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Moving freight can be a stressful time for any mining or resources
operation especially when it comes to major projects involving
the transportation of capital equipment worth hundreds of
thousands or millions of dollars.
Therefore, its not only important to partner with a professional freight
forwarder its essential that both parties collaborate and communicate to
achieve the goal of moving freight on time and on budget and free of
injury and damage to freight, property and equipment.
Here are five key factors to a stress free and successful freight forwarding
project:
Townley Group International managing director Peter Townley: see the freight forwarder as an integral part of your team.
By Peter Townley
Five key factors to a stress-free and successful freight forwarding project
All stakeholders need to understand the full scope of the project and need to be involved right from the outset especially the financial controller.
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1. Meet the team
A part from the obvious thing of getting to know people, meeting each
team is essential to understanding each stakeholders perception about
whats involved in moving freight.
In my experience theres often a large void between the client or end user
and the freight forwarder on what has to happen.
When engineering companies are buying from a fabrication company they
meet with those teams and discuss everything to the nth degree on the
angles and the weight of the steel. But if the freight forwarder never meets
the client or only meets an individual that doesnt know the full scope of
whats required then things can very easily go wrong.
All stakeholders need to understand the full scope of the project and need
to be involved right from the outset especially the financial controller.
The key thing here is to see the freight forwarder as an integral part of
YOUR team.
The other key reason for stakeholders to meet is to discuss potential risks
and hazards.
Safety is paramount and the sooner potential risks and hazards are
identified the better for all concerned.
If the relevant stakeholders dont meet potential risks and hazards can
easily be overlooked. This could result in not just additional costs and
delays, but serious injury or fatality. Damage to public and private
property could also land your company in hot water with authorities
notwithstanding the legal ramifications.
A professional freight forwarder should be
completing a risk analysis and risk register and
handing that to you before work starts.
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Avoid these nightmares by ensuring all relevant stakeholders meet as early
as possible.
Good forward planning means great execution; piss poor planning equals
piss poor performance.
2. Define roles of forwarder and client
One of the biggest mistakes that stakeholders in a freight forwarding
project can make is not clarifying roles, responsibilities and accountabilities.
This can create confusion, tension and frustration between both parties that
can easily boil over into conflict.
In many instances end users of freight forwarding services expect that the
forwarders going to do something and vice versa.
A professional freight forwarder will sit with your team and ask questions
about the scope of work and constraints so they fully understand whats
required and who is responsible for each task.
Does the freight forwarder need to provide cranes, labour, quarantine
inspection et cetera et cetera?
Safety is paramount and the sooner potential risks and hazards are identified the better for all concerned.
If something goes wrong its not just the risk of fatality or major injury, but also the risk of major damage to public or private property.
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A key piece of advice I would impart to anyone requiring freight
forwarding services is that if you dont understand something ask the
freight forwarder. This will avoid any ambiguity.
A professional freight forwarder should also have a check sheet that
serves as a pro forma to guide both parties through the freight forwarding
process. This will assist in clarifying roles and responsibilities.
The check sheet has an export check sheet and an import check sheet.
A professional freight forwarder will review the scope of works for the
project and determine whether or not they need to provide lashings,
customs clearance or pre-inspections among many other things.
If the freight forwarder has all that information not only will you get clear
and accurate pricing on the job, youll get a full and detailed program of
whats involved including who will do X and who will do Y.
3. Develop an accurate work statement
A work statement is a document that basically says what the project will
entail and who will provide what.
The work statement should be developed collaboratively between the
freight forwarder and the end user.
A work statement is a
document that basically says what the
project will entail and
who will provide what.
There are many links in the logistics chain and a professional freight forwarder should be across all of them.
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It doesnt have to be a lengthy, long-winded document, but it does need to
clarify each step of the freight forwarding process and who is responsible for
each task or requirement.
A work statement may involve in more detail, say, a transport method
statement, a crane method statement or a safety method statement. Its
important to give due care and consideration to the work statement, as it will
also specify responsibilities and accountabilities.
4. Agree and sign off on freight charges well in advance
Freight charges, such as the customs clearance rate, terminal rates, cartage
rates and labour rates should be agreed and signed off by both parties before
proceeding with any freight forwarding project.
For any unforseen freight charges, the freight forwarder should stipulate in
advance a set rate at the cost price of the unforseen charge plus a fixed
percentage.
The freight forwarder may agree for instance to provide their client with three
quotes for the unforseen service charge then add their fixed percentage to the
Its important to give due care and consideration to the work statement, as it will also specify responsibilities and accountabilities.
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quote accepted by the client. This is an easy, smart and transparent
measure to account for any unforseen costs.
The key message though is that a professional freight forwarder should
SAVE YOU MONEY providing there is agreement and sign off on
freight charges in advance.
Once the freight forwarder has agreement and sign off they can then fix
freight charges at lower rates.
5. Clear lines of communication
Without clear lines of communication there is the potential for all sorts of
mixed messages.
A professional freight forwarder should appoint a project team leader and
all communication should be funnelled through that person.
Conversely, the client or end user must nominate a project team leader.
Having multiple people communicating will create havoc and confusion,
so its essential that ONLY the freight forwarders team leader and the
end users team leader communicate and collaborate to achieve the project
outcomes.
Having a 2IC under each project team leader is also a prudent measure.
Ideally, each project leader should have very good oral and written
communication skills and the maturity to take responsibility and
accountability for all tasks under their remit.
Contact between both team leaders should only pertain to what is essential
and appropriate and third party personnel only brought in if
circumstances require.
Importantly, keep information factual and if something is unclear dont
assume that the other party is clear about it or aware of it.
Whats equally important is declaring any problems to the other party as
quickly as possible. Things dont always go according to plan and hiding
problems or mistakes from your team and the other party will just
exacerbate the problem.
When things go wrong finger pointing from either party will just create
conflict and division and wont solve the problem. n
Only deal with a professional project forwarder that understands all the risks.
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A professional freight forwarder
should convey confidence in
their capabilities and clearly
explain what should be done
and how to do it.
When choosing a freight forwarder ask for a capability statement and ask questions
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About TGI
TGI specialises in the worldwide logistics and freight forwarding
industry and understands client needs at every level.
Services include: project and out of gauge cargo; freight forwarding
by air and sea; aircraft charters; vessel charters shipping; salvage;
customs clearance marshalling, warehousing and consolidations;
worldwide tracking, GPS tracking, and RFID and asset management.
To date TGI has moved over half a million cubic metres of cargo
and travelled over 8 million kilometres wi