A freight forwarder is a person or a company that organizes all the matters related to the shipment of goods for different people or businesses. Their job is to ensure that the goods are received from the supplier or manufacturer and reach their destination or the distribution center. We have to keep in mind that freight forwarders are not carriers themselves. They contract carriers to perform this task.
Freight forwarding is necessary because, without them, the suppliers, manufacturers, and shippers, will face many logistical burdens that can overwhelm them. So, their role is essential to the overall market in maintaining productivity and efficiency. This makes freight forwarding an essential industry. But there are many facts about this industry that people don’t know. Some of these are:
Freight forwarding is cost-efficient
You may think hiring a middleman to ship your goods across the country may cost you a lot. But in fact, freight forwarding is the cheapest way to ship your products all over the world. You can choose between air freight and sea freight to decide which one works best for you. Or, if you are shipping locally, you will have the choice between road and rail freight.
Choosing your transportation can reduce prices. Besides, if you stay loyal to one freight forwarding company, you might enjoy many discounts and benefits that can help cut costs.
Freight forwarders provide a range of services
Freight forwarding is not limited to making the shipping arrangements only. They provide many services that help a business manage the supply chain process. For example, if you have to ship overseas, then you will need customs clearance. There is a whole messy process in custom clearance that can overburden you.
Apart from that, you will have to keep all the country’s rules, laws, and regulations in mind. But freight forwarding services include custom clearances. They can handle all the paperwork and deal with the logistics without you having to worry. Hence, freight forwarding companies’ services range from customs clearance, documentation for international import and export, freight insurance, packaging, storage facilities, and inventory management.
3. Freight forwarders are not responsible for shipping delays
Freight forwarding companies hold no responsibility for shipping delays, as it can occur for many reasons. These reasons can be difficult weather conditions, route change, freight breakdowns, or changes in the country’s regulations. Of course, while the freight companies are not responsible for the delays, they do everything in their power to solve the problems. After all, like every other business, they aim for customer satisfaction too.
Almost 90% of trading is done via ships
It may seem like the world has come past sea trade, but actually, it hasn’t. Even when we have advanced air travel services globally, international trade still highly depends upon sea freight. While this is a slow method, it is also the safest method for the environment. Sea freight also costs considerably less than air freight.
They have a well-built network
While there is a natural competition between freight forwarding companies, most of them have formed associations or unions to expand their network. A freight forwarding company has to meet certain standards if they want to become part of such an association.
In case you face any problems in looking for any trustful freight forwarding company, you have to look for companies that are part of such unions. Being part of an association is a vote to their legitimacy and high service standards.
Freight shipping is one of the oldest methods of trade
According to some painted discs found in Kuwait, we can trace back pieces of evidence of trade through the sea all the way back to the 5th millennium BC. It is indeed an astonishing fact because freight shipping is still a significant industry in the world of trade as it was centuries ago.
Some products are prohibited from freight forwarding
Every freight forwarding company has to stick with rules and regulations about their services. These rules include the prohibition of certain goods and materials. It is considerably rigid when it comes to air freight or sea freight services. The prohibited items generally include flammable material, different drugs, alcohol, sharp objects, and batteries.
Freight forwarding is an important industry for businesses to move their goods around the globe. More than 70% of goods are transferred through freight forwarding worldwide. This signifies how important freight forwarding business is for the majority of businesses. All the facts we have mentioned above show how important freight forwarding and shipping are for the industry. So, keep these facts in mind the next time you need any cargo shipment.