Do you have an international business or are you an importer? If the answer is yes, then freight shipping is an important part of your business. Therefore, managing transportation costs should be one of your most important priorities. Also, to have a hassle free process, you need to fully understand it. In this post we try to save you from confusion.
What does freight mean?
What are its services?
How to calculate the rate?
What are the factors that affect the cost?
What is freight?
Freight is the transportation of any kind of goods and cargo in domestic or international level. Also this is done through the sea and the sky and the earth. They can be bulk, packaged, etc.
This industry is an integral part of today’s trades. As it progresses, it no longer matters where you are in the world. You can have any product, even the rarest one.
What services does it offer?
Don’t worry! The industry offers different services depending on your goods, money and time such as:
Air freight
This service is modern and the fastest. If your good is sensitive and valuable or you do not have much time, this option is the best. Its advantages include:
- High speed. Your time in this method, depending on different flights, varies from a few hours to about 7 days. Therefore, it saves a lot of time.
- High security. In air freight, the possibility of theft, piracy and natural disasters is almost zero. Also, with its online tracking capability, you can be informed of the status of your product at any time.
- Flexible delivery. It offers door to door, port to door delivery.
But, it also has disadvantages such as:
- Very expensive. In this method, you get quality services. As a result, you have to spend a lot of money.
- Weight limit. You are not allowed to carry goods heavier than 500 kg by air freight.
- High pollution. They usually use old planes to carry goods, which pollute the air a lot.
Sea freight
Sea freight is the most popular shipping method. Because you can carry any kind of goods this way. It is very suitable for big and heavy goods. The benefits are many:
- Its most important feature is its cost-effectiveness. It is good especially for those who deal with shipping a lot. Therefore, it saves a lot of money.
- This method pollutes the air less than other methods.
- Oversized, heavy and bulky cargo capability
Note that it may not be affordable for every product. For example, for small and light goods, it is better to use air freight. Although it is a very popular method but it has disadvantages that you should know:
- Long freight time. Ships are much slower than aircraft. As a result, your shipping time may take up to a month.
- Safety. It is less secure than air freight. Because your goods are on the water for a long time and natural disasters or pirates may damage your goods. But today, with the advancement of technology, ocean freight security has also increased greatly.
To decide which method is right for you, you must first measure your cargo. For choosing, you need the quantity, size and weight of the goods.
Packaging
Receiving a healthy product at the end of the shipment, with the same initial quality, has a great impact on the credibility of your business.
For packaging, use containers and pallets with four-way entry points so that the goods are not damaged when using the forklift. This is good for improving handling.
Use pads and bubble wrap to make sure the interior is protected. Also seal the seams with adhesive tape. Attach essential labels with complete information to the packaging of each piece.
Freight rate
Freight rate or freight charges are usually calculated based on shipping method and distance. Hence the way of calculating the rate is different in each method. For example, in ocean freight, the dimensions and size of the goods are important. While in air freight the weight of the goods is important.
But in this complex process, there are factors that affect costs such as:
- Packaging. Try using the service standard packaging. It is more economical. Also, if your good has a special shape that does not fit in standard one, it will cost more. Also choose lightweight packaging materials.
- Distance. The farther away it is, the higher the cost. So choose your services based on the nearest port, airport or even terminal.
- Delays surcharges. One of the worst things that can happen to your money is the delay. Customs delays, delivery delays, loading delays, etc. Each alone will incur additional costs.
- Customs duties and taxes. They constitute a large part of government revenues. So try to avoid giving incorrect information, not putting the necessary labels and not providing the required permissions. Because customs fines are heavy.
- Pickup and delivery fees. If you want to save money, get to the airport or port and pick up the goods.
- Freight class. It is determined by maintenance sensitivity, density, responsibility, etc. The higher your freight class, the more you have to pay.
- Density. The higher the density and the more space it takes up, the more expensive it becomes.
- Incoterms. There are 12 different types. And depending on your situation, there are several options.
Topshipping – Your partner in your freight
The most important step to a great experience is working with a freight forwarder company. it is a tricky game and you should get help from a professional.
It does not matter if you carry cargo by plane, truck or ship. Topshipping manages your entire shipping process. It also offers the best rates based on your product and needs. So, ready to get freight shipping quote?
Customs Clearance
The import and export laws of different countries are different. Some countries prevent the import of some goods. Some have their own side effects. So, it is very important that you are familiar with the laws of the destination country. Because in case of delay and violation, it will have serious consequences for you.
For example, in shipping from China to USA: goods and documents are checked and then duties and taxes are levied. In US customs you face duties such as ISF, import duty and penalties charges.
