Shipping line local charges. Negligible or significant?
Shipping lines focused mainly on ocean freight costs.
As the local charges were quite negligible.
Local expenses are considered minor to maritime transport costs, so no one bothered to negotiate them. Over the years, shipping companies began to expand these spending rates, and overtime, “small local charges” became a “profit center.”
First, know the structure of expenses and fees in general.
Delivery order can consist of multiple numbers of containers.
There are fixed fees, regardless of the number of containers, and there are fees multiplied by the number of containers in the shipment.
It is important to know that might be a significant difference in the charges between PREPAID shipments and COLLECT shipments (An important topic that we will discuss on another occasion)
So, our tip is to communicate with your logistics freight provider and negotiate the local charges. Do it once and focus on real work after.
Try to ship as many containers as you can on the same MBL, but remember, putting all the eggs in the same basket can be risky.
And that is the name of the game – Calculated Risk!
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