Freight Pricing Basics: Weight, Volume Weight, and Capacity Units Transport pricing is driven by a simple constraint: capacity is limited (space and weight). Carriers therefore charge based on either: actual gross weight, or volume/chargeable weight (a conversion of space into an equivalent weight), or capacity units...
WHICH DOCUMENTS ARE NEEDED ? Sea freight is typically the most cost-efficient option for international trade, but it is also the most document-driven. A single missing or inconsistent data point (shipper/consignee details, HS code, cargo description, weights, Incoterms®, or compliance references) can trigger customs holds, rolling...
Avoid “Low Quote” Traps: Control Accessorial Charges A common pricing tactic in freight is the “bare-bones quote”: the Logistics Service Provider (LSP) or carrier offers an attractive base rate for a standard service, then invoices additional accessorial charges later (handling, documentation, special equipment, delivery constraints, waiting...
IMPROVE FREIGHT TAIFFS BY SELECTING THE RIGHT PARTNER Reducing and consolidating the number of carriers and/or appointing a dedicated freight forwarder can materially improve both tariffs and service control—provided it is done with clear governance. Fragmented carrier panels increase administration, dilute volume leverage, and create inconsistent...
HOW SPOT PRICING INTERACTS WITH LONG-TERM CONTRACTS The spot freight market in liner (container) shipping has expanded significantly over the past decade and now plays a structural role alongside annual or semi-annual carrier contracts. In practice, most shippers operate in a hybrid environment where long-term agreements...
