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How To Choose A Freight Forwarder: A Beginner’s Essential Guide
Created on 11.24
How to choose a freight forwarder? That’s the most common question we get from business operators and retailers.
With all the available options out there, it can be hard to settle on one that’s right for you and your business. But no worries, our guide will be with you step-by-ste – helping you assess and pick out the best freight service provider for your logistical needs.
What Is A Freight Forwarder?
A freight forwarder helps you manage your shipment, liasing with major logistics carrier networks to ensure timely arrival at your intended destination. By meticulously planning your shipment’s travel path, freight forwarders help you move goods by air, sea, rail, and trucks – all at the best cost point.
Freight Forwarders vs. Logistics Carriers
Simply put, freight forwarders don’t usually own the vessels used to transport your shipments – logistics carriers do. Here are the distinct differences between a freight forwarder and a logistics carrier :
· Freight Forwarders – Coordinate, manage, and document the shipping process fom end-to-end. While they don’t own the transportation assets involved, freighters leverage available carriers by booking space on carrier-owned modes of transport.
· Logistic Carriers – These companies own and operate transportation assets required to move things along the supply chain – ships, planes, trucks, and trains. Examples of carriers include Maersk (ocean), FedEx (air), local railway grids, and trucking companies.
Why Choosing The Right Freight Service Provider Matters
Most business owners and retailers are hyper-focused on freight cost – often with disastrous outcomes like missing shipment and damaged goods. While being cost conscious is great, the key is to strike a balance between cost and quality.
Here’s why choosing a reputable freight forwarder matters :
· Reliability – Established freighters have decades of experience in the industry. They know the best way to get your shipment where you need it to be, safe and sound.
· Lower Costs – Contrary to popular belief, reputable carriers can actually give you more competitive pricing due to the sheer volume of shipments they handle daily.
· Expertise – Newer freight companies may not have their logistical plan down pat. This often translates into missed or additional charges on your end.
How To Choose A Freight Forwarder : Best Practices
Given our decades of experience handling freights to 120+ countries worldwide, the question of how to choose a freight forwarder seems like something we’d best know about. So here is a step-by-step Dafey guide to choosing the best freight forwarder for your business.
Step 1 : Verify Licensing and Certifications
Licensed freight forwarders are often companies that have been around for a while with perfect knowledge of how the logistics supply chain ticks. Look for licenses, memberships, and certifications like :
· Federal Maritime Commission (FMC) license for U.S. trade
· International Air Transport Association (IATA) certification for air freight
· Membership in global networks like International Federation of Freight Forwarders Associations (FIATA) or World Cargo Alliance (WCA)
· Staff with Certified Logistics Technician (CLT), Certified Supply Chain Professional (CSCP), and Certified in Logistics, Transportation, and Distribution (CLTD) credentials
These few things indicate your freight forwarder’s compliance with international trade laws, Customs regulations, and expertise when handling logistics – domestic or international.
Step 2 : Evaluate Industry Expertise and Trade Lane Knowledge
Look for freight forwarders experienced in your field and trade lane. This is because :
· Shipment needs are unique from industry to industry. Choosing a company with relevant industry experience ensures proper, safe handling of your shipments.
· Freighters dealing in specific trade lanes are well-equipped to handle country-specific regulations. This ensures your shipments are compliant, aiding a smooth logistics process.
Step 3: Check Their Global Network and Partnerships
Pick a freight forwarder with a huge partnership network across air, rail, sea, and trucking services. The better the network, the better your freight forwarder is equipped to handle :
· Peak season shipment crunch and transportation shortage
· Efficient, cost-saving delivery through route optimization and carrier porting
· Customs and last-mile delivery, by engaging local expertise
Step 4 : Review Service Scope and Flexibility
A great freight forwarder offers more than just port-to-port shipments. When choosing a freighter, ensure that they offer :
· Multi-modal options (air, sea, rail, trucking etc.)
· Value-added services (warehousing, cargo insurance, third-party inspections, Customs management etc.)
· Scalability for when your business expands
Step 5: Assess Tracking Technology and Visibility Tools
When your shipment is on the move, your freight forwarder needs to ensure you’re always able to track the location of your goods. The best freight brokers have :
· Real-time shipment tracking by leveraging the Global Positioning System (GPS), Automatic Identification System (AIS), and satellite data
· Automated alerts for delays, technical issues, Customs holds, and other setbacks during an active shipping process
· AI-powered data analytics for optimized route planning and shipment management
Step 6 : Insist On Transparent Pricing
Lots of freighters keep their clients underinformed – leaving you with a massive bill laden with hidden fees. Here’s how you can avoid all that, and preserve your profit margin :
· A clear, itemized quote breakdown detailing freight, surcharges, handling, customs fees
· Policies on General Rate Increase (GRI), Low Sulphur Surcharge (LSS), and other variable costs
· Airtight, written agreements to avoid unexpected costs
Step 7 : Test Their Customer Service
Quality customer service is a must with freights – especially if something were to go off course. These fee questions help determine if your freight forwarder’s customer care team is well-equipped for any possible logistical emergency :
· Do they offer 24/7 customer care services with good responsiveness?
· Are the agents knowledgeable and well-trained in freight logistics?
· Can their agents offer timely contingency or solution plans in case something goes wrong?
· Do they have VIP customer service or dedicated account managers when you ship larger volumes?
Choosing A Freight Forwarder? Choose Dafey.
Where reliability and cost-efficiency matter, Dafey stands out as your trusted logistics partner from land to sea. With a global network spanning 120+ countries, advanced shipment tracking, and 24/7 customer care, we’re at the forefront of compliant international shipping expertise.
Let us take care of your shipments while you focus on growing the business. Talk to our expert freight technicians today for a detailed freight shipping quote.
Your trusted partner for global freight forwarding and logistics solutions. Connecting businesses worldwide with reliable shipping services since 1995.
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