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overview
Key Learning Outcomes
- Key principles and targets in negotiating freight contract rates & service levels
- Pricing drivers in the ocean freight market place
- Global trade & regulatory outlooks and impacts on shipping capacity & demand
- Freight rate movement forecasts
- Advanced sourcing & contracting strategies
- Surcharges, cost mitigation and freight audit strategies
- Basic tenets of negotiations from RFI/RFQ phase
- Freight contracts’ essential clauses and basic drafting
- Management into the contracts – Risk/Reward balance and service levels
- Contract disputes & resolution
- Liability for freight and cargo insurance policy
Who Should Attend
Designed with technical and practical insights in shipping industry, this workshop is essential for any executives involved in the negotiation, management, transaction or dispute resolution relating to freight contracts:
- Legal, Contract, Chartering, Business Development, Commercial, Procurement, Supply Chain & Logistics Managers
- Shippers, exporters, importers
- Freight forwarders, Freight brokers & NVOCCs
- Charterers, Shipping Lines
- Ship & port agencies
- Trucking, warehousing providers
What Attendees Liked About Our Training Courses
“Trainer provided actual facts with clear-cut explanations in “plain English” and helped me interpret difficult concept. I’d have loved to have extra time on this course”
– Justin Felix, Operations Manager, DK Ship Chartering
“Course director is very experienced. The programme is informative, relevant to my job and will help me execute laytime exactly as per contract”
– Darwin Mark Bunag Operations Assistant, Mizzen Shipping Enterprise
“Interesting course and knowledgeable speaker”
– Larry Tay, Contracts Manager, Singapore LNG
“Expert trainer helped me acquired lots of useful information about shipping industry, deep and insightful details from presentation materials.”
– Kornthip Watcharathamrongkul, Assistant Manager, Thai Oil Public Company Limited
Trainer
Markus Kraft
Associate Consultant, Drewry Shipping Consultants Ltd
Markus has over 20 years of experience in international freight forwarding, supply chain management and end-to-end customer solutions. His areas of expertise cover all aspects of commercial development and globally operating 3PL – from traditional sales to key account management, as well as supplier management, procurement for freight services and operations management. He’s spent more than 14 years in Asia and is presently providing Maritime supply chain advisory services with Drewry, focused on freight cost and procurement analyses for ocean transportation.
Markus’s international career with Exel (now DHL), Agility (China), Kuehne + Nagel, Leschaco and Leschaco (Singapore) offered him exposure to various verticals, ranging from Trade Lane Development, Business Development to Product Development & Solutions Design, Warehouse and Vendor Management across countries and industries as well as Business Productivity Modelling & Change Management. Some of Markus’s past and concurrent projects include:
- Developed multiple freight solution and business opportunities for forest products, F&B, industrial, FMCD & retail for European and Singapore market
- Negotiated the acquisition of a regional sea freight tender and the inbound freight and customs brokerage for Vietnam, Singapore and Malaysia
- Procurement, cost negotiation and process optimization projects in Middle East/Asia
- Handled niche transportation opportunities including a 250-ton break bulk on-hook/hook terms and 120 project cargo including delivery service, customs, craning & ramp modification and VMI contract logistics for Changi Airport office
- Introduced a flexitank solutions to tank container operation in Singapore, Korea, Malaysia and Thailand
Markus is a Council Member Consultant for Gerson Lehman Group (GLG) and a Registered Lecturer for STEi Institute where he delivers courses on Supply chain management, warehouse & distribution, purchasing and strategic management
Digital Badge
Upon completion of this training course, participants will earn a digital badge.
Earners of Freight Contract Negotiation Certificates have acquired advanced-level understanding of rate benchmarking & forecasting and contracting strategies in the ocean freight market place. They have examined pricing drivers, freight market movements across forms of freight procurement; scrutinised various sourcing options including service levels, ports of choice considerations, surcharges, cost mitigation and insurance policies. They are also skilled in managing the legal & commercial terms throughout the RFQ and execution of contracts.
Skills:
ocean freight, sea freight, freight cost benchmarking, pricing drivers, spot market freight rate, rate movements, rate forecast, sourcing strategies, contracting choices, surcharges, cost mitigation, fuel pricing, bunker adjusted factor, demurrage, bills of lading, business management, dispute resolution, cargo insurance, freight auditing, cost reduction, RFi, RFQ, tender preparation.
Eligibility:
Attend and participate in the 2 full days of training course duration, led by the designated training expert
Available to:
Seminar attendees
Singapore MCF Grant
You may be eligible for the Singapore Maritime Cluster Fund (MCF) Grant for up to 50% of the total course fee. Please contact Sushil Kunwar on +65 6989 6614 or email [email protected] for more information and eligibility criteria.
Agenda
International trade terms, shipping documents and freight market outlook
- Freight negotiations in the complex shipping environment
- INCOTERMS 2010
- Bills of lading, Carrier documents/shipper documents
- Import/Export documentation and shipping procedures
- High level market development – supply, demand and carriers’ earning
- Implications of the US tariffs
- Carriers’ orderbooks and trades outlook
- IMO 2020 cost impacts and calculation
- Contract rate analyses for traders & manufacturers across trade routes
Ocean freight cost benchmarking
- Pricing Drivers in the Ocean freight market place
- Spot market freight rate movements and forecast
- Dry container freight rate movements
- Reefer contract freight rate
- Forwarder market rate
- Ocean freight procurement needs for small/medium shippers
Sourcing Strategies and Contracting Choices
- Long-term vs short-term vs index-linked contracts
- Cost components and surcharge analyses
- Service levels considerations
- Ports of choice: congestion, inland movement vs transshipping costs
Surcharges and cost mitigation
- Terminology (gate-in gate-out, INCOTERMS)
- Fuel pricing and bunker adjusted factor (BAF) clauses negotiation
- Core charges and accessorial charges (Freight, FOB, DDU)
- Detention and Demurrage under B/L
- Other surcharges
RFI/RFQ from the Shippers’ and Carriers’ Perspectives
- Carriers’ Services and expectations
- Tender preparation – considerations for bidders and shippers
- Guidelines to meet deadlines for delivery
- Basic tenets of negotiations
- Fixture agreement and key considerations
- Exercise: Proper framing of RFQ process
Legal & commercial considerations in freight contracts
- Enablement of change for future requirements
- Interpretation and Implications by law, customs
- Force majeure clauses
Group Exercise: Contract drafting and legal pitfalls
Business management into the contract
- Agreements ensuring risks/rewards balance between carriers and charterers
- Contract management process
- Measuring carriers’ service levels
- Penalties, bonuses
- Freight payment terms
Exercise: Freight auditing and cost reduction analyses
- Pre-audit, post-audit & reporting
- Volume growth and renegotiation
Case Studies – Breaches, disputes and resolutions
- Service levels disputes
- Shipment loss & damage incidents
- Compliance
Liability for freight, cargo insurance policy
- International freight liability
- Carriers’ liability
- IMO, IATA liability framework for multimodal transports
- Transport Insurance
when & where
25 - 26 Sep 2019
Mandarin Orchard Singapore, by Meritus
333 Orchard Road, Singapore 238867
Tel: +65 6831 6062 | Fax: +65 6737 3130
Mobile No.: +65 8298 9442
Contact Person: Tan Ai Li
Email: [email protected]
Website: www.meritushotels.com
On-site & in-house training
Deliver this course how you want, where you want, when you want – and save up to 40%! 8+ employees seeking training on the same topic?
Talk to us about an on-site/in-house & customised solution.