In general, it is seen that a freight forwarding company acts as an intermediary between the transport agencies and clients. Hence, due to their help, goods are perhaps shipped to the final destination.

So, in the current time, the global market related to freight forwarding services is growing at a very fast pace. Thus, in this article, we would talk about role played by global forwarding companies in supply chain management. Let us have a look:-

·       Great Transportation Network

Freight forwarders tend to have a lot of information when it comes to transportation. Moreover, they have hands on experience when it comes to international logistics processes. This mainly happens due to social network of cross-border contacts and colleagues.

Additionally, freight forwarders know about the laws quite well and hence they can take the businesses to next level.

·       Operations Integration

Freight forwarders have capabilities to handle different supply chain management verticals. All of these are done by conveying the right information at the correct time. Further, it is conveyed to the right recipient. Hence, movements of good are facilitated.

·       Consultant services

A business can take help from a freight forwarder in a number of ways. These include seeking the advice on export strategies, competitive situations, consumer needs, foreign trade contracts etc.

Also, with the passing of each day, there is a lot of evolvement taking place in logistics chain. These include evolvement into cross-border and multimodal systems. Hence, businesses need to take help from service providers who would handle the complexity in the right way.

·       Cost effective

Forwarding companies tend to have global network that is established. Hence, export/import can be facilitated by providing the services at an economical price point.

·       Assistance Legally

Freight forwarder prepares as the necessary certifications and documents.

Besides this, they handle all the certifications and documents and hence the goods are transported from shipper to destination.

Other than this, they take care of documentary and procedural compliances. Thus, global trade activities happen by a business in a hassle free manner.

What is the meaning of Freight Forwarding?

Freight forwarders are intermediaries between the transporters who transport the products to overseas customers and perhaps the companies that tend to hire them. The transportation services include handlers, carriers and custom officials.

Likewise, freight forwarders can also help in package labeling, packaging the shipment goods as well as preparing the documentation for the officials of customs.
What are the qualities of a good freight forwarding companies?

Freight forwarding companies are basically organizations who have hands on experience in arranging shipping and storage of goods on client’s behalf. 

They tend to provide a wide range of services which includes freight consolidation, warehousing, booking cargo space; insurance claims filing, export/import documents, shipping preparation.

Moreover, they have great importance in the export and import industry. They play a very important role in fast and smooth shipments of the goods that tends to happen globally.

So, as the importance is growing, a number of companies are offering a wide range of freight forwarding services. Thus finding a logistics partner who offers reliable services is getting very difficult.

Further, if you want successful and smooth goods shipment, then right forwarder needs to be selected. Likewise, there are certain criteria that you need to keep in mind before hiring a logistics partner. Further, here are some of the top qualities that you need to look:-

·       Highly organized in the documentation process

A global forwarding company should provide efficient and accurate services. The reason is that in the following business, mistakes can prove to be very costly. Insurance can cover up cost in such a scenario, but it can waste a lot of resources and time. The ultimate thing that everyone wants is shipping of the goods to the correct destination without any major delay.

·       Good service of packing

Goods can be shipped using a number of modes which includes air, land and sea. But, the conditions related to shipping can be tough and in the process shipment can be damaged. Hence, it is important that packing is done in a right way.

If you opt for the services of a good freight forwarder, then they would offer you reliable and efficient packing system. These can be suitable for all kinds of products especially the one which is fragile.

Thus, if you are selecting a forwarder, then experience and knowledge of the shipment should be there. Other than this, product handling should be your top notch category.

·       Reliable network of forwarding agents and custom brokers

It is recommended that you opt for a company that has a good network of custom brokers and forwarding agents. In this way, you will get all the information regarding your shipment without any kind of delay.

Also, the possibility of shipments held at port would be reduced as well. So, any delay that tends to happen can prove to be quite expensive.

·       Presents accurate system of tracking and communication level

If the goods are exported overseas, then it is important that proper communication happens between shipper and forwarder. In this way, you would know the shipments exact locations. Moreover, you would be able to understand real-time progress as well. Hence, you will get assurance and peace of mind that shipments would arrive in a very timely manner.

·       Great coverage of insurance

It is recommended that a company is hired who offer great cargo insurance level to cover shipments and products. This ensures that loss or damage to shipment is compensated in a right manner.

How right freight forwarder agent can be hired?

If you are having export or import business, then it can get quite tough to hire the right freight forwarder agent. So, based on the industry that you are working, the expectation that you might have with freight forwarder might vary.

There are some companies who are looking to transport the cargo at a cost effective price. On the other hand, there might be few, who might look to transport the goods in a timely and safe manner.

Hence, you need to hire a good freight forwarder when it comes to product transportation. So, here are some of the tips that you can follow such that right logistics partner can be selected.

·       Requirements Specification

It is important that specific needs such as value, weight and size is determined. Once all of these details are given to the forwarding company, then accurate quote can be asked for the same. You might get some forwarders who presents high rate but good services offered by them is not guaranteed. Hence, to tackle this, it is important that you get multiple quotes from various companies. After this, select the one which can match with your needs.

·       Researching

It is always a good idea that you ask someone experienced to help you hire a dependable agent. After this, you can do your own research to find if the company if right for you. If in case, the company doesn’t turn out to be good, then you can find others. Don’t always settle down to the first agent that comes up.

The best thing that you could do is try out a number of options. You can easily find a number of freight forwarding agents who can present you with reliable and competitive rates. So, you need to give an extra effort such that you can easily find them.

·       Experience

You need to ensure that company or agent that you are thinking to hire has years of experience when it comes to goods transfer. Moreover, you may find a number of countries that tend to have specific export and import rules. Hence, you need to make sure that the agent you are hiring has significant knowledge in that field. 

Additionally, they can provide you with great advice and tips when it comes to international trading. Lastly, the agent hired by you should provide valuable information as well as top notch transport services.

·       Understand the contract

It is important to understand the contract type that the forwarder agent who you are thinking to hire uses. There are specific forwarders who want the service contracts renewed on yearly basis while there are some who do it on the shipment basis.

·       Questions about specific carriers

There are some agents who use specific carriers. So, ask them other type of services that they provide to the customers. There are some forwarding agents who can help you with the requirements of customs clearance as well as other necessary documentation involved.

On the other hand, there are other forwarders who can provide you with inventory management, insurance services, supply chain management and logistics.  

Final Verdict

Above is some of the roles global freight forwarding companies play in supply chain. So, if you are looking to hire a freight forward company, then FreightRight can be your help. It can provide you with a platform where you can hire the company as per your desire. So, contact us today to know more about our services.