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Solution to the problem of fluctuating ocean freight rates

by anonymous

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Waterways have been one of the most chief ways of transport since a
very early period. These are the best ones for transport of any sort of
good. It is very difficult to transport heavy goods such as machinery
and others by other forms such as airways but waterways pose no such
problem also. The main issue of any mishap has also been removed with
the use of new era engines and other devices. Thus they are no doubt
the best way of transport if you are looking for one to send your
goods. The only problem which arises in it is the fluctuation of ocean freight rates.
These are rates in which the cost of using ocean for transport is
charged. These rates are very fluctuating in nature and the reasons for
it are also many. Let us take a look at the problems caused by the
fluctuation of these.

First reason for the fluctuation in the price of ocean freight
is fluctuation in the price of fuel. We all know that fuel is something
which has been subjected to fluctuation a lot because of the demand
supply puzzle. The rising demand and the shortage of supply has made
them very flexible in nature thus they are the prime most cause of the
fluctuation. The problem with this is that the ships that are bringing
such goods require fuel in bulk and thus with the day to day rise in
the prices of these they are also adding the extra cost to their bills.
Keeping a track of all this is very hectic and strenuous and thus often
leads to loss of the sending party who are sending these as they have
to calculate and pay the shipping companies and later also ask the
receiving party to pay for it. Other reasons for rising freight cost is
delayed fine in the transport of the good, high shipping charges and
many more. Any delay in the time of arrival or retreat of the ship is
added to these. It is impossible thing to assume that no problem will
be incurred by the ship thus these are a compulsory. Some nations
follow a strict shipment policy and thus charge high rates for shipment
of any good to their nation. Mostly any transaction with such nations
is avoided but it is difficult to completely ignore it.

solution to the loss that your company is incurring because of these
fluctuations is freight bill auditing. This requires you to appoint a
auditor who would do all the freight audit for you and thus save you
from any further loss. The best way of doing it is by outsourcing. The
result is always very satisfactory when it is done by these outsource
companies. They are specialized ones in this field and use high quality
software for all the calculation. Another efficient way of doing it is
by buying software that releases your tension regarding any sort of
miscalculation and it can be operated by your company employees only
that save your cost a lot.



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