Uploaded on Oct 18, 2021
If you are wondering how to lowering your ocean freight costs and boosting margin. Then here we highlight a complete guide for you to know everything. https://saglogistic.com/lowering-your-ocean-freight-costs-uae-and-boosting-margin/
Lowering Your Ocean Freight Costs UAE And Boosting Margin
Lowering Your
Ocean Freight
Costs UAE And
Boosting
Margin
Lowering Your Ocean Freight Costs UAE
And Boosting Margin
• Every freight forwarder and shipper tries to negotiate the best container rates when it comes to total shipment costs. Ocean
freight costs UAE are a major component of total shipment costs. Preparation is the key to a successful carrier rate
negotiation – understanding your own shipping requirements, monitoring market conditions, and leveraging this knowledge
when negotiating rates with carriers.
• Understanding freight costs, reducing ocean freight spend, and realizing better margins are three significant challenges for
shippers and freight forwarders. Dynamics and trends in the market play an important role in determining transportation
costs, your business can also use visibility data to forecast fluctuations and trends in the market.
• The visibility of ocean freight is of the highest significance in the current scenario. Having accurate information about ocean
freight allows shippers to determine where they are spending too much and how they can reduce those expenses. In times
of disruption, supply chain visibility is crucial to maintaining clarity and agility. Risk management in the supply chain must be
transparent in order to handle risks.
• Visibility of ocean freight means knowing exactly where your freight is at any given point in time in the supply chain. With
marine logistics execution visibility, businesses have the ability to make better decisions, cut costs, reduce freight
expenditures, and respond more effectively to disruptions. In addition to improving delivery production efficiency, accurate
visibility enhances customer service and the customer experience.
Here Know The Few Tips For Lowering Ocean Freight
Costs UAE:
1. Know The Market, Your Business, and Sale Terms
Be aware of the market you play in and avoid paying vendors more than the market rate. Make use of freight cost
benchmarking techniques, such as asking different forwarders for quotes so you can see what they are charging
and then decide what you can afford. You can manage your business’s production time more effectively before the
peak season if you know the freight rates and trends. It can also be used to optimize shipping rates when they are
lower, thereby reducing shipping costs.
2. Plan Carefully Not Everything Is Urgent
Ensure that you know exactly what is required. Know the scope of the business, the frequency of shipments, and
the quantities that have been agreed upon. Take this information into consideration when planning your approach.
Carriers often give the best quotes to customers who have a clear understanding of what they want and can
forecast this clearly through careful planning. Customers appreciate this because it demonstrates competency and
credibility.
3. Opt Right Mode Of Cargo
Is it a full container FCL, LCL, or groupage? Make sure you are using the right mode of shipping for your cargo. A
LCL or groupage shipment involves multiple charges compared to a full container shipment, so determine if it’s
necessary. Similarly, determine whether FCL can be optimized to save costs. You lower overall costs by matching
the right cargo to the right container.
4. Select Best Route And Packing For Your Cargo
Reduce your freight costs by optimizing your routes. In terms of cost savings, the cheapest quote isn’t
always the best. Be sure to compare the routes each carrier takes and choose the carrier that will deliver
your cargo for the best price.
Similarly, pack your cargo into containers with care. Consider using the right size packaging materials.
Reduce the amount of empty/wasted space by using the right size packing materials.
5. Be prepared
Taking the time to plan, prepare, and implement your tender management process can dramatically
impact your freight costs if your procurement is based on a tender. It is important to keep in mind that
effective preparation happens both on land and at sea, and both can pay off in cost management.
6. Triangulation
Triangulation is another option that carriers favor, and they may offer special deals to customers who can
do so. When triangulation is used, a container is used for export and import purposes at the same time,
meaning you export from A to B, and then import from B to A using the same container and the same
carrier.
7. Better Communicate With Your Carriers
Communication is key to any business arrangement. Having open, clear communication with your carriers
can go a long way in avoiding any mishaps that may arise as a result of miscommunication, which could
prove to be expensive later on. Be sure to keep everyone updated.
8. Audit Your Quotations And Invoices
Ensure you audit your quotations and invoices thoroughly. Ocean invoices contain more than 25% errors,
and these are costly! Carriers often fail to add shipping surcharges and ask for payment at a later stage.
Cost planning and negotiation may be affected, and the customer may not agree to pay for additional
charges, so you’ll have to cover them.
Also Read | Cargo Companies in Dubai
Lowering Your Ocean Freight Costs UAE And Boosting Margin
SAGlogistic is one of the reliable shipping company in UAE. We at SAGlogistic are best custom clearance agent in Dubai, providing
a wide variety of services to help the customers in import and export customs clearances. We are international relocation moving
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logistics companies provide best Dubai to Egypt shipping service. We ensure the highest standards in its LCL services for shipping
products to and from the United Arab Emirates (UAE). LCL shipping companies in Dubai offer its services in the UAE and overseas. We
also offer the best IOR EOR services in Dubai and IOR EOR services in Saudi. SAGlogistics are reliable Dubai to KSA shipping services
provides you with comprehensive and integrated shipping services
Contact Us |
Address | Office 1200, Fahidi Heights – AWR Properties – 32 4c St – Dubai, United Arab Emirates
Phone | +971556658178 +971547928525
Website | Saglogistic
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