How to Calculate Costs for CFR Clause Shippers

How to Calculate Costs for CFR Clause Shippers

CFR or CIF terms, which refer to cost+freight or cost+freight+insurance in trade, require a trading company to find a factory to calculate the cost of goods. If the factory calculates the cost of goods themselves, it is relatively simple, and insurance is relatively easy to fix. Normally, the real-time exchange rate of X 1/1000 based on the value of the goods is sufficient. A simple way for shippers to calculate freight costs is to find 2-3 freight forwarders at the port to quote a price, preferably at least 3 for comparison. Of course, if there is a reliable freight forwarder, it will suffice. 

After knowing the sea freight, one should not forget the pre loading fees, such as the THC port miscellaneous fees for each port. Of course, the crucial land transportation fee from the factory to the port should also be remembered. If the factory is far from the port, this will be a significant part of the shipping cost. Is it possible to provide a quotation after completing the cost accounting for CFR or CIF after all the above freight charges have been calculated? No, we also need to have an estimate of the shipping cost, because there is a cycle from quotation to shipment, and we need to have a good estimate of this cycle ourselves. When the shipment is made, the shipping cost will increase or decrease. If it decreases, it is easy to say that if it increases, it is not necessary to lose money. Therefore, we should try to make a good estimate of the shipping cost situation in the past three months and previous years in order to stand invincible!