{"id":5816,"date":"2023-01-26T10:40:04","date_gmt":"2023-01-26T13:40:04","guid":{"rendered":"https:\/\/savilog.com\/?p=5816"},"modified":"2023-01-26T11:25:40","modified_gmt":"2023-01-26T14:25:40","slug":"international-freight-quote-how-to-analyze-it","status":"publish","type":"post","link":"https:\/\/savilog.com\/en\/international-freight-quote-how-to-analyze-it\/","title":{"rendered":"International Freight Quote: How to analyze it?"},"content":{"rendered":"

When we request an international freight quote, no matter the mode of transport, we tend to only look at the cargo value and end up not observing the rest of the information contained in the quote; should we just look at the freight value, though? Isn\u2019t there any other important information to be observed? Well then, let us understand a little more about how to analyze the quotes and their structure. After this, importers and exporters will certainly clarify many questions on the subject.\u00a0<\/span><\/p>\n

 <\/p>\n

An International Freight Quote: Why do it?<\/b><\/h2>\n

 <\/p>\n

The importance of having a good freight quote seems fundamental, since a wrong quotation can cause problems related to the delivery schedule \u2013 Can you imagine the mess if the exporter has already signed a contract with the importer on this matter? \u2013 plus, a wrong quotation can also burden the process costs, given the fact that the logistics price has a great weight on the products\u2019 final value.\u00a0<\/span><\/p>\n

The international freight cost can vary a lot, depending on the freight forwarders involved, the type of cargo to be transported, the countries where the process will take place in, the port of origin and destination, and even depending on the means of transport to be chosen. Thus, to really know laws and rules governing international freight, it\u2019s essential to ensure that the products reach their destination safely, on time and with a fair transport cost. Once the freight service is complete, you need to check the tracking information to make sure the goods can arrive at the right place, within the deadline.\u00a0<\/span><\/p>\n

When hiring an international freight service, to carefully review the terms of service and check the delivery guarantees is totally relevant. It is also vital to make sure that the company you hire has a good track record and, moreover, is known for offering a quality service. Finally, make sure that all the documents required for shipping the goods are properly filled out before the delivery.<\/span><\/p>\n

 <\/p>\n

International freight quotation: How to do it?<\/b><\/h2>\n

 <\/p>\n

A good understanding of the details of the process is always fundamental, such as knowing what documentation is required, deadlines, rates, and fees. It is also necessary to check whether the goods are suitable to be exported or imported, if there is any export or import restrictions, and whether they are in accordance with international regulations.<\/span><\/p>\n

Hence, here you have the prominent information that must be sent for the freight forwarder to structure a quotation:\u00a0<\/span><\/p>\n

    \n
  • Know the traded Incoterm \u2013 It is certainly a substantial information to have! Without it, the agent will not be able to make the quotation;<\/span><\/li>\n
  • Depending on the established Incoterm, it is necessary to inform specific addresses for both the cargo\u2019s withdrawal as well as for its delivery.\u00a0<\/span><\/li>\n
  • Check the merchandise \/ determine the NCM (MERCOSUR Common Nomenclature) \u2013 once it\u2019s done, the agent will know which type of freight he\/she should consider and what kinds of documents are required;<\/span><\/li>\n
  • Check the commodity\u2019s value \u2013 having its price, in addition to the freight quote\u2019s calculation, the agent will be able to assist on the best way to ship the merchandise and negotiate the insurance values;<\/span><\/li>\n
  • Know the cargo\u2019s origin and destination \u2013 this is always essential information;<\/span><\/li>\n
  • Determine the shipping form \u2013 whether it\u2019s an ocean, road, or air transportation;<\/span><\/li>\n
  • Check the negotiation between delivery times \u2013 it becomes relevant for the best transit time search;<\/span><\/li>\n
  • Check the cargo size \u2013 its length, width, height, cubage, gross weight, the type of packaging and so on;<\/span><\/li>\n<\/ul>\n

    Let us give a suggestion for professionals in the area: setting up a standard e-mail with all required information and having it saved is a good idea to make sure you send all the information at once, if you wish to avoid so many e-mail exchanges or calls only because something was missing.<\/span><\/p>\n

     <\/p>\n

    International freight rates: How to analyze them?<\/b><\/h2>\n

    Beware of very low freight prices, it may be a trap!\u00a0<\/span><\/p>\n

    Once the freight forwarder has calculated the quote, he\/she will send a complete quote with all the details included, then, importers or exporters should compare these values and study them carefully to avoid pitfalls.<\/span><\/p>\n

    For instance:<\/span><\/p>\n

    – Low freight value \u2013 might mean higher transit time;<\/span><\/p>\n

    – Low freight value \u2013 demurrage with high values;<\/span><\/p>\n

    – Low freight rates \u2013 very few days of free time to return the container;\u00a0\u00a0<\/span><\/p>\n

    – Low freight value \u2013 higher port or deconsolidation fees.\u00a0<\/span><\/p>\n

    So, look for quality information such as average delivery time, returning rates, and kinds of provider\u2019s support. If possible, ask for a sample of services before your hiring. It\u2019s is also relevant to check whether the provider does good business and offers good quality guarantees.<\/span><\/p>\n

    Here are some of the fees and their acronyms to be observed and compared during quotations:\u00a0<\/span><\/p>\n

      \n
    • POL \u2013 Port of embarkation;<\/span><\/li>\n
    • POD \u2013 Port of disembarkation of the cargo;<\/span><\/li>\n
    • TT \u2013 Time of transit;<\/span><\/li>\n
    • Rate OFR \u2013 Ocean Freight Rate;<\/span><\/li>\n
    • Transhipment charges;<\/span><\/li>\n
    • Docs \u2013 Documentation fee;<\/span><\/li>\n
    • Storage at CFS \u2013 Storage fee;\u00a0<\/span><\/li>\n
    • BL fee \u2013 Fee to release the BL to the shipper;<\/span><\/li>\n
    • Deconsolidation \u2013 Deconsolidation fee;<\/span><\/li>\n
    • ISPS \u2013 Fee used for vessel and port facility security;<\/span><\/li>\n
    • ODF \u2013 Documentation Fee at origin;<\/span><\/li>\n
    • OHC \u2013 Terminal handling fee;<\/span><\/li>\n
    • Wharfage \u2013 Other fees calculated at the port.\u00a0<\/span><\/li>\n<\/ul>\n

       <\/p>\n

      As you can see, all of them must be analyzed before closing an international freight deal!<\/span><\/p>\n

       <\/p>\n

      International freight quotation: What precautions should importers or exporters take when hiring it?<\/b><\/h2>\n

       <\/p>\n

      Quality and Safety\u00a0<\/b><\/p>\n

      It is important that the carrier offers a quality and safety service. Check if the company has insurance and security both for the transported products as well as for the driver.<\/span><\/p>\n

      Speed\u00a0<\/b><\/p>\n

      Verify if the transporter can offer a fast, safe and efficient service.<\/span><\/p>\n

      Price\u00a0<\/b><\/p>\n

      Check if the offered price is affordable and if it has a good quality service.<\/span><\/p>\n

      Flexibility\u00a0<\/b><\/p>\n

      Check whether the carrier provides flexible and customized services to meet the customer’s specific needs.<\/span><\/p>\n

      Experience<\/b><\/p>\n

      It is good to verify if the transporter has experience in the area and has a good track record.<\/span><\/p>\n

       <\/p>\n

      Contact us for more information. We have the right team to help you!<\/span><\/p>\n

      Comment and share it!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      When we request an international freight quote, no matter the mode of transport, we tend to only look at the cargo value and end up not observing the rest of the information contained in the quote; should we just look at the freight value, though? Isn\u2019t there any other important information to be observed? Well…<\/p>\n","protected":false},"author":5,"featured_media":5819,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[356],"tags":[],"class_list":["post-5816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-trade"],"yoast_head":"\nInternational Freight Quote: How to analyze it? - Savilog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/savilog.com\/en\/international-freight-quote-how-to-analyze-it\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"International Freight Quote: How to analyze it? - Savilog\" \/>\n<meta property=\"og:description\" content=\"When we request an international freight quote, no matter the mode of transport, we tend to only look at the cargo value and end up not observing the rest of the information contained in the quote; should we just look at the freight value, though? 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