FAQs

Q.What is a freight forwarder?

Freight forwarding is a service used by companies that deal in international import and export. While the freight forwarder does not actually move the freight itself, it acts as an intermediary between the client and various transportation services. Sending products from one international destination to another can involve a multitude of carriers, requirements and legalities. A freight forwarding service handles the considerable logistics of this task for the client, relieving what would otherwise be a formidable burden.

Freight forwarding services guarantee that products will get to the proper destination within an agreed timeline and in good condition. The freight forwarding service utilises established carriers of all kinds, from airline and trucking companies, to rail freighters and shipping companies. GlobeFreight negotiates the best possible price to move the product along the most economical route by working out various bids and choosing the one that best balances speed, cost and reliability.

GlobeFreight may offer more than one transport solution to the client, so that they can choose the best option suitable to them. Considerations that affect price will range from origin and destination to special requirements, such as refrigeration or, for example, transport of potentially hazardous materials. Once the client accepts GlobeFreight’s bid, the freight is readied for shipping. GlobeFreight then undertakes the responsibility of arranging the transport from point of origin to destination.

One of the many advantages of using GlobeFreight is that it handles ancillary services that are a part of the international shipping business. Insurance and customs documentation and clearance are some examples. As a consolidator, GlobeFreight may also provide Non-Vessel Operating Common Carrier (NVOCC) documentation, or bills of lading. Warehousing, risk assessment and management, and methods of international payment including Customs VAT are also commonly provided to the client by GlobeFreight.

Q.Why are shipping rates so volatile?

There are several factors involved in the volatility of shipping rates, the most important being market demand. There are also seasonal demands that affect pricing. This usually keeps rates high, as there are always space problems for cargo getting on vessels. In peak seasons there is a big demand for moving cargo, so the carriers raise the rates during this period, with the GRI (General Rate Increase) and the PSS (Peak Season Surcharge).

Another significant factor is transport fuel, or what is called the Bunker Fuel factor. This is a surcharge that the carriers can change when oil prices rise or fall. It is called the BAF.

Supply and demand.

Q.Can I get payment terms?

GlobeFreight is able to grant credit terms to approved Corporate customers. A standard credit process needs to be completed and approved beforehand. All other shipments are COD.

Q.What can be done to prevent delays of the shipment?

Firstly, make sure your supplier overseas (on imports), or you yourself if you are the supplier for an export shipment, creates all of the necessary documents correctly (packing lists, commercial invoice, original bill of lading / OB/L) and in a timely fashion, so that all documents are provided with the necessary banks and sent to you (the importer) or to your buyer-consignee on the B/L (if you are the exporter) at least 1 week before the cargo arrives at the destination, so that everything can be processed through customs ahead of schedule and freight can be paid along with presentation of the original B/L.

One factor that usually slows this process down is when there are discrepancies between the buyer and supplier and, because the goods are not paid for, the OB/L has not been surrendered by the supplier to the consignee (buyer).

Q.Can I get cargo released without presentation of the OB/L?

The only way this can happen without the OB/L is to settle the matter with the supplier and get them to authorise the release in writing to the shipping agent in the port of origin. This can act in lieu of an OB/L. There is no other legal way, or one that does not jeopardise the liability of the shipping company to be sued by the supplier if they release without their written consent.

Q.How many containers do you move a year?

About 200 a year, and climbing.

Q.Do you insure my cargo?

GlobeFreight has limited liability insurance in place, but that does not include replacement of goods lost, stolen or destroyed. For that you need Goods in Transit (GIT) insurance, which GlobeFreight recommends on all shipments and will quote you for before shipping if you require it. There may be an excess in the policy, so read and understand the policy wording and do not under-insure the shipment.

More detail: GIT insurance explained.

Q.What happens if my consignment does not fill a whole container?

Smaller consignments consisting of goods that do not fill a shipping container can be grouped with other shipments, thereby sharing a container. This is referred to as a Less Than Container Load (LCL) consignment, and the resulting container space and associated costs are shared for the voyage, reducing transportation costs to the benefit of the consignee or consignor.

More detail: Sea Freight.

Q.Can you clear a shipment that another forwarder moved?

Yes. GlobeFreight is a specialist freight forwarder and clearing agent brokerage with direct access to SARS customs clearance, and it also undertakes clearing for shipments where it was not the freight forwarder.

More detail: Clearing and Forwarding.

Q.What are some of the destination charges?

There may be airport fees, warehouse fees, customs clearance charges, duty and tax, and door delivery charges.

Of course, if your cargo is chosen for a customs exam at destination, please prepare for additional charges and delays in getting the cargo.

Q.Are there types of cargo that cannot be shipped via air freight?

Yes: anything hazardous, flammable, dangerous, chemicals, computer batteries, live animals, perishable items and similar.

Q.What kind of paperwork will I need to fill out ahead of time?

We assist you with all necessary paperwork as part of our fees.