Chartering Ocean Freight is no easy task, even for those with decades of experience in the movement of physical commodities. It’s not just the financial risk of the freight you pay versus what was budgeted when taking the FOB position. It is also the non-tangibles like counterparty and execution risk. Having companies with the experience and expertise in this area to help you navigate this complexity can provide significant supply chain savings.
Here is why.
Let’s start with the non-tangibles, like counterparty and execution risk. These can seem irrelevant at times, because ‘it won’t happen to me’. Well, as we’ve seen in the Black Sea over the last 18 months, no one is immune from the non-tangibles and they can cost real, tangible dollars. Counterparty risk is frequently overlooked, even with the most experienced exporters. Questions like ‘Do you know who you are dealing with?”, “How will they deal with your freight?” “How will they respond to issues that arise during the voyage?” and “Is there anything in the transaction that requires particular attention?” often get overlooked.
Now let’s take a look at the general information needed to execute a vessel. Whilst ostensibly there is a lot of market information which provides views on where you sit in the freight cycle, navigating the plethora of information and coming to an informed conclusion that will result in a return on investment isn’t as easy as it sounds. In the end, there is no substitute for an experienced guiding hand to provide context and perspective to the numbers you see on the page and the route you are trying to fix freight for.
Basis Commodities and MR Shipping in Melbourne have been working for several years with some of our clients. Our partnership assists clients successfully mitigate the risks associated with taking on ocean freight exposure from Australia and to help them reduce their supply chain costs.
This is where the partnership between Basis Commodities and MR Shipping can provide real value to clients. Risk management, execution, and reduced cost without the expense of an in-house freight operation.
Basis Commodities and MR Shipping are specialists in their respective fields who provide the holistic end to end approach that mitigates ocean freight risk for our clients and gives them an opportunity to benefit from the cost savings of working on a FOB plus freight basis at the appropriate time. By working together and pooling our expertise on both the commodity and shipping sides of the transaction, clients see real value back to their bottom line.
For more information on Basis Commodities and how we can assist you to reach your goals, be sure to contact us on the details below.
Chris Whitwell
Sydney, Australia
M: 0419 833 356
E: chris@basiscommodities.com
Steven Foote
Sydney, Australia
M: 0408 308 908
E: steven@basiscommodities.com
Nader Hassan
Dubai, UAE
M: +971566915688
E:
nader@basiscommodities.com
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Basis Commodities Pty Ltd
PO Box 340, Northbridge
NSW 1560, Australia
Basis Commodities Consulting DMCC
PO Box 488112
Dubai, UAE
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