Traditionally, clients seeking to transport shipment domestically or shipping based on cross-border trade are often required to request for ‘shipping quote’ based on service demand, however, structuring trade quotes from an expert point of view could in some proportion prove challenging due to industrial dominance.
Industrial dominance remains a huge concern in this sphere of the global economy, which, as a result, ensures shippers tailor their quotes according to market demand while taking into account potential competitors. This is key in all vectors and in the domains since clients are more concerned about rates other than the terms and conditions backing a trade service delivery.
This is significant since a good number of consignees often reach out to shippers and trade companies, requesting their quotes not necessarily because they’re ready to have their trades forwarded through these shippers but with the intent to compare and figure out company’s quote that offer the best rate with less clause. Given this, your best shot wouldn’t be much to ask.
Going forward, it should be borne in mind that a quote is a significant document precisely from a trade perspective, which solely originates from shippers and trade-related companies per shipping service either based on carriage or logistics. This is so significant noting that the subject document aside from other factors determines a firm’s volume of trade, which if poorly structured, trade volume could be on the slide.
A quote is a shipper’s trade jackpot because clients (consignees and their representatives) will practically ask for this specific document which determines trade deals irrespective of the firm’s industrial experience and capacity. As we double down on this trajectory in an attempt to understand how one could practically structure trade quotes as a professional, hence, it will be fair to unfold the rudiments of this subject.
KEY INFORMATION REQUIRED PER QUOTE
To ensure clients are kept in the orbit of the influence of a firm’s trade offer, a professional quote intended for cross-border trade (exportation) is expected to be drafted with these pieces of information.
SHIPPING RATES AND INCURABLE SURCHARGE DURING TRANSPORTATION
Before issuing an estimated tariff or the total shipping tariff meant to be billed to a consignee for an originated trade, the shipper will need information about the shipment which will include the weight and dimension (length, width, and height) coupled with the nature of the product. This is significant due to pricing, noting that if the information provided by the consignee is accurate the final tariff will likely match the initial trade quote from the shipper, carrier, or logistics provider.
Ideally, structured trade quotes for shipments needed to be shipped based on exportation are usually structured in this format, thus, description, rate (USD/ LOCAL CHARGE), and remark. However, before the actual cost that will eventually be stated in the export quote, it’s expected of the shipper to note and factor in the tariff that will emerge from the carrier such as shipping equipment needed to be used per trade, which is: “Export Processing Fee, Delivery Charge, Fumigation Charge (for agro produce), and Line Agency Fee. While other fees include Storage After 14 Days, VAT as applicable, and Vessel Re-nomination Fee”.
In practice, shipping quote per trade forward should contain as below:
AGENCY FEE = 150 USD – ESTIMATED (This varies and could be billed as a local rate)
SHIPPING CHARGES = AT COST – STATUTORY CHARGE
TERMINAL HANDLING CHARGE = AT COST – STATUTORY CHARGE
VGM (IF ANY) = 50 USD
TRANSPORT FROM PICK-UP POINT TO PORT OF ORIGIN = Determine by logistics.
FULL ADDRESS OF THE CONSIGNEE
Going with the global standard, a trade quote is not expected to be void of pick-up and delivery address, and this should come in detail (full address). It’s significant to look at the pick-up and delivery address of a trade from a critical point of view since this determines the shipping cost coupled with the incurable surcharge that will be stated on that quote. Structuring trade quotes without pick-up and delivery addresses should be considered impracticable.
For instance, a quote for a trade that originates from the United States to Mumbai port as the final destination should be viewed differently when a similar shipment originates from the United States to Mumbai with a pick-up address as Thane city.
MODE OF TRANSPORTATION
A shipper needs to establish understanding based on the chosen mode of transportation of the subject commodity that’s meant to be shipped, noting that the cost of shipping sea-borne trade will in no doubt differ when a similar trade is shipped via air.
Although the mode of transportation isn’t limited to air and sea, a quote could also be centered on transportation costs from the pick-up point to the actual port of origin, which also includes handling and logistics costs.
An attempt to skip this would rather leave us with a misfired submission on this subject, to this end, the declaration of trade category (cargo description), which determines its classification; hazardous or general is exclusively important for every quote. Since there is more risk when it comes to handling and shipping hazardous goods than non-hazardous shipments, hence, it is expected of consignees to accurately declare cargo classification as it should be clearly described.
Simply put, for cross-border trade, which is pretty much our core area of interest, a quote should include the ‘Harmonize Code’ known as the HS Code by World Customs. However, at this point, ladies and gentlemen, it’s evident, that our submission on this isn’t left in peace meal while ensuring a healthy approach on this subject is key.