How To Get Discounted Ocean Freight Rates Easily

By Author: Ricardo Lumbardo
Total Articles: 1131
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These days, if statistics are to be believed, the ocean freight rates are on a steady rise. Considering the economic recession looming overhead and an increasing number of people wanting to ship goods the cheaper way, finding discount ocean freight rates is in order. Here are some tips to get started.

The main area where ocean freight rates have been rising steadily is in the shipments where ocean containers are concerned. Within the past three months, the average rate of the ocean freight has increased by as much as 55%. This leaves the average consumer wondering where, if at all, there is a scope for negotiation.

Charges Included

As part of the overall ocean freight rates there maybe several components which make up these rates. Some can be negotiated easily along with due discussions with the forwarder or carrier if there is a large bulk of shipment and it is being carried out frequently. However, you should have a good knowledge about ocean freight rates in general as well as how they work.

Components Of The Rate

It is first important to understand what goes into the standard ocean ...
... freight rates. Some of these factors include charges pertaining to:

PNC: Panama Canal Charge

ACC: Alameda Corridor Surcharge

BAF: Bunker Adjustment Factor Surcharge

CHS: Chassis Usage Surcharge

AMS: Advance Manifest Surcharge

SUZ: Suez Transit Surcharge

ARB: Origin Arbitraries

CAF: Currency Adjustment Factor

AMS: Advance Manifest Surcharge

PSS: Peak Season Surcharge

These are just basic components of the ocean freight rates and in fact it primarily depends on the Incoterms because at times you might have to shell out origin charges such as ODF, ORC, DTHC or even THC.

Complex Process

The method to negotiate ocean freight rates is complicated and requires sound knowledge on the subject. The rates can differ dramatically depending on whether there are many shipments being sent on a ‘one-time' basis or whether this is a recurring business. It would also depend on the bulk of products being shipped at a particular time and if these are repetitive shipments, the frequency of shipments. You might want to reassess your ocean freight rates depending on whether you wish to continue with the freight forwarder or want a direct negotiation process with ocean carriers.

Transit Times

One major factor about ocean freight rates is the transit times as far as door to door shipment is considered. Depending on whether you plan to ship to gateway ports or a major one and subsequently truck the shipment to various distribution centers, the costs will differ quite a bit. If the containers will remain intact some glitches might arise but it of course depends on the particular ocean carrier you are dealing with.

Check out http://www.globalforwarding.com for the most discounted and affordable ocean freight rates online.