Partnership is what yields ultimate benefits

Agency fees make up small percentage of costs SUSTAINED COST savings won’t be achieved by knocking down your agent’s fees. The clearing and forwarding agent can contribute far more constructively by applying his knowledge and expertise to the customer’s business. That’s the view of Contract Forwarding director Michael Barnes, who believes that a holistic approach where customer and agent enter into a partnership will yield the best results in terms of costs and efficiency. “As a smaller agent, we get involved with the customer and understand his business as if it was our own,” says Barnes. “Knowledge of the customs tariff is a crucial element of this. Accurate classification, which comes from years of experience in the field, gives a better understanding of the importance of the item in the customer’s business. This not only assists when there are urgent shipments, but also ensures that there are no customs penalties or overpayment of duty.” Barnes believes that the agent should be involved from the start, when the indent is placed. “If the agent has a copy of the indent he can use his expertise to make suggestions or amendments that could ultimately result in a more efficient transportation flow.” A number of importers and manufacturers in southern Africa tend to focus on agency fees in their efforts to reduce costs. “But this is such a small percentage of the value of the goods, and the majority of the agent’s billing is for duties or VAT charges. “What truly makes the difference is staff expertise and service, and a combination of the two is what ultimately plays the biggest role in reducing costs.”