Freight forwarders are companies that specialize in the organization of cargo deliveries to the ultimate destination. In most cases, freight forwarding companies will offer a wide range of delivery services, which include but not limited to: air or ocean freight shipping. In addition, they will also provide warehousing services. Warehousing refers to the storage of finished products that are not ready for shipment. This type of service can be very valuable for companies and industries that have seasonal needs for storing products until they are ready to ship. In this article, we will take a look at some of the major advantages of using a freight forwarder for your shipping needs.
International Trade Freight forwarders can help you save money. When a company processes international trade transactions, they must pay a significant amount of money to international shipping companies to arrange the logistics for their shipment. Freight forwarding services often take care of many of these logistical expenses by providing them. Instead of paying an international shipping company thousands of dollars upfront for the transportation of their shipment, they can simply ask their freight forwarder to cover these costs. Freight forwarding services may also charge a minimal fee for the international shipping of perishable goods.
Convenience The logistics for international shipments can be extremely complicated. It takes time to organize such a large network of distribution points, as well as to contact all of the different companies that actually make up the supply chain. Because of this, most businesses prefer to let freight forwarding services to handle these details. By hiring a private company, they can simply make a call to the company’s headquarters, explain their needs and they will be provided with a possible price for their goods. Freight forwarders have access to databases that can easily tell them the price range of various products in different locations, allowing them to set a reasonable price for the shipment of goods.
Ease Of Documentation Freight forwarders are responsible for making sure that documentation for every shipment that they route is updated. They need access to documentation from all of the different companies that make up the supply chain so that they can ensure that everything is accurate. This documentation is used to help customs officials figure out the country of origin for a product as well as its destination and other specifics. Without this documentation, the transportation of a shipment would be impossible. Since most freight forwarding services also provide insurance coverage, they are also required to do so on all of their shipments. They need to ensure that this coverage continues throughout the life of the goods that are being shipped.
Cost efficiency One of the main reasons that companies choose to hire freight forwarding services is that they are able to save a lot of money on international shipping. Shipping goods over long distances requires that the shipping company that is conducting the shipment use certain types of vessels and vehicles that are larger than usual. This means that the freight forwarding companies are able to charge less for their services because of this increased overhead. They pass some of these savings onto the customer. In some cases, the customer may even be able to receive discounts on the total cost of the shipment since they are getting a better deal overall.
Insurance Another reason that companies turn to freight forwarding services is because they offer a level of insurance against damage or loss. In order to get an insurance quote, a customer typically needs to provide some kind of proof of loss or damage.