Although it is possible to accurately compare some of the fees charged by many shipping companies, freight forwarders and customs brokers there are an equal number of charges that are either unique to a particular organisation or have a definition that varies from one service provider to another.
Given the reality of this situation, the best method for accurately comparing the costs of various service providers is to apply each quoted component of the service providers’ rates to historical shipment data or to a sample set of shipments that are representative of the shipping profile for which the charges have been requested.
Once each individual cost component has been calculated, an overall cost for each shipment can be ascertained. This process should then be applied to multiple shipments in order to calculate a total cost for the actual or representative sample of shipments.
The combined total cost of the actual or representative sample of shipments should be used to determine the most cost effective service provider.
Applying the new cost structure to historical shipment data also makes it possible to forecast any potential cost savings opportunities that may result from the new schedule of rates.
