Business

How to Find a Freight Forwarder You Can Trust

Freight Forwarder

Import and export services are among the essential businesses nowadays. Due to the increasing need to transport materials and the availability of new mechanisms to do this job, logistic services are also on the rise. Frequently, many things go wrong between shipping the products from one company and distributing them to another. To minimize these risks, you need to employ logistic companies to ensure a timely and cost-effective way of delivering cargo products.

If you are looking for Freight Forwarder you can trust, here are some necessary information and qualifications that you need to know about them:

What Freight Forwarders Do?

Freight forwarders have been around only for a little over a century. The first known company to offer this service was based in England when steamships and railroads started carrying cargo. History tells the story of a local hotel owner in London who started a simple work of ensuring that his guests’ personal goods will be delivered where it is supposed to be.

Nowadays, the job of a freight forwarder cuts across many processes, such as preparation, warehousing, shipping, documentation, negotiation, consolidation, and insurance coverage.  Their primary responsibility is to take care of the paperwork so that both ends of the importing and exporting processes will go smoothly.

They do not own a freight themselves, but they act as an intermediary in transporting goods. They partner with various transportation means, like railroad companies, trucking services, ship docks, and airline facilities. In essence, they are the ones who will take care of the “door to door” function of their clients. The international association of this line of work called FIATA branded themselves as “Transport Architects.”

What you should expect from them

Since this logistic service is primarily in charge of documentation, they should be the one to process your Certificate of Origin statement, Bill of Lading contract, commercial invoices, and inspection certificates, among many others. They are also in charge of arranging transfer fees, such as customs clearance, transportation charges, and discharge costs.

In order to accurately process these documents, a Freight Forwarder you can trust should be knowledgeable about international and local customs laws. There are a lot of headaches involved in dealing with transport since ports and airline strips have differing policies when it comes to accepting and processing goods. If you only rely on your regular cargo, there will inevitably be delays since yours will not be prioritized. As such, it should be expected that your logistic partner has to have a good working relationship not just with cargo companies, but also with the customs.

Requirements that you should check

Getting the service of this logistics company is an investment. To ensure that your money will not be put to waste, your preferred company should be able to comply with the necessary international and local licenses.

In the US, a qualified agent should have a minimum of three years of experience in freight handling and charter. He should also have proof of financial capability since there might be transactions that will require him to shell out money. Another reason why being a freight forwarder is not for everyone is because an aspiring agent needs to be able to show at least a $75,000 surety bond. Hence, once you get a freight forwarder service, you can be sure that you are dealing with professionals.

In choosing a logistics company or agent, the lowest bidder is not necessarily the best choice. In terms of regulation compliance, you should also ensure that your preferred company is licensed by the Federal Maritime Commission if they are involved in ocean transportation. Meanwhile, those working with air transport should be members of the International Air Transport Association. If your chosen company is also an active member of the National Customs Brokers and Forwarders Association of America, that is an indication that your preferred forwarder has a proven track record.

The Takeaway

Being involved in the import and export industry entails considerable risk. However, these risks can be mitigated by employing the services of freight forwarders. They are primarily responsible for ensuring that you can focus on your main tasks of manufacturing and selling goods, instead of being bombarded by legislation, requirements, and documentation related to shipping. Additionally, getting their help is more cost-effective in the long run since their relationship with various shipping companies can allow them to score cheaper fees.

Due to the complicated nature of their job, not everyone can quickly become involved in this business. It takes a lot of connection, knowledge, experience, and investment to be an accredited freight forwarder. Should you find yourself looking for their help, the primary consideration that you should look for is their track record, which can easily be gauged by looking at their membership status on various international groups.

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