Exporters were given tips on how to save up and manage their freight cost in the recently conducted forum of the Center for International Trade Expositions and Missions (CITEM) as a part of the capacity and community building activities for FAME+. CITEM Executive Director Ms. Pauline Suaco-Juan stated that one of the prevailing issues that exporters face is the shipping cost. Speakers of the said forum provided the necessary information to help exporters in navigating costs and consolidation in shipping.
Ms. Marilyn Alberto of the Philippine Multimodal Transport and Logistics Assoc., Inc. (PMTLAI) said that the law of supply and demand affects airfreight pricing especially at this time of pandemic as flight frequency has been reduced. Following are some tips given by Ms. Alberto to ensure efficient shipping by air amid challenges:
1. Packing matters. Ensure that the cargo will reach the buyer in good condition. Proper packaging will avoid damages and pilferage. Use strong but lightweight packing materials and never reuse boxes. Proper labeling is also essential to avoid delays.
2. Consider using air courier (i.e., FedEx) for light and small shipments, or airfreight (i.e., Kintetsu World Express) for more massive loads.
3.Compute to know at what weight they should ship by air courier or sea freight.
4. Consolidate
5. Choose the best partner forwarder that will fit the shipments’ or products’ requirements.
6. Weigh and consider what opportunities you will be missing if you don’t ship by air.
On sea freight, Ms. Doris Torres of PMTLAI shared the 3Ps in enabling transport cost-effectiveness:
1. Plan your transport arrangements to avoid triggering avoidable costs (i.e., shut-out fees/storage costs).
2. Packaging must be appropriately observed, for a single missing label can damage the cargo. Proper labeling and markings must also be adhered to.
3. Price consideration, the exporters must compute which options present more value for the money.
Shipping by sea may be the cheapest but Ms. Torres emphasized that it might not always be economical in the long run considering the transit time of the vessels, and the buyer’s delivery requirement. Therefore other considerations should also be undertaken. Goods such as those that are time-sensitive are best shipped by air.
Ms. Marievic Balayan of the Philippine International Trade Corporation (PITC) also shared the order consolidation strategy which is cost-efficient to both buyers and suppliers. Consolidation refers to combining multiple orders of various manufacturers/supplies into a full container van for delivery to only one consignee and destination. It maximizes the container van’s space and minimizes the expenses in documentary/shipping requirements, trucking and hauling, commodity clearances, fumigation, and bank charges. For more details on consolidation, contact Ms. Balayan of PITC at marievicbalayan@pitc.gov.ph/ 8892-3335 / 88189801 ext. 428.
For more details about freight forwarding, contact Ms. Alberto and Ms. Torres of PMTLAI at marilyn.alberto@kwe.com/09178793659 or doris@stamm.com.ph/0918339684.
These export tips are brought by CITEM’s webinar entitled “Hurdling Export Roadblocks” held on 16 November. Stakeholders are encouraged to register at FAME+ through their website https://fameplus.com/. Interestingly, the Fees are waived until October 2021. -KJDA