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Tip of the Week

31 July 2014

When Freight rates are too good to be true.

 
Fact:  99% of the time there are no cheaper rates than market rates out there that will just drop in your email inbox without some form of risk.
 
We have seen an escalation of illicit Freight Agents, offering rates well below the market norms.
 
Where agents see profits rather than question how is it possible to get these rates, is where you are playing into these illicit agents hands.
 
Once they have control of your shipment, due to the alleged cheap rates will ask for payment upfront, which is the first stage. The second stage will be where they come up with various reasons why the rates have increased to well above the market norms. 
 
These can be reasons such as the shipment was rolled one week due to delay in picking up from the shipper (will claim the shippers fault), the commodity is not allowed under these special rates etc, etc.  Whatever the reason is not important, as the intention was always to defraud you.
 
They will not release the cargo until you pay the additional charges. As you have already paid the initial freight charges, you are now stuck with paying the increase and your dazzling profit has now become a loss.
 
We have seen a few cases where even after the second payment the illicit agent is still trying to force further payments and some shipments still remain at destination ports today.
 
So if you receive too good to be true rates then take it as “too good to be true”. 

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An excerpt from our network WCA Bulletin.