Logistics and Freight Forwarding: Using Freight Forwarders

Using Freight Forwarders

What you'll learn:

• what a freight forwarder is
• how freight forwarders help exporters
• whether your company should use freight forwarding services

Transporting your goods

You can use any combination of road, rail, air or sea transport to move your goods abroad. You or your intermediaries will need to consider:

• cost and distance
• when the goods need to arrive
• the size, weight and perishability of the product, and any safety requirements
• special requirements or export licences for restricted goods, dangerous goods and animals

How a freight forwarder can help you

A freight forwarder can:

• prepare customs and shipping documents
• advise on the rules and regulations of a given country
• organise and manage several different transport methods for a shipment
• negotiate freight rates
• arrange cargo insurance
• book cargo space
• pack goods for export
• transport dangerous goods
• manage customs clearance and payment of import duty at a foreign country's border

Exporting without a freight forwarder

If you're new to exporting, operating in an area where you don't have good contacts, or simply want to ensure a smooth process, using a freight forwarder can be a good solution.

Using parcel couriers

If you're exporting smaller quantities of goods or regular numbers of parcels, it may be simpler, cheaper and faster to use a parcel courier.

Pros and cons

Pros:

• Good for transporting larger quantities of goods
• Freight forwarders often negotiate better rates with carriers
• Specialist knowledge

Cons:

• It can be difficult to find the right company
• Less direct control over the process
• Less useful for smaller exports

Choose to use a freight forwarder if:

you need to export a larger quantity of goods and don't have the knowledge, experience or contacts to do it yourself.

Choose not to use a freight forwarder if:

you have the knowledge and contacts to keep control of your own export process, or you're exporting a small quantity of goods that need door-to-door tracking and delivery.