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DDP quotes to Manila keep getting killed by surprise port charges - how are you pricing this?
We quote CIF Manila on container loads of hardware and profile extrusions, and lately every shipment seems to land with extra DDP-side charges the consignee forwards to us - wharfage, arrastre, some "documentation" fee I've never seen on a B/L before. Last three 40HQ shipments, the buyer just deducted it from the next PO payment. I've tried building a 3% buffer into quotes but it's getting eaten every time, and one GCC buyer is now asking for DDP Jebel Ali and I don't want to repeat the same mess. Anyone running engineering-channel accounts in SEA or the Middle East - how do you structure the quote so these local charges don't come back to bite you?
1 Answers
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Those aren't surprise charges - they're standard Manila port costs (wharfage, arrastre, doc fees) that CIF never covers. The buyer is deducting because your quote implied all-in. First, stop quoting CIF on these lanes; switch to DDP with a named destination and get a written landed-cost sheet from your forwarder before you send the PI. Second, pin the Incoterms 2020 clause in the contract: CIF only covers freight and insurance to port, not destination handling. Third, pre-clear with the consignee's broker - ask for the actual arrastre and wharfage schedule per 40HQ and build it into your price. If the buyer still deducts, you're pricing blind.
#1 林峯
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