KWTC Member Profile:
Is there value added in taking the time to build a partnership with your air freight forwarder? As we reviewed the customer’s quote on transport costs from three new locations they were considering for future factory locations, the question came up about why the fuel surcharges were so different from origins that geographically were within 800 miles of each other. This is an important question with fuel costs that are rapidly reaching and in some origins exceeding the per kilo costs of the transport and customs clearance portion of the import process. The decision of your supply chain origin can make or break your profitability when the chips are down and you need a critical part to complete your customer’s order. By proactively looking at their potential transport costs this customer was able to narrow down his broad range of choices and chose if they wanted to rely on the local government’s regulatory process to establish fuel costs or work within the free market from the other two potential locations. We were also able to review the simplicity of pass thru fuel costs and the wide variety of carrier and timing options from a single origin. With 18 carriers servicing a major Asian port we discussed fuel rates ranging from an industry low of .75 cents per kilo to a high of $1.63 per kilo and delivery options from next day to two weeks in transit. The decisions you and/or your forwarder make can be critical in meeting and exceeding your customer’s expectations and your businesses profitability. Have you talked with your forwarder this week?
Wen-Parker is simply TOTAL LOGISTICS AT ITS BEST.
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