Freight forwarding companies, otherwise known as freight forwarders, are companies that serve as middlemen between companies that import or export goods and organizations that require them.
Freight forwarders normally manage all aspects of transportation, starting from goods storage before shipments to making sure the goods make it through customs. Freight forwarding companies coordinate the shipment of goods from one place to another through a single or many carriers by air, marine, and rail, including the highway.
The Freight Forwarding Procedure
Freight forwarders may organize to move cargo from a factory to the airport by road. Then get the goods flown to the city of destination. From there, they move the items out of the airport to the customer’s facility via another road route.
The Three Major Freights
We have three major forms of freight, which are: truck freight – which is the transportation of goods by land, whereas goods move their way across the motion by big rig trucks. The second type is air freight, where cargo gets covered by aircraft to the desired destination.
The third type is ocean freight – in which cargo is shipped across oceans to the destination point.
Advantages of Using Freight Forwarders
Hiring the services of freight forwarding companies has a lot of benefits. Some of such advantages are discussed as follows:
- Experience plus accountability – freight forwarders have acquired years of experience in their profession. They are also normally accountable for their service.
- Global partners – freight forwarders maintain links with their global partners. They usually count on such links to have hitch-free operations.
- Compliance – freight forwarders maintain proximity to customs. Hence, they are conversant with rules and regulations pertaining to shipments. Hence they are in a position to ensure that goods comply with such requirements.
- Technology – freight forwarders have acquired modern technologies such as cargo trackers to ensure hitch-free shipment of cargo.
- Accuracy in Documentation – freight forwarders usually ensure that documentation and necessary data are accurate.
- Cost reduction – forwarders usually leverage on volume to ensure cost reduction.
- Versatility plus flexibility – freight forwarders render versatile services. So, whatever kinds of goods you wish to export or import, they are always in a good position to provide the needed logistics.
Are There Disadvantages?
Making use of freight forwarding companies has a few disadvantages. Some shippers can over-rely on the assistance they get from their forwarders. The second setback is that some unprofessional forwarders can engage in price gouging.
Tips On Choosing The Right Forwarders
Selecting the best freight forwarding companies for yourself or your company can prove difficult. Not to worry, I have some tips that will serve you as a guide:
- Do Your homework – Get sufficient information before you select a freight forwarder.
- Experience and reach – the two major factors you need to watch out for is the experience and reach of the forwarders.
- Risk management – good freight forwarders must have experience in risk management.
- Variety of services – good forwarders should have a wide range of services. They should have experience in your own kind of goods and services.
- Perfect customer service – before engaging any forwarders, you must ensure they have a good track record in the area of customer service and communication.
- Check certifications – ask to see the licenses, certifications, or permits.
We’re Rounding Off
Freight forwarding companies serve as middlemen between companies that import or export goods and organizations or individuals that require these goods. The three major freight types are truck freights, air freights, and marine freights. There are many benefits you will enjoy in hiring freight forwarders. Tips have been proffered on how to choose the best forwarders.
