International Freight
Globalization has allowed companies the advantage of sourced, manufactured and stocked products in the most cost effective locations around the world.
As a result, supply chains are getting longer with increased complexity, multiple sourcing locations, multiple manufacturing facilities for multiple markets all spread across the globe. International freight cost typically account for up to 70% of total logistics spend. The ability to efficiently manage the international freight will certainly provide the competitive edge for companies to increase their market share.
The LCA Difference
Most companies’ effort to reduce international freight cost has been focusing on reducing freight rates for existing origins and destinations pair. While this can be achieved fairly easily, the savings are limited. Often companies find themselves squeezing freight forwarders and carriers for reduction of $5 per TEU or $0.05 per kg.
At LCA we have a different approach on helping our customers reduce their international freight cost. We seek to reconfigure your international supply chain network by focusing on the following areas.
- Reduction of expensive LCL shipment through origin consolidation
- Consolidation at international hub
- Destination deconsolidation
- Evaluation of the current freight mode