We understand that shipping and logistics in today’s market have become highly competitive, and you may be approached by various forwarding companies. We want to emphasize that the rates provided by these forwarding companies are not always 100% reliable, nor do they represent the actual final costs. Here are some key points to consider:

1. Local Charges:

When using FOB terms, the factory in China is responsible for paying local charges. These charges are typically standardized, and factories are well aware of what they need to pay. However, new agents may attempt to overcharge factories for these local fees. In such cases, the factory might refuse to pay or raise the issue with us, prompting us to avoid working with such agents.

2. Loading Date:

Freight costs fluctuate daily, and some agents might offer you a lower rate initially to secure your order. However, if they later discover that the actual cost is higher than what they quoted, they may delay your shipment in hopes of finding a vessel with a lower cost. Additionally, certain forwarders might receive discounted rates from vessels, leading to overbooking situations. If the vessel is overbooked, the discounted rates are the first in line to get rolled over to a later scheduled vessel.

3. House BL vs Master BL:

There are two types of Bill of Ladings (amongst others), House and Master BL. The House BL is one that this directly linked to your shipment, while the Master BL is one that the forwarder could use to keep track of ALL their shipments loaded on the same vessel. Most forwarders, to reduce costs will only provide to you the House BL, while retaining the Master. Why does this matter? To release your shipment and prove final ownership of the goods, you are required to present the Master BL to your clearing agent. In such a scenario, you would be forced to request your forwarder to release the Master BL to you and the forwarder in this case will charge you an extra $100, a hidden charge that they did not disclose. Not only do you end up paying more, but the final ownership of your shipment remains with the forwarder instead of you.

4. Shipment Insurance:

Agents offering costs lower than the market may compensate for it by charging you a higher insurance premium. For instance, while we pay 1% of the goods’ value for insurance, these agents might charge you 2-4%, resulting in an additional cost of $100-300 for a $100,000 shipment.

5. WRS Charges:

Some shipping companies impose a War Risk Surcharge, which these agents might fail to inform you about in advance, leading to unexpected charges upon the shipment’s arrival.

Apart from the aforementioned concerns, dealing with new agents every time necessitates spending more time and resources to establish rapport with them. Moreover, it requires disclosing sensitive information, such as our suppliers, customers, and market reach. The risk lies in these agents potentially using this information to approach other businesses in the region.

We at Eleven International have been a provider of these services for over 20 years. Before providing you with the final quote, we diligently compare costs with at least 5-7 trusted forwarders with whom we have built strong relationships over the last two decades. Our earnest advice is to refrain from being enticed by low-ball offers, as they may not accurately represent the actual costs and could result in various inconveniences and risks.