What we consume
Our foods, your coffee and much more than that, building materials, supplies for trade, new technology, electronic equipment, your clothes, your phones all we consume and uses every day. 90 percent of what we consume going by sea and is will keep going.
Did you have already considered the extent to which sea transport is important, even essential and irreplaceable for our countries. The fleets of ships that carry thousands if not millions of containers every day.
Thailand exports congestion at Port
Here on the port of Bangkok in Thailand I sometimes hear that hundreds of container its blocked on the yard. In this middle of the year 2016 I even saw that some liner (in financial failure, because the bank gives them nothing more) this liner to ask the freight forwarder, to unloaded more than hundred containers and find another Shipowners. I suppose that you can imagine the damage that can cause for us freight forwarder who have already paid the exports, transport for full container, handling loading the goods, return the container to the port (pay all gates charges) and activate the customs clearance process at export. Unfortunately the liners sounds generally and for this case that i talk it is an international shipping company that supplies only full containers, and this has to cross more than two hundred port to cross the world. So you understand that much more than a hundred containers was remain blocked. The emails and instruction of this shipping line was to simply find someone else. They know however the repercussions on our customers and all the financial losses.
How much is cost a congestion or problem with liner like that ?
To understand I make a quick calculation based on 120 containers blocked on yard and refused by liners
First of all how much the freight forwarder should earn on this operation ?
For a bulky exports the freight forwarder earn between 50 to 150 US dollars per container exported because is a potential cargo we can’t make margin on ocean freight rate, we just try to get what can be taking.
120 containers x 150 US = 18 000 US of benefit, fantastic ?
Yes, yes and how much they lose if the case above
Trucking each container = 120 to 200 US
Gates charges ENTRY AND EXIT = 30 US
Goods Loading / stuffing 4 Peoples half days = arround 30 US
Customs clearance FCL exports General cargo = 60 to 120 US
Total with minimum fee x 120 containers = 28 800 US i ask again now fantastic or not ?
In resume this case and what to do ?
In resume 120 containers was moving few kilometers only and i make a loose of 28 800 USD dollars in minimum of bad lucky. Do you think freight forwarders have enough to pay twenty-eight thousand and eight hundred dollars? Can you think of insurance? The insurance do not cover this kinds of risk. Moreover generally this kinds of contract between the freight forwarder and the customer is not prepaid. The freight forwarder have probably paid in advance the exports and charges.
In this case the solution would be to make a arrangements between the liner, the customers and the freight forwarder. Anyway the three will lose and in this position the liner is already crushed by the bank.
You can also ask a freight agent which always takes the lead and before all movement will find you 2 or 3 quote by shipowner. All the upstream work will be very important when we arrive in this case.
Contact LWS logistics a freight forwarder with an upstream work for the reliability of your exports operation.