Important Factors to Know About Freight Forwarding
Freight forwarding companies, like Alimann Logistics, coordinate the shipment of goods from one destination to another using a range of carriers, including air freight, ocean freight, road freight and, in some cases, railway freight.
The process of freight forwarding might seem daunting, especially if you’re not familiar with the process of freight shipping, but these thirteen facts you need to know about freight forwarding will help you through the process.
1. What is a Freight Forwarder?
A freight forwarder is responsible for the transportation of goods between one destination and another. Freight forwarding companies specialize in arranging the whole process for their shippers — from the storage to the shipping of their merchandise. They act as an intermediary between the shipper and transportation services, liaising with various carriers to negotiate on price and decide on the most economical, reliable, and fastest route.
2. A Hassle-Free Way to Import and Export Goods
Using a freight forwarder to import and export goods can make the whole process much less stressful. Extremely knowledgeable in the elements of supply chain, freight forwarders can assist on all levels — from the packing and warehouse stages to the customs procedure — taking some of the pressure off you.
3. Freight Forwarders Provide a Range of Services
Freight forwarders can assist with the supply chain process on multiple levels including:
- Customs clearance
- International export and import documentation
- Insurance
- Packing
- Storage
- Inventory management
4. Advantageous to Your Business
Using a freight forwarding company for the transportation of goods to your consumer can be advantageous to your business in many ways. Using their knowledge and expertise, freight forwarders ensure that your goods arrive at the correct destination on time — and save you money in the process compared to managing it alone.
5. They Are Not Responsible for Shipping Delays
Freight forwarding companies are not responsible for delays in shipping. These delays often occur due to bad weather, breakdowns, port delays, or unforeseen route changes. Although shipping delays can be frustrating, it’s important to remember that it’s out of your freight forwarder’s hands and they’re working to resolve it as quickly as possible.
6. It’s Important to Maintain a Good Relationship with Your Freight Forwarder
Your freight forwarder is in charge of your precious cargo, so it’s important to establish a good working relationship. Choose a company you can trust and rely on — one with impeccable customer service to ensure that your cargo shipments arrive safely and on time.
7. You Need to Make Sure Your Paperwork Is Up to Date
Before leaving your goods in the hands of your freight forwarder, ensure all transportation paperwork is complete. Your freight company can help with this, but it’s an incredibly important step to reduce the risk of your items being held at customs or payment delays at the bank — both of which can harm your business.
8. Ask Your Freight Forwarding Company About Extra Services
Many freight forwarding companies offer extra services for your shipment, so it’s always worth asking them when receiving a quote. These can include warehouse storage, cargo insurance, cargo tracking, and dangerous goods handling. Even if you don’t require them now, they’re useful to know for future shipments.
9. There Are Six Key Stages of Freight Forwarding
The freight forwarding process can be broken into six key stages:
- Export haulage – transfer of goods from the original source to the freight forwarder’s warehouse.
- Export customs clearance – goods receive clearance to leave their country of origin.
- Origin handling – unloading, inspection, and validation of cargo against booking documents.
- Import customs clearance – customs paperwork for your cargo is checked by authorities.
- Destination handling – handling of cargo upon arrival, including transfer to the import warehouse.
- Import haulage – transfer of cargo from the import warehouse to its final destination.
10. Your Freight Forwarder Should Provide You with a Range of Documents
With freight forwarding comes a lot of paperwork, especially for overseas shipping. Your freight forwarder should provide all relevant documents, including:
- Commercial invoice
- Bill of Lading contract
- Certificate of origin statement
- Inspection certificate
- Export license
- Export packing list
- Shipper’s export declaration document
All these documents ensure that your goods reach your customer smoothly, without compliance issues.
11. The Strength of a Freight Forwarder’s Network Is Vital
Well-established freight forwarders have a strong network of contacts and years of experience. This not only helps you get the best shipping rates but also ensures timely delivery. Experienced forwarders can quickly and efficiently solve any problems that may arise during transportation.
Doing your research before choosing a logistics company ensures that your goods reach their final destination efficiently and cost-effectively.
Contact Alimann Logistics today for Free Freight Rate Pricing.
