How to reduce Freight Costs
International freight prices are still feeling the effects of the COVID-19 pandemic, we see this in the volatile and unpredictable rates. However, some freight charges are more predictable – and preventable.
Weight adjustments and a lack of an appropriate export licence account for about for a majority of the additional charges that our customers incur after booking.
An export license is required to export goods out of a vast majority of countries. In many cases, your supplier or manufacturer will provide the required licence on your behalf.
Freight forwarders can obtain an export licence at an additional cost if your supplier cannot provide one. To avoid additional charges because of an export license, check in with your supplier to ensure they can supply the licenses required.
Changes in the cargo specification (Change in load)
Ensuring your goods are weighed and measured correctly is critical in avoiding additional charges. Here are two key points to remember:
- Chargeable weight
Both weight and size affect how much freight costs. If commodities were simply charged by weight, carriers would refuse to transport light, substantial objects since they would occupy a vessel’s space before reaching the weight limit, which would result in a loss of revenue for the carrier. The volumetric weight calculation, is the accepted unit of measurement for shipping because of this.
Knowing your shipment’s charged weight can offer you a much more precise sense of your overall cost. This last figure is referred to as the chargeable weight.
Chargeable rates are important in Air freight, you can calculate the chargeable weight by figuring out if the actual weight or the volumetric weight is greater.
We calculate volumetric weight by multiplying the length by the width by the height (L x W x H) and then dividing the result by 6000
- Packaging Materials
Whenever you’re about to ship something by Air or Sea, it’s important that the cargo is measured correctly. That means measuring all its dimensions, including the pallets, packaging materials and bubble/shrink-wrap used to transport the cargo. Failure to include materials will lead to an additional charge from the carrier.
LCL shipments that are shipped as loose cargo are palletised at the destination warehouse, this allows for safe delivery of the goods.
The trucking company that loads the cargo onto a pallet and oversees the delivery charges a pallet exchange fee.
The Pallet Exchange Fee is charged per pallet and varies depending on the carrier.
To avoid being charged for the pallet, you can either exchange an equal set of pallets or unload the goods from the pallets and return them to the delivery driver.
For more information, please do not hesitate to contact us using the live chat option. Alternatively, you can give us a call on +44 (0)1494 509700..