International freight shipping in Rockhampton 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 Rockhampton 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 Rockhampton 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 Rockhampton 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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What is FOB? This is a common question among those new to the shipping industry and a great inquiry, indeed. Failure to properly understand this concept can result in the loss of hundreds of dollars.
The best FOB definition is found in the meaning of the acronym itself, which is Free on Board, although some prefer to use the FOB definition of Freight on Board. Either way, this term signifies to the ship crew at what point during the shipping process the buyer of the product is not responsible for charges.
Some may wonder what the importance of understanding the FOB definition is, and there are many reasons why understanding this concept is important. The terms FOB determines the risk of loss involved as the product is transferred from the seller to the buyer. Furthermore, the buyer can lose a lot of money in being ignorant of these terms as they stipulate the amount of money owed for the shipment, and this can add up to a large sum of money especially for larger cargo.
Many are still confused at their options upon hearing the general definition. There are four standard choices in FOB. First, the seller can be responsible for paying for all of the shipping charges while the buyer is responsible for insurance on the product, and this method is known as CF Pay Freight to Destination. Others prefer to establish an FOB Destination which places a higher responsibility on the seller as they are responsible for both the cost to ship as well as the risk of loss. FOB Shipping Point is the exact opposite; the buyer is responsible for charges and possible damage. Finally, the choice of Pay Insurance and Freight to Destination stipulates that the seller is responsible for acquiring insurance on the product to protect it during the shipment.
Buyers of imported products who have been doing so for some time and have never been presented with their FOB options should inquire as they are subject to the terms set by the shipper, and these are often not to their advantage.
In the event that the product becomes lost or stolen during the shipping process, the buyer may be responsible for covering such damage. Often buyers will carry insurance on the shipment, but again this is something that should be determined beforehand in the terms and conditions. For this reason, all buyers of shipped goods should understand the concept of FOB.