It is a tedious task to ship internationally. An assessment should be carried out whether companies would like to do their main business and exporting activities or hire a freight forwarder. Organizations nowadays do core activities and let freight companies oversee other activities.
These companies manage the logistics between the shipper and the final destination in a profitable manner. These are logistics providers of the second-party category. They administer cargo movement by self transportation or by providing rent to another provider for transportation. FIATA represents Freight Forwarders as per Studymode.com. Examples of companies that provide such services include befba.com and FBABEE.
Following are the essentials that you should be aware of before hiring a sea, road, or air freight company:
- Six Primary Services
They provide priceless services related to supply chain management. Some of the tasks they take care of are:
- Documentation of International imports and exports
- Documenting Customs
- Packaging List Creation
- Goods storage
- Loads Insurance Certificate
- Inventory Management
If you want to do international shipping through them who can provide services such as storage and packaging of goods, clarify while choosing one.
- Relaxed Trading
Freight forwarders can be highly trusted in handling trading. Being experts in the supply chain process from packaging and warehousing to documenting customs. They can effectively look after urgent shipments.
- Shipping Delays
Delays happen when something is out of bounds. Stalling of machinery, overheating, sudden breakdown, unmerciful weather conditions and traffic congestion in port entrance/exit points are unfortunate reasons why delays happen. They will try to resolve situations instantly.
- Four techniques of Healthy Relationships Maintenance
Maintaining healthy relationships with freight forwarders is imperative as they manage our shipload.
Four methods of maintaining healthy relationships are:
- Proper documentation to be done and requirements to be met.
- Timely payments
- Effective Communication
- Staff Training regarding the same
Freight Forwarders will try to support you with the best rates and cargo space, but with a highly fluctuating spot rate, you may not get the rate you want. There will be a high impact on demand and supply. You should find one who you can reckon on for outstanding servicing.
- Six Stages of Forwarding
Freight forwarding has six stages –
- Export goods haulage: Goods transportation from a manufacturer to the freight company.
- Export Customs Clearance: Giving clearance for goods shipping to countries of origin.
- Handling at the country of origin – Official unloading and checking of booking documents against the goods delivered in the country of origin.
- Clearance of Import Customs: In order to ensure everything is in order port authorities will check the custom documents.
- Handling at Destination – Transferring cargo to import warehouse.
- Haulage of Imported Goods – Goods will be transferred from the import warehouse to the final destination.
You should choose an expert who can help in prompt goods transportation. The freight forwarder should help you in the shipping of any goods category and provide the best possible rates.
- Filing of Seven Essentials Documents
Relevant documents should be provided to forwarders for smooth delivery and all problems will be covered including possible legal complications.
Essential documents that will be provided include:
- Commercial Invoice
- Bill of Lading
- Inspection Certification
- Statement of Origin Certification
- Exportation License
- Exports Packaging List
- Shipper’s Declaration Document of Exports
- Updated paperwork is pivotal
It is necessary for your freight company to maintain updated paperwork. They can help regarding this. And they help to mitigate risks of items not being released from customs or a bank not releasing one’s funds.
- Two Secondary Services
Freight Forwarders can also provide additional services such as packaging and labelling. Upon request, they can pack your goods, appropriate labels usage regarding weight designation, and for dangerous goods.
Goods will receive insurance coverage and be kept in safe and places having favourable climatic conditions. Countries of origin and destinations will have warehouse spaces.
- Legal Guidelines
They will be aware of the legalities of all countries. A company must know all the legal guidelines of the process. Freight companies can guide them regarding the same.
- Six General Shipping Restrictions
Freight forwarders should adhere to certain restrictions of the final point. The shipping restrictions vary from one freight forwarder to another. Nevertheless, general restrictions apply on:
- Toxic items and liquids which are flammable
- Prescription plus Recreational drugs
- Alcohol category
- Batteries category
- Perishable Items except for special delivery items
- Sharp items
- Availability of Strong Networks
It’s highly advisable to choose experienced companies who have strong networks. They can assist you professionally regarding travel delays minimizing, best quote provision, etc. They should have connections with associations of the specific industry.
A freight company offers time-bound services and is more secure in comparison to a business handling the services by itself. During the second half of 2019 and in 2020, there has been a radical dip in demand. Albeit as predicted demand should reach 11.6% in 2021. One should consider some aspects before hiring a freight forwarder. They should deliver efficiently and recognize needs and expectations which is crucial for successful shipping.
- Freight Forwarding Process – Everything You Wanted to Know (marineinsight.com)
- 10 Things You Need to Know About Freight Forwarding – Asiana USA
- 7 Things You Need to Know About Freight Forwarding – World Cargo | International Shipping | Freight Forwarders (goworldcargo.com)
- 13 things you need to know about freight forwarding – Klik and Pay
- Freight Forwarding 101 – Everything You Need to Know About Freight Forwarding – Qafila