Before letting you in on how to select a suitable forwarder, it’s important to first clarify what a forwarder does and what the advantages are of working with one.
What is a forwarder?
A freight forwarder is someone who facilitates the process of shipping and transporting goods through the supply chain on your behalf.
A forwarding agent is an intermediary who maintains contact between the different involved parties: the clients, the carriers, and others. A forwarder advises clients on different aspects related to forwarding. For example, trade routes, cost-efficiency, different methods of transport, and storage facilities.
There are different types of forwarders offering distinct services and several specialisations exist in the field of forwarding. These include sea groupage (which involves grouping smaller shipments into larger loads to reduce costs), often referred to as consolidation, seaport forwarding, inland shipping, storage and distribution expedition, and shipping customs formalities and duties or tariffs due.
Because of their experience and knowledge, a forwarder can handle other administration involved in the transport such as permit applications and customs formalities as mentioned above. Since they are familiar with the specific customs regulations, they can process different documents such as import and export documents in a swift and accurate manner. In addition, a forwarder also negotiates prices and draws up quotations. They prepare the planning and conclude transport agreements with carriers. A forwarder can also write up contracts, take care of insurance and handle transport documents (including the bill of lading, the manifest and the settlement).
Why work with a forwarder?
If you think you can save costs and handle transport yourself, you might be in for a nasty surprise. There are many challenges involved in the shipping process, that forwarders are accustomed to dealing with. International transportation inherently requires you to comply with a vast array of formalities.
Freight forwarders are equipped to handle the process of shipping goods from door to door (D2D) and often have a vast network of trusted partners that facilitate the process. This support can prevent potential incidents from occurring and avoid penalties or fines. To avoid disappointment and ensure your goods arrive at your destination in good condition and timely fashion you will benefit greatly from the expert advice and follow-up of a forwarder.
Further than the transportation side of the process, a forwarder can arrange storage and warehousing. Some goods might need to be transported to the customer right after unloading whereas others might need to be stored for a while. Goods need to be stored and loaded at the right time and in the right way. And for certain (dangerous) products specific rules and regulations need to be adhered to. Even involuntary infractions can amount to high fines. Finally, a freight forwarder can also handle the entire process of loading and unloading at the end location.
How to choose the right forwarder?
Don’t just place your precious cargo in the hands of the first forwarder you come across. It’s important to select the appropriate partner, as the smoothness of the process depends on how the forwarder handles the different aspects.
Select a well-reputed and reliable freight forwarder who is experienced and well-connected. Look for a company with a network of broadly located business entities around the freight sphere. A forwarder should have international business alliances in the same field because layered contracts with different agencies can facilitate the process. You should also pay close attention to the type and the strength of the contracts they draft up. Sloppy contracts leave room for interpretation and can cost you precious time (and money) during the transportation process. Seamless, standardised contracts, on the other hand, remove ambiguity and ensure smooth sailing. Ideally, look for a forwarder with MSA (master service agreements) between contractors, that way they don’t have to draft a new agreement for each new deal. It improves interconnectedness when the MSA covers all the global offices or contractors in the supply chain.
With more than fifty years of experience, Levaco has built up a strong, worldwide network of reliable, professional, and strategical partners. Thanks to these solid relationships with experienced and trustworthy logistics providers, Levaco can offer all clients an innovative and personalised service fitting to their individual requirements. Levaco is well-anchored in the logistical world, to ensure that all client demands can be fulfilled, and no cargo is too complex to ship. Levaco is part of five global logistic networks with intercontinental experience and specific know-how, each of these networks collaborate with trained specialists who are highly qualified in different operational fields. The experience, network and customer-centric approach make Levaco an ideal partner for your freight forwarding.
Contact Levaco to see how we can assist you.
