Freight Shipping Glossary Perth 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.

International Freight Shipping Questions

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

Freight Shipping Dictionary

"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 Service Perth Australia

Freight Shipping Broker

LTL or Less than Truck Load freight shipping provides shippers the convenience of transporting smaller volume shipments at affordable prices. This is an emerging trend that is fast becoming popular among shippers.

LTL Freight Shipping Process

LTL shipping takes place in several steps. First, the operator collects shipments from several customers. These shipments are then taken to a terminal where they are sorted according to their destinations. Consolidated shipments with like destinations are then placed in an outbound vehicle and taken to the regional terminal. Here, the shipment is unloaded and distributed to individual destinations.

LTL Freight Shipping as an Emerging Industry

Less than Truck Load freight shipping is a new trend in the shipping industry that is providing significant costs savings to shippers. However, it is a highly volatile segment of the trucking industry, since it involves frequent handling of packages. The process involves picking up, sorting, consolidating and the delivering of packages, making it a labor-intensive exercise. As a result, the LTL shipping industry works on smaller margins, covering fixed costs with huge shipment volumes.

Due to trucking deregulation, the industry is hypercompetitive. The increased competition has also forced many LTL shipping companies to buy trucks with modern technology, such as diesel-efficient engines and accident-reducing mechanisms. They also tend to employ the latest technologies to optimize the efficiency of their operations. Relative to the full truckload industry, the LTL segment requires more capital investment.

Benefits of Less than Truck Load Shipping

Less than Truck Load shipping of freight is beneficial to shippers because:

- Regional terminals facilitate delivery of shipments even to the remotest areas.

- Small shipments can be delivered cost-effectively with LTL freight shipping, since customers do not have to pay for the whole truck.

- Customers can ship their goods at discounted prices if they use the services of one LTL freight company for all their delivery needs.

- Most LTL freight companies provide modern tracking technology to help users track their shipment in real time.


Australia International Freight Shipping By Sea