Freight shipping In
, 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.
– Ocean liners
– Trucks and
Freight costs in
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 in
Commercial freight shipping in
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.
Residential freight shipping in
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.
International freight shipping In
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.
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.
Online services Like Student Uni Freight Australia
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.
Tips on How to Reduce Freight Shipping Charges
There are two main options for those businesses and individuals that want to ship goods overseas. You can go for international freight shipping by sea or by air. The first option has been around for quite some time now, but the latter is gaining more and more popularity. Consider the benefits and drawbacks of both options and your individual needs to make a final decision.
The cost of this international freight shipping option is naturally the first factor to evaluate it on. The sea forwarders set a price per container. The main container sizes are 20' and 40'. If you do not have sufficient load to fill a container, the price is charged per cubic meter. Given this, the larger the volume of the consignment is the more cost-efficient the shipment will be. That is why sea shipping is considered the better option for large volumes of goods and for cargo that is large and has irregular shape.
The speed of sea transport is not particularly high. This is mainly due to the size and weight of the vessels used. At the same time, the transport is well organized with many ports being close to major industrial and commercial centers. You can expect your goods to travel from a couple of weeks to around two months depending on the distance to the destination.
The international freight shipping by sea is fairly reliable. The vessels undergo inspection to confirm that are in good condition when they leave the port. Most ships are designed to overcome all kinds of weather conditions so that they can keep their schedule. Delays do occur, but you should not expect them to be for more than one or two days.
The cost of the air transportation of goods is determined on the basis of both the weight and volume of the consignment. Air shipping is generally more expensive than its counterpart. However, it my turn out to be cheaper for smaller shipments that cannot fill up a standard sea carrier container.
This type of international freight shipping is a lot faster than its alternative. It is between 15 and 30 times quicker. Indeed, the goods can arrive at the designated airport within one or two days after being picked up.
Just like sea transportation, air transportation can get affected by bad weather and other adverse circumstances such as strikes. However, it is fairly reliable especially if the air carrier has extensive operations and a large number of flights daily.
Choose the type of international freight shipping depending on your goals and budget.
What is Air Freight?
"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!