Hidden Costs of Rate Shopping

Importers naturally want to minimise their shipping costs, and that’s understandable. Companies expect their purchasing or logistics managers to find the best available rates. However, what’s often overlooked is the underlying value proposition behind any shipping quote. Opting for the cheapest rate usually means sacrificing an efficient, quality-based and dependable service. Savings can quickly disappear when problems start to arise. 

Whale Logistics Australia doesn’t just sell rates. We deliver unrivalled customer service to importers who understand how costly mistakes and poor communication can be. Some clients learn this the hard way by switching to cheaper forwarders and getting burned. They return to our service once they realise that the hard and soft costs of inferior service erase any savings, often resulting in a significant hit to the bottom line and a headache for the importer.

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What do you sacrifice for cheap rates?

Visibility:
Freight forwarders offering cheap rates often lack systems that allow you to track your shipment in real-time or to interrogate transactional data to support your supply chain – usually because they don’t invest in the technology that supports their customers. Whale Logistics values visibility as much as our clients do.

Our staff monitor shipments from start to finish, providing efficient and proactive service. We give our clients 24/7 access to our customer portal, giving them end-to-end visibility and real-time insights. Furthermore, through the use of Whale's B.I tools, we can interrogate data for our suppliers to support cost savings.

 

Efficiency:
When a freight forwarder charges cheap rates, they often don’t allocate enough experienced staff, leading to increased demurrage, detention, and other avoidable fees. Whale Logistics has experienced staff who know how to minimise or eliminate these costs. You shouldn’t pay more because your logistics provider wasn’t paying attention. 

 

Dependability:
Cheap forwarders usually don’t have a deep bench on their team. They provide quotes for freight, warehousing, transport, and customs clearance on an ad hoc basis. It’s inefficient, often frustrating, and unpredictable. No one would choose this kind of system, but often it’s too late when you find out. At Whale Logistics, we’ve built our network to optimise each phase for smooth delivery of cargo as it passes from one provider to another. We value optimisation, that serves our clients.

 

Communication:
Inexpensive forwarders don’t communicate well with importers. They’ve delivered cheap rates, and that’s where their responsibility – and responsiveness – ends. Whale Logistics assigns a dedicated Key Account Manager and Customer Champion to your account. These individuals supports your shipment through tracking, documentation and communication from when the booking is placed, till the container is de-hired. It’s the most important thing we do. It’s our value-add.

 

Priority Service:
How can they offer such cheap rates? They can’t provide priority service to their clients. Often cargo is rolled or moved on less than optimal carriers and routes, affecting your business. The Whale Logistics network is rock solid. Our carriers know that we consistently book cargo through their services, allowing us to provide consistency for our clients. Our partners advocate for our clients in the ports of origin, ensuring that our shipments get the highest priority.

 

Relationships:
Cheap rates don’t build relationships. You won’t get proactive advice or innovation from a random provider. We see ourselves as partners to our clients. We’re always looking for ways to optimise their supply chain. We want to share the experience we’ve gained from our history in the industry. Our clients look to us to solve problems and make informed suggestions that lead to higher bottom-line profits and less headaches. Our value adds are created through our weekly market updates, personalised service and strong supply chain integration allowing Whale Logistics to build dependable, mutually beneficial relationships with our customers. 

 

Service:
There’s an adage: “Fast, Cheap, or Good? Pick Two.” With a cheap forwarder, it’s hard to get even that much. Everyone talks about service, but Whale Logistics considers it foundational. If we’re not adding value, then we cease to exist. Our clients feel it in every aspect of our process. Service excellence is who we are!

 

Ready to experience the Whale Logistics difference?

Don’t let cheap rates cost you more in the long run. Partner with Whale Logistics Australia for unparalleled service, visibility, and dependability. Contact us today to optimise your supply chain and ensure your shipments are handled with the utmost care and efficiency.