How to Reasonably Allocate Freight Costs for Export Agents? Seek Advice!
Resolved
My company exports goods through an export agent, involving various expenses, and the allocation of freight costs is a headache for me. The types of goods are diverse, and the quantity, weight, and volume of each shipment vary. Additionally, sometimes it's sea freight, and sometimes it's air freight. I'd like to ask for advice on how to reasonably allocate freight costs for export agents in such situations? Are there any general methods or key points to consider?
Trade Expert Insights Answers
There are several common methods for allocating freight costs for export agents. The first is allocation by cargo weight, which is suitable for goods with significant weight differences and where weight is closely related to freight costs. Divide the total freight cost by the total weight of all goods to get the freight cost per unit of weight, and then multiply by the weight of each cargo to determine the allocated freight cost for that cargo.
Secondly, allocation by volume is suitable for goods with significant volume differences. The algorithm is similar to allocation by weight: divide the total freight cost by the total volume to get the freight cost per unit of volume, and then multiply by the volume of each cargo to get the allocated freight cost.
For goods with significant value differences, allocation can be done by the value ratio of the cargo. Calculate the proportion of each cargo's value to the total cargo value, and then multiply by the total freight cost to obtain the allocated amount.
When choosing an allocation method, comprehensive consideration should be given to cargo characteristics, transportation methods, etc., to ensure fairness and reasonableness.
If there is a distinction between primary and secondary goods in transportation, the primary goods can be identified first, and a larger portion of the freight cost can be allocated to them, with the remaining freight cost allocated to other goods. However, this method requires a reasonable basis for distinguishing between primary and secondary goods.
Allocation by shipping batch is also possible. If different batches of goods are relatively independent, freight costs can be calculated per batch, and each batch of goods bears the freight cost for that batch, which is simple and clear.
If the cargo volume is relatively balanced, freight costs can be averaged. Divide the total freight cost by the number of cargo types or the number of shipments to get the allocated amount per share. However, this is not very suitable when there are significant differences in cargo.
Freight costs can also be allocated based on transportation distance, with longer distances bearing a higher allocation. First, calculate the proportion of each segment's distance to the total transportation distance, and then allocate freight costs according to this proportion.
It is also possible to allocate based on the sales price of the goods. Goods with higher sales prices can bear a proportionally higher freight cost, as high-value products may also have higher demands for transportation services.
For urgently transported goods, as they may incur additional costs, the freight costs for these goods can be calculated separately, and the remaining goods can be allocated normally.
Allocation can be based on the added value of the goods. Goods with higher added value can bear a higher freight cost, as higher added value may indicate a greater need for premium transportation conditions.
If some goods have special transportation requirements that incur additional freight costs, these costs can be accounted for separately, and the remaining regular freight costs can be allocated using other methods.