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  • Writer's pictureJodie

FOUR Benefits of Working with a Freight Forwarder

Freight forwarder has become a remarkable and inevitable part of the logistic industry. However, having no precise understanding about what they do leaves you clueless of why you should engage a freight forwarding company.

What is a Freight Forwarder?

Typically, a freight forwarder is referred to as a middleman – the company is responsible for helping clients arrange their shipments. They administer documentation of your logistics, track the cargo and file insurance claims, among other services.

While freight forwarding companies plan for your shipment, they, however, DO NOT move your goods – they are NOT carriers. They act as a mediator between shippers (you/clients) and carriers (shipping line/airline) and take responsibility of all the frustrating administrative aspects of logistics.

To understand more of how a freight forwarder can serve you, check out Multi-Trans’s comprehensive services.

In-house Logistics Department – Can, but NOT wise

As the number of manufacturing companies increases, handling the logistics and amount of shipments to be sent to customers becomes a huge challenge. You can choose to expand your in-house logistics department but this will consume a large investment in human capital and resources as well as specialized technology and systems.

Benefit 1: You save plenty of TIME

Freight forwarder has the capability of making sure your goods will arrive at the correct destination on time and prevent disruptions to your company’s supply chain management.

Engaging a freight forwarder simply means only one point of contact, thus, you save abundant of hassle acquiring and comparing prices of different transporters and shipping liners.

Should there be delays or redirected shipments, freight forwarding companies can handle the issues well as they have the resources and connections to ensure everything does not fall apart. Without them, there is a high chance that you will lose money, dive into a pool of trouble and waste a lot of unnecessary time.

Benefit 2: You save MONEY

As freight forwarder specializes in dealing with carriers (both shipping and airlines), they often leverage on volume to attain much more economical rates, which translates to the benefits of their customers.

They have the expertise, experience and vast knowledge of customs clearance for your import and export trades. First things first, they can advise you on the most appropriate tariff classification (insert LINK) which would reflect the amount of duty to pay.

Freight forwarders will assist you in paying the least amount of duty. You can avoid issues of overpaying, underpaying or incorrect declaration, in which a penalty can be imposed on your company.

Credit: Freightos

Benefit 3: Global Network of Agents

A freight forwarder with a large network will benefit its customers in many ways. For example, Multi-Trans is a member of the exclusive World Air Cargo Organisation (WACO) so we have been able to develop close relationships with agents of other countries, major ports and even partners and affiliates worldwide.

Apart from the wide availability of the shipment routes, being involved in an active network also helps to stay updated with logistical changes, news and even advanced technologies in other parts of the world.

A strong network enables a freight forwarder to have knowledge of the best or most suitable carrier to a certain location. That’s when they can assist you in obtaining the best rates with impeccable service for your shipment delivery.

Benefit 4: Knowledge of the Logistics Industry

It takes a logistics expert to advise the most efficient and cost-effective transportation plan – and a freight forwarder is one. They are your ultimate transport problem solver – they devise, advise and improvise.

Freight forwarding companies put their knowledge to good use in the preparation of documents for shipping, identifying the right tariff classification and even the application of permits, licenses and tax exemptions.

In other words, a freight agent is not only an executor for your shipment, they are typically your best friend for transportation.

See How Freight Forwarding Market has Evolved

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