What is freight forwarding?

Freight forwarding involves planning and executing the shipment of goods across international borders efficiently. A freight forwarder performs various tasks to ensure goods move smoothly on behalf of their clients.

Working with a freight forwarding company typically offers convenience and speed. However, it’s crucial to choose the right international freight forwarder if you plan to expand your business, especially for e-commerce platforms looking to reach customers globally.

Freight forwarders manage the costs of your cargo and organize the successful shipment. They handle tasks such as loading and unloading, documentation, customs paperwork, and more. Their services are in high demand due to the convenience they provide.

• The protocols and regulations set by customs authorities across the world vary between countries and cargo types, and they change from time to time. So, you should have proper knowledge of these standards.
• You should have quick problem-solving capabilities, especially when there are faults in technology, weather, and personnel as these faults can clog up the supply chain and increase transit time.
• You must have the right network of partners, which can determine the strength and speed of your supply chain over time.

• Shipment Tracking: Freight forwarders use a Transportation Management System (TMS) to ensure transparency as cargo moves from origin to international destinations, allowing for real-time tracking.
• Customs Brokerage: A licensed customs broker is required for forwarding, managing all the necessary documents for importing and exporting goods, ensuring smooth customs clearance.
• Warehousing: Freight forwarders ensure proper warehousing, typically arranging storage at affiliate-run warehouses, though some may own their own facilities. The shipper is notified about the warehouse location, and the forwarder arranges loading and unloading.
• Negotiations: International freight forwarders negotiate with shippers to secure affordable shipping rates, emphasizing factors like transit time, credit status, space requirements, and flexibility. Effective negotiation can significantly reduce shipping costs, especially for ocean, rail, or air freight.
• Cargo Space Scheduling: Freight forwarders coordinate and schedule cargo space, ensuring timely transfer of goods. They consolidate shipments, assess various carriers, and evaluate their advantages and disadvantages.
• Freight Consolidation Services: Forwarders engage in freight consolidation when handling multiple small shipments, combining them into one container for less-than-container-load (LCL) shipping. This reduces costs by sharing the shipping expenses among different customers based on cargo requirements.
• Cargo Insurance: Freight forwarders often offer cargo insurance policies that reimburse the shipper if goods are damaged or stolen during transit, providing peace of mind throughout the shipping process.

• Cost efficiency: The cost per unit is usually much lower when you engage a freight forwarding company as they transport goods in large quantities. These professionals can help you out if you don't have many large shipments to transport and not able to pay high ocean freight charges. Freight forwarders are ideal for you if you want to pay the best possible price.
• Speed: You can rest assured that your goods will be delivered on time by choosing a professional freight forwarder. However, you need to do some research before selecting a freight forwarder. A premium may be charged by some professional companies, but the superior quality of their services and short product transit time will make the cost worth.
• Experience: It is recommended to work with professional freight forwarding companies who are experienced in the field as experience plays a significant role in determining the ability of a freight forwarding company to serve you. They will be able to ensign contingencies that will ensure optimal operation as these firms understand the issues that could arise in the supply chain. Although, mishaps still happen, but chances of these occurring with a professional and experienced company will be much less. Experience also plays a part in the ability of a freight company to deal with customs clearance certifications and other critical documents that is associated to document delivery. You must have complete papers or customs paperwork. Transit time gets extended, and regulators could even seize your cargo failing to submit this. These issues are less likely to happen with an experienced freight forwarder. It can be ensured that your transaction is as seamless as possible with these professionals as they can take care of the necessary documentation. 
• Business protection: You can't afford to face lawsuits and a flood of customer complaints when you operate a small company. You need to ensure that shipments is in top shape as it will be a significant part of your process. Shipment delays can affect your standing before customers as delivery time is one of the areas where customer satisfaction hinges on. Customers will get dissatisfied and will be less likely to shop from you in the future when your transit time is too long. The chances of issues occurring during transit can be reduced by letting freight forwarder handle your shipment.
• Convenience: Shipments and cargo are two of the most critical aspects of your entire business which can be handled by a freight forwarder. So, you get enough time to focus on the other business aspects that require your attention.
• A Relative guarantee: Freight forwarders generally have time planning and strategizing on how they will like to move cargo from origin to destination. They can deliver a relatively accurate estimate of how long the shipment will take by fine-tuning their processes. so, you can guarantee the expected delivery time to your customer which helps improve your standing with customers.

• Trust issues: There is never a total assurance despite having an excellent reputation of a freight forwarding company as you are entrusting goods with strangers and hoping that it will get delivered to a specific destination at a particular time.
• Data efficiency challenges: There is always the chance of miscommunication between the forwarder and carrier which can happen due to different issues. The shipment gets affected when these data gaps become large. Data deficiencies are especially important in ocean freight as data management issues can cause because of language translation and much more, and you could lose credibility in the eyes of your customers.
• Pricing: Some freight forwarders could charge higher fees compared to others.

A freight forwarder is typically well-versed in the shipment process, playing a critical role in ensuring the success of your logistics. By handling your shipments, a freight forwarder can help prevent additional fees, delays, and disruptions in your supply chain.

While a smaller company may manage shipments on its own, freight forwarders can streamline the entire process, saving both time and money. The convenience they provide quickly highlights their necessity.

Freight forwarders can also offer door-to-door cargo solutions, handling much of the logistics for you. From clearing paperwork and managing customs to storing and taking care of goods, these professionals make the shipping process significantly easier.

• Reputation: Choose a freight forwarder with a strong reputation, proper licensing, and necessary qualifications.
• Experience: Select a freight forwarder with ample experience who can effectively handle unexpected challenges.
• Network: Ensure your freight forwarder has a reliable network of handlers, exporters, carriers, and other key partners.
• Pricing: Avoid freight forwarders with opaque or excessively high pricing. Compare rates before making your selection.
• Knowledge: Opt for a freight forwarder who is knowledgeable about industry best practices, regulations, customs procedures, and international cargo handling.