Introduction
Going above and beyond with decision-making is crucial if you’re looking for a freight forwarder for your import/export needs. Considering the challenges in today’s supply chain market, choosing who to trust in shipping your cargo is a make-or-break.
There’s no sure-fire way of knowing, but one fool-proof approach is to ask the right questions.
In this blog post, we compiled 11 essential questions to ask your freight forwarder.
Questions to ask your freight forwarder
1. Are you licensed and bonded?
All freight forwarders should be licensed, so it’s one of the most important questions to ask before starting any transaction. Companies who are licensed abide by certain shipping and logistics rules, which include fair pricing.
Also, knowing your forwarder is licensed gives you a channel for complaints in case of unjust treatment. Moreover, dealing with bonded forwarders is beneficial as they can reimburse you should they experience a financial loss.
2. How extensive is your network?
A freight forwarder’s network can immediately define your expectations. Opt for a company that has a well-established connection to your destination country. While partnering with the biggest companies is paramount, it’s also important to consider their contact as it will pose a huge advantage in streamlining the shipping process.
Conduct thorough research on the company’s shipping performance in your origin and destination. Don’t just base it on the sales talk they provide you with. It is also a preventative approach, as the freight forwarders with the best network will know how to quickly and effectively handle setbacks, without compromising your business.
3. Can I track my cargo, and if yes, how?
If you’re fond of tracking the regular parcels you order from Amazon, Shopify, and other e-commerce platforms, then you must be able to track your big shipments, too, no questions asked.
When choosing a freight forwarder, an online tracking platform, whether an app or a website, is vital. With digital integration at the forefront of innovation, companies should consider investing in platforms like this, ensuring their customers remain worry-free.
Also, knowing real-time where your cargo is keeps you alert on the shipment status. If your potential freight forwarder doesn’t offer this service, then you might want to reconsider partnering with them.
4. Can you help me with customs clearance?
Another essential question to ask your freight forwarder is whether they help manage customs clearance. Businesses prefer hiring a freight forwarder covering customs clearance, simplifying the shipping model.
While your freight forwarder may be efficient in the transportation and logistics part, you’ll only spend more if they’re sloppy on the customs clearance process. With demurrage, detention penalties, and delays, it’s not just the entire supply chain of your business that will suffer but the finances, too.
5. How quickly can I get a quote?
The quicker you get the quote, the quicker you can plan your shipment and keep track of deadlines. Most multinational companies offer instant quotes on spot shipments. However, if you’re planning to ship huge volumes, you might want to consider the SLAs of your forwarder.
6. What is included in your rates?
A comprehensive tender quote that details all the inclusive fees to the shipping rate is
necessary, especially on the finance side of your company. Freight forwarders should remain transparent and provide a breakdown of the charges you will pay.
This allows you to plan and prepare for all the other fees. Some companies cover documentation and customs charges in their offers, but it will depend on their network.
7. Will there be any costs at the destination to consider?
Knowing whether the freight forwarder will also cover the destination charges for door-to-door shipments is better. Depending on the agreed incoterm of your shipment, inland destination costs are often inevitable.
The fees will vary from port to port, but if you have an agent in the destination country, you can also connect with them to take care of processing and paying these fees. Alternatively, this can also be an extra service your freight forwarder offers.
8. What are the other charges I have to pay?
Emergency bunker Fees and peak season surcharges are often left floating during contracting stages, and depending on the increase, they can affect the overall cost of your shipments. You wouldn’t wanna risk signing a contract only to be dismayed because you’re paying higher prices than what you anticipated.
Know the other possible charges your freight forwarder may bill you, considering your commodity and container type.
9. Are there any specific requirements at the destination I need to be aware of?
Different destinations will require different requirements, and some may need to be prepared ahead of time to avoid disputes and delays in the shipment. Ask your freight forwarder what other requirements will apply to your shipment.
If you’re shipping to different destinations, you must procure special licenses and permits, even with shipping the same commodity. Freight forwarders should be knowledgeable of these requirements in the first place.
10. Do I have to pack and prepare my cargo?
If your business doesn’t include packing and preparing cargo before handing it over to freight forwarders, then this might be something you would want to ask upfront. Some forwarders offer additional services such as packing. Hence, expect you to pay slightly on top of the ocean freight and shipping rates.
Remember that getting your cargo well-packed and labeled is a key requirement for shippers and at the port of entry or destination.
11. Do you cater to urgent bookings?
Sometimes, you may need to attend to urgent cargoes. This means getting aboard on the earliest sailing date of a vessel or requiring a faster transit or a direct service on the inland side.
Freight Forwarders often cater to rush booking requests but expect a higher fee, as containers must be allocated ahead of time, and a slight change will always impact the vessel.
Conclusion
It’s common to consider the most affordable option you can get in terms of hiring a freight forwarder. However, relying on affordability alone is not efficient. You need to constantly communicate and consider the essential questions to ask your freight forwarder, above anything else.
