Freight scanner

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Freight Scanner – Free insight into potential cost savings

Transinnovate’s free freight scanner, also known as our quick scan, provides detailed insight into your potential freight cost savings. For many shippers, we often identify cost-saving potential ranging from 10% to 50%. These reductions in freight costs can be significant yet realistic. But how is this possible? In this blog post, we will explain how our transport scanner works.

An Independent Transport Scanner

First and foremost, it is important to mention that we offer fully independent support to our (potential) clients: often shippers. We have no agreements with logistics service providers, receive no commissions, own no vehicles, and do not schedule transport orders. We are paid by our clients to reduce transport costs, improve service, promote sustainability, or automate operational processes. Through our extensive experience working with thousands of logistics service providers, we know which ones are the best fit for you. When selecting a party to perform your transport scan, make sure of the independence of the transport scanner.

Schedule a meeting for a free freight scan

Step-by-Step Process of Transport Scanner Transinnovate

Below, we will outline the steps involved in our transport scanner and how we arrive at an accurate estimation of cost savings. The entire transport scan process up to step 4 is completely free and without obligation.

Step 1: Shipment Profile

First, we request a representative shipment profile that will serve as the basis for the freight scan. Typically, this includes one year’s worth of shipments to account for any seasonal influences. If desired, we can sign a confidentiality agreement beforehand. Since most shipment profiles have a several focus areas, we apply the 20/80 rule, focusing on analysing 20% of the profile that represents approximately 80% of the freight costs. Additionally, we ask a few questions to clarify your transportation requirements and preferences. It’s always possible to find ‘cheaper’, but our magic lies in finding it cheaper for the service level that you need.

Step 2: Current Transport Costs

For this profile, we would like to know the transport costs associated with your existing service providers. To ensure transparency, we commonly ask for the quotations and any fuel cost percentages, allowing us to calculate the exact freight costs. We utilize our in-house software to determine the actual cost of each shipment with the current service provider. Alternatively, a shipment profile including costs from your own system or that of the carriers can serve as a basis. In such cases, it is important to ensure that there are no hidden costs or surcharges. The result of this step in the freight scan is gaining an understanding of the current costs.

Step 3: Potential Transport Costs

With our extensive experience, we have access to market price levels and have knowledge of various logistics service providers, which we leverage for our transport scanner. The data we use includes realistic prices that align with the shipment locations and desired service level. In rare cases where we lack a clear understanding of the specific profile, we request rates from providers known to be a good match for the shipment profile. As previously mentioned, we are independent and free to select the best party/rates for your profile.

Step 4: Reporting

We provide our clients with a detailed report that outlines the current costs, potential costs, and the cost savings potential. If feasible, we can simulate the cost reduction achieved by using a greater number of logistics service providers or employing different modalities. Our transport scanner provides sufficient detail to determine if a follow-up process, such as a tender, is worthwhile.

Step 5: Tender

What is not included in our transport scanner is match making to suitable logistic service providers with which the saving potential can be realized. This is part of our (paid) procurement support. Firstly, we handle our contacts and data with high integrity. Secondly, in an actual tender we can ensure the proposed carriers are indeed relevant for your profile and are willing to actually offer. We are fully opposed to run tenders with unrealistically large numbers of candidates By sharing our knowledge, streamlined processes, and demonstrating the potential for cost savings, we aim to persuade the companies we have performed the scan for to engage us in a tender process. While we cannot guarantee the exact percentage of savings, we are always open to performance-based pricing agreements.

We emphasize the importance of independence in a transport scan, along with expertise in the process and the market. This is why it is logical to choose for Transinnovate’s freight scanner. If you would like more information, feel free to contact us.

Schedule a meeting for a free freight scan

50 tips on how to save 30% on transportation costs immediately.

 

Looking to gain more knowledge in optimizing or managing transportation? In our transport guide, we provide you with:

  • Tips for immediately saving costs on your current transportation.
  • A wireframe to help you gain control and insight into your current transportation data per shipment.
  • Insights into knowledge and developments within the transportation industry.

Smarter transport decisions start here.

Manage all your carriers from one place.
Track costs, choose the right carrier, and optimize your transport operations with Transinnovate’s TMS.

FAS Incoterm® (Free alongside Ship)

What is FAS Incoterm®?

FAS (Free Alongside Ship) is one of the official Incoterms®2020 rules published by the International Chamber of Commerce (ICC). It applies exclusively to maritime transport and means that the seller is responsible for delivering the goods alongside the vessel at a named port of shipment. At this point, risk and cost transfer from the seller to the buyer.

Incoterms® are globally standardized trade terms that define who is responsible for transportation, costs, and risk during international shipping. The latest version, Incoterms® 2020, came into effect on January 1st, 2020.

An overview of all incoterms is available here.

Incoterms 2020 responsibilities

 

The Free Alongside Ship (FAS) Incoterm is an international trade agreement that is used for transport by water. In an FAS arrangement, the seller is responsible for delivering the goods to a named port, placing them alongside the vessel. The transfer of risk and cost occurs when the goods are alongside the ship and ready for export.

Advantages FAS Incoterm®

Clear Transfer of Risk

FAS provides a clearly defined point where responsibility transfers from seller to buyer: when the goods are placed alongside the vessel. This reduces the risk of misunderstandings or disputes.

Buyer Controls the Main Transport

Once goods are alongside the ship, the buyer takes over transport arrangements, which allows them to choose their preferred carrier, shipping schedule, and potentially negotiate lower freight rates.

Widely Applicable in Maritime Trade

FAS is particularly suitable for bulk cargo and large-volume shipments where the buyer has experience managing ocean freight or prefers to control logistics beyond the port of departure.

Drawbacks FAS Incoterm®

Limited Seller Responsibility

The seller’s responsibility ends before the goods are loaded onto the ship. If damage occurs during loading or the main transport, the buyer bears the risk and must handle insurance or claims.

Early Risk Transfer

Risk transfers to the buyer at the port, not after loading or departure. If the goods are damaged after being placed alongside the ship but before loading, the buyer is still responsible.

Risk of Disputes

Disagreements may arise if the loading process is unclear or if issues occur during shipping. It’s crucial to define in the contract who handles loading, inspections, and documentation.

Example of FAS in Practice

A wine producer in France sells bulk wine to a distributor in the United States. The agreed Incoterm is FAS – Port of Marseille.
The seller delivers the wine in barrels to the Marseille port and places them alongside the vessel. From that moment, the buyer handles the loading, sea freight to New York, and customs clearance.

 

Summary Free alongside Ship

  • Transport Mode: Maritime (sea or inland waterway only)

  • Seller Obligation: Deliver goods alongside the ship at named port

  • Buyer Obligation: Handle loading, main carriage, insurance, import

  • Risk Transfers: When goods are placed alongside the ship

  • Best For: Buyers who want control over ocean freight and logistics

In summary, FAS provides a clear transfer of risk and is suitable for buyers seeking control over transportation logistics. However, sellers have limited responsibility after the goods are placed alongside the ship. Careful communication and a well-drafted contract are essential to ensure a smooth FAS transaction and avoid potential disputes.

Do you frequently require goods to be transported in short sea of ocean freight, either as seller or as buyer? If you would like to discuss which Incoterms® and transport solution fit best to your case, 

Need Help Choosing the Right Incoterm®?

Do you frequently import or export goods via sea freight?
Are you unsure which Incoterm best suits your business?

Contact our logistics experts for personalized advice on Incoterms® and optimal transport solutions.

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