FAK it.. A deep dive into FAK rates and how it works..

FAK Cargo - Rates - Shipping and Freight Resource

The process of global trade is simple to look at, especially if you look at it from the outside..

  • There is a buyer who needs a product ;
  • There is a seller who sells this product ;
  • They discuss and agree on a price ;
  • The buyer pays the agreed price ;
  • The seller arranges for the product to be transported to the buyer

End of trade..

Simple, right..?? Many would wish it was so..

While there are several processes and documentary flows involved in trade negotiations, there are even further processes involved in the actual movement of the goods from Point A to Point B..

One such process in the movement of goods that influences product pricing is the process of freight negotiation and freight quotation in which there are several types..

Let us take a deep dive into FAK rates and how it works..

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Understanding a freight quotation and tips to ensure an accurate quote

freight quotation

If you are in the business of trade and shipping, you would have surely heard of/dealt with freight quotations along the way..

A freight quotation is a document that outlines the charges involved in the movement of cargo from Point A to Point B..

Many customers have lost $$$ on their transactions because of unclear, incomplete or incorrect freight quotations or they do not understand what a freight quotation entails and what it covers..

Here are some tips on how to understand a freight quotation and how to ensure that you get an accurate one..

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What the Final Interpretive Rule by the FMC on demurrage and detention says

causes of demurrage and detention

The issue of what the Federal Maritime Commission (FMC) may consider in assessing whether a demurrage or detention practice is unjust or unreasonable has seemingly been put to rest with FMC having the final word..

On the 28th of April 2020, the FMC issued its final rule on its interpretation of the Shipping Act prohibition against failing to establish, observe, and enforce just and reasonable regulations and practices relating to or connected with receiving, handling, storing, or delivering property with respect to demurrage and detention..

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South Africa – COVID-19 Lockdown Situation Update – 25.04.2020

COVID-19 South Africa

South Africa has been on lockdown due to the COVID-19 pandemic since the 27th of March 2020 and as of date, South Africa has 4220 confirmed cases of COVID-19 with 79 deaths..

Below is the gist of President Cyril Ramaphosa’s address to the nation on the 23rd of April 2020 and details relevant to the risk-adjusted strategy for the resumption of economic activity in the country..

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Say hello to HMM Algeciras, the largest container vessel on earth

shipping and freight news

What started out as an effort to optimise on economy and efficiency with an environmental touch in 2013 with the introduction of the Triple E series ships soon became kind of a mine-is-bigger-than-yours showboating..

Between 2013 and 2019 there were 8 “largest container vessel in the world” title holders operated by some of the world’s largest container shipping lines..

The increase in TEU capacity in the last 6 years within this ULCV class is around 5,964 TEUs which is the size of a regular container vessel still operating in many of the world’s trades now..

On the 23rd of April 2020, HMM became the latest entrant to this size race when they held a naming ceremony for their first 24,000 TEU containership – the latest largest container ship on earth – the ‘HMM Algeciras’..

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Risks and Liabilities of a Freight Forwarder

risks and liabilities of a freight forwarder - shipping and freight resources 500th article

Freight forwarders are an integral part of the supply chain and global maritime trade..

A freight forwarder serves as a conduit for global trade between importers, exporters, BCOs (Beneficial Cargo Owners) and the transportation and regulatory entities such as shipping lines, customs, port etc..

The moment a freight forwarder signs/accepts a contract with the customer, they are exposed to several unique risks and liabilities..

This article discusses the risks and liabilities of a freight forwarder..

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42% will change supply chain strategies post COVID-19 – Impact Survey

COVID-19 supply chain impact survey results

Global Supply Chains are very important in linking various countries to international markets facilitating global trade.. Modern day supply chains come with great opportunities but also pose some challenges which can test some of the best built and run supply chains..

One such challenge that is testing the world currently is the COVID-19 pandemic which came into limelight in December 2019.. This pandemic which has spread to every country around the world has caused/is causing major economic and social disruptions with far reaching impacts on global supply chains..

To understand the impact of this pandemic on the supply chain, we conducted a survey to measure the effect and impact of the coronavirus pandemic on global supply chains.. It collected and analyzed data on three key aspects – Impact, Preparedness, and Recovery..

Here are the results of this survey..

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Shipping lines offer time sensitive cost saving options for COVID-19

cost savings

COVID-19, has changed the way this world works and is expected to continue to influence the movement of global economies, human resources, the medical field and supply chain for the foreseeable future..

As at the time of writing of this article, the global number of infected people was around 2.38+ million with 164,000+ dead which is around 6.88% of the total infected..

Several ports around the world were/are either closed or working under limited conditions with several restrictions imposed on normal port activities.. Global trade has been severely impacted and is undergoing strain as never before..

Our industry plays a highly highly pivotal role in ensuring that the flow of goods continues, especially the flow of critical and essential goods all around the world..

Its good to see that some of the shipping lines have come up with some creative cost saving options for COVID-19..

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South African customs updates measures relating to COVID-19

News - Shipping and Freight Resource

Further to the various updates we have been posting here about the COVID-19 lockdown situation in South Africa and the various regulatory changes thereof, SARS has published an update from their side on the measures relating to COVID-19 and the Impact on Customs of new Government regulations..

This update replaces the Customs Practice Note and its Explanatory Note issued on 06 and 07 April 2020 respectively..

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