1. Booking freight service of Toho Taha
Transporting import and export goods by sea and by air are the 2 most popular methods in the world today.
Freight by sea is divided into 2 types:
– Full Container Load: FCL
– Less than Container Load: LCL
Compared to sea, air freight is usually fast shipping and is used to transport high-value goods.
Air freight is also divided into 2 types:
– Air cargo
– Express
In the above categories, Toho Taha specializes in providing customers with Booking freight service for freight by sea (FCL and LCL) and by air (air cargo).
In particular, Toho Taha has strengths in sea and air freight for Asia and Europe routes.
2. How to calculate sea freight rates?
International sea freight will not have a fixed rate, but this rate will change depending on the time, type of goods and each route.
Sea freight costs include 2 parts: O/F-Ocean Freight and LCC-Local charges.
– O/F will have no tax, sometimes there will be surcharges included in O/F such as LSS (Low Sulphur Surcharge), PCS (Port Congestion Surcharge), PSS (Peak Season Surcharge),…
O/F changes continuously, usually 1 month, or 15 days for high season. Therefore, it will be difficult to have a specific price list for Customers.
However, if you only transport goods on one route and the forwarder has a contract with this shipping line, there may be a fixed price list. This usually happens in LCL shipments.
– LCC have to pay tax.
When receiving a quote from the forwarder company, you can negotiate instead of paying LCC tax, you can ask the forwarder to reduce to the lowest possible amount for LCC and transfer the difference to O/F. Thus, the forwarder still has the same profit as the original while your business can reduce the tax amount.
The more goods you ship, the more tax you can reduce. Especially for low-value items but going in large quantities, this tax reduction will help you have a competitive advantage in price over other competitors.
Depending on import or export, FCL or LCL goods, foreign markets, shipping time, and Customer’s requirements, there will be different fees and surcharges such as:
– B/L (Bill of lading)
– THC (Terminal Handling Charge)
– Seal fee
– Telex release
– AMS fee: for goods exported to the US
– CFS (Container Freight Station): charge for loading goods into the container / fee for loading goods from the container into the warehouse
– D/O: Delivery Order fee
– CIC (Container Imbalance Charge)
– Handling fee: tracking and handling fee from the time the shipment leaves the exporting country until it is imported.
– EBS (Emergency Bunker Surcharge), PSS (Peak Season Surcharge), PCS (Port Congestion Surcharge),…
3. How to calculate air freight rates?
The cost of air freight includes 2 parts: Air Freight and Local Charges.
Air freight rates will be as follows: -45| +45| +100| +300| +500| +1000. That means the goods within the level will apply the freight rate at that level. For example, if you have a shipment weighing 60kgs, a freight rate of +45 will apply.
You also need to pay attention to 2 concepts: Gross Weight – GW (actual weight of goods and packaging) and Chargeable Weight – CW (converted weight of goods).
In which, CW (converted weight of goods) will be calculated according to the following 2 formulas:
– Formula 1: (Number of pieces x Length x Width x Height)/6000 (the unit of Length, Width, and Height is cm). Then convert to kgs.
– Formula 2: (Number of pieces x Length x Width x Height)*167 (the unit of Length, Width, and Height is m). Then convert to kgs.
Compare GW and CW, whichever is larger will be used to calculate the freight.
Here is a specific example for you to easily imagine:
– You need to transport by air a shipment weighing 15kgs (Gross Weight) but need to be packed in a box with dimensions of 60x50x50 (cm).
=> Convert from volume to weight: (60x50x50)/6000 = 25 kgs or (0.6 x 0.5 x 0.5)*167= 25 kgs > 15kgs.
=> So the weight to calculate the shipping fee is Chargeable Weight = 25kgs.
– The same heavy shipment as above, but if you pack it with a smaller box with dimensions of 50x40x30 (cm), then:
=> Convert from volume to weight: (50x40x30)/6000 = (0.5 x 0.4 x 0.3)*167= 10kgs < 15kgs
=> So the weight to calculate the shipping fee is Gross Weight = 15 kgs.
Depending on the import or export, there will be different fees such as:
– Air Freight
– AWB (Airway Bill)
– X – ray fee
– TCS fee: is warehouse operation fee (loading goods, forklifts, workers,…) This fee is invoiced by the warehouse, the forwarder can pay it and issue an invoice to the Customer.
– AMS – AMR – ENS: Fees for declaring goods control system, each different country or region will have different names.
– Other fees (if any): depending on the time, the importing country and the airline.
– D/O fee (Delivery Order fee)
– Handling fee: tracking and handling fee from the time the shipment leaves the exporting country to the time it is imported.
4. Necessary information when sending a request to book freight
4.1. For sea freight
When sending a request for book freight to Toho Taha, you should prepare the following necessary information:
– Incoterms
– POL (port of loading): departure port name
– POD (port of discharge): destination port name
– Quantity: if it is FCL, you need to provide the number of containers and type of container, and if it is LCL, you need to provide the Cubic Meter.
For example: FCL goods: 2×20′, LCL goods: 3CBM.
– Commodity: goods name, description, picture of goods (if any)
– Special requirements for goods: such as temperature, humidity, ventilation, not stacked, etc.
For items that are liquid, chemical-related, flammable, and explosive, you must provide an additional MSDS – Material Safety Data Sheet, also known as a Safety Data Sheet. Based on MSDS, Toho Taha can determine the level of danger and will provide accurate freight rates for this item because many shipping lines will not accept high-risk goods, so providing detailed information The above is absolutely necessary.
Items that usually require an MSDS are cosmetics, perfumery, chemicals, charcoal, lubricants, etc.
If the LCL goods are special-sized machines, you should enclose the dimensions so that Toho Taha can check if this item can fit in the container.
If you request to book freight and send all the information above, Toho Taha will understand that you are a professional and knowledgeable in the field of import, export and logistics, so it can give you a pretty good price. And when your request is incomplete, maybe the forwarders will think you are new to the job, so they will give you a high freight rate so that when the cost is incurred, it is still within the price range that they can cover for you. .
4.2 For air freight
When sending a request to book air freight to Toho Taha, you should prepare the following necessary information:
– Incoterms
– POL: departure airport
– POD: arrival airport
– GW: weight of goods including packaging
– DIM: package size
For example: DIM: 50x50x60 (cm); 60x50x40 (cm) => That means the shipment has 2 boxes, the size of each box is as above.
In case there are n boxes of the same size 50x40x50 (cm), it will be recorded as: DIM: nx50x40x50 (cm)
– Commodity: name of goods, description of goods.
– Special requirements for goods: such as temperature, do not stack packages on top of each other, etc.
Above are some notes of Toho Taha for customers when using sea and air freight booking services.
If you need to check the freight, please contact Toho Taha via hotline or zalo: 0917 00 99 68 (Mr.Thai) or email info@tohotaha.com.vn for the fastest advice and quote.
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* Toho Taha
Website: https://tohotaha.com.vn/
Email: info@tohotaha.com.vn
Hotline: 0917 00 99 68 (Mr.Thai)
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