When shipping goods internationally, businesses often seek the expertise of a freight forwarder to handle the logistics. However, many businesses new to international shipping often find themselves unsure of what they are actually paying for. Freight forwarding involves more than just transportation—it is a multifaceted process that includes numerous steps and services to ensure a smooth delivery. The following is a breakdown of the key costs involved in freight forwarding and what they cover.
Freight Charges
The most straightforward cost is the freight itself, which is the cost of transporting goods from Port of Loading to Port of Discharge. This includes:
- Air Freight: More expensive, but faster, air freight is suitable for high-value or time-sensitive shipments.
- Ocean Freight: More econominal, but slower, ocean freight is ideal for large, non-urgent shipments. Charges are calculated based on container size (20-feet, 40-feet) or by weight and volume for smaller shipments (LCL—Less-than-Container Load).
Export and Import Duties
Each country has its own import and export taxes and tariffs. Duties are calculated based on the value of the goods and the country's regulations. This is a non-negotiable cost that every importer and exporter must account for. A reliable freight forwarder will ensure that the duties are handled correctly, preventing delays and fines.
Customs Clearance Fees
Customs clearance is a process of preparing and submitting necessary documents to ensure a legal transportation of goods across borders, including processing taxes and customs duties. Customs charges can fluctuate based on the complexity of the shipment, particularly for hazardous goods or products that require special permits.
Insurance Costs
Freight insurance is the most common insurance, which covers the value of your freight in the event of loss or damage during shipping. A typical insurance policy covers against physical damage, loss overboard, customs delays or rejection, theft, and general average sacrifice. The cost itself depends on the value of goods, type of goods, freight, and the type of insurance to ensure a safe delivery.
Handling Charges
Handling charges cover the loading and unloading of your goods before shipment and after arrival. These charges include:
- Warehouse Handling: Charges associated with storing goods in a warehouse before shipment or after arrival, and the loading and unloading of the goods.
- Terminal Handling Charges (THC): THC is imposed by the port or airport for handling the containers or goods. It covers the cost of using port or airport facilities, including the movement of containers to and from vessels. THC varies depending on the port or airport.
Documentation Fees
Documentation is the centre of international shipping process. Documentation fees cover the preparation of critical shipping documents, including:
- Bill of Lading (BL)
- Insurance
- Certificates of Origin
- And other required/special case permits/licenses
Without proper documentation, your shipment could risk being returned or face costly delays. At Angkasa Adibayu Buana, we ensure prompt and meticulous detail are exercised when handling your documents, helping you avoid hefty fines.
Destination Charges
Once your shipment arrives at the destination country, therewill be additonal charges such as terminal handling charges (THC), delivery order fees, customs clearance fees, port charges, storage fees, gate fees, and trucking. These charges are commonly known as destination charges.
Value Behind Freight Forwarding Costs
When you partner with a professional freight forwarder like Angkasa Adibayu Buana, you are paying for expertise, time, and peace of mind. We ensure that your goods are handled with care and smoothly without hassle or delay, minimizing the risk of additional fees. At Angkasa Adibayu Buana, we provide transparent pricing with no hidden fees, so you know exactly what you are paying for. We have extensive experience in handling a variety of shipments, from standard goods to huge project shipments. Contact us now to experience a committed and dedicated support from AAB team.
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