10 Things You Must Know When Choosing a Freight Forwarder



You haven’t used a freight forwarder as alleviation to your business yet? Well, maybe you should start reconsidering this point.

To put it another way, what in fact the real activity of freight forwarding companies includes and why it’s so important for your business? I will try to explain it to you briefly.

Source: www.bid-dubai.com
Source: www.bid-dubai.com

Thereupon, the main duties and activities of the forwarding companies include making arrangements for shipping and storing goods.

A point often overlooked is that there are also freight forwarders who are operating independently, without being part of a freight forwarding company.

Simply said: The freight forwarder is an expert in the logistics network.

Source: www.universalcargo.com
Source: www.universalcargo.com

So, the main reason why I highly recommend you the services that freight forwarders are providing is only because they will provide you peace-of-mind. That is to say, the freight forwarder is the person who will call you straight away to confirm, and verify that your entire shipment is shipped to the final destination.

Later on, after the freight forwarder performs the verification for your shipments, he will engage another person at the port. Therefore, as you can see, using freight forwarders in your business will only bring you the long needed cargo security.

Speaking of that, let’s take a look at the 10 things you must know when choosing a freight forwarder!

1. Role Of The Freight Forwarder

Henceforth, as I explained it to you briefly in the previous sub-heading, the role of the freight forwarder is of a great importance if you want your cargo delivered to the final destination in a safe and time-efficient manner.

Thereupon, the freight forwarder is only taking responsibility for the arrangement of the international movement of your cargo; he is not taking any ownership of the cargo.

Source: www.indomatrix.in
Source: www.indomatrix.in

Since the role of the freight forwarder is crucial, or better said most important, straight proportionally that leads freight forwarders to undergo additional training.

All that with the aim to understand better the responsibilities and personal liabilities that might arise.


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Also, there are related additional training programs, customized to help freight forwarders to improve their work.

By all means, freight forwarders shall undergo special training for handling of goods classified as dangerous, or better known as hazard materials.

2. Principles Of Freight Forwarding

As in any other business, there are principles that have to be respected in freight forwarding too. Therefore, the principles of freight forwarding are interconnected with the cost-effective, and efficient transfer of goods.

Source: www.AGL-Forwarding.com
Source: www.AGL-Forwarding.com

Did you know that these principles have transformed freight forwarders into experts in managing the logistics necessary to assure that are being delivered in time?

Being eloquent in the requirements of global/intermodal shipping, and knowing how to manage the risks and benefits of shipping nationally as well as internationally, are the main principles that set a good freight forwarder’s ranking.

Source: www.linkedin.com
Source: www.linkedin.com

On the other hand, freight forwarders should have all right tools at their disposal in order to perform a successful shipping in the expanding globalized markets.

3. Responsibilities Of The Forwarding Company

Forwarding companies have a lot of responsibilities. That is why I would like to start revealing you the most consequential ones:

  1. Transportation and delivery of the cargo to the carrier- he is facilitating the export of merchandise;
  2. Accurately prepares the EEI record based on provided information;
  3. Obtains copy of the EEI record;
  4. To Obtain a power of attorney;
  5. Maintain a documentation to support the information required on the EEI record;
  6. Export authorization;
Source: www.youtube.com
Source: www.youtube.com

On the other hand, the freight forwarder shall keep a record, and that includes:

  • CFR15 Section 762.2– setting forth the legal requirements for the records(five years from transaction date);
  • Section 762.3– setting forth the types of records that are determined with the record keeping procedures;

I do believe that this will give you a better picture about freight forwarders.

4. You Have To Access Your Needs

Enumerating what your needs are, can help you make a remarkable final decision when looking for a freight forwarder.

Moreover, straight after you decide that you will want to look after a freight forwarder for your cargo, you will have to decide what services you are in need of.

Source: www.dslglobalfreight.com
Source: www.dslglobalfreight.com

Thereupon, when you have the final data about you cargo (including the type, amount) then you will know which type of freight forwarding company you can look after.

This is a really important process because otherwise if you choose to select a forwarder or forwarding company that is not able to meet your needs as you desired, then it will end up in disaster.

Source: www.wilhelmsen.com
Source: www.wilhelmsen.com

So, if you think that the best option that you have is to choose a freight forwarding company, rather than an independent freight forwarder, then it would be to your advantage to check out the background of that company (including the type of connections that they have within the shipping industry).

5. What Type Of Services Does A Freight Forwarder Provide

The freight forwarder is responsible for a variety of services. Most commonly the freight forwarder is offering their services to many industries.

Source: www.fiflogistics.com
Source: www.fiflogistics.com

To put it another way, freight forwarders are offering the following services:

In the final analysis, we can notice that freight forwarders are in fact using their own bills of lading. Thereupon, by using freight forwarder you won’t have to worry about document deliveries, freight collection services, as well as deconsolidation.

Source: www.timescanlogistics.com
Source: www.timescanlogistics.com

On the positive side, if your business is small, and yet you choose to use a freight forwarder, then you should know that the freight forwarder can handle all the logistics requirements you might have.

6. How To Choose a Freight Forwarding Company

Yes, we are all aware of the fact that nowadays economy is unbalanced, but that shouldn’t be the reason for you to choose freight forwarders offering cheap rates and low logistics costs. Because after all, you get what you paid for.



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