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April 17, 2025

Navigating Hidden Freight Costs: Taking Control of Unexpected Charges

Blog Post written by Ohad Azgad, CEO of Cinch Logistics leaders must control costs while maintaining service quality, but hidden freight charges often erode profits due to poor visibility. Cinch analyzed over 7,000 line-item charges from 30+ freight forwarders, brokers, and carriers in FMCG and manufacturing, uncovering three major cost drivers: The Frequency-Impact Paradox Frequent charges like fuel surcharges appear in 14.4% of invoices but contribute just 4.2% of hidden costs. In contrast, customs duties—though present in only 5.8% of invoices—account for 52% of hidden costs. Identifying these patterns helps logistics teams focus on impactful cost reductions. Inconsistent Invoice Terminology Charge names like “Fuel Surcharge” vs. “Bunker Adjustment Factor” vary between carriers, reducing cost visibility and negotiation leverage. Standardizing terminology improves tracking, clarity, and vendor negotiations. Hidden Budget Risks: Customs, Duties & On-Carriage Fees Customs duties account for 46% of hidden costs, while on-carriage fees add 26%, despite appearing in only 4.3% of invoices. These charges are often underestimated during quoting, leading to budget overruns. Proactive management prevents unexpected expenses.   Strategies to Optimize Freight Costs Real-Time Data Analytics: Platforms like Cinch provide charge visibility during quoting, improving cost forecasting and negotiation leverage. Standardized Terminology: Consistent charge names enhance cost…
Africa
March 24, 2025

Supply Chain Trends, Challenges, and Opportunities in Africa

The top supply chain trends in Africa right now include ecommerce, sustainability, technology and skills development. The e-commerce boom that was fuelled by Covid-19 is showing no signs of slowing. It is predicted that in 2025, e-commerce transactions in South Africa will grow 150% to R225 billion. While African consumers are clearly sold on the speed and convenience of online shopping, they are also increasingly recognising that there is an environmental price to be paid, and they are demanding greener e-commerce supply chains. African businesses also recognise that to compete on the global stage, and for Africa to rise as the supply chain powerhouse that many predict it can be, they must align with global environmental standards. Integrating sustainability into supply chain and logistics is therefore a growing imperative in Africa. African companies are investing in technologies like electric vehicles, renewable energy sources and advanced data analytics to measure, manage and minimise their environmental impact. They are optimising transportation routes to have fewer vehicles on the road and to cut CO2 emissions. They are adopting circular supply chain models, to get more use out of products and move beyond the traditional “take-make-waste” approach. Takealot, which is South Africa’s largest online…