When it comes to shipping cargo, the logistics industry has brought about huge changes in many aspects. For example, businesses can now have their goods and commodities delivered directly from one country to another without actually having to make physical contact with them. These are just a few of the benefits of using transport service providers when doing business overseas. The fact that intense competition is present among these service providers means it is increasingly crucial for businesses today to be able to select the best provider that will meet basic requirements as well as fulfill specific needs at once. The following tips should help you make your choice:
1. Consider Fuel Surcharge! Fuel surcharges will always be applicable whenever there are abnormal fuel prices in any given month, or even countries where the provider does business in. This is because most providers hedge fuel prices at the start of each month, so it's normal to have price adjustments when there are changes in these market conditions. Basically, you should be prepared to pay more if such a situation arises.
2. Check and Understand the Carrier/Bunker Adjustment Factor (BAF)! Because fuel cost will definitely affect your shipping costs, you need to become familiar with what BAF means before signing up for a service contract . Here's two things that you need to know: It means the energy carriers will use their own pricing mechanism while considering actual oil report figures as well as other expenses incurred during transport operations. i.e., when the world commodity gasoil (WCO) price goes up, the carriers will charge you more than the BAF factor. Conversely, if WCO prices fall down, then they will deduct a certain amount from their charges to make sure they still cover their costs.
3. You May Still Have To Pay Full Freight Even If The Goods Are Damaged! Another important thing to keep in mind when selecting a service provider is to determine whether or not cargo insurance is included in its services and likewise, ask for proof! This way, any damage or loss which may occur during transport operations can be covered by the insurance policy. From this knowledge, it should also be easy for you to choose a better shipping company as well as set aside an appropriate budget.
These things are very important when choosing a shipping provider, but most people will ignore this, and think they can save some money from these small amounts of surcharges. I have heard many horror stories about this kind of thing, so before we make a deal for our precious cargo, make sure that you really understand every term in the service contract.
4. You May Have to Pay Customs Tax! It's also worth bearing in mind that there may be additional costs involved that might not be included or passed on by your chosen transport company. For example, if your goods are being delivered into another country where high import taxes apply as well as expensive handling fees; then don't expect the provider to shoulder all this extra burden on your behalf! This is not only the responsibility of the shipping company, and it's your job to be well-informed about any additional charges you may have to pay in order for your goods to successfully clear customs.
The author said, don't expect that every transport company will take care of all these things by themselves. So what do you think? Do I need to consider other information as well? Will update this post again when I get more knowledge from experience. In the meantime you may consider Yoong Mei Trading & Transport, try it out and you will know what I've been serving, helpful staff and affordable quotes from them. Cheer~ :D *wink*