When you’re dealing with logistics, especially when manufacturing goods abroad, obtaining an accurate freight quote is critical for managing costs and ensuring timely delivery. Whether you’re new to shipping or simply need a refresher, here’s a detailed guide on how to get a freight quote that meets your business needs.
Step 1: Understand Freight Forwarding, Importing, and Fulfilment
Before you even begin requesting quotes, it’s important to familiarise yourself with the processes involved in getting goods from the factory to your desired destination. Freight forwarding, importing, and fulfilment each play a role in the overall supply chain, and understanding them will help you make better choices.
Freight Forwarding Options
Freight forwarders act as your agent, organising shipments on your behalf. They handle the logistics, book cargo space with carriers, and may even take care of customs documentation. This service is ideal if you want a hands-off approach to your shipping process, as freight forwarders typically have strong industry relationships and can get you competitive rates.
Sea or Air?
The mode of transport you choose—sea or air—depends on factors like the size and weight of your goods, fragility, value, and urgency. Air freight is faster but more expensive, while sea freight is slower but far more cost-effective for larger shipments. If you’re shipping large quantities, using a Container Loading Calculator can help you optimise space and reduce costs.
Step 2: Collect the Necessary Information for a Freight Quote
To receive an accurate freight quote, you’ll need to provide detailed information about your shipment. Here’s what you’ll need:
1. Cargo Destination
You must know where your cargo is going, even if you don’t have the exact address yet. Providing the city, state, and postcode will help freight providers estimate the cost based on shipping distance and commercial routes. Established commercial routes may reduce both time and cost, so be sure to account for this when choosing between destinations.
2. Commodity Details
Describe what you’re shipping—whether it’s raw materials, electronics, or food items. This information helps the shipping company assign the appropriate freight class code, which is crucial for calculating costs. The density and sensitivity of the items play a role in determining the freight class, so be as accurate as possible.
3. Weight and Dimensions
Accurate weight and dimensions are essential. Weigh and measure your shipment, whether it’s individual boxes or pallets, and be sure to include the weight of any pallets or shipping containers. For multi-piece shipments, add the total weight and dimensions together. Inaccurate measurements could lead to unexpected additional charges, so take your time to get this right.
4. Packaging Type
Your freight provider will need to know how your items are packed—whether in cartons, pallets, or crates. The packaging can influence the freight class and the cost, especially if special handling is required.
5. Freight Terms (FOB vs. CIF)
Incoterms define responsibilities for cost, risk, and logistics. With FOB (Free on Board), the factory covers costs until the goods are loaded at the port, after which it’s your responsibility. This gives you more control over the shipping process. With CIF (Cost, Insurance, and Freight), the factory handles the costs, including insurance, until the goods reach the destination port, offering convenience but at a higher price. Choose the option that best suits your level of control and budget. You can also use a Vendor Onboarding Template to streamline the process with new manufacturers.
Step 3: Choose the Right Freight Provider
Selecting the right provider can simplify the quoting and shipping process. You have several options, and each is suited to different shipping needs.
1. Freight Forwarders
These providers, like Omni or FedEx Custom Critical, manage the entire shipping process, from arranging the transport to handling documentation and customs. Freight forwarders are ideal for occasional or regular shippers who need competitive rates and specialised services like temperature control or handling hazardous goods.
2. Freight Brokers
Freight brokers connect you with carriers and handle the logistics but don’t take control of the cargo themselves. They often offer competitive rates and are a good option for domestic shipping. NTG (formerly FreightPros) is a trusted broker that provides fast quotes and reliable services.
3. Online Freight Exchanges
Platforms like uShip and CargoLogis let you compare rates from multiple carriers, giving you control over the shipping process. These platforms work well for one-time shippers or business owners with a deep understanding of their logistics needs.
4. Independent Carriers
For businesses moving large volumes regularly, independent carriers like UPS or FedEx are a solid choice. They offer regional and nationwide shipping, and with larger shipments, you can negotiate discounted rates.
Step 4: Get Multiple Quotes and Compare
Once you’ve identified your shipping needs and gathered the necessary information, request quotes from at least three providers. Compare the rates, services, and customer support to ensure you’re getting the best deal. Remember, while cost is important, service quality and reliability should also factor into your decision.
For example, while a broker like NTG might offer competitive rates and peace of mind with vetted carriers, a freight forwarder like Omni might provide more hands-on services and end-to-end supply chain support. Evaluate what’s most important for your business: cost, service quality, or convenience.
Streamlining Your Freight Process with SupplyScope
Getting a freight quote involves more than just finding the best rate; it’s about making sure your shipment details are accurate, choosing the right provider, and ensuring your goods are handled efficiently.
With SupplyScope, you can take this process a step further by building your own custom workflow. Whether it’s pre-shipment inspections or freight booking, SupplyScope allows your internal team to follow a structured process, ensuring consistency and compliance at every step.
Once your workflow is built, your entire team is onboarded to follow it seamlessly, reducing errors and making the freight quoting and shipping process more efficient.
By integrating these capabilities, SupplyScope helps you save time, ensure compliance, and focus on scaling your business.
