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Nov 11

Why to use a freight forwarder

When individuals or companies choose to transport their goods from the manufacturing place, to the final point of distribution, they usually use transport corporations. The process of transportation is organized by a non-vessel operating common carrier, known as freight forwarder, which organizes shipments of goods. This type of forwarders do not move the goods by themselves, they act as experts in the logistics network and contract carriers to move the products. They can be booked for a wide range of shipping providers as railroads, ships, truck or airplanes. There are multiple benefits of using the services of a freight forwarder.

Benefits for consignees and shippers

These agents have the ability of finding better freight quotes than consignees or shippers. This is possible due to the fact that they know which carriers that are week and which ones are stronger, and their market knowledge is greater than that of the consignees. These forwarders can learn quickly the latest changes in import and export regulation and rules. This is the result of making shipments regularly and because they obtain critical information about the current changes. They can provide multimodal transportation and can arrange door-to-door service. A single carrier cannot offer such complex transportation services. If the clients asks, the freight forwarder can offer not only distribution services, but also packing, storage and handling. When the client needs, he can offer custom break services.

Benefits for carriers

The main advantage of using a freight forwarder is the decreased workload carriers get. Because they have things to do all the time, and are working with overcapacity, the carrier personnel hardly answers its client’s calls. When a person wants to load a product with a carrier, he may find this process a hard one. They use to direct clients from a person to another and in this way, a phone conversation takes more than 15 minutes, before the client reaches to the right person, he should talk to. Carriers use freight forwarders as sales agents, to ease their work. These last ones are service providers, and are more customer friendly than carriers are. In fact, this is their key of success on the market. They have the role of solving the majority of carriers’ problem, and help them dealing with shippers on a daily basis. The ones that are dealing with particular shipment are able to manage many of the shippers’ problems in a way that should not reflect to the carriers. Their activity leads to a reduced carriers’ workload. For both carriers and consignees, freight forwarders prove to be a safeguard expert. Working with them offers companies an easier way of organizing the necessary logistics and transport for moving the products from one country to another. Other role they have is to ensure the right paperwork. If the carrier does not provide the right paperwork, goods cannot be released from customs or if the carrier had already dispatched the goods to the customer, but he does not have the required paperwork, the bank refuses to release its funds. A freight forwarder is the best help a carrier, shipper or consignee can get.


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