How to Quote International Freight Step by Step

Getting quotes right is how freight forwarders win business. A fast, accurate, professional quote tells a prospect that you know what you are doing. A slow or incomplete one tells them to call the next forwarder on the list.

Yet quoting remains one of the most manual, error-prone processes in many forwarding operations. Rates scattered across spreadsheets, surcharges that change weekly, and the constant back-and-forth to gather cargo details before you can even start building the quote.

This guide walks through the quoting process from information gathering to final delivery, with practical steps you can apply whether you are quoting your tenth shipment or your ten-thousandth.

What Information You Need Before Quoting International Freight

A freight quote is only as good as the information behind it. Sending a quote with wrong assumptions about cargo dimensions or Incoterms guarantees a revision later, which costs time and credibility.

Here is the minimum information you need before building a quote:

Cargo Details

Routing Details

If you are unfamiliar with how Incoterms affect quoting responsibilities, our Incoterms 2020 guide breaks down each term's cost and risk allocation.

Client Context

Less obvious but equally important:

• Is this a one-time shipment or recurring? Recurring business justifies volume-based carrier rates.
• Does the client have a customs broker? If not, you may need to include brokerage in the quote.
• What is their experience level? First-time importers need more detailed quotes with explanations. Experienced shippers want bottom-line numbers fast.

Step by Step: How to Build a Professional Freight Quote

Step 1: Verify Cargo Feasibility

Before pulling rates, confirm the shipment is feasible. Check:

• Is the commodity restricted or prohibited on your trade lane?
• Does it require special equipment (reefer, flat rack, open top)?
• Are there current port congestion or embargo issues affecting the route?
• Does the cargo require fumigation, inspection, or special certifications?

Skipping this step leads to quotes that cannot be fulfilled, which damages credibility far more than a slightly delayed response.

Step 2: Select the Right Carrier and Service Level

For ocean freight:

• FCL (Full Container Load): Client needs a dedicated container. Quote per container (20', 40', 40'HC, 45').
• LCL (Less than Container Load): Cargo shares a container. Quote per CBM or per weight ton, whichever is greater (the W/M rule).

For air freight:

• Quote per chargeable weight (the greater of actual weight or volumetric weight at 6,000 cm3/kg).
• Consider express vs. standard service levels. A 2-day express to Miami will cost 3-4x more than a 5-7 day standard service.

For land/cross-border:

• Quote per truck (FTL) or per pallet/CBM (LTL).
• Include border crossing and customs clearance fees explicitly.

Step 3: Build the Cost Stack

A complete freight quote should itemize every charge the client will see. Bundling everything into a single "freight charge" might seem simpler, but it creates problems when clients compare your quote against competitors who itemize, and when you need to reconcile costs internally.

Standard quote structure:

Step 4: Calculate Your Margin

This is where many forwarders leave money on the table or, worse, unknowingly quote below cost.

For each line item, calculate your buy rate (what you pay the carrier or vendor) versus your sell rate (what you charge the client). Your margin sits in that spread.

Rules of thumb for margin planning:

• Freight charges: 10-20% markup on carrier rates is common for SMB forwarders. Competitive pressure on major trade lanes may push this lower.
• Origin/destination services: 15-30% markup on vendor costs.
• Documentation and service fees: These are often flat fees that represent high-margin revenue. Do not undervalue them.
• Insurance: Standard markup on premium, typically 10-15%.

For a deeper dive on margin analysis, see our guide on calculating shipment profitability.

Step 5: Present the Quote Professionally

How you present the quote matters almost as much as the numbers. A well-formatted quote signals competence.

A professional freight quote should include:

• Your company header, logo, and contact information
• Client name and reference number
• Quote validity period (typically 7-15 days for ocean, 3-7 days for air)
• Detailed commodity description and cargo specifications
• Itemized charges by category (origin, freight, destination, fees)
• Total in the client's preferred currency
• Incoterm basis clearly stated
• Estimated transit time (port-to-port and door-to-door)
• Terms and conditions (liability limitations, payment terms)
• Expiration date prominent and clear

What NOT to include:

• Your buy rates or vendor costs
• Carrier-specific rate references that could be used to bypass you
• Vague catch-all line items like "miscellaneous charges"

Step 6: Follow Up Strategically

The quote is sent. Now what? If you are managing follow-ups via memory and sticky notes, you are going to lose deals.

• Follow up within 24-48 hours of sending the quote
• Be ready to answer questions about specific line items
• Have an alternative option prepared (different carrier, different service level, different routing) in case the client pushes back on price or transit time
• Track quote-to-booking conversion rates so you can identify where you are losing deals

Common Mistakes When Quoting International Freight

These are the errors that cost forwarders business, margin, or both:

1. Quoting on stale rates. Carrier rates change frequently, especially in volatile markets. If your rate sheet is from last month, your quote may be below cost before the client even responds.

2. Forgetting surcharges. Peak season surcharges, port congestion surcharges, low sulfur fuel surcharges. These can add 15-30% to the base freight rate. Omitting them means eating the cost or sending an awkward revised quote.

3. Ignoring volumetric weight. For air freight especially, quoting on actual weight when the cargo is light but bulky leads to significant underquoting. Always calculate both actual and volumetric weight and quote on the chargeable weight.

4. Not specifying Incoterm. A quote that says "$4,500 freight" without specifying whether that is FOB, CIF, or DDP is meaningless. The Incoterm defines exactly which costs are included and which are the client's responsibility.

5. Taking too long. In competitive markets, quotes older than a few hours are already losing to forwarders with faster processes. If your team needs half a day to build a quote, the deal may be gone before you send it.

6. Quoting in the wrong currency. Know your client's preferred currency. Quoting in Colombian pesos to a US importer creates friction. Quoting in USD to a Colombian exporter without noting the exchange rate basis creates confusion.

How to Calculate Freight, Insurance, and Customs Costs

Freight Rate Calculation

Ocean FCL: Carrier quotes a flat rate per container. Add surcharges (BAF, THC, ISPS, documentation fees) to get the total carrier cost.

Ocean LCL: Rate is per W/M (weight or measurement, whichever is greater).

• Calculate total CBM: L x W x H (in meters) per piece, multiplied by number of pieces
• Calculate weight in metric tons
• The greater number is the chargeable quantity
• Multiply by the per-W/M rate

Air freight: Chargeable weight is the greater of:

• Actual gross weight (kg)
• Volumetric weight: (L x W x H in cm) / 6,000 per piece

Insurance Calculation

Standard cargo insurance formula: Premium = (Declared Value + Freight Cost) x 110% x Insurance Rate

The 110% factor accounts for anticipated profit. Typical insurance rates range from 0.3% to 0.5% for standard cargo. Hazardous, fragile, or high-value goods attract higher rates.

Customs Duty Estimation

Duties are calculated on the CIF value (Cost + Insurance + Freight) in most countries: Duty = CIF Value x Applicable Duty Rate (by HS code)

Note: Duty rates vary by product classification, country of origin (preferential trade agreements), and destination country regulations. Always verify current rates with the applicable customs authority. For US imports, check the Harmonized Tariff Schedule (HTS) and factor in any applicable Section 301 or anti-dumping duties.

Tools to Speed Up Your Quoting Process

Manual quoting using spreadsheets and email works until it does not. The tipping point usually comes around 20-30 quotes per week, when the time spent building quotes starts crowding out the time needed to actually run shipments.

Modern freight software accelerates quoting by:

• Centralizing rate management. All carrier rates in one place, with expiration tracking so you never quote on stale rates.
• Automating calculations. Enter cargo details once and the system calculates volumetric weight, applies the correct rate tiers, adds surcharges, and builds the cost stack automatically.
• Generating professional documents. Branded quote PDFs with itemized charges, terms, and validity dates, generated in minutes instead of hours.
• Tracking follow-ups. Built-in pipeline management so no quote falls through the cracks.
• Analyzing conversion. See which quotes convert, which do not, and why. Adjust pricing strategy based on data, not intuition.

NuevaFlo's sales module is built for exactly this workflow. Forwarders using NuevaFlo typically reduce quote turnaround from hours to under 30 minutes while improving accuracy and conversion rates.

FAQ

How long should it take to prepare a freight quote?

With the right tools and processes, a standard freight quote should take 15-30 minutes. If your team consistently needs 2-4 hours, the bottleneck is usually rate lookup (scattered across spreadsheets and emails) or manual calculation. Quoting software reduces this to minutes.

What should a freight quote include?

At minimum: commodity description, origin and destination, Incoterm, itemized charges (origin, freight, destination, fees), total in the client's currency, estimated transit time, quote validity period, and payment terms. A good quote is clear enough that the client can compare it against competitors without calling you for clarification.

How do you handle quotes in multiple currencies?

State your base currency and the exchange rate source (e.g., "rates based on USD/COP exchange rate of X as of date"). Include a clause specifying that the final invoice will reflect the exchange rate at the time of booking or billing. This protects you from currency fluctuations between quoting and payment.

How long should a freight quote be valid?

Ocean freight quotes are typically valid for 7-15 days. Air freight quotes are valid for 3-7 days due to more volatile rate markets. In periods of high rate volatility (peak season, capacity crunches), shorter validity periods protect your margin. Always make the expiration date prominent on the quote.

Is it better to quote per shipment or per container?

For FCL, quote per container since that is how carriers price it. For LCL, quote per CBM/W/M. For recurring clients with predictable volumes, consider offering a program rate (fixed rate for a committed volume over a period) which gives the client predictability and gives you volume commitment.

Want to cut your quoting time in half? See how NuevaFlo handles freight quoting or start with a free plan and build your first quote in minutes.