Freight forwarders play a crucial role in global trade. But what is freight forwarding? Even if you’ve worked with this kind of partner in the past, you might not realize all that this service includes, or how much value you gain from the relationship.
Here’s the full story.
A freight forwarder is a specialist that executes all aspects of an international shipment, door to door. When you work with a forwarder, you don’t worry about the complexities of transportation – negotiating rates, booking capacity, trucking cargo to the sea port or airport, submitting customs declarations or any of the rest. Your forwarder handles the details, keeps you informed and, if anything deviates from the plan, provides solutions.
You might wonder why you’d need a middleman like a freight forwarder. Why not just call a steamship line, or an air cargo carrier, and book directly?
Air cargo carriers don’t work directly with shippers at all: they always deal with freight forwarders. And steamship lines generally sign service contracts only with companies that tender them a good deal of cargo – either larger shippers, or third-party service providers.
Even if the carrier wants to do business with you, there are several reasons to work with a freight forwarder instead. These factors are especially important if you run a small or mid-sized company. For example:
Can a do-it-yourself digital platform find you drayage capacity? Will it coordinate pickups and drop-offs so everything happens smoothly and on time? Can an online marketplace help with special needs such as transload services or out-of-gauge cargo? Does it offer creative solutions to mitigate high container shipping rates?
A digital marketplace might help you find competitive rates, but it won’t provide personalized customer service. An experienced forwarder can help you sort out the options for a complex move and suggest alternatives to save time or money. It can also guide you through the subtleties of customs declarations and regulatory compliance, steering you away from costly pitfalls.
A rich network of truckers. It often takes more than one or two calls to find a motor carrier to transport a load to the seaport or airport, or to pick up inbound freight. In fact, in the current market, it could easily take more than six or seven calls. You need a forwarder with a deep pool of qualified transportation partners.
Strong relationships with service companies such as a reliable customs broker, transloading services and bonded warehouses. Through those ties, a well-connected forwarder offers integrated services to meet a wide variety of needs.
It’s also an NVOCC. A non-vessel operating common carrier (NVOCC) performs all the services an ocean carrier does, except that it doesn’t operate any vessels. An NVOCC issues its own bill of lading, making it responsible for the safety of your load. A forwarder that is also an NVOCC has thorough knowledge of the ocean transportation process. When you ship by ocean, and your forwarder is also an NVOCC, whatever issues might arise with your freight, you deal with the same team of experts to resolve them.
A long track record, especially in the lanes you use. You can evaluate the quality of that experience by calling some references.
An on-the-ground presence in countries where you do business. If you ship a lot of cargo from Poland to the US, for example, a US-based forwarder that owns an office in Poland will provide the best service. You can also get excellent service overseas if your US forwarder has a long, close relationship with an agent in the country of interest.
We’ve already mentioned that a freight forwarder can save you money by getting you lower rates than you could get on your own. In addition, a freight forwarder can:
Ultimately, a freight forwarder’s job is to produce a successful shipment, transporting your cargo from Point A to Point B in a way that meets your specific goals. Based on deep expertise and its network of business relationships, it takes the worry out of international shipping, freeing you to focus on your core business.
Take the first step toward more efficient, cost-effective international shipping. Contact the freight forwarding experts at I.C.E. Transport.