How to Negotiate Better Shipping Terms with Shipping Companies?

Do you operate a business which needs an overseas shipment of goods? Then you probably have a fair idea of how important and difficult it is to negotiate shipping terms with cargo shipping companies. No matter how cheap and affordable shipping rates you have, if your shipping partner is not trustworthy for timely delivery, the negotiation stands of no use. 

Fortunately, there are some tips and tricks to avail better shipping terms along with affordable rates from shipping companies. Here are some tips to help you negotiate in a way that can decrease the overall cost with better facilities:

Know the Terminology
Before jumping into the process of negotiation and pricing it's better to have a fair idea about the glossary of shipping terms. Terms like Forwarders, Agents, Insurance Covers, Pilferage etc. are some of the terms that are eagerly used in the world of the shipping industry.

Before your service provider traps you in this terminology, it's better to have a brief idea about all these terms by yourself. Even if you are new to the business, having a fair idea of these terms will make you look experienced and provides you with an upper hand during negotiation. 

Conduct a Through Market Research
Entrusting your precious consignment on the very first offer might not be beneficial for you. You can get price quotations from at least 3 other suppliers to compare their prices and other services offered in the industry. This acquired knowledge will help you create value as you deal with the shipping company. You can also demand some extra services based upon other quotations. It will provide you with knowledge of existing challenges in the industry.

Clarity over Refunds and Penalties
When you opt for a particular carrier, there is some standard of services that they promise to offer, timely deliveries being one of them. Failing to comply with timely delivery can result in unhappy customers and may sometimes end up in refunds and penalties. The main reason being the delay in deliveries from shippers end. 

That is the reason that you should never waive your right to claim service refunds. While negotiating with the supplier make sure you have the money-back guarantees and service refund options if the carrier doesn't meet the specific standards of services.

Having Good Inter-Personal Skills
If you clearly define the services you want, you can easily grab better pricing and offers. Its easier to explain yourself better to the people with whom you share a better relationship.

Maintaining good relationships with your carrier representatives is extremely important to grab better services and discounts. These are the people who can help you with negotiations and makes your business better and easier. Sometimes they can also help you to get access to much-discounted rates that only representatives can work out.

Final Thoughts
However there is no strict rule book applicable on pricing and shipping terms, you can always find better negotiation options for special cases. As you grow in the business, you can develop better strategies apart from those above-mentioned tips.

Using 3PL Logistics to Optimize your Supply Chain Management

The supply chain is an inclusive process that starts right from the manufacturing and ends upon the delivery of the goods to customers. Everything from the procurement of raw material to storage and transportation of manufactured goods comes under the single roof of Supply Chain Management.

There is no doubt that global supply chains are becoming complex day by day, and there are many companies out there who don’t have the right expertise to handle these operations effectively.

That is the reason that companies and international business persons are working with Third Party Logistics companies to not only manage cargo but to move cargo as well. 

 

Here are 5 reasons why collaborating with a  3PL company can help you in optimizing the supply chain:

One-Stop Solution 
One of the largest benefits of including a 3PL service provider in your business is having the bundle of services. There is no need to roam around for demanding pricing quotations and available services in the market. When you have a project in hands which needs to be completed, you can avail services like freight forwarding, inbound logistics, warehouse and distributions all from a single service provider.

Growth Opportunities
When you are managing all the supply chain function in-house, you may find it difficult to manage all the resources and norms of various countries. The professional people working in Third Party Logistics companies have a varied knowledge of various countries. With the help of these people expansion of business in distant countries is possible without being burdened of knowing different rules and regulations.

Extended Experience

These Third Party Logistics companies are well-versed with industry practices. These companies keep track of the latest technology and cost-saving facilities. Upon getting more than one facilities from these companies, you can have cost-effective solutions for various business needs. When it comes to dealing with the complicated procedure of handling custom clearances and paperwork, their years of experience becomes useful by restricting the possibility of something getting wrong throughout the supply chain.

Consistency

Dealing with a single service provider for all your supply chain needs, there would be no surprise in obtaining different services. You will be well-versed with the working style of the company, along with all the due-diligence and quality checks applied to those services. Whether the new project you are taking is long-term or short -term, you will be assured that the job will be done with the utmost care.

Increased Resources and Network

While working with a professional logistics service provider, you can get access to the vast world of connections and resources. By taking the expert services of these service providers, you can safeguard your business from possible threats and inconsistencies of the world trade. You not only get access to private fleets, but you can also grab an opportunity to grab special contracts as well.

Final Thoughts

All in all, a Third Party Logistics company can provide you with a lot of features that can help in expanding your business with increased customer satisfaction. They provide you facility of being in touch with the shipment process and updates you about the proceedings as well.

Significance of Documentation in the International Shipping of Cargo

Documentation is one of the main aspects of international trade. It represents the contract of carriage, detailed description of the goods, the terms and conditions under which the logistic operation takes place, payment terms, and the ownership of goods. Moreover, it verifies that the goods were delivered in the right condition. 
 
There are various documents involved in the international shipment process that we shall discuss here. These documents are obligatory while dealing in international trade, so read them carefully! 
 
Performa Invoice

Performa invoice can be said to be a precursor to an invoice. It is a type of quotation form used in an international transaction to specify the exact rates and services/products that the other party will receive. 

A proforma invoice is required to plan for financing, to claim the goods at customs, and to apply for the proper import licenses, and more. 

It contains certain information like description and classification of the goods, the details about the buyer and seller in the transaction, the payment term of the sale, delivery details including the delivery charges, and the currency used in the quote. 

Commercial Invoice

After sending the proforma invoice and receiving their orders, you will be required to produce a commercial invoice that contains detailed information of the entire export transaction.  

 

 

Although it looks like a proforma invoice, it gives necessary specifications regarding the nature of the goods, including its identification, market value, purchase order number, etc. 

It is this document that specifies the details of the transaction to the tax authorities, that is why it is significant for the party importing the goods. 

Certificate of Origin

Often some countries ask for a certificate of origin that specifies the country of origin of goods. This certificate is accepted only when it is signed from a country’s consulate office.

Even though you have specified the country of origin of goods in commerce invoice, it is vital to prepare the certificate of origin. Also, make sure that it conforms to all the laws and regulations while creating it. 

Packaging list 

It helps in identifying the items in the shipment. The list includes specifications about the goods, invoice member, the gross weight, and dimensions of the package. 

Moreover, it identifies any shipping marks and numbers on packages, along with any special instructions for the safe delivery of goods. The packaging list can be used by the shipping company to create the bill of lading for the shipment.
Bills of lading

Bills of Lading is one of the most critical transportation documents needed for international shipping of goods. It provides crucial information to the shipment staff that guides them throughout the shipment process. 

From the location to where the package is headed, the number of items the package contains, to how to handle the package, the bills of lading comprises everything. There are three common bills of lading documents, namely ocean, inland, and air waybill.
 
Conclusion

Along with the above-stated documents, Dangerous Goods Forms and Bank Draft is also required. So, these are the vital documents needed in the process of international shipping of cargo. 

However, the right shipping company provides complete assistance in the documentation, so choose your logistics partner wisely.

What are the Various Job Responsibilities of a Freight Agent?

When you are dealing with international business, using the services of freight forwarding becomes essential. A freight forwarder or freight agent is the person who acts as a middleman between the businessman and transporter. 

The process of freight forwarding might seem very difficult if you try to do international shipment without the help of freight forwarders.  

Following are some of the responsibilities fulfilled by these freight forwarders:

Planning and Advising 

Services of freight forwarder may vary from others, depending upon the services chosen by you. Depending on the services provided, there are some services that you can avail from these forwarders for hassle-free transportation of goods/consignment. These agents can help you in deciding the production cost, other freight expenses.  

They can also help in deciding the most viable route for effective transportation. They can also help by acting as a middleman and save a lot of time for your business by choosing the most appropriate freight forwarder for you. 

Knowing All the Restrictions 

While importing or exporting it is very essential to know the import/export restrictions of the destination country. Freight agents are the people with experience, knowing all the rules and regulations of different countries.  

They can guide you about the permissible quantities of the goods allowed. Although the list of prohibited and restricted goods vary from country to country, yet a common list of restricted items include Dangerous goods, drugs, alcohol, etc.You need to be extra careful and know the rules if you want to export/import these goods. 

Customs Clearance for the Client 

Every country has its own rules and regulations for custom clearances. Knowing all these rules is not possible for a businessman hence, here comes the role of a Freight agent or freight forwarder.  

A freight agent knows all the documents required for customs clearance and works in favour of the client by assisting in the fast clearance of the goods. They take responsibility for all the paperwork and documentation. 

Maintaining a Vital Network 

The strong network and contract of the freight forwarders help the clients to have timely deliveries. They are professional people and can manage adverse situations easily.  

When goods are delivered, there are many possibilities that goods or consignment gets stuck on the port or it may face any other difficulty. But you can trust these experts for their reliable services. 

Ancillary services 

However, during overseas transportation, the responsibility lies with the importer/exporter itself. But these freight forwarders can provide you with various services such as; 

• Bill of Lading
• Export License
• Commercial invoice, etc. 

Conclusion

When there are so many providers out there, to provide you with various assistance in logistics and freight forwarding, you need not worry about customs clearance. These are the professional people working in this direction for so many years to provide cost-effective transport solutions to the businesses. 

Doing good market research before choosing a freight forwarder will ensure timely delivery of the goods and consignment.