Requesting a Land Freight Quote? Here's What You Should Know
Getting a proper and affordable land freight quote is an important step when you’re exporting goods cross borders. Every business works on a budget and to remain profitable, you have to keep your transport costs as low as possible. To get an accurate, all-inclusive quote, you’ll need to give as much information as you can to your land freight forwarder.
Desired Truck Type The first decision you’ll need to make is the type of tuck your shipment requires.
20Ft ,40Ft ,45Ft or more , all have their own advantages and disadvantages. For example, the transit time of 20Ft is faster than 40Ft , but usually 40Ft more expensive than 20Ft and so on for other type of trucks. For more details about truck to hire , read our blog: What truck that you should hire?
Incoterms or Mode of Shipment The International Commercial Terms (Incoterms) rules are a set of pre-defined commercial terms that are published by the International Chamber of commerce (ICC). These rules are used widely in international procurement or commercial transactions. They clearly communicate risks, costs, and tasks that are associated with the delivery and transportation of goods. For example, the code EXW (Ex Works (named place of delivery) means that the seller makes the freight available at their premises, or at another agreed upon location. The buyer incurs the risks for bringing the goods to their final destination. This puts minimal obligation on the seller and maximum on the buyer. Some more familiar terms would be FOB (Free On Board), Cost and Freight (CFR), and Cost Insurance and Freight (CIF).
Delivery Options You have a few different options when choosing how your freight is delivered. The option you choose depends on your budget: Door-to-Door This is the most convenient way of shipping for the customer /buyer and the most common option. In this method, the consignee/buyer is not involved with the land freight shipment. The shipper/seller handles everything. For example , if the consignee is in Kuwait and the shipper in UAE , in this case the shipper will be responsible to pay the land freight fees and the cross borders fees for UAE and KSA , as well to pay the last destination customs clearance fees and customs duty if required . Port-to-Port The shipper/seller handles the shipment from the port of origin to the port at the destination. You can save money with this type of delivery and you’re free to interact with this shipment at any time. For example , if the consignee is in Kuwait and the shipper in UAE , in this case the shipper will be responsible to pay the land freight fees and the cross borders fees for UAE and KSA , and the consignee will pay the last destination fees ( customs clearance and customs duty if required ).
Port-to-Door This method is a good form of delivery for customers/consignee who have their own logistic networks, and can move shipments from the shipper/seller port to their warehouses in the last destination . For example , if the consignee is in Kuwait and the shipper in UAE , in this case the consignee will be responsible to pay the land freight fees and the cross borders fees for UAE and KSA , as well paying the last destination fees ( customs clearance and customs duty if required ).
Certain aspects of your cargo can change the amount that you are quoted. There are several factors that you should consider about your freight. You may be able to get a lower quote by packaging your freight differently. Dimensions and weight The dimensions of your cargo can affect your overall rate quote. Trucks usually come in 20Ft, 40Ft and 45Ft sizes. The larger your cargo dimensions, the bigger trailer you will need, increasing overall price. Hazardous or dangerous goods If you’re exporting hazardous cargo, you’ll need a Material Safety Data Sheet to prevent any issues while the cargo is being loaded. An MSDS provides extensive data about all aspects of the cargo such as the nature of toxicity, its chemical and physical properties, methods of storage and disposal, and more. Are your goods palletized? Choosing the correct pallet for your goods will maximize the space that you have in your truck and reduce your transportation costs. Are your goods stackable? Stackable goods allow you to maximize the space in your truck which can reduce your transport costs.
Cargo Ready Date A land freight quote is only available for a predetermined amount of time, and is not indefinite. A quote will change if your cargo is not ready within the quoting period. If it’s not ready until months from now, an estimated cost will be given instead of a proposal.
A duty is a tax that the government imposes on shipments and they are most often determined by calculating a percentage of the value of the commodity. HS code or Harmonized Tariff Schedule, is a 10 digit number used to identify the origin and composition of goods, including their duty information. If an HS number is not known, a commodity description can be given. This information will then allow a customs broker to find the appropriate code. Value of your goods will have an affect on your overall price. Typically, the more expensive your goods are, the more they will cost to ship.
Special Services Does your cargo require any other special services? There are several services that will result in extra fees , including warehousing, consolidation, labeling and inspections.
As you can see, there are many factors that can affect a quote. The best thing you can do is give as much information as possible to your land freight forwarder so that you can get the most accurate, affordable quote possible. Keeping transportation costs low is an important factor in improving your bottom line. Get your online quote by visiting www.glplog.com or by contacting:
Global Logistics DWC LLC
Dubai World Central
Our logistics solutions that will run your business