Traditionally, merchants seeking to ship cargo domestically or from a market to any part of the world on the basis of cross-border trade are often required to ask for a ‘shipping quote’ based on service demand, however, structuring trade quote 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 domains since merchants are more concerned about rates other than the terms and conditions backing every specific freight service.
This is significant owing to the fact that a good number of merchants often reach out to shippers and freight companies, asking for their quotes not necessarily because they’re ready to have their freights forwarded through these shippers but with the intent to compare and figure out the company that offers the best rate. In view of this, giving this your best shot wouldn’t be much to ask.
Going forward, it should be borne in mind that ‘quote’ is a significant document precisely from a trade perspective, however, this solely originates from shippers and freight-related companies per shipping service either on the basis of carriage or logistics. It should also be fair to note that the volume of periodic trade is determined by a firm’s quote, consequently, if poorly structured, freight volume could be braced with the ugly path of business.
In fact, ‘quote’ is a shipper’s trade jackpot owing to the fact that customers (merchants and their representatives) will practically ask for this specific document that eventually leads to a trade deal irrespective of the firm’s industrial experience and capacity. As we double down on our priority of this submit that revolves within the axis of how to structure trade quotes from an expert perspective, it will be nice to unfold the rudiments.
KEY INFORMATION REQUIRED PER QUOTE
To ensure each of the firm’s customers (merchants) are kept in the orbit of influence of the firm’s trade offer, a professional quote intended for cross-border trade (per freight forward) should be structured with these pieces of information.
SHIPPING RATES AND INCURABLE SURCHARGE DURING TRANSPORTATION
Prior to any issuance of the estimated cost or the total shipping cost that is meant to be charged per freight forward, the shipper will need information about the shipment that will include the weight and dimension (length, width, and height) coupled with the nature of the product. This is significant when it comes to pricing, noting that if the information provided by the consignee (merchant) is accurate the final price will likely match the initial freight quote from the shipper, carrier, or logistics provider.
Ideally, a structured trade quote for freight forward is usually structured with these components, thus, description, rate (USD/ LOCAL CHARGE), and remark. However, prior to the actual cost that will eventually be stated on an export quote, it’s expected of the shipper to note and factor in the fees that will emerge from the carrier based on shipping equipment needed to be used per freight forward, and these are: “Export Processing Fee, Delivery Charge, Fumigation Charge (for agro produce), and Line Agency Fee. Other fees include Storage After 14 Days, VAT as applicable, and Vessel Re-nomination Fee”.
In practice, shipping quote per freight forward should contain as below:
AGENCY FEE = 150 USD – ESTIMATED (This varies and also comes 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 freight quote is not expected to be void of pick-up and delivery address, and this should be detailed (full address). It’s significant to look at pick-up and the delivery address of freight from a critical point of view owing to the fact that it’s a determinant of the shipping cost coupled with the incurable surcharge that will be stated on such a quote. Clearly, structuring trade quotes without pick-up and delivery addresses should be seed detrimental and impracticable.
For instance, a quote regarding a freight that originates from the United States to Mumbai port as the final destination should be viewed differently when similar freight originates from the United States to Mumbai with a pick-up address as Thane city.
MODE OF TRANSPORTATION
Although the mode of transportation isn’t all about air and sea, trade quote at this point covers transportation cost from the pick-up point to the actual port of origin, which also include handling and logistics cost.
It’s important for a shipper to establish understanding based on the chosen mode of transportation of the subject goods that are to be shipped, noting that the cost of shipping goods through the sea will in no doubt differ when similar freight is shipped via air.
FREIGHT DESCRIPTION
An attempt to skip this would rather leave us with misfired submit, to this end, the declaration of freight 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 general freight, therefore, one will require merchants’ (consignees) accurate declaration of cargo description.
Simply put, for cross-border trade, which is pretty much our concern, a quote should include ‘Harmonize Code’ known as HS Code by world customs. Lastly, ladies and gentlemen, it’s evident that our submit aren’t left in peace meal which is healthy going forward.
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