The supply chain and logistic is an integral part of any organizational functioning. It ensures timely delivery of the product to the end destination. The role of freight forwarder is pivotal in making the supply chain work seamlessly.
In recent times, there has been a staggering rise in the freight forwarding market size. It reached a mark of $199.09 billion in 2023 as compared to $191.01 billion in 2022. This number is going to rise in the years to come. Owing to the profitable market, the number of freight forwarders has risen.
When it comes to supply chain businesses, one of the common questions is whether shifting to freight forward service providers can bring a hike in the business. In times like today, whether consumer demand has become even more complex, companies need to always be on their toes to address the queries. With the high freight forwarding solutions underpinned by technologies, the company can ensure timely delivery of the products, and it also helps them to keep a tab on the movement of the shipment. In this blog, we are going to discuss why a company should consider switching to a freight forward service provider.
Who is a Freight Forwarder?
In the most succinct terms, a freight forwarder is an agent, company, or service provider that acts as an intermediary and connects the shipper and the end user. They are responsible for handling the movement of goods from one point to another.
If your company is dealing in import and export, then it has to undertake intensive activities like taking care of trade and finance documentation, negotiating the freight contracts, monitoring the movement of shipments, tracking the routes, ensuring customer clearance, post inspection and other activities. For a cargo shipper to take charge of all of the stars not only adds to the hassle of work but, simultaneously, it is time-consuming and adds up to the cost. Conversely, handing over the task to freight forwarders with expertise in this domain can simplify the work.
They specialize in different modes of transportation, such as the ocean, air, road, or rail. The role of an international freight forwarder is not just limited to providing forwarding services. Rather they also encompass other areas of work like warehousing, customs brokerage, packaging, labelling, and supply chain management. They work closely with shippers to understand their shipping requirements, provide customized solutions, and ensure compliance with local and international regulations.
What Assistance Freight Forwarders Bring to Your Business?
A well-established and experienced freight forwarder is expected to provide the following services:
- They have experience in all modes of transportation– road, rail, air and sea
- Ensure cost-effective movement of the shipment
- Provide all assistance in customs clearance, shipping information, and updates on the movement of shipment, ensuring timely delivery of the products.
- They can easily arrange cargo distribution based on the client’s instructions.
- An experienced freight forwarding company can also negotiate on your behalf.
- They are well aware of the necessary documentation for transportation, like a bill of landing, negotiating documentation, and customs and port documentation.
- They also issue their own approved house bill of lading (HBL)
- A professional freight forwarder will also make the necessary arrangement for the transportation of cargo. To the customer’s designation or port.
- They also ensure custom clearance
The multitude of services provided by freight forwarders they have become an integral part of the supply chain system. For every company, flawlessly running a supply chain system is integral for enhanced productivity and brand reputation. Hence the role of a freight forwarder is irreplaceable.
7 Compelling Reasons Why A Professional Freight Forwarder is Beneficial for Your Business
1. Expertise and Experience
There is no substitute for the experience and expertise a professional freight forwarder brings to your business. An experienced company will have in-depth knowledge about shipping and its associated regulations. Whether it is custom clearance or documentation, a professional freight forwarder will know about these and the local laws applicable when the product reaches its destination. They will ensure compliance with all such standards, thereby ensuring hassle-free delivery of products.
2. Cost-Effective Shipping Solutions
Export and import of goods and their transportation is time-consuming, challenging, and involves cost. However, adopting the right way and optimizing the supply chain solution can help the company save on time and cost. A freight forwarder with an established network of carriers, customs brokers and logistic providers will provide the services at the best rates. It can help you find the most effective shipping solution. They also help optimise routes and transit times and suggest shipping modes that suit your needs and budget.
3. Time and Resource Savings
Cross-border shipping can be time-consuming and involves a lot of resources. Dealing with multiple parties handling paperwork and ensuring coordination or some parts of it. By outsourcing the shipping needs to the freight forwarder, you can save on the course as these companies handle all the stars on your behalf. And they take care of the documentation process, coordination with the parties, and dealing with the customer authority, thus saving your time.
4. Risk Management
Shipping across the border may involve some risk. The freight forwarders provide a comprehensive risk management solution like cargo insurance to overcome the same. This protects your shipment against any cost kind of loss or damage. Thereby ensuring ask the delivery of products to the end user. They also manage the other risk associated with international shipping, like security and supply chain disruption, and minimize exposure to potential liabilities.
5. Increased Efficiency and Visibility
Freight forwarders have become highly advanced when it comes to providing services. The reliance on bespoke technologies like AI, Blockchain, GPS tracking and others ensures real-time shipment visibility, thus allowing you to track and monitor them throughout the process. This further helps in building trust and improving customer service.
6. Customized Solutions
Freight forwarders provide customized and tailored services to suit shipping requirements. They can handle various cargo types like perishable materials, hazardous materials, oversized cargoes and specialized equipment. They also provide additional services like labelling, packaging and consolidation, thereby streamlining the shipping services.
7. Global Network
Freight forwarders typically have a global network of agents and partners, enabling them to provide seamless door-to-door shipping solutions across different countries and continents. This global reach allows them to easily handle complex shipping scenarios, such as multi-country shipments, multimodal transportation, and shipment.
Things to Consider When Hiring A Freight Forwarder
1. Experience and a Good Reputation
It takes years to build a brand, reputation and trust. Hence when looking for a freight forwarder, don’t miss to check the experience and reputation of the company. A company with a proven track record and good rapport with its clients is likely to provide the best services. For example, if your shipment involves import and export, a freight forwarder knows about both countries’ navigating laws and regulations, thus ensuring hassle-free delivery.
2. An Established Network and Strong Connections
The relationship and networks are critical for freight forwarders as they can make or break their reputation in the market. A well-established network ensures better rates; global reach does allow you to deliver the products at the desired destination at a subsidized cost. Ensure you ask the freight forwarder for the reference list of the portfolio of work they have done before.
3. A Variety of Services
If your business is dealing in multimodal shipments or you need to ship specific products like hazardous materials, then you need to hire a freight forwarder who can provide such customer services. Make sure that you discuss all aspects of the supply chain with the forwarders to ensure that they can provide you with the necessary service.
4. Transparency and Open Communication
The next point that you need to add to your checklist us communication. The freight forward needs to have a clear line of communication with the shipper. They should be able to provide you with a complete update at the moment of shipment. This also applies to pricing, tracking and the ability to provide regular updates
Wrapping it up !!!
As the shipping industry continues to evolve, there will be a greater dependency on advanced and seamless freight forwarding services. Experienced freight forwarders who have rendered impeccable services in this domain for years. They have access to the most advanced technology and a well-established supply chain system that provides regular updates to their clients. Hence if You Are looking for one such service, log on to the contact us page of the freight forwarding service provider, and you can get the best quotes matching your shipping requirements.
The freight forwarding domain continues to expand. With growing consumer expectations and demand, it has become significant for companies to adopt measures that can provide the best customer service. Timely delivery of products and regular updates on the same is one such way. With the services of FreighRight an experienced freight forwarding service provider, you can ensure meeting such expectations. The above-mentioned pointers can be helpful in shortlisting the best options. Make sure that you hire services that our well recognized and have a proven track record.
