How to Choose Freight Forwarding Companies

12 Oct How to Choose Freight Forwarding Companies

Freight forwarding companies are the middlemen between your shipment and the destination. Choosing the right forwarder can make your business function seamlessly. A bad choice can bring it to a standstill. This means that you cannot afford to take chances when choosing a forwarder.

Of course, the process of selecting the best hand can look a bit daunting but with the right information, you can easily complete the process with minimal stress. In this post, we will look at the best way to choose from a plethora of freight forwarding companies that are available.

What Does Freight Forwarding Company Do?

Before going into the details of how to choose the right freight forwarder, it is important to understand the business of freight forwarding. So, what is a freight forwarder? This is a commercial activity of transporting goods from the point of origin to the goods’ destinations through different carriers over the sea, air, and land.

Freight forwarding companies are the ones in charge of this transportation service. So, how do you make the right choice of a freight forwarder?

Find a Reputable Company

It takes years to build a well reputable, which means that a good freight forwarding company would have ample years of experience. There are appropriate platforms where you can check licensed freight forwarding companies and this should be the first step in your search.

To check the trustworthiness and reputation of a company, you can check independent reviews online. If you are not satisfied with what you have found, ask the company for references. A reputable company would be willing to provide references that you can check with before hiring them.

Look for a Company with the Right Experience 

Freight forwarding requires good experience in many areas. If you are looking for freight forwarding companies for the import and export business, you should consider companies with the right industry knowledge on navigating the laws and regulations of different countries.

It is also a good idea to opt for a company with the right experience that aligns with your area of business. A freight forwarder that has experience in best practices for goods transportation is very critical, irrespective of what you are shipping.

Check the Network

A good industry relationship is very vital in the freight forwarding business. The connections that a forwarder has can be a major determinant between their success and failure. The ability of a freight forwarding company to leverage the connections they have is very important.

This informs their rates, getting paperwork done, and navigating through local and international authorities. To know more about the network of your selected freight forwarding companies, you should ask them for references and the contact details of their clients.

Choose a Company with a Transparent Pricing Structure

If you want to have a seamless working relationship with a freight forwarding company, you should take the time to engage a company with the right and transparent pricing structure. It can be frustrating to get a quote and at the time of booking a space, you discover that the price has changed from what you negotiated.

Of course, many things can be responsible for this, including PSS and GRIs adjustments but the major reason for the alterations is lack of transparency in costs. Therefore, try to find a freight forwarder with a transparent cost structure that does not cause any ambiguity.

These are the top things to help you make the right choice among freight forwarding companies. It is also a good idea to check if your preferred company offers cargo insurance. This will significantly reduce your risk and give you peace of mind.