We have experienced a lot of interest in our international freight procurement proposition. We procure freight rates profiles for our clients on an individual or collective basis.

Companies are recognising the specialist nature of freight procurement and that they may be failing to exploit opportunities due to market knowledge and expertise.

In essence freight can be classed as a commodity purchase. However, there are some clear distinctions to your more common known commodities.

• Difficult to understand market forces which dictate changes in rates
• Other costs are associated with the commodity that need consideration (UK haulage, BAF, CAF etc...)
• Can have different service levels (lead time etc...).
• Rates can fluctuate quickly - need to take advantage. SInce 1990, rates have fluctuated on average by over 20% per annum (+ or -)

There are other implications with in-house procurement / reliance on freight forwarder:

• Companies are isolated as they tend to deal with selected carrier(s)
• Companies have a limited knowledge of the current market
• Once tender is completed and rates agreed, it is more difficult to negotiate at regular intervals
• People can often be occupied with day-to-day and have limited time to meet other carriers or follow industry changes (rates and processes)

We therefore believe companies should look to outsource their international freight procurement to Logiport for the following reasons:

• Take advantage of a falling or rising market
• Opportunities to negotiate representing multiple parties
• Regular tenders & negotiations for clients being undertaken
• Up-to-date with best practice
• Selection of inappropriate carriers can impact on product availability
• Consolidation of carriers so less scope for leverage