Controlling Shipping Costs via Multi-Modal Freight Rate Visibility

Posted by David Hamilton on Thu, May, 17 2018 @ 11:05 AM

In a 2017 American Shipper Report on global sourcing, 58% of shippers indicated that their biggest concern today is rising transportation costs. Shipping rates are climbing much faster than in the past, mostly due to heightened consumer expectations of fast home deliveries. An expanding network of inventory distribution points adds further strain on supply chain professionals.

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Topics: Transportation Management, Contract & Rate Management, Carrier Selection & Booking

Stop Throwing Cash Overboard: How to Avoid Demurrage and Detention Fees

Posted by Kelsey Barker on Fri, Mar, 9 2018 @ 9:06 AM

Chances are, you’re not the only one looking to reduce demurrage and detention fees. Recently, a coalition of shippers, freight forwarders, and intermediaries urged US maritime regulators to make it easier to challenge congestion-related fees that container lines and marine terminals impose for delays that were out of their control. Terminals responded that it would cause chaos at the ports. Just this past Monday, the Federal Maritime Commission (FMC) voted unanimously to investigate further the concern of the coaltion, a welcome validation for shippers in the wake of ever-increasing volume, labor disputes and port congestion.

The FMC will discuss whether policy is needed to prevent what the coalition of shippers deemed “unfair” assessment of free time-related fees. While detention and demurrage fees have rarely been light for importers, recent instances of extreme port congestion – such as the aftermath of liner carrier Hanjin Shipping’s sudden bankruptcy, or the West Coast longshoreman’s strike in 2014 and 2015 – have exacerbated the issue. And container volume continues to rise faster than port terminals can expand.

Of course, importers and exporters will continue to rack-up large fees while the FMC slowly deliberates. But demurrage and detention fees are more than just a “cost of doing business”; they often trigger a ripple effect that throws exception into the planned supply chain flow. These exceptions lead to additional costs that add up. While many freight managers accept them as a line item, they have a detrimental impact of the bottom line.

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Topics: Transportation Management, Freight Forwarder Collaboration, Landed Cost Calculation, Contract & Rate Management, Carrier Selection & Booking, Invoice Management

Controlling Shipping Costs via Multi-Modal Freight Rate Visibility

Posted by Gary M. Barraco on Mon, Jan, 15 2018 @ 1:30 PM

Amber_Road_Multi_Modal_Transportation_Mangagement.pngThe Amazon disruptive effect has put an ever-growing strain on supply chain professionals to ensure inventory availability across a broader network of distribution points, along with the capabilities to get product to the consumer in days - if not less. This weight bears down on every step of the shipment process to ensure reliability and accuracy. Smart logisticians are properly orchestrating the fastest and cheapest means of moving goods from factory to consumer. But it isn’t simple....

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Topics: Invoice Management, Carrier Selection & Booking, Contract & Rate Management

Hanjin Shipping Co. Upsets Global Trade

Posted by Mollie Leon on Fri, Sep, 9 2016 @ 8:57 AM

As the world's seventh largest shipping line by capacity, Hanjin Shipping Co. moves manufactured products and consumer good destined for retailers all over the world. They stopped taking new cargo and U.S. ports began turning away its ships after it filed for bankruptcy protection last Wednesday. U.S. shippers say they are bracing for harsh rate increases, leaving exporters scrambling to rebook, truck, reload and repack.

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Topics: Transportation Management, Carrier Selection & Booking

Three Imperatives for Managing Carrier Rate Selection

Posted by Kelsey Barker on Thu, Apr, 7 2016 @ 9:00 AM

The annual freight rate contract negotiation process is underway, and it is imperative that shippers fully evaluate their carrier options, utilizing knowledge of historical changes and past performance in their trade lanes. The complexity of freight rate contracts places a strong burden on shippers and NVOCCs to comprehensively understand the proposed rates and surcharges, including any exclusions or exceptions.

Reconciling all of these factors in the carrier rate selection process is a difficult objective for both the partners receiving RFPs to quote, and those reviewing responses. In addition, understanding the carrier's historical on-time performance for a lane is a key factor in deciding whether to award the carrier volume for that lane.

So, how do you ensure your global shipments are contracted with a cost-effective and reliable provider? How do you quickly and accurately quote lanes in an RFP or analyze the response to an RFP? When seeking answers to these questions, shippers and NVOCC's should consider the following as imperatives for managing carrier freight rates.

1. Standardize and centrally manage carrier contracts

Carrier contract formats and verbiage regarding the conditions for applying tariff surcharges vary greatly. Converting various textual contract formats into a standard structure, where services can be easily compared across carriers, enables a solid foundation for centralized management and cost comparison. What this means for your company is a simplified and more efficient process for accessing accurate, fully calculable surcharges and rates to identify the best options.

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Topics: Rate Management, Carrier Selection & Booking, Transportation Management

OHL Optimizes International Contract Management with Amber Road

Posted by Kelsey Barker on Thu, Apr, 2 2015 @ 9:30 AM

OHL, a leading global third party logistics provider (3PL), has renewed its license of Amber Road’s International Transportation Management solution (ITM). The enterprise solution enables OHL to effectively manage its international portfolio of service contracts, service agreements, rate sheets and variable carrier accessorials.

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Topics: Landed Cost Calculation, Amber Road News, Contract & Rate Management, Carrier Selection & Booking, Transportation Management

Upcoming Webinar: Where Are Your Freight Transportation Rates Headed in 2015?

Posted by Colleen Bush on Fri, Jan, 16 2015 @ 11:44 AM

According to a Logistics Management panel of top economic and transportation market analysts, freight transportation rates will most certainly see incremental gains across the board in 2015. And to keep even the smallest increases in check, the panel adds that it’s now imperative for the savviest shippers to control total landed costs by using a variety of modes—and to use that mix to its fullest advantage.

Are you prepared with the modal mix that will keep freight increases in check?

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Topics: Webinars, Amber Road News, Carrier Selection & Booking, Transportation Management, Contract & Rate Management

Apple Supply Chain Optimization: Then and Now

Posted by Lisa Feroli on Wed, Oct, 8 2014 @ 12:43 PM
There are many things that have attributed to Apple’s success. From its innovative product line to the company’s ecosystem, Apple is continuously a trendsetter. But according to the 2014 Freightos article, "The iPhone 6 Supply Chain: Winners and Losers", a trend that many do not know is the intricacy of Apple’s iPhone supply chain.
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Topics: Transportation Management, Supply Chain Visibility, Order and Shipment Visibility, Carrier Selection & Booking

Digital Shipping Platforms Save $684M in Errors

Posted by Kelsey Barker on Wed, Jun, 25 2014 @ 9:49 AM

The shipping industry has finally started to go digital. Until recently, if you wanted to ship a container from San Francisco to Hong Kong, you had to place an order over the phone. with a person on the receiving side. However, those people taking the ordersmake an error 20% of the time, which costs the shipping industry about $684 million a year, according to Ocean Audit, Inc. 

To cut down on shipping entry errors, many companies have turned to digital platforms offered by software firms like Amber Road, or carriers like A.P. Moeller-Maersk A/S.

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Topics: Contract & Rate Management, Carrier Selection & Booking, Transportation Management

Air Freight Sees Declines Despite Overall International Freight Growth

Posted by Colleen Bush on Fri, Nov, 15 2013 @ 9:47 AM

Surprisingly, while overall international freight forwarding grew by 3.2% to $63.2 billion in 2012, ocean freight saw large growth (11.5%) while air freight experienced significant decline (4.2%). This disparity can largely be attributed to companies increasing visibility into their supply chain and no longer needing to rely on air transport, which was traditionally the more reliable yet costly method.

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Topics: Carrier Selection & Booking, Transportation Management, Supply Chain Visibility, Order and Shipment Visibility, Contract & Rate Management

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