Saturday, November 23, 2019 General

Leveraging Low Freight Pricing

In 1998 when I first began my career, can you imagine, I first had to explain FOB and EXW terms to importers here. Since 99% import was on CNF basis.

Then, they would tell me, alright little boy, we got it what it means, but it’s too much of a hassle for us. So I’d simply ask them., you have 10 x 40HC per month, and your vendor is charging you $1500 x 40HC whereas we can easily bring that cost down to $1200 x 40HC saving you;

$300 x 10 x 40HC = $3000 x 12 Months = $36000 a Year.

They would jump out of their chair and instantly arrange my meeting with their import managers. And we will leverage our low priced freight rates to secure their customs clearance.. as it earned a little more since it’s bit complex.