This document discusses factors to consider when calculating the cost of freight shipping. It begins by explaining that freight transport involves moving goods and cargo by land, sea, or air. The key variables that determine shipping costs are then outlined in three sentences: cargo dimensions and weight, destination of the shipment, value and delivery speed/time need to be considered as well as potential customs clearance issues, delays, and the Incoterms of any international sales contract. The document then proceeds to explain each of these factors in more detail.
This document discusses factors to consider when calculating the cost of freight shipping. It begins by explaining that freight transport involves moving goods and cargo by land, sea, or air. The key variables that determine shipping costs are then outlined in three sentences: cargo dimensions and weight, destination of the shipment, value and delivery speed/time need to be considered as well as potential customs clearance issues, delays, and the Incoterms of any international sales contract. The document then proceeds to explain each of these factors in more detail.
This document discusses factors to consider when calculating the cost of freight shipping. It begins by explaining that freight transport involves moving goods and cargo by land, sea, or air. The key variables that determine shipping costs are then outlined in three sentences: cargo dimensions and weight, destination of the shipment, value and delivery speed/time need to be considered as well as potential customs clearance issues, delays, and the Incoterms of any international sales contract. The document then proceeds to explain each of these factors in more detail.
LEON FACULTAD DE CONTADURIA PUBLICA Y ADMINISTRACION Nombre de la Unidad de Aprendizaje: LOGISTICA
Nombre del proyecto: resume chapter 14
Programa educativo: Licenciado en Negocios Internacionales
Semestre: 6 Grupo: Ai
Nombre del maestro: SERGIO HIMBLER GUERRA LUNA
Guerrero Ramos Jennifer Ivonne 1816241
San Nicolás de los Garza, Ciudad Universitaria de Nuevo León a Octubre 18
2021 Freight transport is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but now it has been extended to refer to transport by land or air as well. Freight is big business. It is a necessity, not a luxury. When transportation system performance decreases, freight-related businesses and their customers are affected in two ways. First, freight assets become less productive. Second, more freight transportation must be consumed to meet the needs of a thriving and expanding economy. Thus, when freight transportation under-performs, the economy pays the Price Variables To Consider Calculating the Cost of Freight Shipping •Cargo Dimensions •Cargo Weight •Destination of the shipment •Value of the shipment contents •Delivery Speed / Time •Custom Clearance •Unforeseen delays •Incoterms of your international sales contract CARGO DIMENSIONS Dimensions of a shipment is considered important because many of the carriers consider volumetric weight, also known as dimensional weight, of the cargo, rather than the actual weight. Volumetric weight is considered when the goods may not be actually heavy, but due to the packaging (that may be required), they end up taking more space. This refers to the actual weight of the shipment to be sent. Like we mentioned above, higher of the volumetric and actual weight will be considered to calculate freight shipping cost. Cost of shipping is calculated based on volumetric weight or actual weight, whichever is higher DESTINATION OF THE SHIPMENT The shipping cost will also depend on the distance between the origin and the destination of the shipment, which may be further categorized into zones depending on the shipping mode. Thus, shipping zone will also contribute to the cost of freight shipping. Additionally, factors like fuel costs, ease of access, destination restriction like remote location, accessibility can add up to the cost as well While this has secondary impact on the shipping cost, it is important to note that shipping a high-value freight will add up to your cost, because, in such cases, getting an insurance is always preferred. Insurance keeps the shipper at ease and offers claims in case the shipment is lost, damaged or stolen when in transit INCOTERMS OF YOUR INTERNATIONAL SALES CONTRACT If you are exporting your products, Incoterms will play a role in deciding responsibility and costs that you will have to take up. There is a total of 11 Incoterms, each having different liability and costs – you should consider these into account while calculating freight shipping charges.
The Forwarder´s Concern: An introduction into the marine liability of forwarders, carriers and warehousemen, the claims handling and the related insurance