Freight forwarding FAQs

Transcription

1 A freight forwarder takes away the headache of trying to make bookings or meetings with relevant authorities so that your cargo can move through the system with ease. Freight forwarding FAQs What%is%a%freight%forwarder?% A"freight"forwarder"is"a"person"or"an"organization"that" A forwarder allows you to have peace of mind and get on with the project or job. facilitates"the"movements"of"cargo"via"air"or"sea"as"well"as" handling"any"local"customs"matters"or"quarantine"issues."" The"forwarder"is"the"interface"between"your"company"and"the" airlines"and"shipping"companies."" In"essence"the"forwarder"takes"away"the"headache"of"trying"to" make"bookings"or"meetings"with"relevant"authorities"so"that" your"cargo"can"move"through"the"system"with"ease."" A"forwarder"allows"you"to"have"peace"of"mind"and"get"on"with" the"project"or"job."

2 A freight forwarder should have at least 15 to 20 years experience and be very well versed in shipping, air and customs procedures. How%much%experience%should%a%freight% forwarding%company%have?% A"freight"forwarder"handling"general"cargo"should"have"at"least" five"years "experience"and"a"proven"track"record"within"the" industry."" A"freight"forwarder"should"have"at"least"15"to"20"years " A forwarder gives you a single point of reference and a single point of contact. experience"and"be"very"well"versed"in"shipping,"air"and"customs" procedures." There"is"always"a"lot"of"money"at"stake"with"a"project"and" choosing"one"simply"on"price"or"because"you"know"someone"who" knows"someone"really"is"a"recipe"for"disaster."" You"really"need"to"check"the"forwarder s"credentials"with"the" industry"and"industry"peers."make"sure"that"you"get"all"the" information"on"them.""" Don t"engage"a"freight"forwarder"just"because"they re"a"nice" person;"a"great"person"does"not"mean"they"can"do"the"job"to"your" exacting"standards." 2

3 Check the forwarder s credentials with the industry and industry peers. Why%should%I%choose%a%freight%forwarder% rather%than%a%shipping%or%airline%company?% This"is"a"question"I"hear"all"the"time"and"it"always"comes"back"to" what"the"carriers"are"offering."remember,"a"shipping"line"is"just" that:"a"shipping"line"l"not"a"road"transport"company"or"a"customs" broker.""a"forwarder"gives"you"a"single"point"of"reference"and"a" single"point"of"contact."the"carrier"while"interested"in"your" business"would"prefer"to"deal"with"the"forwarder,"so"that"there"is" no"risk"of"miscommunication."carrier s"terms"are"very"treacherous" and"have"been"tested"in"court"over"many"hundreds"of"years"in"the" case"of"shipping"and"well"tested"in"court"for"airlines."" Most"airlines"will"only"deal"with"a"forwarder,"as"they"are"part"of" the"international"air"transport"association"(iata)"that"has"its" own"set"of"rules."carriers"also"do"not"give"credit"and"in"most"cases" it"is"paylbeforelplay"or"paylafterlloading."" Airlines"do"not"give"credit"to"the"public"L"only"forwarders;"as"such," the"forwarder"only"has"14"days"from"date"of"shipment"to"pay"the" invoice."" 3

4 Do freight forwarding yourself and you will need to pay on loading or receiving subject to whatever arrangements you have made with the carriers and the shipping lines. To"use"the"airlines"a"forwarder"must"put"up"a"very"large"bank" guarantee"for"all"shipments"and"as"such"carries"the"burden"of"the" debt"if"it"all"goes"pear"shaped."" That"said"the"customer"is"obligated"to"pay"the"forwarder"within" their"terms,"as"they"would"have"signed"an"agreement"or"contract" before"trading." Can%I%do%the%freight%forwarding%myself?%% In"a"short:"yes,"but"you"will"have"to"have"a"thorough" understanding"of"the"carrier s"terms"and"conditions"and"be" prepared"if"anything"goes"wrong,"as"the"carriers"have"deep" pockets"and"a"large"battery"of"very"seasoned"solicitors"who"know" the"transport"law"inside"out."" Do"it"yourself"and"you"will"need"to"pay"on"loading"or"receiving" subject"to"whatever"arrangements"you"have"made"with"the" carriers"and"the"shipping"lines."most"prefer"to"handle"through"a" forwarder." 4

5 In many cases freight forwarders are cheaper to use, as they have the buying power of a large group or because they have regular shipments. Does%it%cost%more%to%use%the%services%of%a% freight%forwarder?% In"some"instances"yes,"but"this"all"boils"down"to"what"their" charges"are"and"what"they"mark"up."" In"many"cases"they"are"cheaper"to"use"as"they"have"the"buying" power"of"a"large"group"or"because"they"have"regular"shipments." " Which%should%I%choose:%airfreight,%sea% freight%or%road%freight?% This"depends"on"your"immediate"needs"at"the"time."" All"are"good"services"and"all"can"get"your"cargo"to"market,"but" they"all"come"down"to"cost"and"time."" What"is"the"cost"to"you"if"the"product"is"not"delivered"on"time"or" as"agreed?"" L"Service"is"remembered"long"after"price"is"forgotten."" Destination charges customs clearance port charges terminal charges stevedoring marshalling storage delivery crane security wharfage 5

6 A professional forwarder will give you all the answers, and will ensure you receive the price you have been quoted. Who%is%the%consignee%and%who%is%the% consignor%or%shipper?% The"consignee"is"the"person"receiving"the"shipment."The" consignor"is"the"person"sending"the"shipment." The consignee is the person receiving the shipment; the consignor is the person sending the shipment. Any%advice%for%a%first%time%shipper?% Do"your"homework"and"make"sure"you"have"asked"all"the" questions."there"are"no"stupid"questions."a"professional" forwarder"will"give"you"all"the"answers,"and"will"ensure"you" receive"the"price"you"have"been"quoted."" Don t"just"choose"the"forwarder"because"of"a"name"or"first"one"in" the"phone"book."a"forwarder"can"make"or"break"your"product" into"the"market."late"delivery"can"be"disastrous"and"again"it" comes"back"to"cost"versus"price."" What"is"the"cost"if"you"do"not"deliver"on"time?" 6

7 For project cargo, you will need to have all the drawings and any technical data as well as the load point and destination point. What%information%should%I%have%available% to%discuss%my%shipment%with%a%freight% forwarder?% You"will"need"to"have"the"packing"list"with"all"dimensions"and" weights."for"project"cargo,"you"will"need"to"have"all"the"drawings" and"any"technical"data"as"well"as"the"load"point"and"destination" point."you"will"also"need"to"advise"the"forwarder"on"what"portion" of"the"project"they"will"be"handling"i.e."customs,"road"transport," port"handling,"shipping,"cranes"etc." Without"this"information"the"forwarder"cannot"give"an"accurate" estimation"or"quotation."with"this"information"the"forwarder"can" then"prepare"and"present"a"full"endltolend"supply"quotation" which"will"contain"time"lines,"and"method"statements."you" should"be"able"to"present"a"full"document"to"your"pricing"and" management"team"for"review." 7

8 Ships have some more flexibility, but are restricted by the size of their cranes on the vessel. Why%are%the%shipping%rates%so%volatile?%% It"is"based"around"fuel"charges"at"the"time"and"whatever"the" market"will"sustain."" Shipping"is"always"volatile"due"to"the"nature"of"the"business."" Carriers"have"massive"overheads"to"fulfill"and"when"the"market" is"hot"they"move"their"prices"accordingly." Does%size%matter%for%air,%sea%and%road% shipment?%% Yes."There"are"limits"on"airfreight,"as"aircraft"are"only"so"big"and" can"struggle"with"some"sizes"and"weight."" Road"transport"is"limited"by"the"local"road"authorities,"but"some" very"large"shipments"have"been"moved"in"recent"times."" One"that"springs"to"mind"is"a"move"in"the"Middle"East"late"last" year"that"was"5000"tonnes"in"a"single"piece."" This"was"moved"from"the"fabrication"yard"to"the"site"via"Self" Propelled"Motorised"Transport"SPMT."" That"movement"was"a"world"record"until"the"next"big"move."" Ships"have"some"more"flexibility"but"are"restricted"by"the"size"of" their"cranes"on"the"vessel."" Ships"certainly"handle"some"very"large"cargo,"but"it"always" comes"at"a"price." Do%I%need%to%know%the%weight%of%my%goods?% Yes,"this"is"very"helpful,"as"it"will"determine"what"type"of" equipment"will"be"required"to"move"the"cargo." What s%the%best%way%to%save%money%on%air,% sea%or%road%freight?! Look"at"what"you"are"trying"to"achieve"in"terms"of"delivery."Make" sure"you"have"all"your"facts"straight"regarding"weights"and" dimensions." 8

9 There are many dangerous goods that cannot be carried by air. Your freight forwarder will know these. Are%there%types%of%cargo%that%cannot%be% shipped%via%air%freight?% There"are"many"dangerous"goods"that"cannot"be"carried"by"air." Your"freight"forwarder"will"know"these."If"not,"they"can"check" through"their"dangerous"goods"manual"which"every"forwarder" should"have"in"their"office."this"book"is"produced"each"year"in" conjunction"with"the"carriers"and"relevant"safety"authorities." " What%kind%of%paperwork%will%I%need%to%fill% out%ahead%of%time?% You"will"need"to"provide"a"shipper s"letter"of"instruction"which" will"detail"the"sender,"receiver"and"all"relevant"cargo" information."the"forwarder"needs"this"before"they"can"make"a" booking"with"the"carriers."this"information"must"be"produced"by" the"shipper"and"any"mistakes"with"regards"to"declaration"of" cargo"will"rest"squarely"back"with"the"shipper"and"not"the" forwarder"or"carrier." 9

10 You will need to have the packing list with all dimensions and weights. What%are%the%FOB,%CFR,%CIF,%DDU%and%DDP% Terms?% FOB$%$Free$on$Board:" This"means"the"shipper"delivers"the"goods"on"board"the" nominated"vessel"and"at"the"nominated"port"by"the"buyer"or" procures"the"goods"so"delivered."" The"risk"for"loss"and"or"damage"passes"to"the"buyer"once"the" goods"are"loaded"on"the"vessel"or"aircraft."the"buyer"then"takes" all"responsibility"from"this"point"on."" CFR$%$Cost$and$Freight:" This"means"cost"of"goods"and"the"freight"and"that"seller"delivers" the"cargo"on"board"the"vessel"or"procures"the"goods"already"so" delivered."" The"risk"of"loss"and"or"damage"passes"to"the"buyer"once"good"are" on"board"the"vessel"or"aircraft." CIF$%$Cost$Insurance$and$Freight:"" This"rule"should"only"be"used"for"sea"and"inland"waterway" transport."" This"means"the"seller"delivers"the"goods"on"board"the"vessel"or" procures"the"goods"so"delivered."" The"risk"of"loss"and"or"damage"to"the"goods"passes"when"the" goods"are"on"board"the"vessel."" The"seller"must"contract"and"pay"for"the"cost"of"freight"necessary" to"bring"to"goods"to"the"final"point"of"destination" DDU$%$Deliver$Duty$Unpaid:" This"means"the"shipper"must"have"cargo"delivered"to"the" consignee"at"their"cost"excluding"duty,"but"must"also"handle"the" customs"clearance"and"all"local"arrival"charges"at"destination." DDP$%$Deliver$Duty$Paid"" This"means"the"shipper"must"deliver"goods"to"consignee"at"his" expense"including"all"duties"and"taxes." 10

11 Air Freight: Length x Breadth x Height = cbm 167 kg = 1.00 cbm Road Freight: Length x Breadth x Height = cbm x 250 or 300 kg = 1 cbm Ocean Freight: Length x Breadth x Height = cbm/ 1.00 cbm = 1000 kg Can%I%ship%my%goods%on%an%express%or% deferred%service?%% * Chargeable is whichever is greater. CBM = cubic metres. Yes,"many"carriers"have"this"option"and"it"works"out"better"on" deferred,"as"it"is"less"expensive."this"does"not"apply"in"project"cargo." Does%my%shipment%need%any%special% packaging%for%freight%shipping?% Most"shipments"will"be"packed"in"appropriate"casings."Your" forwarder"can"advise"you"if"it"needs"further"packing." Do%I%need%cargo%insurance?%Who%insures%my% goods%while%they%are%being%shipped?% "Yes"L"you"will"need"insurance,"as"it"is"not"mandatory"for"a"forwarder" or"the"carrier"to"cover"your"insurance."you"must"insure"your"goods." Forwarders"do"not"apply"insurance"automatically." 11

12 Ensure you allow extra time for the unforeseen. What%is%a%customs%broker?%% A"customs"broker"is"a"person"who"has"studied"the"Customs"Act" and"been"granted"a"license"to"act"as"a"broker"to"assess"cargo" entries."" In"Australia"they"are"heavily"regulated"and"must"meet"very" stringent"customs"requirements"regarding"the"entry"and" declaration"of"goods."" They"are"very"well"versed"in"searching"out"tariff"concessions"and" duty"exemptions."they"are"an"integral"part"of"a"forwarder s"team." % What%can%I%do%to%prevent%delays%and% ensure%a%smooth%process%of%the%shipment?% Ensure"you"allow"extra"time"for"the"unforeseen"things"that"may" occur."give"your"shipment"plenty"of"time"to"arrive"and"don t" assume"that"cargo"will"move"the"day"you"present"it"to"the" forwarder!" About$TGI$ TGI"specialises"in"the"worldwide"logistics"and"freight"forwarding" industry"and"understands"client"needs"at"every"level." Services"include:"project"and"out"of"gauge"cargo;"freight" forwarding"by"air"and"sea;"aircraft"charters;"vessel"charters" " shipping;"salvage;"customs"clearance" "marshalling,"warehousing" and"consolidations;"worldwide"tracking,"gps"tracking,"and"rfid" and"asset"management."to"date"tgi"has"moved"over"half"a" million"cubic"metres"of"cargo"and"travelled"over"8"million" kilometres"with"zero"injury,"zero"fatality"and"zero"fines." Townley Group International managing director Peter Townley: see the freight forwarder as an integral part of your team.!"for"more"information,"contact"peter"townley:" Tel:""+61"407"727"222" "ptownley@townleygroupinternational.com" Web:" 12