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10 Things You Must Know When Choosing a Freight Forwarder

10-things-you-must-know-when-choosing-a-freight-forwarder-1

You haven’t used a Freight forwarder as alleviation to your business yet? Well, maybe you should start reconsidering this point.

To put it another way, what in fact the real activity of freight forwarding companies includes and why it’s so important for your business? I will try to explain it to you briefly.

Source: www.bid-dubai.com
Source: www.bid-dubai.com

Thereupon, the main duties and activities of the forwarding companies include making arrangements for shipping and storing goods.

A point often overlooked is that there are also Freight Forwarders who are operating independently, without being part of a freight forwarding company.

Simply said: The freight forwarder is an expert in the logistics network.

Source: www.universalcargo.com
Source: www.universalcargo.com

So, the main reason why I highly recommend you the services that freight forwarders are providing is only because they will provide you peace-of-mind. That is to say, the freight forwarder is the person who will call you straight away to confirm, and verify that your entire shipment is shipped to the final destination.

Later on, after the freight forwarder performs the verification for your shipments, he will engage another person at the port. Therefore, as you can see, using freight forwarders in your business will only bring you the long needed cargo security.

Speaking of that, let’s take a look at the 10 things you must know when choosing a freight forwarder!

1. Role Of The Freight Forwarder

Henceforth, as I explained it to you briefly in the previous sub-heading, the role of the freight forwarder is of a great importance if you want your cargo delivered to the final destination in a safe and time-efficient manner.

Thereupon, the freight forwarder is only taking responsibility for the arrangement of the international movement of your cargo; he is not taking any ownership of the cargo.

Source: www.indomatrix.in
Source: www.indomatrix.in

Since the role of the freight forwarder is crucial, or better said most important, straight proportionally that leads freight forwarders to undergo additional training.

All that with the aim to understand better the responsibilities and personal liabilities that might arise.

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Also, there are related additional training programs, customized to help freight forwarders to improve their work.

By all means, freight forwarders shall undergo special training for handling of goods classified as dangerous, or better known as hazard materials.

2. Principles Of Freight Forwarding

As in any other business, there are principles that have to be respected in freight forwarding too. Therefore, the principles of freight forwarding are interconnected with the cost-effective, and efficient transfer of goods.

Source: www.AGL-Forwarding.com
Source: www.AGL-Forwarding.com

Did you know that these principles have transformed freight forwarders into experts in managing the logistics necessary to assure that are being delivered in time?

Being eloquent in the requirements of global/intermodal shipping, and knowing how to manage the risks and benefits of shipping nationally as well as internationally, are the main principles that set a good freight forwarder’s ranking.

Source: www.linkedin.com
Source: www.linkedin.com

On the other hand, freight forwarders should have all right tools at their disposal in order to perform a successful shipping in the expanding globalized markets.

3. Responsibilities Of The Forwarding Company

Forwarding companies have a lot of responsibilities. That is why I would like to start revealing you the most consequential ones:

  1. Transportation and delivery of the cargo to the carrier- he is facilitating the export of merchandise;
  2. Accurately prepares the EEI record based on provided information;
  3. Obtains copy of the EEI record;
  4. To Obtain a power of attorney;
  5. Maintain a documentation to support the information required on the EEI record;
  6. Export authorization;
Source: www.youtube.com
Source: www.youtube.com

On the other hand, the freight forwarder shall keep a record, and that includes:

  • CFR15 Section 762.2– setting forth the legal requirements for the records(five years from transaction date);
  • Section 762.3– setting forth the types of records that are determined with the record keeping procedures;

I do believe that this will give you a better picture about freight forwarders.

4. You Have To Access Your Needs

Enumerating what your needs are, can help you make a remarkable final decision when looking for a freight forwarder.

Moreover, straight after you decide that you will want to look after a freight forwarder for your cargo, you will have to decide what services you are in need of.

Source: www.dslglobalfreight.com
Source: www.dslglobalfreight.com

Thereupon, when you have the final data about you cargo (including the type, amount) then you will know which type of freight forwarding company you can look after.

This is a really important process because otherwise if you choose to select a forwarder or forwarding company that is not able to meet your needs as you desired, then it will end up in disaster.

Source: www.wilhelmsen.com
Source: www.wilhelmsen.com

So, if you think that the best option that you have is to choose a freight forwarding company, rather than an independent freight forwarder, then it would be to your advantage to check out the background of that company (including the type of connections that they have within the shipping industry).

5. What Type Of Services Does A Freight Forwarder Provide

The freight forwarder is responsible for a variety of services. Most commonly the freight forwarder is offering their services to many industries.

Source: www.fiflogistics.com
Source: www.fiflogistics.com

To put it another way, freight forwarders are offering the following services:

  • Warehousing;
  • Freight charge negotiation;
  • Cargo space reservation;
  • Freight consolidation;
  • Shipping and export document preparation;
  • Inland transportation tracking;

In the final analysis, we can notice that freight forwarders are in fact using their own bills of lading. Thereupon, by using freight forwarder you won’t have to worry about document deliveries, freight collection services, as well as deconsolidation.

Source: www.timescanlogistics.com
Source: www.timescanlogistics.com

On the positive side, if your business is small, and yet you choose to use a freight forwarder, then you should know that the freight forwarder can handle all the logistics requirements you might have.

6. How To Choose a Freight Forwarding Company

Yes, we are all aware of the fact that nowadays economy is unbalanced, but that shouldn’t be the reason for you to choose freight forwarders offering cheap rates and low logistics costs. Because after all, you get what you paid for.

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Personally, I’m part of the trucking industry for many years, and so far I have met many people who have made that mistake.

Keep in mind that you should be very careful when choosing a freight forwarding company. Overall your choice of freight forwarding company could smooth the supply chain operation or make it worse. The decision is yours.

Source: www.airlandlogistics.com
Source: www.airlandlogistics.com

Thereupon, when looking for a freight forwarding company, you should pay a special attention to the knowledge of the freight forwarder. All freight forwarders based in the USA must be trained in the U.S. Department of State and Department of Commerce.

So, is it relevant the fact that if the freight forwarder has undergone that training, that he will be the most suitable one for your needs? Is that fact enough.

Of course not.

Source: www.mercuryfreight.com.my
Source: www.mercuryfreight.com.my

Here are few points that each freight forwarder shall fulfill:

  • Customs-Trade Partnership Against Terrorism (C-TPAT) certification;
  • Submit the shipper’s reports via the S. Automated Export System (AES) for filing SEDs electronically;
  • Authorization to file electronic export information and shipper export declaration (SED);

Besides undergoing training, the freight forwarder must have few years of experience in that area, as well he must continually demonstrate willingness and capacity to communicate with his clients.

The communication between the freight forwarder and the client is of a great importance. Straightaway all clients want to be informed about the regular status of the cargo.

7. Freight Forwarders VS. Freight Brokers

Are you in doubt whether to choose freight forwarders or freight brokers in order to improve your business?

Well, before you do any decision let me explain you few facts and figures about the main differences between freight forwarders and freight brokers.

Thereupon, I would like to start with the first noticeable difference.

Source: www.cordovabrokerage.com
Source: www.cordovabrokerage.com

Were you aware of the fact that freight forwarders are the people in charge of arranging cargo transportation process, from point A to point B? On the other hand, we have the freight brokers who are in fact outsourcing the transportation activities.

Also, we can see that there is a big difference in the operational process between the freight forwarders and freight brokers.

In my previous articles, I have explained more about freight brokers, and that is why I expect you to know the fact that these people are working out of a small office. Whereas the forwarders can store your cargo in their warehouses, consolidated and assembled. This puts freight forwarders in advantage.

Last but not least, when it comes to the legal requirements, freight brokers are not lists with any legal document, while on the opposite, freight forwarders are on the Bill of Lading. In addition to that, freight forwarders need to be registered with the U.S. Federal Highway Administration (liability insurance policies and carrying cargo).

8. Documentation That The Freight Forwarder Should Provide You

Since you are already in the process of choosing a freight forwarder, there is one more thing that you shall pay special attention to, and that is the documentation that the freight forwarder should provide you.

Source: www.pangea-network.com
Source: www.pangea-network.com

For example, if you need your cargo to get shipped overseas, then the freight forwarder shall provide you the following documentation:

  1. Commercial Invoice – The cargo from the seller to the buyer;
  2. Bill of Lading (BOL) –The contract between the owner of the cargo and the carrier;
  3. Certificate of Origin (COO) – Statement that indicated the origin of the exported cargo;
  4. Inspection Certificate – Document that shows the cargo has undergone inspection and tests- that the quality of goods is acceptable;
  5. Export License –Document for authorization of the export of goods in specific quantities to a specific destination;
  6. Export Packing List – Detailed packing list what type of packaging container is used, the package measurements, as well as the type of packaging container is being used for the transportation of the cargo.
  7. Shipper’s Export Declaration (SED) – Document prepared by the US Postal Service (USPS). This document is used for export statistics and is a must if the shipment is greater than $500.

9. The Experience Level Of The Freight Forwarding Service

The years of experience the freight forwarding company has is decisive in this business. The more experience the freight forwarder has, the better.

If you choose a well-positioned freight forwarding company with a good ranking, that has a lot of experience in this field of operation, the better they will serve the needs that you have.

Source: www.shipping-worldwide.com
Source: www.shipping-worldwide.com

So, experienced freight forwarders are better than freight forwarders who have just entered in this business, because for example, the transportation process is not according to the plan, the experienced freight forwarders will know better how to handle that problem.

Additionally experienced freight forwarders have more connections in this industry, and straight proportionally they will act faster than new freight forwarders.

Source: www.klfreight.com
Source: www.klfreight.com

Be as it may, you will come to the realization that reputable freight forwarders are more helpful than you thought. Also, there is one more thing that you should know: choosing a recommended freight forwarder is always a good idea.

As you can see, freight forwarders can definitely reduce the amount of stress that you are facing right now without their help.

10. How Secure Is The Freight Forwarding Service For Your Business

As I mentioned at the very beginning of this article- the first key point of choosing an adequate freight forwarder is determining the needs that you have.

That is so because, the better evaluation of your needs, the better freight forwarding service you will choose.

Source: www.fhorseegypt.com
Source: www.fhorseegypt.com

In general, the freight forwarder should take care of your cargo, and that means providing insurance for the transportation process as well as for the trade.

What you should know at this point of view, is the fact that there are many types of cargo insurances that freight forwarding companies will offer you.

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For example, there are freight forwarders who will offer you:

  • Marine Cargo Insurance– this type of insurance will protect itself from any damages that might take place during the shipping process;
  • Ideal Compensation for any damage;
  • Independent Insurance claims;
  • Regular cargo insurance;
Source: www.pangea-network.com
Source: www.pangea-network.com

Also, when it comes to choosing freight forwarding services, know that there are freight forwarders who are offering customized services.

So, if you choose to use customized freight forwarding services there ain’t no doubt that they will meet your needs in all the vigorously changing situations that this industry implies.

Conclusion

All in all, I’m very positive about freight forwarders, straight proportionally I strongly believe that you will be too once you choose the best freight forwarder to meet your needs.

These people are making companies’ and individuals’ lives much easier. I tried to bring closer to you the 10 most important things that you have to know when choosing a freight forwarder, and I hope that it’ll help you.

The post 10 Things You Must Know When Choosing a Freight Forwarder appeared first on Fueloyal.



This post first appeared on Semi Truck Accidents – 10 Best Tips For Safely Sharing The Road With Truck Drivers, please read the originial post: here

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