Need a freight forwarder? Here’s how to choose

In: Business

23 Mar 2009

Choose a freight forwarder that is licensed. Look for the proper documentation for their operation to see if they are a legitimate company. In the US, freight forwarders are licensed by Federal Maritime Commission and International Air Transport Association for international ocean shipping and air freight respectively. In the UK, freight forwarders are not licensed, but many are members of British International Freight Association.

The company should have global coverage and local expertise. They should have offices and coverage in your home area and also in your sourcing markets’ locations as well, and the familiarity of moving freights to one point to another to back it up. You can communicate with them when you have to if they have offices in the area with little difficulty. Check if they have moved wares like yours in the past to make sure that they understand the products they are moving.

Companies that have been running long usually have a wide range of product portfolio. They should be able to utilize different transport modes available as well as providing additional value-added supply chain services if the need arises. Their track record will tell you how reliable their company is. You may also look for reference customers to evaluate the company’s experience and services in the industry for extra assurance.

Make sure that the freight forwarder has errors and omissions insurance. Even good freight forwarders can make mistakes. This minor error can delay your goods from reaching their intention on time.

There are many providers offering beneficial and more reasonably priced rates. The price rate should not dictate the majority of your selection of a provider, as inexpensive price may compromise the quality of service.

Here is a simple decision-making process to help you in choosing the best freight forwarding company for your business:

Know your overall needs. Make a list of your objectives, total cost, the coverage necessary for customer service, information technology and reporting needs. Prepare all the figures the freight forwarders might need, such as the commodities and their density, target date, location and market, and the kind of product and service level that you need.

Choose a few potential, preferably known and reputable, companies. The Internet is a good source for decent candidates. You can also search for referrals from pervious clients and colleagues. Invite these potentials for introductory discussions. Here you can study their basic setup and how they usually work.

Finally, collect rates and price lists for the needed services and your personal impression before making your final decision. Remember not to base your choice by price alone.

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