由 caicai8478 In the “game” of international freight forwarding, surcharges are often seen as fixed rules, passively accepted. However, savvy supply chain managers understand that there’s room for negotiation and avoidance. Mastering the following strategies will transform you from a passive cost recipient into a proactive manager.
Act One: Know Yourself and Your Enemy – Laying a Solid Foundation for Negotiation
Before starting negotiations, thorough preparation is essential.
Understand Your Bill:
Demand Detail: Firmly reject “All-in Rates.” Request a clear breakdown of costs from the freight forwarder, listing basic ocean freight, BAF, THC, PSS, etc. Vagueness breeds costs; clarity is the first step in negotiation.
Understand Cost Drivers: Understand the source of each surcharge. For example, BAF is linked to oil price indices, and PSS is related to market demand. This allows you to determine which costs are flexible and which are fixed costs.
Becoming an “Attractive” Client:
Cargo Volume is Key: Whether it’s total annual cargo volume or stable volume on a single route, these are your core bargaining chips. Shipping companies and freight forwarders crave stable, predictable business.
Demonstrate Professionalism and Reliability: If you can ensure accurate customs documents, timely container pickup and return, and transparent cargo information, you’ll be a high-quality client with “low maintenance costs.” This will earn you extra goodwill and leverage in negotiations.
Act Two: Negotiation Strategies
Once you’re ready, you can use the following strategies for negotiation.
- Main Focus: Base Freight Rate and “Package” Agreements
Strategy: Don’t discuss individual surcharges in isolation. Try negotiating “bundled” surcharges (such as BAF, CAF) with the base freight rate.
Example Script: “Manager Wang, our estimated cargo volume this year is 100 TEU. We hope your company can provide us with a stable long-term contract price ‘BAF-Included’. We hope to simplify our cost structure for easier financial forecasting.”
Effect: Converting floating costs into fixed costs is the best way to mitigate risk.
- Core Battleground: Terminal Handling Charges
Strategy: THC/ORC charges usually have a significant local handling component, and freight forwarders typically have pricing power over these items. This is the focus of negotiation.
Example Script: “Mr. Li, we’ve compared the market; other companies are quoting THC at ¥800/20GP, while yours is ¥1000. Considering our cargo volume, could you adjust the THC to the market average?”
Effect: Directly benchmarking against market prices and applying competitive pressure has a high success rate.
- Defensive Focus: Container Handling Fees
Strategy: Demurrage and extension fees are “avoidable” costs; the core of negotiation is to secure a longer free period.
Example Script: “Mr. Zhang, our factory’s shipping schedule requires 7 days of free container usage time, while your standard is 5 days. To ensure smooth long-term cooperation, could you apply for an extension to 7 days for us?”
Effect: Shipping companies are usually willing to make concessions on the free period to retain stable customers, providing you with valuable operational buffer time.
- Intelligence Warfare: Utilizing Market Fluctuations
Strategy: Take the initiative during the off-season for freight, or when there is intense competition and surplus space on a particular route.
Example Script: “We understand that space on the US West Coast route is not currently tight, and we have noticed that many companies have already canceled their PSS (Pay Service Surcharge). Could your company consider waiving this fee for us?”
Effect: Utilizing market supply and demand, making a request when the other party is at a disadvantage is much more effective.
Act Three: Eliminating the Problem – Avoidance is Better than Negotiation
The most skillful “game theory” is to prevent problems from occurring in the first place.
Smart Choice of Trade Terms:
For exporters: Strive to settle in EXW or FOB terms. This way, you only bear minimal local costs at the port of origin (such as ORC), while transferring the complex and variable destination port surcharges (such as THC, DDC) to the overseas buyer.
For importers: Strive to use CIF or DAP terms to maintain control over transportation and costs.
Key: Regardless of the term used, clearly state in the contract that “all unknown costs at the destination port are borne by the buyer” to avoid disputes.
Refined Supply Chain Management:
Plan ahead, avoid peak periods: Plan production and shipments in advance, proactively avoiding the traditional peak seasons of the third and fourth quarters to mitigate PSS (Post-Sale Default) costs at the source.
Internal Collaboration, Eliminate Delays: Strengthen internal (production, customs clearance) and external (customer) communication to ensure smooth coordination at each stage and avoid high demurrage/delay fees. These costs can be completely avoided through self-management.
Establish a Diversified Supplier System:
Don’t over-rely on a single freight forwarder. Maintain cooperative relationships with 2-3 high-quality freight forwarders.
Purpose: This is not only necessary for price comparison, but also the best way to obtain real market information and verify the reasonableness of existing partners’ quotes. When freight forwarder A tells you “this is industry practice,” freight forwarder B’s quote may give you a completely different answer.
Conclusion: From “Game Theory” to “Win-Win”
The relationship with freight forwarders/shipping companies should not be a zero-sum game of “enemy conflict,” but rather a partnership seeking “win-win” outcomes. Your goal is to establish a transparent, fair, and sustainable cooperation model.
Remember your ultimate weapons: professionalism, reliability, and sufficient cargo volume. When you demonstrate these qualities, the other party will be more willing to regard you as a strategic client, proactively providing you with optimized solutions and more competitive prices. Ultimately, you will no longer be a passive recipient of costs, but a proactive manager of the supply chain.