Understand your freight quotation

01 / PRACTICAL GUIDANCE

Start with the same scope

Two quotations can show very different totals because they cover different parts of the journey. Port-to-port, airport-to-airport and door-to-door offers are not interchangeable. Before comparing the price, write down where each service starts and ends and which party pays each charge.

Ask for the route, mode, equipment, estimated transit, cargo basis and service exclusions. Transit estimates should distinguish departure-to-arrival from the full time required for pickup, consolidation, customs and delivery. A low freight rate says little about the total cost if destination charges are missing.

02 / PRACTICAL GUIDANCE

Read the cost in four layers

1. Origin: collection, export handling, documentation and any agreed export clearance.
2. Main transport: base air or ocean freight, plus the surcharges specified in the offer.
3. Destination: terminal or warehouse handling, release documentation, clearance service and inland delivery.
4. Conditional costs: examinations, storage, waiting time, demurrage, detention or special handling if triggered.

Duties and taxes should be identified separately from transport and brokerage fees. Cargo insurance should also have a clear status: included with confirmed cover, quoted separately, or not arranged. Do not infer insurance from the words “door-to-door”.

03 / PRACTICAL GUIDANCE

What the abbreviations are charging for

A surcharge is meaningful only when you know its basis. It may be charged per shipment, document, kilogram, W/M unit or container. Ask whether it is fixed for the validity period, included in the base rate, or subject to adjustment.

• Fuel or bunker adjustments: fuel-related charges; the carrier’s terminology and method vary.
• Security and screening: often relevant to air freight; clarify any additional inspection requirements.
• Terminal handling and documentation: identify origin and destination separately and check for duplicates.
• Peak-season, congestion or equipment charges: confirm applicability to the sailing or flight you are booking.

“All-in” needs a written scope. It should never be treated as a promise that every possible operational event is included.

04 / PRACTICAL GUIDANCE

Compare the complete offer

For different currencies, record the conversion basis and who bears exchange-rate changes. Also compare payment timing, credit terms and cancellation or amendment charges—not just the final number.

05 / PRACTICAL GUIDANCE

Before you accept

• Confirm the named places and Incoterm in the sale contract; match them to the services requested.
• Check whether validity refers to booking, cargo receipt, departure or another event.
• Confirm space and equipment status: a quotation is not necessarily a confirmed booking.
• List free time, excluded charges and who authorises additional costs.
• Reconfirm dimensions, commodity and special handling before acceptance.

Keep the accepted quotation and later changes together. If the supplier changes the packing or ready date, request an updated offer rather than assume the original remains valid. Ask for unclear items to be explained in ordinary language before the shipment starts.