No. 110, Kumaran Ratnam Rd, Colombo 02, Sri Lanka

Air Freight

Home Air Freight ➝ Freight Rate Negotiation 

Freight Rate Negotiation

Freight Rate Negotiation, the process of discussing and bargaining with freight forwarders or shipping lines to secure the best price for transporting your cargo by sea or air, considers factors like shipment volume, route, urgency, and carrier competition. Partnering with Samsonlines leverages our expertise in navigating these negotiations, potentially saving you money and streamlining your international trade operations.

Here’s a breakdown:

 

Freight Rate Negotiation: 

This involves discussing and bargaining with freight forwarders or shipping lines to get the most competitive price for transporting your goods. This can involve factors like shipment volume, route, urgency, and competition among carriers.

 

 

FOB (Free On Board): 

Under FOB terms, the seller’s responsibility ends once the goods are loaded onto the ship at the origin port. The buyer is then responsible for all costs associated with transporting the goods from that point onwards, including the freight rate. However, since the seller is responsible for arranging the initial transportation to the port, negotiating the freight rate with the carrier can still be beneficial for the seller, as it can impact their overall costs.

 

 

EXW (Ex Works): 

Under EXW terms, the seller’s responsibility is only to have the goods ready for collection at their origin location (factory, warehouse). The buyer is then responsible for everything else, including arranging transportation, export clearance, and negotiating the freight rate directly with the carrier.

Why Negotiate Freight Rates for FOB & EXW?

Even though the buyer is ultimately responsible for the freight rate under FOB and EXW incoterms, negotiation can still benefit both buyers and sellers:


Sellers (FOB): 

Negotiating a competitive freight rate can help the seller reduce their overall costs and potentially offer a more attractive price to the buyer.


Buyers (FOB & EXW): 

By directly negotiating the freight rate with the carrier, the buyer can potentially secure a lower price compared to what the seller might have arranged. Additionally, the buyer has more control over choosing the carrier and service level.

Search

Brochure

Service Brochure

PDF | 13 MB

Company Profile

PDF | 13 MB

Any Questions?

Call Us Now

+94 777 81 5649

Scroll to Top