How to reasonably allocate the freight for export agency? Come and share your tips!
Solved#Export agent#
Our company exports goods through an export agency and is involved in various different expenses. The allocation of freight among them really gives me a headache. There are diverse types of goods, and the quantity, weight, and volume of each transportation are different. Moreover, the transportation method is sometimes sea freight and sometimes air freight. I would like to ask everyone, in this case, how should the freight for export agency be allocated reasonably? Are there any general methods or key points that need attention?
Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
There are usually several common methods for allocating the freight for export agency. First, allocate according to the weight of the goods, which is suitable for goods with large weight differences and a close relationship between weight and freight. Divide the total freight by the total weight of all goods to obtain the freight per unit weight, and then multiply it by the weight of each good to get the freight allocated to that good.
Second, allocate according to the volume, which is suitable for goods with large volume differences. The calculation method is similar to that of allocation by weight. Divide the total freight by the total volume to get the freight per unit volume, and multiply it by the volume of each good to get the allocated freight.
For goods with large value differences, allocate according to the value proportion of the goods. Calculate the proportion of the value of each good in the total value of all goods, and multiply it by the total freight to get the allocated amount.
When choosing an allocation method, factors such as the characteristics of the goods and the transportation method should be comprehensively considered to ensure fairness and rationality.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
If there is a primary-secondary distinction in the transportation of goods, first determine the main goods and allocate most of the freight to them, and the remaining goods share the remaining freight. However, this method requires a reasonable basis for the primary-secondary distinction.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Allocation by transportation batch is also possible. If the goods in different batches are relatively independent, calculate the freight by batch, and each batch of goods bears the freight of this batch. This is simple and clear.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
If the transportation volume of goods is relatively balanced, the freight can be evenly allocated. Divide the total freight by the number of types of goods or the number of transportation times to obtain the allocated amount per share. However, this is not very applicable when there are large differences in goods.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
It is also feasible to allocate the freight according to the transportation distance. Goods with a longer distance should be allocated more. First, calculate the proportion of each section of the distance in the total transportation distance, and then allocate the freight according to this proportion.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
It can also be allocated in combination with the selling price of the goods. Goods with a higher selling price should be allocated a little more freight because products with a high selling price may also have higher requirements for transportation services.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
For goods with urgent transportation, since they may generate additional costs, the freight for this part of the goods can be calculated separately, and the remaining goods are allocated normally.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
It can be allocated according to the added value of the goods. Goods with a high added value should be allocated more freight because a high added value means that high-quality transportation conditions may be more needed.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If some goods have special transportation requirements and generate additional freight, this part is accounted for separately, and the remaining regular freight is allocated according to other methods.