Every day we learn something new in this industry. Whether it be a new concept, a new term, a word the defines an exact process. In short, you need to know what you’re talking about if you are planning on analyzing quotes from Steam Ship Lines, terminals , stevedores, truckers..etc.
Most of us who are new to the business, struggle to define what charges we need to acquire in order to correctly quote our client without missing something crucial.
In order to correctly define certain terms, here is a small scenario.
The Scenario
You as a freight forwarder, have just received an inquiry request from your client, and would like to know the accompanying charges to move a 75,000 kg (75 tons) compressor, from New Orleans Louisiana to Burns Harbor Illinois.
My solution: Trans-load from carrier to barge. Barge from New Orleans up the Mississippi, and offload at destination Burns Harbor.
Now that sounds simple enough right? I mean as per my description, it seems like a straight forward process, with three charges. Little did I know acquiring the rates necessary for this move were going to need the use of a lot of terminology that I was going to have to learn. Throughout the process of searching for rates, I came across of few very useful terms and phrases: Trans-loading, Transshipping, From/To under hook, First place of rest.
Now, for some of you, this will be easy stuff, but to those who do not know this yet, it is very good terminology to know when designing solutions for project cargo. Let’s go ahead and define the above terms, that way you are familiar with them as I detail the process of acquiring charges later on.
Trans-loading
Trans-loading is the process of moving the cargo from one method of transport to another in order to continue the journey onto its final destination.
i.e. Container Ship to Barge, Container Ship to Truck, Container to Flatbed truck
Transshipping
Transshipping is the process of moving the cargo from one method of shipment to another one of the same type of shipment method.
Truck from Montreal to Toronto, then another truck from Toronto to Detroit – Same method of transport, yet two different carriers. Maybe one is more comfortable crossing into the states.
To Under Hook
To “Under Hook” is a term that basically means that the cargo is to be placed from the ship’s deck onto the doc (terminal) floor. The term asks you to assume that the ship has it’s own crane, and if they pick up the cargo and release it once they move it onto the doc, it is then under the ship’s hook.
From Under Hook
If “To Under Hook” means that the cargo is to be released onto the doc from the ship, then the following move would be From Under Hook until the next place of rest.
First place of rest
Now this is as straight forward as it gets. First place of rest is the first place of rest once the cargo has been moves “from under hook.”
Now that I have described the terms, let’s look at what we have to consider quoting. Remember my earlier though process:
My solution: Trans-load from carrier to barge. Barge from New Orleans up the Mississippi, and offload at destination Burns Harbor.
Now let’s focus on the terms and introduce them into this.
The Clear Solution
- Trans-Loading Charges 1 (From Under Hook to First Place of Rest)
- Trans-Loading Charges 2 (From First Place of Rest to Barge
- Barge Service to Transshipment location (midway)
- Transshipment Barge service to Burns Harbor
- Unloading at Burns Harbor 1 (From Barge To Under Hook)
- Unloading at Burns Harbor 2 (From Under Hook to First place of rest – storage)
So as you ca see, my simple thought process was not right, there are various steps in this process. Some are even more complex, and others more simple.
Hopefully this article opened your mind and taught you about breaking down any `simple`solution so that every moving part of the process can be analyzed. This will assist you to mitigate wrongfully quoting clients when attempting to acquire new business.
Measure 2+ times and quote once. Once you decide to re-quote a loyal client because of your error, your reputation takes a hit
