CEOs know that among all transportation modes air freight is the most expensive. While it is more expensive, air freight has benefits for businesses in Australia that include the fastest transit time, global reach, high security, and reliability. To make the higher freight costs more efficient, there are a few industry secrets that you can use. These secrets include efficient packaging, pre-planning, CAT documentation and outsourcing to single service provider. These secrets can make your airfreight more economical without impacting service levels. While many large businesses or multinational companies (MNCs) may know these secrets, small to medium enterprises (SMEs) may not be aware.
Read on to learn 4 secret tips that can make the use of air freight forwarding more economical.
1) Efficient packaging systems reduce freight forwarding costs
Unlike sea freight and ground transportation, a higher per kilo cost makes every extra kilo a burden on your business, whether gross or volumetric. To overcome this, extra effort and efficient packaging skills are required to minimise space wastage. Many CEOs are unaware of this fact and keep assuming that negotiating airfreight cost is the only way to reduce the total costs. However, packing the cargo efficiently and utilising every bit of space reduces the volumetric weight and reduces the costs substantially. Improved packaging to reduce space wastage and an increased fill-rate is a quick win to reduce your overall freight forwarding cost.
2) Pre-plan shipments to avoid last minute charges and chaos
When shipment planning comes to mind, it implies booking space with airlines as well as the alignment of transportation solutions and custom clearance operations. Planning all these activities at the last minute not only makes it more hectic and increases the risk of a last minute failure, but CEOs are also forced to book the service at a higher price. Based on the inputs received from the production team, preplanning not only reduces the last-minute anxieties but also the unnecessary charges. Experienced freight forwarders can provide critical inputs and support you by aligning the right resources to work with you as a partner in pre-planning your shipments.
3) Complete, accurate, and timely (CAT) documentation keeps things moving
CAT stands for complete-accurate-timely and must be followed in airfreight documentation to avoid cargo detention. Because most of the airfreight to and from Australia is carried by passenger aircraft, air freight is the most secured transportation medium. To maintain this high level of security, rules implemented by governments and airlines demand documentation to be completed impeccably. Any incomplete, inaccurate or delayed document is likely to lead to cargo detention and add extra costs to your freight forwarding costs. Therefore, to make freight forwarding more economic and avoid these unnecessary charges, CAT documentation is always the best practice.
4) Develop a relationship with a single freight forwarder for lower charges
Ground transportation, customs clearance, in-transit storage, and value-added services are the essential parts of any freight forwarding service for the efficient delivery of products. Engaging an individual service provider for ground transportation, freight and customs clearance increases number of service providers you need to manage and reduces your negotiation power. You may be able to negotiate a better price for a more expensive end-to-end airfreight transaction by requesting a discount on the complete deal. Established freight forwarders have developed end-to-end capabilities and provide all services required to complete your air freight transaction under one roof. Outsourcing your complete airfreight operation to a single provider not only benefits your business with better prices but also with better control, visibility and accountability.
These 4 secrets, if utilised, can assist in reducing your overall freight forwarding costs and allow you to maximise your investment in airfreight. However, the efficient implementation of these secrets requires up-to-date knowledge and expert resources. Experienced and established air freight forwarders, such as BCR, bring knowledge and expertise to your business. Seasoned freight forwarders are also happy to work with you to plan, implement and manage not only your air freight but your complete freight forwarding needs.
For more than a century, BCR has continued to help small, medium and large businesses achieve an optimum logistics solution with warehousing and transportation, including air freight and sea freight services to and from the major ports including Brisbane, Sydney, Melbourne, Adelaide and Fremantle (Perth).