Presentation on E-Quotation Shipping Terms Shenship Logistics 25 November 2008

Content E-Quotation Shipping Terms – Sea Shipment Shipping Terms – Air Shipment Incoterms Shipping Terms – Breakbulk Shipment

Sea Shipment… Above rates do not include any insurance and customs brokerage services, which can be provided upon request.  Please provide full set of packing list, commercial invoice and any related documents.

Air Shipment… The chargeable weight is based on either gross weight or volumetric weight whichever is greater. Conversion is 1 Cbm = 167 Kgs.  Above rates do not include any insurance and customs brokerage services, which can be provided upon request.  Please provide full set of packing list, commercial invoice and any related documents.

Incoterms Our Focus Our e-Platform Our Competitiveness

Breakbulk Shipment… Let’s take a look at an example first… Q04000 

Breakbulk Shipment… Full Liner Terms (FLT) Liner In Free Out (LIFO) – the freight rate offered by the Carrier is inclusive of ocean freight, loading and unloading of cargoes Liner In Free Out (LIFO) the port to port freight rate offered by the Carrier is inclusive of the costs of loading on to the ship, but excludes the costs for the discharge of the goods at the port of arrival. Free In and Out (FIO) the loading (in) charges / unloading (out) charges are for the account of the shipper/consignee, and not the carrier.

Breakbulk Shipment… General conditions The quotation is based on the given cargo details/packing list, details of quantity, lot-size and W/M ratio. The quotation is subject to any cause or event which Forwarder is unable to avoid, and the consequences of which Forwarder is unable to prevent by the exercise of reasonable diligence. Forwarder shall not be liable for loss, damage or delay due to the charterer’s failure to observe the terms and conditions of the contract of carriage contained in Bill of Lading.

Breakbulk Shipment… General conditions Additionals & Surcharges, e.g. BAF, CAF, tax, duty, are for informational purposes only and are subject to change without notice at time of shipment Unpacked cargoes are to be seaworthy prepared, suitable for sea transport and in accordance with valid rules and regulations Deck shipment is to be allowed unless specified. Carrier has the right to transport goods for the entire voyage, or any part of, on deck at shipper’s risk and with correspondent remark in the bill of lading.

Breakbulk Shipment… Heavy Lifting The cargoes are to be delivered in seaworthy condition and thus being equipped with suitable lifting points and sufficient lashing lugs The quotation is subject to full details and technical drawings of the special cargo clearly showing such as but not limited to: center of gravity, lifting and lashing points, dimensions and position and construction of cradle.

Breakbulk Shipment… Receiving/Delivery Loading/discharge are to be performed as fast as vessel can deliver. Vessel must work all time, 24 hrs per day, Friday, Saturday, Sunday, holiday included. Any time lost in waiting for trailers, barges/or direct discharge is to be considered as waiting time and been charged with demurrage/detention as agreed. The cargoes are suitable for one hook operation, within outreach of vessel’s gear, and slings of normal length.

Breakbulk Shipment… Vessel Specification Special lifting devices, others than being available on board of carrying vessel, such as spreader/beam, if needed for loading and discharge, to be supplied by shippers at their expense. Such equipment shall be certified by Lloyds Register or equivalent.

Supplementary Notes to e-Quotation by KY NG Some Tips on Pricing Supplementary Notes to e-Quotation by KY NG 15

Price Options Cost Plus Gain Sharing Fixed Cost Profit / Handling fee for Contractors is fixed…. operating costs to re-bill Company No motivator to maximize the efficiency and minimize the costs…as no gain Gain Sharing Contractors are motivated to boost up productivity and minimize costs. Costly and uneasy to identify and analyze the gain Fixed Cost Gain is guaranteed… Contractors will try their best to minimize costs and boost up productivity 16

“Must” to Overseas Agents Immediate Response to Inquiries (The latest reply couldn’t be more than 24 Hours ) Always sell overseas agent’s image for their nominations and sales leads Never overcharge. Always bill what we’ve quoted Immediate Follow-up of Sales Leads ( The sales report to be reverted within 5 days ) Know what the agents exactly want before you reply Always communicate with agents in a personal and friendly tone 17

Layout of your Presentations Be Clear Be Concise Be Specific Be Dramatic Try to use Incoterm 18

While you’ve got to quote You have to :- Check and compare more than one sources in the market Contact Agents at POL or POD for more information Ask smart questions Ensure adopting the Jewish Calculation Give an idea of the total costs Use Incoterm Present in a professional manner 19

When “4Ps” meet the “ 4Es” Price Place Product Promotion Everyone Everywhere Experience Evangelism 20

Last word Pricing is not based on how much you want to make a profit…. But how it stands in the supply and demand curve… 21