Feature
Logistics, Freight & Transportation
freight forwarder Is a
right for you?
International importing and exporting could be the next step for expanding your business, but it can also be a daunting or a confusing process. However, a freight forwarder can take a lot of stress out of the process by dealing with everything, from customs clearances to the delivery of goods, on your behalf. But is a freight forwarder the right choice for you?
What does a freight forwarder do? A freight forwarder is a company that arranges for goods to be transported from one country to another. As simple as this sounds, there is a great deal of work that goes on in the background to ensure seamless and safe delivery and a freight forwarder will handle every aspects of the logistics while acting as the shipping agent. The exact process will vary depending on the cargo
and the type and length of the journey, but in most cases a freight forwarder will: • Arrange for transport of goods from the point of origin (such as your factory or warehouse) and delivery to your agreed location
• Prepare documents, licences and any other relevant paperwork needed for export and ensure compliance with international custom laws
• Organise passage for land, sea or air freight as needed and oversee the loading and unloading of cargo at every stage
• Track the delivery from pick up to drop off. Freight forwarders do not move freight themselves;
instead they will subcontract each stage of the journey to local suppliers and act as an intermediary between the shipper and the various transportation services and storage facilities used. They will utilise established relationships with trusted contacts in the carrier industry to expedite each part of the journey. A freight forwarder is not necessarily required for a
firm to ship internationally. However, because the process requires a great deal of in-depth knowledge – particularly on regulations, which vary from country to country – in addition to a lot of documentation, a lot of importers choose to leave it in the hands of an expert.
The advantages There are a number of benefits to using the services of a freight forwarder, especially if you are new to exporting. Expertise – a freight forwarder is an expert in all
things import/export. They will be familiar with the custom laws of various countries and will know what documentation is needed for every stage. They will also utilise their contacts to work out the best route in terms of cost, speed and reliability.
Personal touch – you will only need to liaise with
one company or individual to arrange your shipment, rather than many different haulage/freight companies. Peace of mind – if something goes wrong, your
freight forwarder will be on hand to deal with the issue. If you need to make a complaint or submit an insurance claim, they can offer their guidance.
The disadvantages Although there are many advantages, there are also some drawbacks to using a freight forwarder, and it will not be the right choice for every business. Costs – using a freight forwarder can increase the
overall cost of your shipment, and you may be able to get a better deal if you negotiate shipments and haulage yourself. Lack of control – Using a forwarder means
relinquishing a lot of control and leaving your shipment in the hands of your freight forwarder entirely. Priority – larger and well-established forwarding
companies might not prioritise small shipments from small businesses.
The cost In most cases, a freight forwarder will offer a quote for the entire process as determined by your needs, so you won’t have to worry about any hidden or extra costs down the road. However, it’s also important to get an itemised quote
so you can see exactly what is – and what isn’t – covered. An itemised quote might highlight some costs that you hadn’t previously considered, such as fluctuations in the price of fuel or currency exchange rates, any product-specific costs such as refrigerated transport for perishable items, packaging for fragile items or cranes for loading heavy items, and storage. You should also do you due diligence to make sure
all quotes come from reputable forwarders that you can trust to get the job done, as it may end up costing your business time and reputation, as well as money, if you make the wrong choice - don’t prioritise cost over reliability.
‘Freight forwarders do not move freight themselves; instead they will subcontract each stage of the journey to local suppliers and act as an intermediary’
64 CHAMBERLINK November 2019
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