Freight quotes don’t always look the same and can be complicated to understand.

Different companies include different aspects, with other additional services sometimes incurring extra fees. And that means there are certain things you need to make sure you’re covered for if you’re comparing quotes.

In this blog, we cover 3 things to look for in a freight quote. But first up…

What’s On A Freight Quote?

A freight quote features an array of specific sections, including…

Origin & Destination

Where the goods come from and where they’re travelling is a key piece of information. The distance between the origin and destination, as well as how easy it is to get your shipment from A to B, will influence your freight quote.

Mode Of Transport

How will your consignment be travelling… Ocean freight, air freight, road freight, or rail freight? You might use one mode of transport or multiple methods; where more than one type of transport is used to transport freight, we use the term intermodal. 

Rates

This freight quote component features the freight charges. The charges will be broken down into freight rates as well as separate surcharges like exchange rates and fuel. 

Incoterms

You can find a great blog on Incoterms here. (Yep, it’s one of ours!).

Incoterms play a vital role in communicating the buyer’s and seller’s roles and responsibilities during transportation of the shipment. Your Incoterms will affect how the risk and cost are split between both parties. 

Insurance

Details of your cargo’s insurance coverage are another feature on a freight quote. Some shippers will include insurance as part of the package, but others require you to get coverage independently. The type of insurance you get is also influenced by the nature of your goods; fragile and hazardous goods require special handling and will need different cover. 

We’ve covered what’s included in a freight quote, but what are 3 pivotal pieces of information you should look out for when comparing quotes?

1 – Transparent Pricing

All quotes contain pricing, but how that pricing is displayed and broken down can differ. 

Understanding what to look for and noticing what’s missing can help you get a freight quote that is as close as possible to the end total you’ll be paying.

Costs

The freight charges section should show you the company’s freight rates and include exchange rates so you can see how the total is worked out. 

VAT

Value Added Tax is a charge added to all international shipments and is determined by the goods you are sending. 

Duty

Customs duty is a tax collected by the local customs authority when your goods cross their border. Duty rates vary from country to country. 

Additional Charges

Customs charges, handling fees and fuel charges should all feature in this section. 

Look For Consistency

Is the quote detailed in the same currency throughout?

Make sure the same units of measurement are used all the way through – weight-based or volume-based.

Validity

How long  is the rate valid for ? Most companies will offer 30 days but this can vary based on route, country of Discharge, Mode of transport etc so make sure you check.

2 – Service Commitment

Some companies will include more than others, often making the prices very different across the board. 

Understanding this aspect means you can look for comprehensive quotes that tell you exactly what you’re getting, avoiding costly problems while your cargo is in transit. 

Timeframes

Within this section, you’ll find information about how long the transit will take, and whether the company provides any guarantees on timeframes. 

Tracking

Is tracking included, or do you have to rely on updates from your freight forwarder? Some companies provide no tracking service whatsoever. 

Support

What happens if your cargo is lost or damaged? Do the terms and conditions of the quote support you in the worst-case scenario? 

3 – Documentation & Compliance

Unless you’re familiar with the ins and outs of everything freight-related, this is a complicated area to sift through. It’s important you feel completely assured that your shipping company has included all the key components before you agree to use their services. 

Customs Requirements

What’s required to sail through customs could be vastly different depending on where you’re shipping to, and what your goods are. 

Has the shipping company factored in the customs requirements for your particular shipment? What about appropriate documentation for the goods you’re sending, like a Material Safety Data Sheet for dangerous goods? 

Insurance

Check coverage is like for like on each quote you receive so that you can adequately compare them. 

Freight Quotes Can Be Confusing 

Getting freight quotes is super simple, with lots of companies offering online tools, but checking they cover what you need is a vital step and can prevent nasty surprises later down the line. 

Are you overwhelmed by the world of freight quotes and need advice breaking down the costs? Get in touch today.