Saturday, November 6, 2010

Assessment of the transport cost : issues and solutions

When a cargo of plants lacks homogeneity because the plants vary greatly in volume, weight and size their transport cost by air is uneasily estimated, especially when the gross weight of the cargo may exceed the volume weight of the boxes.

Gross weight is the one read on scales. The volume weight, ( Vol wt ) is the volume divided by 6000. If the dimensions of a box are 100 x 50 x 25 cm , its Vol wt is about 21 kg ( 100 x 50 x 25 / 6000 = 20.8 ).

This volume weight is the minimum chargeable weight : such box with a gross weight of 15 kg will be charged on 21 kg; and of course if its gross weight is 25 kg it will be charged on 25 kg. ( sea freight is instead always charged on the volume ).

Hence if you intend to import plants to airport from Aleyagarden you will consider the three options below and select one :

1 : you pay your transport after arrival to the airline ( depending on airlines and their contracts with the cargo agents, that option may not be possible )
2 : you transfer an advance of money to Aleyagarden based on an estimate of the transport cost. ( this estimate is made by yourself and Aleyagarden ) Usually the past ratios : plant cost/transport cost are good indicators. Hence there will be after shipping a balance - in THB -, to pay immediately ( with any international currency ) or with the next order.
3 : there is no balance and since Aleyagarden will not pay for your more expensive transport than expected ( heavier boxes ) they will overcharge the estimate of the transport cost when making the proforma. ( a proforma is an invoice received for payment of the goods / services before delivery )

The balance is in THB because invoices of transport are issued and paid in THB and Aleyagarden does not have an account in foreign currency : the $ or euro received are changed in THB as soon as they arrive to Aleyagarden's account.

You may prefer that Aleyagarden owed you money rather than your owing them if you sense that the euro or $ will loose strength against the THB.

Hoya and other plant collections are for sale on aleyagarden.com Plant care is available in various posts of this blog. Contact : aleyagarden@hotmail.com

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