Fast-Moving Consumer Goods (FMCG) shippers are experiencing a significant challenge where the cost savings negotiated during large multi-carrier tenders for base freight rates are being undermined by an accumulation of various surcharges. These additional fees, such as peak-season surcharges, bunker adjustment factors (BAF), and the new EU Emissions Trading System (ETS) costs, are applied on top of the agreed-upon base rates, effectively increasing the overall shipping expenditure.
This trend highlights a critical issue for freight procurement teams: without diligent, line-by-line verification of each surcharge against current market benchmarks, the true cost of freight remains opaque. This can lead to a situation where the perceived savings from a competitive tender are not realized in practice, impacting budget predictability and profitability.
For freight forwarders and operations managers, this means that simply securing a low base rate is no longer sufficient. It is imperative to scrutinize all surcharges and their fluctuations. Forwarders should proactively communicate these potential cost escalations to their FMCG clients, offering transparent breakdowns and, where possible, strategies to mitigate the impact. This could involve exploring alternative routing, consolidating cargo to optimize space, or negotiating clearer surcharge caps within contracts. Understanding the market rates for these surcharges is key to advising clients effectively and maintaining competitive service offerings.
The article emphasizes that for companies managing numerous carriers across multiple lanes, a thorough audit of every surcharge against market references is not merely an option but a necessity to ensure that the final invoice aligns with the tender's intended cost structure.
