We recently polled 100 random people to discover which common foreign shipping words aren’t as common as we might think. We were shocked to find that 85 percent of respondents hadn’t ever heard of freight forwarding.
You may have a lot of questions about freight forwarders, but you’ve already learned enough to read this post! Unfortunately, no matter where you are on the freight forwarder information totem pole, our mission is to address all of your questions – including the ones you didn’t realize you had.
What is a freight forwarder?
There are some pretty complex concepts out there, but in the simplest sense, these companies are in charge of assisting you with your exports and imports, such as dealing with the procedures of preparing paperwork, getting freight quotes, monitoring cargo, or filing insurance claims.
Some freight forwarding companies have more choices than others, and many will let you choose and pick which services are appropriate for your business. At the most severe, if a shipper with a constant high volume of cargo ordered “the works” from a freight forwarder, the firm will have 24/7 monitoring on all shipments; paper planning on all exports and imports; factory booking and surveillance; document service; insurance assistance and freight consolidation/deconsolidation, collection, and mediation support
What is the job of a freight forwarder?
Freight forwarders are not carriers and do not actually move the goods. Instead, these companies serve as a middleman between carriers and shippers, managing all of the boring logistical elements of logistics so you don’t have to. “Hmmm, so a freight forwarder is just an intermediary?” you might be wondering. A high-priced messenger who doesn’t deliver something tangible?”
Although it is true that middlemen are often given a bad rap, freight forwarders can be extremely beneficial in the right circumstances. For instance, cultivating strong relations with carriers and authorities at key ports around the world is an important part of these organizations’ employment. Freight forwarders secure better deals and save you dollars by investing their time interacting and developing your name.
Advantages by using a freight forwarder for your company
Organization and Manageability
Organization and manageability are critical for companies that need a feeling of control over their distribution chain and the ability to bounce back rapidly in the event of a failure. Many third-party logistics firms might be too big to provide foreign shippers with the accountability and personal touch they need. If a shipment is missing, it can take several agencies, phone calls, and repetitive questions to obtain the information you need. Freight forwarders, on the other hand, use their nimble channels to easily map the problem back to its source, enacting quick assistance.
Freight forwarders have unique flexibility, which can be useful when meeting tight deadlines or coping with unexpected obstacles. A seasoned forwarder has the tools to deal with unfortunate situations such as rerouted shipments or sea delays. Assume you’re transporting goods through a freight forwarder Australia from China, Germany, or the United States, and one of your deliveries are diverted to a different port due to rough seas. How well trained are you to respond and manage such a situation? Circumstances like this are another day at the office for a freight forwarder.
Because of the high volume of shipments, freight forwarders can negotiate better terms with carriers. However, it is also necessary to recognize the long-term financial benefits of excellent customer service, insightful advice, and a forwarders motivation to expand your company. At first sight, storing goods in a second warehouse can seem irrational if you can transport them over longer distances for less money.