What does it take to be profitable in Freight Forwarding
Achieving and maintaining profitability has been one of the serious problems faced by many freight forwarders and more so, in these trying times..
A Freight Forwarder is a multi-function agent/operator who undertakes to handle the movement of goods from point to point on behalf of the cargo owner and the essence of freight forwarding is to ensure that the cargo is collected from the seller and delivered to the buyer at the required place, at the right price and in the same condition that it is picked up from origin using the most suitable and optimal resources and routing possible..
While reducing costs, keeping costs low or maintaining the costs over a period of time is key to achieving profitability in freight forwarding, there are also other ways to be profitable in freight forwarding..
4 tips to reduce cargo damage and save money on shipping costs
Shipping damage is a massive threat to any products that travel on the supply chain.
As per a Statista survey, eighty per cent of consumers say they’d return a product they received that was damaged in shipping.
The more your products get damaged in shipping, the more money your company loses and the effects of that loss can spread throughout your organization, causing both direct and indirect expenses and affecting sales.
Here are 4 tips to reduce cargo damage and save money on shipping costs.
FAK it.. A deep dive into FAK rates and how it works..
The process of global trade is simple to look at, especially if you look at it from the outside..
- There is a buyer who needs a product ;
- There is a seller who sells this product ;
- They discuss and agree on a price ;
- The buyer pays the agreed price ;
- The seller arranges for the product to be transported to the buyer
End of trade..
Simple, right..?? Many would wish it was so..
While there are several processes and documentary flows involved in trade negotiations, there are even further processes involved in the actual movement of the goods from Point A to Point B..
One such process in the movement of goods that influences product pricing is the process of freight negotiation and freight quotation in which there are several types..
Let us take a deep dive into FAK rates and how it works..
Understanding a freight quotation and tips to ensure an accurate quote
If you are in the business of trade and shipping, you would have surely heard of/dealt with freight quotations along the way..
A freight quotation is a document that outlines the charges involved in the movement of cargo from Point A to Point B..
Many customers have lost $$$ on their transactions because of unclear, incomplete or incorrect freight quotations or they do not understand what a freight quotation entails and what it covers..
Here are some tips on how to understand a freight quotation and how to ensure that you get an accurate one..
10 tips to avoid losses due to abandoned cargo
In any normal year, hundreds of thousands of containers filled with cargo are abandoned all over the world.
While abandoned cargo could be quite stressful and considered to be a big headache for everyone concerned, a freight forwarder may be especially affected by cargo abandonment.
Here are 10 tips to help you avoid losses due to abandoned cargo..
Risks and Liabilities of a Freight Forwarder
Freight forwarders are an integral part of the supply chain and global maritime trade..
A freight forwarder serves as a conduit for global trade between importers, exporters, BCOs (Beneficial Cargo Owners) and the transportation and regulatory entities such as shipping lines, customs, port etc..
The moment a freight forwarder signs/accepts a contract with the customer, they are exposed to several unique risks and liabilities..
This article discusses the risks and liabilities of a freight forwarder..
Precautions to take against loss due to abandoned cargo
Abandoned cargo could be quite stressful for shipping lines, shippers, port authorities and forwarders alike and is considered to be a big headache for everyone concerned..
When a cargo is abandoned it causes severe financial losses to all parties concerned – seller, buyer, shipping line, freight forwarder, transporters, banks, Government etc etc..
It could also cause a rift in business relationships between a shipping line and their customer – whether it is an importer or a freight forwarder because it could create a blemish in the customer’s record with the shipping line..
When is a cargo considered to be Abandoned Cargo..??
Pitfalls of digitalisation in shipping and freight
Digitisation, Digitalisation, Digital Transformation are some buzz words that have recently taken the shipping and freight industry by storm..
Let’s take a quick look at what these terms mean and what it is all about..
While Digitalisation is inevitable in the industry, there are also some pitfalls and you can read about the pitfalls and how to avoid it here..
Executive Insights with Saskia Groen In’t Woud – CEO of Damco
Executive Insights is a series by Shipping and Freight Resource that provides ongoing insights and thoughtful analysis enriching the knowledge of the readers with what is happening in the shipping, freight, maritime, logistics and supply chain industry..
Executive Insights is also a chance to pick the brains of industry veterans, leaders and enablers..
In this edition of Executive Insights, we caught up with Saskia Groen In’t Woud – CEO of Damco, one of the leading global freight forwarders in the world..
So you want to become a Freight Forwarder huh..!!
First question you need to ask yourself is WHY..??
It is important that you understand the purpose of wanting to become a freight forwarder.. What is the objective..??
- Maybe its your intrigue or love of the industry and your ability to connect people and businesses ;
- Maybe because you are tired of the current forwarders in terms of their service offering and their attitude towards business and you think you can do it better ;
- Maybe you think you have a set of loyal customers who would support you if you ventured out on your own ;
- Maybe its the glitz and glamour that you see some of the freight forwarders exhibiting especially the new startups who the venture capitalists are fawning over ; or
- Maybe you are truly well versed in the business and you decided it is time for you to strike out on your own..
Whatever the reasons for you wanting to become a freight freight forwarder, here are 6 points you need to consider and a few things you need to get right first..
8 tips to make shipping from China easier
China opened up for global trade around 1980 and became an economic superpower in the 2000’s achieving some dramatic growth in the last 30 odd years. China has grown into one of the significant financial and economic muscles on the planet.
Chinese goods have received a broad acceptance globally and many businesses are keen on importing goods from China.
However, the most painstaking obstacle that many face is how to go about shipping from China successfully. This might be a difficult task, especially for newbies and sometimes even the professionals.
I am sure that you wouldn’t like getting trapped by unnecessary delays, high delivery costs, and unreliable suppliers like many have.
Sunny Sun, the co-founder of BanSar, a professional freight forwarder in China has provided some tips on how to make shipping from China easier.