Choose the right freight forwarder

by Michelle Lane

Freight forwarders aids clients preparing price quotations by advising on freight costs, port charges, consular fees, costs of special documentation, insurance costs, their handling fees and recommendations on the best packing method to protect the goods while being transported. Pricing depends on the distance from the place of origin to the destination to special packing requirements such as refrigeration or, for instance, transportation of potentially dangerous materials.

The primary objective of freight forwarding services is to transport commodities on time and in good condition on the right location. Using established relationship with carriers like water-borne vessels, airplanes, trucks and railroads, freight forwarding services ensures that the goods will be moved along the most economical route, choosing among the many bids for the one which balances speed, cost and reliability.

The first thing you should look for when deciding which freight forwarding services you will use is the company’s experience with the routes and goods your business is dealing with. Other basic selection criteria includes: global coverage and local expertise, reference customers, wide product portfolio, and overall costs.

Global coverage and local expertise. The company should not only have an office in your area but to also in your sourcing market’s location for easier communication should the need arise. Experience of moving freights, especially goods like yours, along these areas is an additional point. That means they understand how to handle and care for your goods.

Reference customers. Previous customers’ referrals are a good source of information on how efficient a freight forwarder works. Good companies will provide references and track records of these readily.

Wide product portfolio. Freight forwarding companies which have been running long will be experienced in utilizing different transport modes available as well as providing additional value-added supply chain services if the need arises.

Overall costs. Although money matters are important, prices should not dictate your choice of forwarding freight company, as cheaper price may compromise service quality.

Prior to listing possible freight forwarding partners, take note of your objectives, total cost, the coverage necessary for customer service, information technology and reporting needs. Other things like the commodities and their density, target date, location and market, and the kind of product and service level that you need are few of the information freight forwarders may need to know upon meeting.

Randomly choose a few known and trustworthy potentials. Evaluate their feasibility and quantify potential benefits. List the services that you need and see if the companies meet your requirements. Narrow down your choices based on the findings you come up with. You can further assess their capabilities and experience by asking for references from previous clients and asking for their track records.

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