7 Things to consider when you choose good Freight Forwarder.

Summary

This video explains the importance of choosing the right freight forwarder for shipping cargo internationally. It highlights key considerations such as understanding the strengths and weaknesses of a freight forwarder, the availability of transport space, and competitive pricing. The video emphasizes the role of customs clearance and the need for good communication between the freight forwarder and customers to avoid delays. Additionally, it suggests that smaller companies can offer more personalized services and flexibility, providing valuable advice for those looking to streamline logistics and improve their shipping experience.

Takeaways

• 😀 A freight forwarder is an international logistics company that helps businesses ship cargo overseas.
• 😀 Choosing the right freight forwarder is crucial to avoid high shipping costs and customs delays.
• 😀 Not all freight forwarders are equally effective; some may lack the expertise or resources needed for smooth operations.
• 😀 Many freight forwarders operate in Thailand due to low initial investment requirements and minimal fixed fees.
• 😀 Shipping logistics can be complex, and a freight forwarder handles various arrangements like booking shipping lines, customs clearance, and transportation.
• 😀 Using a freight forwarder is more cost-effective than arranging shipping directly with carriers, especially for small-volume shipments.
• 😀 A good freight forwarder secures competitive rates by leveraging high-volume shipping with partners, ensuring cheaper shipping costs for customers.
• 😀 It's essential to check if the freight forwarder specializes in the specific type of cargo you want to ship, such as dangerous goods (DG) or refrigerated cargo.
• 😀 Freight space, especially during peak seasons like holidays, is limited. A strong freight forwarder ensures space availability even in high-demand periods.
• 😀 Effective communication and teamwork within the freight forwarder's team (sales, customer service, and customs specialists) are critical for timely and efficient service.

Q & A

Why is it important to choose the right freight forwarder?

Choosing the right freight forwarder is crucial because a wrong choice could result in high shipping costs, customs delays, or even the inability to ship cargo. A good freight forwarder ensures timely, cost-effective, and smooth delivery.

What are some common reasons why there are so many freight forwarders in the market?

Many freight forwarders exist because starting a freight forwarding business requires little initial investment, and they do not need to own assets like ships or airplanes. Additionally, the logistics business is complex, with different arrangements needed depending on cargo type, delivery location, and customer requests.

Why might shipping directly through a shipping line not be as cost-effective?

Shipping directly through a shipping line may not be cost-effective if you're not sending a large volume of cargo. Freight forwarders can negotiate discounted rates due to their large volume of shipments, making them a more economical choice for smaller businesses.

What is the role of a freight forwarder in logistics?

A freight forwarder coordinates all aspects of shipping, including booking transport, managing customs clearance, arranging packaging, and dealing with specific requirements like heavy loads or refrigerated cargo. They ensure that the cargo reaches its destination efficiently and within budget.

Why do certain freight forwarders specialize in specific types of cargo like DG cargo?

Specialization is important because handling dangerous goods (DG cargo) requires specific knowledge, experience, and compliance with safety regulations. Freight forwarders who specialize in DG cargo can manage the complexities of shipping hazardous materials without risking delays or additional costs.

What challenges might a freight forwarder face during peak seasons like New Year or national holidays?

During peak seasons, transport space on ocean freight vessels and airplanes is limited. A good freight forwarder can secure space during these high-demand times to ensure that cargo is shipped on time, avoiding delays due to overbooked transport.

How does the volume of cargo affect a freight forwarder's pricing?

The volume of cargo a freight forwarder handles impacts the pricing because larger volumes allow for better rates from shipping lines and airlines. Freight forwarders with high volumes can offer competitive pricing due to their access to discounted rates.

What factors should be considered when choosing a freight forwarder based on cost?

When choosing a freight forwarder based on cost, consider the volume of cargo they handle, the rates they offer, and whether they can provide multiple options for price, schedules, and free time. A balance of cost and service quality is essential for efficiency.

Why is customs clearance a significant factor in choosing a freight forwarder?

Customs clearance is critical because delays at customs can disrupt the shipping timeline. A good freight forwarder can handle customs efficiently, ensuring the cargo passes through without unnecessary holdups, and communicates any necessary permits or requirements to the customer in advance.

What are the benefits of working with a freight forwarder who has a global network of agents or branches?

A freight forwarder with a global network can ensure smoother communication, quicker response times, and more reliable shipping arrangements across borders. This reduces the risk of delays caused by poor communication or lack of resources in different countries.