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7 Things You Need to Know About Your Freight Forwarder

August 2, 2019

 

Whether your business is emerging growth, middle market, or an established Fortune 500 company, one commonality exists - the procedural implementation of your supply chain must be efficiently governed by a thorough freight forwarder for progressive growth and overall development.

 

  1. What is a freight forwarder, exactly? “A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel operating common carrier (NVOCC), is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.” [Freight Forwarder definition via Wikipedia.org] Freight forwarding companies specialize in end-to-end logistics, essentially liaising between carriers and customers employed to negotiate rates and ongoing contractual agreements concerning the most efficient and effective route.   

  2. Range of services provided: Typical services provided by a freight forwarding company include Customs Clearance, Imports and Exports on a global scale, Documentation, 3PL Warehousing and Distribution, Small Package Service, International Control Center, Compliance and Regulatory Service.

  3. Freight forwarders are beneficial to your business. Why? As previously written in the “Of All the Benefits an International Freight Forwarder Brings to Your Business – Which Ranks Highest?” blog written in April, 2019, there are three main advantages a freight forwarder can give to your overall supply chain. These include:

    1. Growing your business: International Air Freight Forwarders provide quick and seamless access to international markets. The ability to reach the demands of your clients across the globe in an expedited manner opens immeasurable opportunities for expanding businesses.

    2. Cost: An international freight forwarder can lower the overall cost of your shipments by offering consolidation when necessary, by comparing competitive rates using digitized rate management systems, and by managing multiple sectors within air freight logistics, simultaneously.  

    3. Access to knowledge: It is no secret that air freight logistics can be a complex business. Shipping, documentation, and Customs all bring their fair share of challenges. Working directly with a qualified international air freight forwarder provides valuable knowledge and experience not available elsewhere. Air freight forwarders can give industry insight and best practices on a global level.

  4. Your freight forwarder should have a vast network. Seasoned, vetted, and established freight forwarders will have a wide-spread global network. This not only expands their physical reach, but ensures that your shipments remain both economical and transparent from origin to destination.

  5. Documents provided by your freight forwarder include: Commercial Invoice, Bill of Lading, Certificate of Origin, Inspection, Export Packing List, and Declaration Document.

  6. The importance of maintaining a good relationship with your freight forwarder is grossly underestimated. Why is it so important? Freight forwarders are often tasked with legal feats involving governing agencies as they pertain to your cargo. Maintaining a good working relationship with your freight forwarder allows for a subtle peace of mind when shipping freight of any kind. Trusting that your shipments are in good hands takes some of the pressure off the entirety of your supply chain.

  7.  Shipping delays are not your freight forwarders fault. Understand why. Delays can be attributed to bad weather, mechanical issues, port delays or closings, road congestion or construction. While these delays are out of your freight forwarders realm of control, it is important to note that they will be diligently working to rearrange any feasible transaction to negate any further delays and to push the movement of your shipment back on track.

 

As always, if you have any further questions regarding the efficiency of your supply chain and how a knowledgeable freight forwarder can help streamline the logistics process for you, then reach out to us HERE for a free consult.

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