Across Logistics’ Post

Folks, I want to know the truth behind why there is such a big difference in HOW freight carriers quote their customers 🤔 I feel like there is some Jedi-mind trick or psychology at play here 🤨 Let me dive into this knee-deep with three scenarios: 1. Quoting "$2000++" sounds the cheapest, right? It hooks you in with a low-looking number. Only later do you think hold up, PLUS PLUS what?! 😳 …. Oh, you know… just the fuel levy which we won't reveal unless you ask and the GST. It's almost like saying, “Let’s start the conversation here…” 2. Quoting "$2426+" feels more upfront and transparent. They’ve included fuel, but leaving GST aside. It’s like they're saying, "Hey, here’s most of it, but don't forget the taxman!" 3. Then you’ve got the "$2668.60" all-inclusive quote. No hidden surprises. Everything wrapped up in a neat, final number. This approach says, "What you see is what you pay." So, which way is best? Does one of these make customers feel like they’re getting a better deal? 🤷♂️ What do you think? How do YOU like to quote or get quotes? Does the format make a difference? 💬👇 #Logistics #Trucking #SupplyChain #Transport #Freight #InterstateTransport #RoadFreight #TransportServices #Linehaul #Procurement #3PL #Warehousing #Warehouse #FreightForwarder #FreightForwarding #TruckingNews #cargo #Import #Export #OceanFreight #SeaFreight #AirFreight #Australia

Figuring out the real cost of getting your products from a supplier to your door can be tricky with all the different expenses involved. Landed costs cover everything—from production to shipping and customs—so you know exactly what you’re paying. https://lnkd.in/gvvqnsfy

Landed Cost: A Crucial Aspect of Supply Chain Management Landed cost is a vital concept in international trade and supply chain management, encompassing the total expense involved in getting a product from the supplier to the buyer's doorstep. This detailed calculation includes several key components: 1. Purchase Price: The initial cost of acquiring the product from the supplier. 2. Shipping Fees: Costs related to transporting the product, which can vary depending on the mode of transport (air, sea, or land) and distance. 3. Customs Duties and Taxes: These are levied by the government of the importing country and can significantly impact the overall cost. 4. Insurance: Coverage for the goods during transit to protect against potential loss or damage. 5. Handling Fees: Charges for loading, unloading, and warehousing the product. 6. Other Miscellaneous Costs: Any additional fees, such as documentation charges, packaging costs, and currency conversion fees. Importance of Accurately Calculating Landed Cost Accurately determining the landed cost is essential for businesses for several reasons: 1. Profitability Analysis: By understanding the true cost of goods, businesses can set appropriate pricing strategies to ensure profitability. 2. Competitive Pricing: Knowledge of landed costs allows businesses to remain competitive in the market by offering prices that reflect the total cost of bringing a product to market. 3. Financial Forecasting: Accurate landed cost calculations help in budgeting and financial planning, providing a clearer picture of potential expenses and revenues. 4. Supply Chain Optimization: Understanding all cost components can highlight areas where expenses can be reduced, leading to a more efficient supply chain. 5. Risk Management: By factoring in all possible costs, businesses can better prepare for unexpected expenses and mitigate financial risks. Strategies for Managing Landed Cost To effectively manage and reduce landed costs, businesses can adopt several strategies: 1. Supplier Negotiation: Work with suppliers to negotiate better purchase prices and terms. 2. Optimized Shipping Methods: Choose cost-effective shipping methods and carriers and consolidate shipments where possible to reduce costs. 3. Trade Agreements: Take advantage of free trade agreements (FTAs) and preferential tariffs to lower customs duties and taxes. 4. Technology Integration: Utilize software solutions that provide real-time data on shipping, customs, and other costs to streamline the calculation process. 5. Supply Chain Visibility: Maintain transparency in the supply chain to identify and address cost-driving factors promptly. #LandedCost #SupplyChainManagement #ShippingExpenses #InternationalTrade #CustomsDuties

Do you know your true product cost? 🤔 It’s not just about the price you pay your supplier—there’s so much more to consider! 💡 We dive deep into the concept of true product cost, also known as landed cost, in our latest blog article ➡️ https://bit.ly/4c3ifN0. Discover how understanding all the costs, from shipping fees to customs duties, and how calculating your landed cost accurately can impact your business and help you boost your profit margins. 📈 #InventoryManagement #LandedCost

Are your cargo costs decreasing your profit? Here’s a bitter truth: It might not be your logistics team’s fault. The real culprit?  Your approach to handling customs duties. Let understand it for a moment We always jump to blame inefficiencies in the supply chain, but here’s what I’ve learned after 20 years in this industry: It’s not just about shipping faster.   It’s about saving BIG on customs. Think about it:  When was the last time you were truly excited about reducing costs?   What made you eager to make those savings? In cargo, cost reduction is your golden ticket: 1. Provide best advice Go beyond the basics. Help your clients how well you understand their needs. 2. Offer Solutions:   Don’t serve the same advice to everyone. provide solutions that match your client's specific business. 3. Create a Cost-Cutting Effect:    Build good connection clients will come to you because they see the savings, not the other way around. When your services help reduce duties by 25%, clients will naturally seek you out. It’s like setting up a chain reaction one step, and everything aligns perfectly. How are you helping your clients cut costs? Are you just moving goods, or are you offering real savings? Let’s shift the conversation in cargo services.  Let’s focus on delivering savings, not just efficiency. #EXPORT #Import #cargo

“CAS takes away the complexity. Once the setup is complete, the declaration process becomes straightforward and consistent. CAS notifies us of any customs errors or missing data, and we rarely log in to CAS. It’s an upfront investment that pays off very quickly.” Discover how deSter uses CAS and what benefits it brings them: https://hubs.li/Q02v7zBj0

CMA CGM, one of the biggest ocean freight movers recently announced its plan to freeze its rising spot rates through February 1st, 2022. This may come as a surprise to the freight shipping industry with the cost to ship containers recently reaching unprecedented heights globally. Drewry’s World Container Index recently reported that its spot rates have increased for 21 straight weeks. The demand to move freight internationally has exceeded the available capacity to do so. With the holiday season quickly approaching, the upcoming months may see rates soar even further. The Effect may have on the CMA CGM and the - https://lnkd.in/etEsBTSs

Unlock the complexities of freight rates in our latest Freight Perspectives article. Dive in to explore the factors influencing pricing and how they impact the logistics industry. https://ow.ly/aolM30sEA1I #freightrates #logistics

Unlock the complexities of freight rates in our latest Freight Perspectives article. Dive in to explore the factors influencing pricing and how they impact the logistics industry. https://ow.ly/mzrj30sEzZe #freightrates #logistics

A switch bill of lading is used in a specific scenario where there is a need to change the original bill of lading (B/L) or to create a new B/L that replaces the original one. This typically occurs when: Reasons for Switch Bill of Lading 1. Change in shipping terms: The original B/L needs to be amended to reflect changes in shipping terms, such as a change in the port of discharge or the type of cargo. 2. Error correction: There are errors or discrepancies in the original B/L that need to be corrected. 3. Change in ownership: The ownership of the goods has changed, and the new owner requires a new B/L. 4. Consolidation or de-consolidation: Multiple shipments need to be consolidated into a single B/L, or a single shipment needs to be de-consolidated into multiple B/Ls. 5. Compliance with regulations: A switch B/L is required to comply with specific regulations or customs requirements. Scenario Example A company exports goods from China to the United States. The original B/L is issued with a specific port of discharge, but due to unforeseen circumstances, the goods need to be discharged at a different port. In this case, a switch B/L would be used to create a new B/L that reflects the change in the port of discharge. Key Considerations When using a switch bill of lading, it's essential to ensure that: 1. The original B/L is cancelled or voided. 2. The new B/L accurately reflects the changes or corrections. 3. All parties involved, including the shipper, carrier, and consignee, are notified and agree to the changes. 4. The switch B/L complies with all relevant regulations and customs requirements. #switchbilloflading