Getting Thoroughly Done for Road Freight

Discussion in 'International Business' started by Ray272, Jul 6, 2020.

  1. Ray272

    Ray272 UKBF Regular Free Member

    313 43
    My error has been to use the same forwarder for way too long due to their billing system being really neat and tidy. Pricing was always real competitive until the last year and now a pallet to Sweden which would have cost £125 12 months ago is now being quoted at £195.

    I am shocked as I have been using the same company for nearly 5 years, they have never assessed the pallets we send and provided some form of fixed pricing to make the process smoother.

    I understand there is the corona virus to contend with as a reason for such inflation but it just seems like I am paying way too much.

    Anyone want to shout out some good road freight firms?
     
    Posted: Jul 6, 2020 By: Ray272 Member since: Jul 5, 2017
    #1
  2. Mike Foulds

    Mike Foulds UKBF Contributor Free Member

    49 16
    Hi Ray.

    We handle alot of cargo too/from Scandinavia. Whilst we don't run our own vehicles, we have some very competitive contract rates with multiple carriers, meaning we can pick and chose the best rate for each destination.

    I would, however, comment that, as you mention, prices at the moment have definitely risen quite dramatically, and, TBH, I don't think £195 is an extreme cost in the current conditions.
     
    Last edited by a moderator: Jul 30, 2020
    Posted: Jul 6, 2020 By: Mike Foulds Member since: Mar 21, 2018
    #2
  3. Ray272

    Ray272 UKBF Regular Free Member

    313 43
    Hi Mike

    Can you explain how you have been impacted?

    The reason I ask is I received this email this morning from another forwarder:

    I hope you’re well & had a great weekend.


    Rates continue to fall back into to pre-crisis levels & volumes seem to be coming back into the market which is positive.


    We continue to work 7 days a week to support any & all shipping requirements.


    If you need any assistance or have any upcoming shipments please let me know & I will furnish you with keen rates.the whole industry seems to be full of absolute


    I have spent a good part of today getting quotes, some shocking quotes, I think the PPE has skewed the pricing and sent prices sky rocketing. I mean you are an essential service, I have friends who are drivers who have been complaining of working so much.

    I did actually get the price down to something more realistic but this whole industry looks murky and someone should step up and sort it out.

    £295
    £335
    £262
    £205
    £190

    Accepted quote:

    £165


     
    Posted: Jul 6, 2020 By: Ray272 Member since: Jul 5, 2017
    #3
  4. Mike Foulds

    Mike Foulds UKBF Contributor Free Member

    49 16
    Hi Ray. £165 is a good price. The industry isn't murky, as such, it's just supply and demand, and yes, the PPE and reduction in volumes in certain regular cargos including automotive products has impacted the volumes being moved, and routes where cargo is prevalent.

    This, combined with a general increase in both air and sea cargo over the last 3 months, has impacted haulage at all levels, as drivers are allocated wherever there is profitable work with a sustainable volume.

    Whilst I believe rates will return to a "new normal", I am not sure they will return to where they were prior to lockdown for quite a while yet.

    Quite simply, as you know, hauliers look to, on the basis of the cargo on a vehicle, cover their costs (Fuel, vehicle, insurance, driver) on a daily basis, and if they are struggling to fill a vehicle, then the cost to that location will rise, which is what has happened. That is definitely not a murky industry, but one which responds to volumes and available cargo.
     
    Posted: Jul 6, 2020 By: Mike Foulds Member since: Mar 21, 2018
    #4
  5. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    5,170 1,766
    Rates have gone up
    Every time we increase prices we are classed as dodgy
    Every time everybody else increases their prices it is called inflation :)
     
    Posted: Jul 6, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
    #5
  6. Import Expert

    Import Expert UKBF Regular Free Member

    335 134
    I can't comment on that particular price as its outside my area of expertise (Which seems to be mainly Brexit at the moment!), but i do know that the industry is suffering as too many companies are undercutting each other just to try and fill vehicles in some cases. Unfortunately loyal customers such as yourselves in the road freight industry are a rare thing nowadays, with most just going for best price only and giving no thought as to who is handling the products, if it is sub-contracted or using a hub, if they have relevant insurance, etc.
     
    Last edited by a moderator: Aug 24, 2020
    Posted: Aug 24, 2020 By: Import Expert Member since: Feb 1, 2012
    #6