Whether you are into an international or domestic business, you cannot overlook the importance of choosing a good freight forwarder.
Freight forwarders deal with the transportation and logistics of products from start to end. You can think of them as the hidden soldiers of your business.
When it comes to global trading, there are many tasks like documentation, international transportation charges, custom duties, taxes, and so on involved in the supply chain. If any of these tasks go wrong, you might end up in a huge mess. (I’m sure you don’t want that!)
That’s why you need to get a good freight forwarder. The appropriate freight forwarder will not only manage your logistics but adequately take care of your end-users.
There are dozens of freight forwarders in the industry, so picking up the right option is a tedious task. However, you don’t have to fret since we are here to help you!
In this guide, we’ll talk about how to choose freight forwarders for your business. That said, let’s begin!
Tips to Choose the Right Freight Forwarder
If you are new to international business, you might not realize the importance of a good freight forwarder at first. Nevertheless, you will soon understand that the freight forwarder’s contribution matters a lot! So, let’s now see how to pick your ideal freight forwarder.
What Do You Want?
Before scouting for a freight forwarder, take a moment to figure out your business requirements.
Apparently, different businesses have different requirements. For instance, if you are an Amazon seller, you’ll need an FBA freight forwarder.
Likewise, the transportation requirement, amount of supply, shipping frequency, and documentation required for your company will differ from other companies. To avoid confusion while working with your freight forwarder, you need to be clear about what you want.
If you don’t know what services you require, talk to other people in your industry.
Level of Experience
Working with newcomers is often riskier!
Freight forwarders who haven’t dealt with cargo related to your industry won’t handle the shipping as nicely as the experts would handle. In some cases, they may end up damaging the goods or mess up with the documentation. So, it’s wiser to work with an experienced freight forwarder.
You can also pick a specialist freight forwarder that deals specifically in the type of goods you sell. This will cut down the chances of damage, and the forwarder’s experience can get your goods smoothly supplied.
Besides, experienced freight forwarders are also good at dealing with the issues involved while shipping (dock worker strikes, cargo reroutes, etc.)
Services Provided
Since different businesses require different services, freight forwarders offer a wide range of services. That’s why you need to figure out your requirements and ask whether your freight forwarder provides all you need.
For example, if your business requires you to store the goods in a warehouse for some time, you will need a freight forwarder that can do that for you. The mode of freight (sea, air, or road) will also vary based on the location and goods.
So, it’s crucial to select a freight forwarder that offers all the required services.
Some of the services that a potential freight forwarder must provide are:
- Invoice notarization on behalf of shippers
- Packing and Storage
- Transportation tracking
- Customs clearance
- Getting certifications
- Negotiating freight costs
- Reserving cargo space
- Handling payments on your behalf
- Post-service handling charges
Cost Matters
It’s a fact that handling an international business is challenging. Your shipment has to pass through several barriers before reaching the destination. Since your freight forwarder deals with the supply chain, it’s sensible to pay the correct cost to them.
That said, a cheaper quote shouldn’t lure you to switch to another freight forwarder. Some freight forwarders might show a low rate at the beginning and later hand you a much higher bill than the approved rate. The reason for the high price could be anything, and you could do nothing about that.
To avoid such situations, you should act smart and pick a freight forwarder that has transparent pricing.
Reliability
Working with a reliable freight forwarder gives you peace of mind. That’s because reputed forwarders will ensure that their service is up to the mark.
You can check the credibility of your forwarder by asking other businesses. You can even ask the freight forwarder to show their certifications.
Further, also ask your freight forwarder if they have the licenses and documentation required for your cargo. A reliable freight forwarder won’t mind providing all this information.
Network
Whether you are looking for an FBA freight forwarder China or a local freight forwarder, hiring one with a good network can do wonders for your business.
Freight forwarders with strong connections at the origin and destination countries can help you solve issues in transportation or local authorities. They can also help negotiate the shipping rates, dealing with documentation, timely deliveries, and much more.
Cargo Insurance
If you want to keep stress far from you, it’s beyond necessary to get cargo insurance. This insurance ensures coverage for your goods while shipping them through air, land, or sea in the case of loss or accidental damage.
There are various types of cargo insurances. However, a good freight forwarder should provide cargo insurance based on your shipping requirements. Plus, you shouldn’t neglect this factor, as anything can happen anywhere, anytime!
Conclusion
Handling international shipping is no joke, but working with the right freight forwarder can reduce your worries. We have explained all the factors you need to check while choosing a freight forwarder in this post. Nevertheless, before choosing your freight forwarder, research well about them and be clear about your requirements.