We have mentioned it before, but the need to seek container rate quotes on a daily is something no freight forwarder can ignore. But while it can be a monotonous practice, is also has definite advantages. Not least, it’s an essential part of freight benchmarking, which can secure real savings for importers and exporters.
There is no secret to benchmarking, and in fact it’s something we all do from time to time, probably without ever realising it. It’s all about finding the best price by comparing several prices, usually three or more. For example, when you are looking for a better car insurance premium, don’t you contact a few insurance brokers and ask them for a quote? Then you can choose the best quote from amongst them.
Benchmarking container prices is the same thing. International Cargo Express has a network of independent forwarding agents around the world that we ask for quotes from when we are assessing costs for our customers. Depending on a number of aspects – for example, the type of cargo, the size or weight of the consignment, even the time of year – prices quoted can vary.
But through freight benchmarking, the best deal can be found. It may not always be the lowest available price, but it is always a very competitive one. However, the advantages relate to more than simply the price.
Securing Space, Saving Money, Reducing Stress
Freight forwarders tend to face the same challenges every day. As well as finding the best container rates for their customers, they also have to secure actual space on a ship or plane. These factors are included amongst the 3 main benefits of freight benchmarking:
- Securing A Space – in many cases, this is the toughest task since competition from other freight forwarders is always extreme. Benchmarking our full container rates allows us to stay in constant contact with agents that can secure that place. It’s not our buying power we use, it’s their buying power because they control the space as well as the freight rate. These agents have good connections to certain shipping lines, so if you want your container shipped on that line, these agents are in the best position to make it happen.
- Saving You Money – this is achieved in two ways. Firstly, it allows us to identify which agent is offering the lowest container prices, but it can also allow us to use a shipping line that offers a better overall deal. Remember, the total cost of shipping includes a range of extra fees and surcharges that, when added to a container rate, can show up what first looked like a good deal as being bad – or vice versa.
- Reducing Your Stress – we know you need your cargo to arrive on time, and that if it doesn’t it may actually cost you money. Some importers face price penalties from their customers for every day that an order is late. Another line could see your consignment arriving later, perhaps by as much as 10 days. Uncertainty, therefore, creates a lot of stress, but since freight benchmarking keeps us in touch with our best-placed agents, the chances of being stuck with Plan B are lessened considerably.
Why Multinationals Don’t Benchmark
Logically, multinational freight forwarders should be able to offer huge savings to their customers by getting the best rates from agents. But they are not structured in that way. They arrange massive volumes of cargo, and so tend to accept the flat rate that agents give them, which on balance can be quite good. Their priority is in getting their cargo from A to B quickly, and their customers are often willing to accept a higher price in return for certainty.
Contact Your ICE Team
International Cargo Express made a conscious decision to offer benchmarking, because they recognise the benefits that it has to the small and medium-sized importers and exporters, to whom the modest savings and peace of mind can be significant.
To find out more about how our benchmarking policy can translate into real benefits you, simply call your nearest ICE team. We’ll be glad to address any questions you might have.
