How Freight Forwarders Calculate Their Charges and Pricing - For Start Up's

In this video, Alan Bracken explains what start up freight forwarders need to consider when charging and pricing their services. Maintaining the lowest costs you can is key to business, thereby giving you higher profit margins.
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[@marouabouhafs5266]

Thank you for the amazing explanation!

[@ABTS]

You’re very welcome indeed, thanks for your comment.

[@Lobos222]

Always nice to learn a few things from other perspective. I get phone calls like that from time to time myself were I know they want a price from me to compare with other companies. :) Anyway to add a little aspect to the cost reduction ting. If people are wondering how some companies can have much lower rates than others, when they know the goods, is because they cross dock (all cargo sent to a given terminal and they load their own containers). So lets say you have a 20foot shipping container (you can NOT send 25foot container by sea btw because they have "legs"). 20f container is 6 loading meters. What is a loading meter, you ask? It is a cubic meter, but the width is the width of the container, which is 2,4 meters. 1 loading meter is 1 meter inside the container and you have 6 of those on a 20f shipping container. In my example you have two customers. One has 15x Europallets (120x80x100 aka 6LM), in short a full container. The other customer has two 500x120x50 plastic tubes pallets, aka 5LM, but these are also very light in weight. Now you check if those tubes can be placed on top of the other pallets without damaging the goods or secured in the roof of the container via straps. If that is possible you now have 11 loading meters of cargo on a 6 loading meters container. You have almost double the amount of goods you are shipping for the same cost, reducing your cost further and allowing you to have a much bigger margin or like most. Use some of it to gain a competitive edge.

[@ABTS]

Thanks for your comment, an interesting angle.

[@ttengineering7621]

Hie Alan, Julian here. Thank you so much, you always have a good way of explaining things, really appreciate 🙏 Really learning a lot from you..

[@ABTS]

That's great to hear and I'm glad our videos are helping you learn. Appreciate the kind comment.

[@benallouyoussef8585]

It is a pleasure listening to you Alan

[@ABTS]

Thank you so much for the kind comment, I'm glad to hear you like our videos.

[@user-mv4sh9ul6f]

Hi Allen. I love your video lectures. You explain maritime shipping knowledge very clearly. Thank you.

[@ABTS]

So glad to hear our videos have helped you. Shipping can certainly be difficult to grasp so I do my best to simplify it for students.

[@anglichanka7223]

Hi Alan, thanks for all your hard work and insights, they are truly invaluable. I wanted to request a video on how freight forwarders pack goods. Best wishes

[@ABTS]

Thanks very much for your suggestion! Let me have a think about that and try and put something together for you.

[@mataafkarte6162]

Best channel for forwarders sir❤ !

[@ABTS]

Thank you very much for your comment and I’m glad you find our channel helpful.

[@ytaca307]

Thank you very mush, i want you advise me regarding shipments file that we use for calculations.

[@ABTS]

Sure, please contact us and we can discuss the necessary: www.abtslogistics.co.uk/contact-us/

[@KristaYip]

thanks so much for your sharing Alan. I am a new beginner, really helpful to me. ♥

[@ABTS]

You're very welcome indeed, I'm glad to hear our videos are helpful.

[@user-fi8ul2px9c]

sir beening waiting for your updates for a longtime，so when will you comeback

[@ABTS]

Ah thank you! I plan on doing another short video this week so stay tuned.

[@rorisangmnisi2185]

Thanks again for an insightful video sir 😊

[@ABTS]

My pleasure, I'm glad it helped you.

[@rajinrenji]

Very informative 👍

[@ABTS]

Thank you, I’m glad it helped you.

[@sandeepsydney1573]

Thanks you Sir ❤..and happy new year

[@ABTS]

Happy new year to you too!

[@elementmirrage]

What a great video sir, thank you so much. I’m a freight forwarder from the Philippines. Start-up actually and it would be great if we could partner 😊

[@ABTS]

Glad you liked the video, I hope it helped. We only offer training so we don't need partnerships. All the best.

[@yashpadliya8745]

Hello Alan! Your videos are great and very helpful. 1 question. I just started a freight forwarding company, is it a good idea to get memberships of cargo alliances like WCA/JCtrans. Can they be good kickstarters?

[@ABTS]

Hello, if I understand you correctly, generally speaking it can be a good idea to become a member of a cargo alliance because you may be able to get cheaper rates. Hope this helps.

[@pranevvr.k4958]

What's the average profit margin of freight forwarder

[@ABTS]

In short, there isn’t one. It will depend on your negotiating skills and what prices you can negotiate with shipping lines as well as with your clients.

[@sujirao9855]

How some freight forwarders charge zero freight charge?? Hows the profit calculated there

[@ABTS]

Hello, I'm not sure what you mean? Freight forwarders must charge to move the freight. Feel free to give me more details.

[@redx11x]

Hello Alan, I'm also from London. Just a quick question in regards to Air Cargo Freight Forwarding if you don't mind. If I'm starting a new air cargo business (let's say a limited company), does that company need to be registered with IATA? Also i have heard it is extremely expensive to be a freight forwarder for air cargo in that you need to have a huge deposit. Also what is the difference between cargo handling agent, broker and freight forwarder. Thanks for your help

[@ABTS]

Hi, your business doesn’t HAVE to be registered with IATA but being a member keeps you abreast of rules and regulations within IATA and could give your company more credibility. Air cargo - sometimes consolidators will require a deposit but it’s not general practice which would usually be reasonably priced. Check with consolidators such as Cargolux. A cargo handling agent and a freight forwarder are usually the same. A freight broker is usually a consolidator. Hope that’s helps.

[@easyexports]

very nice channel

[@ABTS]

Thanks very much for your comment and glad to hear you like our channel.