International freight shipping in Orange 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 Orange 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.
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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 Orange 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 Orange 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.
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"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!
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Let be realistic: When we use our computers, we expect them to be useful and make our lives easier. When we utilize a piece of software, we expect our manual tasks to be more automated and be accomplished with our minimal involvement. If you are a Shipper looking for a Carrier and instead of calling hundreds of truckers over the phone you choose to use an online load-board, you should expect the same, right? "On the paper", all online load-boards claim they have what you need to make your truck booking process easier, but do they really?
The truth is, when you have a load to ship and you post it on an online load-board, your phone will start to ring pretty much immediately. Once you are done explaining all details about your load to the first Carrier and get a quote, you receive the second call and the third and fourth... and by the time you know it, you have answered maybe 40 or 50 calls (if not more) and spent 4-5 hours talking to truckers answering millions of questions (at least it usually seems like that many). But hey, you did find a carrier for your load and you should be happy, right? Well, just briefly think about your efficiency and ask yourself these few questions: How did posting my load on that load-board really help me? Did it make my live any easier than if I did not post it there on the first place? Could I have focused on more important tasks or I was just busy one the phone to do anything else?
Positives and Negatives
Well, the positive fact was that the load-board did help you broadcasting your message about your available load to larger audience of carriers than you could have done it yourself. But, the negative thing was that you had to spend huge amount of effort and time to speak to many people and answer lots of questions in order to accomplish a simple task. Now ask yourself one more question: "What if" after posting my load on the load-board I did not have be on the phone at all and the carriers somehow managed to leave their quotes on my desk waiting for me, so I can review them at my convenience and later on I just decide who to give my load to? Basically, how can I manage to cover my load with my minimal involvement and at the same time be able to focus on my other daily tasks.
That would be something, right?