International transportation is considered as a strategic part of any business or company. Market fluctuations due to numerous variables make risk management even more fragile in international operation and make freight quotation difficult.
Factors such as the pandemic or even the stranding of the Ever Given ship in the Suez Canal have shown how vulnerable maritime transport is and how the landscape can change in a short time.
With several external factors that cannot be controlled by the importer or exporter, it is necessary to seek the best international freight options in order to minimize risks and reduce costs.
Negotiation in the contracting of sea freight is a fundamental basis for initiating the logistics operation.
Defining the best shipping option requires analysis of various details that will make a total difference in the process, and hiring the Shipowner or Cargo Agent directly is one of them.
Main differences between Shipowner and Cargo Agent
Maritime transport is the main modal used for cargo transport.
The contracting of freight can be done directly to the shipowner or from a cargo agent.
The Shipowner carries out the transport of cargo between ports and operates existing ships and routes.
Despite being known as “owner” of the ship, in many cases it can operate from concession using third-party ships and containers.
There are three types of rmador, the following:
- Owner: known as owner of the ship;
- Manager: operates vessels of other owners;
- Renter: Is authorized to administer a third-party ship.
On the other hand, the cargo agent is responsible for the intermediation between the shipowner and importers or exporters in the reservation of containers and spaces on the ships, offering the best option to the customer.
In this case, the company will inform the shipping data to the cargo agent, who will analyze the best condition offered among the shipowners, according to the needs of each customer.
What to consider when choosing international shipping?
The importer or exporter should have in mind clearly what is its main need when requesting an international freight quotation.
The price factor will not always be the best option when the customer needs a freight with less transit time.
Regardless of whether the load is dry, refrigerated or has extra-standard particularities, some points are basic when trading, which we will then see.
Transit time
Evaluating the best route as being direct to your destination port or whether there will be transhipment will impact your internal or customer planning in the event of export.
There are many changes made by shipowners without prior notice to shipment, but many cases are possible to identify themselves already at the time of freight quotation.
Free time
The free time refers to the time that the importer can keep the container after arrival at the port. After the deadline, the collection of the fine, which is calculated daily, is initiated.
In this case, it is important to negotiate a deadline that is sufficient to untangle and return the container before expiration. The free time is variable depending on the type of container, hired shipowner, and routes.
By diem
Cost charged for the overstay of the container, and a fine is applied after the expiration of the free time period. This cost is usually charged in dollars and varies according to each trade, and can be USD 80 to USD 300.
Payment deadline
The cost of shipping varies by origin. Freight from Asia to Brazil has a high cost, therefore, negotiating the payment term of the freight and fees assists in the cash flow of the company.
Other points can also be used in trading, such as information regarding the volume and regularities of shipments.
When should I quote international shipping with the Shipowner?
It is necessary to evaluate the volume of the company when dealing with a direct negotiation with the shipowner. Some points should be taken into account that may be an advantage or disadvantage for your business, namely:
Attractive volume
Negotiation with the shipowner usually takes place with companies that have high import or export volume, since they get better prices due to bargaining power.
Shipowner’s Structure
Shipowners are multinational companies with a large structure, which offer a greater guarantee for cases where there is a problem and the need to resort to the legal sphere.
Visibility of options
Greater direct access to prices and choice of boarding dates on the shipowner’s website.
Limitation in service
As a negative point, there are limitations in service due to the high demand for freight. In these cases, the client has difficulty obtaining return from the shipowner, besides not getting more accurate information about the operation.
In addition, if it does not have a considerable volume and even a routine of shipments, hardly the customer will get a more attractive price.
When should I quote international shipping with the Freight Forwarder?
Cargo agents play an important role in the logistics chain, as they are companies with market knowledge that offer solutions when contracting freight.
However, you need to analyze the key points to verify that this direct hire meets the requirements for your company.
Payment deadline
Due to the volume negotiated directly with shipowners, agents get a better time frame for freight payment and fees.
Troubleshooting
Since they have experience and contact with all shipowners, agents can filter out possible bottlenecks in the operation or even facilitate troubleshooting during cargo logistics.
Service
They have differentiated service regardless of the volume of your company, bringing solutions with more agility in returns.
Price
They achieve competitive prices regardless of volume, due to the importer or exporter being in the “umbrella” of the agent before the shipowner.
However, a negative point in the international freight quotation with cargo agents is that Brazil has a high number of agents in the market and, with the high number of competitors, service offers may not be real.
In addition, some may enter fees that the customer ends up not realizing.
Tips for choosing an international shipping quote
Negotiating and contracting freight is a responsibility that requires caution and analysis.
The contractor shall accurately inform the shipment data, such as cargo type, origin, destination, net and gross weight, dimensions etc.
The importer or exporter shall know the structure and persons of the undertaking providing the service.
In this way, requesting which customers the company already serves and contacting to analyze the strengths and weaknesses of its potential business partner is critical to decision making.
It should be made aware whether the company will have the necessary support in case of any unforeseen in the operation, as well as transparency in the quotation information.
Trade your international shipping with Cheap2Ship
Making international freight quotation is part of a Foreign Trade operation, but it is important to have visibility of different options in an organized and transparent way.
The Cheap2Ship platform offers in a structured way the quotations of its partners, besides signaling what is the best price launched on the platform.
Totally online, this model facilitates both in the management of the prices practiced and in the conference of the closing of the process, thus ensuring that the prices and conditions of the freight are met by the service provider.
The information is saved on the platform, contributing to compliance and is made available through dashboard as metrics for management reports.
Cheap2Ship offers in one place the registration of all its partners, where the quotations will be launched in which the platform will trade for you with agility and high level of service.
