The initial question every businessperson raises is what is the cost of freight forwarding? Let me tell you that the fees charged by a freight forwarder are minimal in comparison to the services they offer (Read: 13 Reasons Why You Need a Freight Forwarder). The basic fee in general falls within a range of $55-60.

A freight forwarder might decide on charging specific other fees due to their expenses, which are also minimal. Specifically, one of the main extra fees they charge are related to communications fee for their contacts and calls they make (approximately $15) and a liability surcharge fee which is negotiable but related to cover the cost of laying out the money for your freight charges when they book space. This fee could be as flat as $10 or a percentage of the money they extend.

However, you might be still thinking, but what is the cost of freight forwarding in total?!

Basic fee$65-100
Communications fee$15
Freight advance$10
Inland freight
Letter of credit$25
Sight draft$15

Something you should always remember is that the fees are negotiable with the freight forwarder over a long-term relationship. Therefore, it is of utmost importance to find a reliable freight forwarder with whom you can cooperate in long-term basis.

READ ALSO  13 Reasons Why You Need a Freight Forwarder

Do not look after freight forwarders who provide the best offers in terms of cost, rather aim for freight forwarders who provide extra services and who take a personal interest in clients.

In addition, you can use another technique to drop down the costs of a freight forwarder simply by asking them about consolidation rates. The freight forwarder will collect merchandise from a number of clients, put in into one container, ship it to the foreign country, break it down and deliver the paper work to your costumer. This is an essential tactic if you are exporting in small volumes since consolidation rates may save you money.

The basic fee which is charged by the freight forwarder covers the process of the forwarder finding you the best shipping rates. Let me elaborate this more. Some ports have terminal handling charges (THC). These are fees for loading your merchandise off the truck into the warehouse. In this respect, the freight forwarder investigates all routes available, the extra fees and charges to find the most economical offer. This service alone provided by the freight forwarders makes it well worth the basic fee.

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Post Author: ExportCounseling Staff

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