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What are destination charges? 

To start with the basics of Africa freight forwarders, here is an explanation of destination charges of freight forwarders around the world. 

In the freight forwarding and shipping industry destination cost, or sometimes referred to as local cost or destination terminal cost, are fees that are charged by the destination port of your cargo. When it’s concerned with the port, this can be a seaport or an airport. Subsequently these mentioned above charges are not an actual cost that occurs on the freight side, however, they are not directly deliberated as freight charges. The cost covers all actions taken at the port of the destination including movement, unpacking, inspection and further administrative tasks. It certifies that your cargo smoothly comes off the vessel because it is processed and prepared for the final transport to the last destination.

Why destination charges are different between companies?

Destination charges are different and depend on the type of goods and products such as hauler dependent on shipping lines, airlines, and ports. Perhaps there can be a great difference between the charges when comparing the European with North American or Asian destination ports. In-depth the mode of transport dictates the charges and cost variations. Perhaps, it can be sea freight FCL (Full Container Load) or LCL (less than a Container Load), air freight, break bulk or any other approach. 

Each port breaks up the costs in even more detail and may include more or less particular activity. To give you an illustration, only recently an additional infrastructure charge had been presented to all major ports in Africa Prior to that it did not charge an infrastructure cost. Further, the type of goods may have an effect on the destination terminal charge, in particular, hazardous goods and products. 

As destination charges vary from port to port depending on the transportation type, changing the shipping line may save major costs, since they are the ones that actually invoice the destination costs to your freight forwarder effectively. 

Apart from that, some freight forwarders utilise these charges as a form of revenue and slightly increase destination charges. This is a regular practice in order to cover shipping line cost increases and variations in costs. However, some freight forwarders expect on these costs and increase them immensely which is what many buyers fear.

How much have the destination cost?

There is no definite cost one can tell you for all ports, as it depends on the mentioned effects. However, it varies from port to port, nationally and internationally, as well as the type of goods. At the end of the day, it is important to look at your entire figure. A minimised sea freight or air freight cost may mean higher destination port charges and vice versa. 

To find out a better solution of destination terminal charges, it is essential to compare these aggregates when looking at different quotes and invoices from freight forwarders. Discourse these charges with your freight forwarder and ask for different optional ports or trade lanes to save costs. 

Conclusion 

As destination charges are charged per consignment, by planning and scheduling your shipments ahead wisely and associating various small shipments you can decrease your total of this cost. Negotiate to your freight forwarder about freight consolidation and offshore consolidation to minimise charges.