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28 Mar 2009Choose 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 not only have offices and coverage in your home area but also in your sourcing markets’ locations, and the experience of moving freights to one area to another to back it up. Having offices in your area assures that you can easily communicate with them when you have to. Check if they have transported goods like yours before to ensure that they understand the goods they are transporting.
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 affordable rates. The price rate should not dictate your selection of a provider, as a cheap price may compromise the quality of service.
Here is a simple decision-making process to help you in selecting the best freight forwarding company for your business:
Establish your overall needs. List your objectives, total cost, the coverage necessary for customer service, information technology and reporting needs. Prepare all the data 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.
Select a few potential, preferably known and established companies. The Internet is a good source for reputable candidates. You can also search for referrals from pervious clients and colleagues. Invite these potentials for introductory discussions. Here you can learn their basic setup and how they generally work.
Lastly, collect rates and price lists for the required services and your personal impression before making your choice. Remember to never base your selection by price alone.
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