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How should the freight of export agency be reasonably amortized? Please give me some suggestions!

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Our company conducts foreign trade business and operates through export agencies. Recently, we have encountered difficulties in the area of freight amortization. The weight, volume, transportation distance, etc. of the goods in different orders are all different, and the transportation methods also include sea transportation and air transportation. I don't know what standard should be used to reasonably allocate the freight of export agency to each order. Is there any professional who can give some guidance on how to scientifically and accurately amortize the freight of export agency?

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Professional consultant answers

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

There are usually several common methods for amortizing the freight of export agency. First, it can be amortized according to the proportion of the value of goods, that is, calculate the proportion of the value of the goods in each order to the total value of the goods, and then allocate the freight according to this proportion. For example, if the total freight is 10,000 yuan, the value of the goods in Order A is 500,000 yuan, and the total value of the goods is 2,000,000 yuan, then the freight allocated to Order A is 10,000 × (500,000 ÷ 2,000,000) = 2,500 yuan.

Secondly, allocate according to weight or volume. If the difference in the weight or volume of the goods is large, this method is more appropriate. Calculate the proportion of the weight or volume of each order to the total to allocate the freight. For example, for a full container of sea transportation, it can be allocated according to volume.

In addition, according to the transportation distance, if the transportation distance has a great impact on the freight, it can be allocated according to the proportion of the distance from the destination of the order to the place of departure. In actual operation, these methods can be selected or comprehensively used in combination with the characteristics of the business to achieve the purpose of reasonable amortization.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

If the value difference of the goods in the orders is not large, it may be more convenient and intuitive to allocate according to weight or volume. First, count the total weight or total volume of the goods in all orders, then calculate the proportion of a single order, and multiply it by the total freight to get the freight allocated to that order.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

If the freight difference of different transportation methods is obvious, the total freight can also be separated first according to the transportation methods, such as sea freight and air freight, and then within each transportation method, the above methods such as according to value and weight can be used to allocate again.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

It can be allocated according to the number of orders. If the nature of the goods in the orders is similar and the number of each order is almost the same, divide the total freight by the total number of orders to get the freight allocated to each order.

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

If the company has clear requirements for cost accounting, for some special orders, such as those with urgent transportation, the freight can be accounted for separately, and the remaining freight can be uniformly allocated to other regular orders according to the proportion.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

It can also be combined with the sales amount. Calculate the proportion of the sales amount of each order to the total sales amount, and allocate the freight based on this, so that the cost can be viewed in association with the income.

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

When different order customers have different transportation requirements, the freight bearing method can be negotiated with the customers. For example, some customers are willing to bear a fixed amount of freight, and the remaining freight can be allocated to other orders.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

You can first establish a freight cost pool, conduct regular accounting, and then allocate the freight in the cost pool according to the proportion of the relevant indicators (such as value, weight, etc.) of the orders during this period.

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

If there are additional charges during the transportation process, such as port miscellaneous charges, etc., they can be listed separately. First, allocate the additional charges according to certain rules, and then allocate the basic freight.

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