Freight forwarding costs

[Cornwhaul]

Before I start to get some quotes from Freight forwarders, I'd like to see if this idea would be remotely viable.

I've had a price from an Indian company for a full container of products delivered to Mundra. From what I have read so far, a FF will sort it from there to our business address (South West England)

does anyone have any sort of ball park price for this?

 

[Mike Foulds]

Hi Cornwhaul. For clarity, I work for a Freight Forwarder, but will try to advise clearly and independently.

To advise, we would need to know whether the container you are purchasing would be a 20ft, 40ft or 40ft HQ, and also a postcode for delivery, can you advise?

 

[Mike Godwin]

Hi there. I am the MD for a FF company and can report that like many sea routes around the world, China being a good example, container rates have increased considerably and India to Europe is no exception. The below article will hopefully give you some insight as to the current trend and what you may be expected to pay ballpark.

'Crazy rates' to ship a container out of India – after a 100% premium to get the box - The Loadstar

With the severe shortage of containers and capacity, Indian forwarders are being quoted “crazy” freight rates by carriers that “won’t honour” contracts. According to the Federation of Indian Export Organisations (FIEO), there has been an “exorbitant” rise in rates since the Covid-crisis began...

theloadstar.com

Hope this helps.

 

[Cornwhaul]

Hi Cornwhaul. For clarity, I work for a Freight Forwarder, but will try to advise clearly and independently.

To advise, we would need to know whether the container you are purchasing would be a 20ft, 40ft or 40ft HQ, and also a postcode for delivery, can you advise?

Hi Mike, thanks for your reply. Forgot to add that is a 20ft container... Schoolboy error!

The delivery postcode is PL26 8PP.

The consignment is 24 crates of paving, weighing 1 ton each. I'm just trying to work out wether they would be unloaded onto a flat bed truck at port or the Wether the container would be unloaded at our yard. We don't have a loading bay at the moment but it can be arrange if the cost makes it worth it.

 

[Cornwhaul]

Hi there. I am the MD for a FF company and can report that like many sea routes around the world, China being a good example, container rates have increased considerably and India to Europe is no exception. The below article will hopefully give you some insight as to the current trend and what you may be expected to pay ballpark.

'Crazy rates' to ship a container out of India – after a 100% premium to get the box - The Loadstar

With the severe shortage of containers and capacity, Indian forwarders are being quoted “crazy” freight rates by carriers that “won’t honour” contracts. According to the Federation of Indian Export Organisations (FIEO), there has been an “exorbitant” rise in rates since the Covid-crisis began...

theloadstar.com

Hope this helps.

Thanks, I did see that article along with the long forum post. I'm hoping that now 6 months has passed since writing the costs are a bit more stable

 

[Mike Foulds]

OK, to give you a starting point, Ocean Freight would be around USD 8500 from Mundra to Southampton, UK THC GBP 165, Docs GBP 50, Customs Clerance GBP 60, DTI Fee GBP 5.50, Port Charges GBP 30.00, Haulage to PL26 GBP 985.00. PLEASE NOTE, these are VERY rough prices, you may be able to do better on the freight and haulage, and freight rates may change going forward. Hope that helps.

 

[Mike Foulds]

Ps, this us a direct delivery. Unpacking at a warehouse near the port and deliverino on a flatbed trailer, you could probably add another 400, as a rough figure

 

[Cornwhaul]

Wow thats a shock! Unfortunately with the sea freight cost it doesn't make the product viable at all. In fact if we were to sell everything on the day of landing we'd still be out of pocket.

Good to know the breakdown though, hopefully the cost edges down throughout the year.

Am I right in saying the maximum that can be transported on UK roads inside a 20ft container is 24 crates @1m3 -/1 ton each?

 

[Mike Foulds]

That's roughly the limit. The actual limit is 44 tons for the vehicle, trailer and container, but I would recommend you keeping to 24 tons, as otherwise it gets close to the line and hauliers could get jittery.

We also hope the costs edge down, as a FF, we are making our same markup, regardless of the actual rate, so are tying up alot more cashflow with higher freight rates, for no more profit. It's still a very frustrating time.