Understanding the Freight Forwarding Basics: 5 Steps to Choosing a Freight Forwarder

Exporting can be a stressful business, especially for first timers. Freight forwarders can provide valuable assistance in simplifying the process of getting your cargo to international destinations. Before you shake hands with your chosen freight forwarder, however, there a a few questions you should ask yourself about your freight provider. If you’re aiming to expand globally you will need a freight forwarder that suits the needs of your business and who can be as involved as you would wish in your long term goals.

The 5 Steps and the Important Questions to Answer

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1. Shipping Requirements – your products. Ask: Can the company handle my product needs or do they only do specialised cargo? What are their modes of transport? Are they adequate? Are they able to send it out on time?
The purpose of exportation is to be able to send your products out into the international market so, before hiring a Freight Forwarder, know first if the company is able to handle the shipment, if their operations are good enough to cater to the magnitude of your transaction or if they have placed certain restrictions when it comes to weight, size, etc due to factors like transportation partners. Know what type of goods they can manage, if they are able to deal with variable cargos (especially if your cargos may vary in type), are selective perhaps or deal in certain goods only since that helps determine the knowledge they have. Remember that specialisation can sometimes become a limit to what can be done or nothing can be done at all…Know as well how they would manage the task and the means by which they would transfer your freight. Will it be by cargo ship or cargo plane, and what about land travel once it reaches the next point? Ask if there will be a need for any or no, and, if there is, would they have ties to those who can deliver? The flow of their processing needs to be as smooth as possible.Last, there is the question of ‘how fast’ they can get from point A to point B, C, etc. Ensuring that the timing is right – that your goods arrive at the right destination at the right time – is crucial for your business.
2. Service Size – company strength. Ask: If the company is able, can they guarantee it? Are they financially stable and can they offer, beyond assurance, an insurance alternative for my goods and product shipments?
Accidents happen and chances are that, at some stage, you may incur some type of loss. Risk is a necessary evil when shipping abroad since your products may need to brave storms, transportation malfunctions, bumps, breakage and even the threat of pirates for those shipments crossing sea and ocean. Being guaranteed by the company is one thing, but insurance is another matter entirely. In case of such losses, the Freight Forwarder must have insurance options offered, the policy clear and specific as well as ready for discussion once such matters do arise during the transportation or transfer of your products, or even if delays happen due to their miscalculations. You should never be made to run after the Forwarder. They must be accountable at all times, prepared to explain or make compensation as necessary and applicable.
3. Price and Billing - the expenses. Ask: Is it worth my money? Can they care for the amount I invest in them?
Any business requires investment and hiring a Freight Forwarder can be considered as one. The Freight Forwarder you should choose is one that’s able to openly discuss financial matters with you, elaborating on details you can expect from your bill like customs processes, local and import charges, handling, freight activities and other possible amounts and components that will usually vary depending on the size of the cargo, the destination and other fees inclusive of the transaction. The forwarding bill needs to be timely, and clear to you, with the Forwarder able to explain any confusing portion that you might have questions about. They shouldn’t just be able to take care of transferring the products for you but must likewise be prepared to assist you with other concerns especially with regard to the amount you will surely have to spend. This way, tracking of finances is made easier on your end as well.
4. Communication – keep track. Does the company have the right networks and global partners? How often do they communicate and how fast can feedback or reporting be done?
Communication is always an essential part of doing business and is likewise important when hiring a Forwarder. Always check how communications are done before hiring, especially between foreign offices of the company. The information flow must be as dependable as their services, precise and also on time, allowing you to track and pinpoint your cargo’s location as well as condition on the globe easily. Feedback and reporting must also be available so that if further concerns arise, you can contact them and they can likewise contact you. A personalised service is a plus, the line to the Forwarder open so that you can contact them regarding even the minutest of details.
5. The issue of trust – has the company built its name? Can they be trusted to deliver? Who knows them?
It’s always a good practice to ask and be advised especially in choosing the Forwarder that will handle your import products. See if other previous customers are happy with the company, satisfied with the overall level of service. Get to know their business background, the reputation that comes with the name, be it good or bad. Do a little research of your own and compare one company with another. Remember, there will always be a better if not more suitable option to fit your needs so take enough time, choose wisely, and narrow your selections.
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