While there are opportunities in the tender process, there are also risks involved, making thorough preparation essential for success. This includes analyzing past shipping experiences, conducting comprehensive research, and acquiring the necessary expertise. Staying up-to-date with market events is crucial because the world is constantly changing, and we need to be ready for every possible scenario. However, the greater the chaos in the world, the harder it becomes to make accurate predictions. At INCON, we are prepared to face the developments ahead!
How does pricing change in tender-based logistics?
Professional pricing essentially aims to determine the most accurate future cost levels. However, risks also play a significant role in shaping prices, and we must incorporate uncertainty factors into our bids. Understanding statistical data, trends, and macroeconomic processes is essential for effectively planning for future costs, such as fuel prices, wage developments, and tax changes. Only with accurate data and extensive knowledge can we submit competitive and realistic offers.
In international transportation, tender prices often need to be quoted in forints, making the calculation with the appropriate euro exchange rate crucial, as future shipping costs will correlate with this rate.
Geopolitical conflicts have a significant impact on fuel prices, representing another major risk factor. Tensions in the Middle East, like the situation in Iran and the Palestinian-Israeli conflict, are already affecting oil production. Consequently, we may expect delays and higher shipping costs if prices suddenly rise. The instability of the international situation can lead to increasing supply costs.
For tendered shipments, prices often cannot be adjusted after the contract is signed. Therefore, it’s important to implement clauses that help mitigate risks. It’s advisable to calculate these frameworks separately to ensure that tenders remain competitive while taking market conditions into account.
Why is it important to implement clauses?
Clauses, such as fuel or exchange rate clauses, are not always popular among those who issue tenders, and surcharges are only approved in very justified cases. When we think about it, offers that include clauses can maintain tender rates in the event of changes, eliminating the need to issue new tenders during the year if previously established rates become unsustainable. Since issuing a tender requires significant resources from the issuer, using well-justified, transparent clauses clearly leads to a consensus solution and a win-win situation for both the issuer and the bidder.
For example, the Russia-Ukraine war has had a significant impact on the global fuel market. Initially, the conflict led to a dramatic increase in fuel prices, which we had to address with a fuel surcharge.
What should we keep in mind when tendering?
Due to the above uncertainties and risks, issuing tenders, evaluating them, and preparing bids requires exceptional expertise. Forecasting prices for a year is crucial, and the resulting tender offers may be lower or even higher than normal market prices. These differences arise depending on the geopolitical situation, wars, natural disasters, and pandemics.
Tendered shipments are generally considered more favorable solutions on an annual basis due to well-planned costs and long-term partnerships. However, there are three factors that must always be kept in focus:
Changes in External Conditions: Sudden changes in external conditions (such as economic situations, regulatory changes, or political circumstances) can influence costs, expectations, and the quality of services.
Risk Management: Tender contracts may include various risks, such as delays, material shortages, or unexpected events that can impact performance.
Changes in Project Requirements: Decisions and requirements made during the tendering process can continuously evolve, and adapting to pre-existing contracts can pose numerous challenges.
Future prospects for tendered shipments are mixed. The question remains how predictable market conditions will be. Due to the volatility experienced since the COVID-19 pandemic, the situation is uncertain, and past forecasts often proved inaccurate. In light of all this, continuous information gathering and adaptation are essential for ensuring that tendered shipments remain successful and sustainable in the future.
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