|
|
|
WE KNOW INTERNATIONAL DISTRIBUTION/COST CONTROLS!!
WHO CONTROLS THE RATE MECHANISM ON OCEANFREIGHT MOVEMENT? RATES PUBLISHED BY:
Oceancarriers
Conference of Ocean Carriers
Non Vessel Operating Forwarders
Shippers AssociationsWHERE ARE THOSE RATES FILED?
Rates continue to be filed electronically by each of the above with the Federal Maritime Commission in Washington DC Rates are also available in automated systems from special services on line and include historic rate data for research and audit purposes. Rates are also available to the Public directly from each Oceancarriers as well as from your freight forwarders.
WHAT MAY HAPPEN NEXT YEAR ( 1999 )? Congress is considering changes to the Role of the FMC. The Shipping Act currently permits the filing of Freight Overcharges for a period of three years, De-regulation in other transportation modes may impact on this time limit and developments on the proposed FMC legislation are carefully watched by the interested parties in Industry.
WILL CHANGES IMPACT ON THE AUDIT AND RECOVERY ABILITY? The availability ( at considerable costs ) on ONLINE Rate research replaces the more cumbersome hardcopy tariffs which have been an administration and cost problems for decades. The TIME LIMITS may impact recoveries for the current 3 year period.
WHY IS IT SO IMPORTANT TO HAVE YOUR FREIGHT BILLS AUDITED? The freights are in most cases assessed and applied by the Ocean Carriers, and in case of freight forwarder consolidation by the forwarders,
Rates depend on types of shipments and commodity classifications.
Errors can occur in the following categories:
- Classification ambiguities impacting on getting lowest rates.
- Measurement errors
- Equipment (Container) listings
- Freight collect or prepaid errors
- Accessorial added charge errors.
- Added inland freights
- Terminal Charges at Origin or Destination
You must remember that US Exports are a vital part of our Economy. Increased Exports help us to balance the Trade imbalance with Imports.
You must also remember that in most trading areas ALL charges involved in the Transportation of your Exports become a DUTIABLE and TAXABLE item in the Importing Countries which directly IMPACT'S on the final landed cost of your raw materials and/or finished products and are in competition with your Competitors in other Countries,
Therefore it is vitally important for shippers large, medium and small to KNOW their TOTAL landed costs for their marketing efforts.
Remember also that US inland freight/freight forwarder fees and any other costs must be added to the CIF calculation which forms the basis for the added duty and tax costs to YOUR Customers.
Where you sell CIF or Duty Paid landed and delivered our Systems include the audit of all foreign costs including Customs and VAT charges etc.
Through our European Group partners, FRACHTRASCH INTERNATIONAL.
we can offer our customers foreign Audits for all modes to and from anywhere in the World. This includes Distribution System Analysis, Information Systems and more information and brochures as well as achieved results are available on request. Thus competitive Inland freight and Forwarder and other charges are an important added item to be audited and controlled downward.
HOW ABOUT IMPORTS? With ever increasing Imports, especially in the current ( 1998 ) and anticipated ( 1999 ) Global Markets and Economic Problems the controls are extremely important. While many Importers route their cargo and establish rates for both Ocean and Airfreight, many leave the transportation to the firms from whom they buy. Even if the Importer directly or in conjunction with their Suppliers controls costs, not only do errors occur identical to the ones listed for Exports, there are added areas of potential and actual overcharges or control needs for:
- Rates for Ex Factory Purchases from Supplier Origin to Sea /and or Airport
- Terminal and other foreign charges
- Forwarder fees
- Duty assessments and audits
- Custom House Broker Service fee levels and added charges.
- Storage and/or detention charges
- US Terminal Handling and others charges
- local trucking and ontransportation charges.
- exchange rate conversions
AIRFREIGHT COST CONTROLS Airfreight is a deregulated Industry.
No longer are tariffs readily available as they need not be filed.
Most rates are issued by individual Aircarriers and in many cases Airfreight Consolidators control the freight with the Aircarriers they use as wholesalers and retail a reduced less than direct Aircarrier rate cost to the Shipper.
OFC has recovered significant overcharges for many errors detected. Like on Exports, the often much higher Airfreight when added to the merchandise value and other related charges add like on Oceanfreight to the FINAL LANDED COST of your Trading Partners.
Airfreight is also heavily impacted by the fact that
it is either the higher Gross or Volume weight on which
freight charges are assessed.
Thus the packing methods used directly impacts your costs.
Rate negotiations for Airfreight are extremely imortant to be carefully analyzed before signing up for such rates often for a period of time with fluctuation plus/minus safeguards for both the Airfreight Forwarders and Shippers.
HOW LONG DO I HAVE TO FILE FOR OVERCHARGES?
Most carriers have a limit of 180 days. Some carriers allow two years.
We accept documentation for a period of two years from time of shipment as our experience has clearly shown that some errors can not be barred by self imposed lesser time limits when they are of clerical or other lack of careful controls, which include errors between prepaid and collect and other areas.
–––
HOW ABOUT OUR OWN TRAFFIC AND DISTRIBUTION DEPARTMENTS? Our Track record here is the best answer to this question. Your own Departments act BEFORE or in conjunction with the Freight Forwarders you employ or which you are often asked to use
by your Customers based on Selling Terms.
They are equally under pressure and have may other functions to perform. Depending on the internally established Rate and Cost Control/Timing Systems such Departments also have interactions with Buyers/Marketing and other Departments and often have to make rate offers for a prospective buyer i.e. they are overloaded.
Therefore it is based on experience.. unavoidable errors that are not detected and cost recoveries MISSED if not done by firms like OFC,
For many of our Clients we act as Consultants and external Traffic Distribution Departments extensions.
The results are often dramatic and not only do we recover overcharges which bring MONEY to the Shipper but even more importantly and based on our analytical Information Systems Data bases project and achieve meaningful cost savings for you and your Trading Partners.
This is also very important for those firms who have their own offices/manufacturing plants where such savings directly benefit the entire Corporation, Data Systems with periodic or special report requests on more than 45 fields of data from the time an Order is placed until shipments are delivered with time and cost factors and render Consultation Services where requested.
WHY DO I NEED AN AUDITOR, I HAVE FORWARDERS? Freight Forwarders and Custom House Brokers are a vital part of the Global Marketing Community, Often with Global Networks they are very valuable and knowledgeable.
But they are also PROFIT centers and quality as well as costs often depend on the careful monitoring of services and costs by the Exporters and Importers.
But another vital point is that they are overworked, often understaffed and subject to change in staff and do not have the luxury to carefully post-examine completed transaction while WE CAN and DO!
In fact we act as a much needed added PROTECTION of the Shippers and maintain close interactions with Clients and their Transportation Services in IMPROVING the quality and Costs of such services. B U T we are not forwarders/ we are not Brokers and thus do NOT compete with this important Industry.
| HOME | FAQ's | FAQ's INTERNATIONAL | WHY AUDIT | WHY PSTB | MEET THE STAFF | CONTACT PSTB |
This site brought to you by
BIG BUZZ WEB DESIGN © 1998
Email webmaster@bigbuzz.com