to Taiwan. The continuation of military exercises and the rerouting of sea and air freight to the country, halts in sand exports to Taiwan, and possible complications if the situation worsens can negatively affect the prices of electronics and PC parts.
For simplicity’s sake, it’s safe to assume that prices for multiple products will only skyrocket when multiple conflicts are happening that can disrupt the supply chain. As long as the war in Ukraine continues and if the situation in Taiwan worsens, there will be shortages, and price increases and the world will need reliable freight forwarders and customs brokers to keep the supply chain up and running.
Conclusion
Everyone involved in the shipping and freight industry will need to adapt to ensure that they can continue their operations amid different crises and supply chain disruptions. Shippers can only adapt to the situation and look for other transportation routes, hire competent customs brokers to ensure that shipments reach their intended destinations through the new routes, and futureproof their operations.
Excelsior Worldwide Freight Logistics constantly endeavors to be a company of enduring greatness by providing only time-conscious, client-oriented, and exceptional delivery service. We also conduct free orientation for anyone who is willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about us and our service.
Whether you are new in the importing and exporting industry or not, you might have already encountered the term Incoterms in your business. For starters, International Commercial Terms or Incoterms , which the latest edition was released in 2010, is a set of standardized trade terms created and published by International Chamber of Commerce in 1936 to serve as the basis of agreement between the supplier and the buyer that trades internationally.
The latest edition, the Incoterms 2010, contains 11 rules which are divided into two classes: 1. Rules for any mode or modes of transport; and 2. Rules for Sea and Inland Waterway Transport. Both differs in the mode of delivery, but understanding the difference between each rule is critical to know where and when the responsibility of the buyer and the supplier ends.
Detailed below are the duties of buyer and supplier in accordance with the 11 rules in Incoterms 2010.
Managing the e-commerce supply chain requires some important logistics skills, and this article will discuss the most critical of these. Regardless of the size of your business, it is essential to understand your entire business’s supply chain, including the components that are interconnected. The average e-commerce supply network is more complex than ever, and you need to be proactive instead of reactive. This means developing a predictive software solution to forecast demand and respond to it accordingly, similar to most recommendations that you will get from the most respected logistics company in the Philippines.
Identifying the Issues with The Supply Chain
Before you start your e-commerce supply chain, you should do a high-level process review. This can give you a comprehensive picture of the issues you need to address. In addition, this will help you to identify potential challenges and bottlenecks in your e-commerce supply chain. This will make your decisions easier and improve your business’s performance. Here are some helpful tips: (1) Determine what your customers want; and (2) Understand the challenges and benefits of each stage, and (3) consider hiring reading more about international freight forwarding.
Optimize your supply chain. Managing the supply chain will increase customer satisfaction and reduce operating costs. As you add items to your inventory, you must optimize your process to ensure that they arrive at their destination on time and in perfect condition. Typically, slotting is done at the SKU level. This is the wrong approach because it will lead to dead stock and negatively affect your business. By focusing on how much each step in the supply chain will cost, you’ll be better able to predict where each item will sell and when it will be delivered to customers.
Avoid duplicating processes. While duplicating processes can increase productivity, it is a common mistake for eCommerce startups. Many people end up with duplicated inventory, which increases their operational expenses. A good database administrator will be able to compare rates in seconds. If you can’t manage this, you can use a free-shipping rate calculator that will do the work for you. When it comes to cost, make sure to look for similarities between the two processes.
Proper planning and data collection are critical for e-commerce success. While it’s important to take care of inventory, capturing data will help your team focus on key metrics. This information is essential for e-commerce fulfillment and can be used as true north. It will provide a solid basis for your forwarding organization to manage your e-commerce supply chain. Aside from being the most critical component, the e-commerce supply chain will also benefit from a solid relationship with the customer.
A good e-commerce supply chain will include regular inventory audits and effective communication with customers. When it comes to delivery, consumers expect minimal delivery charges and zero human errors. In addition, a streamlined supply chain will help minimize the risk of damaged goods. This will also reduce your costs and make it easier for your customers to communicate with you. It will also help you avoid mistakes when dealing with third-party suppliers.
Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.
The freight forwarding industry has been around since the 1800s and has come a long way since then. In modern times, freight forwarding is a major factor in companies moving their products from one international location. With advances in technology and the Internet, freight forwarding is now more convenient and affordable than ever. A freight forwarder can easily send products and goods all over the world.
Many freight forwarding trends are happening across the globe today, especially in the Philippines. Let’s take a look at some of these freight forwarding trends in the Philippines.
More and more businesses and individuals are using freight forwarders to help them expedite their shipments. Small and big establishments have realized that a Filipino freight forwarder can greatly increase the speed of their shipments. They can also help businesses to save time and money in the long run.
More Goods Overseas
Another popular trend in the freight forwarding industry in the Philippines is that more people are sending their goods overseas. Most people in the Philippines are familiar with the country’s long coastline. They also know how long it takes for international freight services to arrive at their desired destination. Because of this, most freight forwarders have plans to send freight from Manila to foreign countries regularly. This allows the shipment of large amounts of goods.
Two-Way Shipping Services
Freight forwarding service providers often offer two-way shipping services to help clients send shipments overseas. These shipping services enable clients to track the status of their goods in different parts of the globe. Since tracking your shipment is important, this is a great way to ensure that you receive the shipment in the quickest amount of time.
Why Freight Forwarding?
Other than regular shipments, many freight forwarding companies offer freight forwarding services for specific reasons. One of these is when a business or individual needs to ship their goods to a specific destination outside the country. For instance, if an American company wants to ship its products to China, it will first search for a freight forwarding company that can do so. After finding a provider, they will tell what products they want to ship and where they want the products to go. The provider will then search for a container in the area suitable for storing the shipment until it is shipped to its intended destination.
The freight forwarding industry is still growing in the Philippines. Many factors contribute to the growth of this industry, including the country’s economy, the growing number of international businesses that choose to ship goods to the Philippines, and the increasing popularity of shipping services such as Air Asia and Oceania. This growing industry has shown no signs of slowing down and will continue to thrive in the years to come. The key to success in the freight forwarding industry in the Philippines lies in continued research and development to improve on existing freight forwarding trends and develop new methods to make shipping easier and more efficient.
Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.
Finding an excellent freight forwarder is very important, especially if you want your shipping business to run smoothly. A shipping company should always be able to provide their clients with great service and a great deal of flexibility in their operations. These two factors will help you maximize your profits and minimize the time you need to deliver your freight.
Of course, the best thing that you can do for your clients is to make sure that the freight company you are dealing with has excellent employees who can take care of the needs of their clients at any given time.
This article will focus on factors to look for a freight forwarder so you can ensure that you find the best one:
Expanding Your Choices Online
A good way to find a good freight provider is to research online and then make some calls. Find out what companies other people are using to ship their products and how satisfied they are. You can also find out what type of pricing model they use and what other services are included in their shipping package.
It is best to find a freight company that will provide free quotes for their shipping services. A quote can be obtained by visiting freight websites and enter your shipping information. The quotes will give you a price range to compare. Choose a company that has the lowest quote and that fits your budget best. Make sure that the company has been in business for at least five years.
CRM
One of the things to look for in a freight forwarding company is its customer relations management or CRM. The company should have a system in place to keep track of its customers, the type of goods they are shipping, the contact information of the customer, and other important information about them. This system should give the customer information regarding the status of their package, what the shipping company’s name is, and other important information regarding the forwarding company.
If you want to save time whenever you talk with your customer or when you need to check on the status of a package, your customer should easily access this information through the company’s CRM. Customer relations management is extremely important because it streamlines operations, ensures customer satisfaction, and promotes brand loyalty among your customers.
Customer Service
The freight forwarding company should ensure that it maintains an excellent customer service program. For instance, your client may get in touch with you to ask you about the best rates available for their shipment. If you cannot provide them with the answer they are looking for, the customer may decide to change shipping companies in the future. It pays to always be ready with your client’s wants and needs.
The Type of Good to be Shipped
You will also have to consider the type of goods you will be shipping. There are different types of freight like cargo transportation, hazardous goods, international freight, and even items that are difficult to ship, like custom-made goods from countries outside the Philippines. When it comes to these kinds of shipments, the freight company you choose should have a good variety of options that it can use to transport your goods. Whether you want your products transported in a closed container or in an open trailer does not matter. The company you choose should determine the most appropriate container for your shipment based on the size and weight of your merchandise.
Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.
Logistic services contribute to the economic growth as it incorporates a wide range of services, including transportation and cargo distribution. They play a vital role in the Philippines in terms of enabling the movement of goods and products.
Outsourcing logistic services for your business is an excellent way to guarantee efficiency and prevent disruptions to your business operations. While you may be able to find several companies offering logistic services, you must partner with a reputable logistics company in the Philippines whom you can trust for the transfer and shipping of your provided commodities.
Here are the main questions that you must ask to ensure you select a reliable and trustworthy logistic service provider for your business:
How long have you been in operation?
The number of years is not the basis for you to trust them right away. You have to ensure that the logistics provider can prove that they have established relationships with other business partners. Understanding their history is one of the most important things to consider; knowing their identity, purpose, and goals help you to finalize a decision to hire them to provide logistics service for your business.
What kind of customs services do you offer for my business?
Looking for brokerage services in Manila with a firm grip on your business is vital – they should always meet an accurate perspective in your establishment. A logistics provider that can recommend what’s best for your customers through a supply chain movement means that they can be a good partner – and that is a good sign for you to choose them; substantial knowledge for your service needs reflects their accountability.
Also, this can help you to learn more about the services they can provide; you can understand their service limitations.
Is your company technology integrated?
You have to look for a company that is technology deft. Everything is faster and seamless with technology. The technology operates information such as order information, real-time access to inventory, and others; technology-driven applications can notify delivery status.
If you choose a logistics provider that can process and analyze operations swiftly, that would be much helpful for your business.
How do you anticipate disruptions?
In business operations, unexpected disruptions happen. You have to look for a firm offering logistics freight in Philippines that can deal with unforeseen events and provides an efficient solution to solve concerns. Besides, logistic service providers should think of some challenges that might happen during the operations.
Can you provide references from clients with the same businesses?
It is also a good idea to ask for references from a logistics service provider to ensure that you chose the best one. In that way, you can list down all the minimal concerns that you can tell them for improvement. You can trust them with their services since they have catered to similar businesses like yours.
Logistic service providers, like Excelsior Worldwide Freight Logistics, serve as a dominant component in the success of every business company that takes part in dealing at a national and international level. They take part to achieve competitive advantages from business operations that involve buying and selling in global commerce.
Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.
