Due to the highly volatile freight market, we feel it’s more important than ever to provide transparency with our business partners. We would like to share some information with you regarding our Helluva Ocean Container new pricing process.
We have heard of some bad experiences other companies have had regarding their “great pricing” on container orders of bulk bags based on a delivered rate. Due to an “unexpected freight increase” from the time of order to delivery, the customer receives a bill much larger than expected with an explanation that is due to the added freight cost.
How does freight affect a quote? Take the example of a container of 10,000 bags. What is the freight cost per bag and ultimately the total delivered cost to the customer?
As you can see in the table above, the pricing can be altered to make it appear like it’s a better delivered price upfront, but customers like you will see a substantial increase on their invoice when the company uses an unrealistic freight rate quote. We know in this day and age that $7,000 is an unrealistic freight cost. Yet companies continue to quote this and then blame the freight company instead of being realistic of the outset.
Having a freight baseline is very important information to have because no one really knows what the freight will be in three or four months when the container is ready to ship. That is why Helluva Container provides customers with that baseline freight cost based on the current market price at the time of the sale and puts that number right on the quote for their reference. If the actual freight goes up or down, the final invoice is adjusted accordingly, and we include the actual freight bill from the carrier for proof. Some companies are luring customers in with unrealistic freight pricing to get the order and then surprising them with a big bill to make up the difference. Helluva Container doesn’t believe in deceiving our customers and gives the realistic freight up front.
Here is a copy of the language we use when describing allocated freight for a container or partial container:
Partial Container FREIGHT DELIVERED TO [YOUR LOCATION]. NOTE: INCLUDED IS A DELIVERED RATE of $15,000 and is based on today’s current carrier delivered rate including IMO Fuel and GRI rates. Any variance from this rate up or down will noted and adjusted on freight line of invoice per container. (All freight invoices from Freight carrier will be provided to you) Current MFG Lead Time 3-4 weeks plus Freight additional estimated 40 days once booked.
We want to earn your business with honesty and keep your business through quality and service.