Freight forwarder has a important role in the logistics market, there are more and more freight forwarders. Choosing the effective forwarder for your job is very important. If you choose the forwarder you are using right now, just a major name, this post will be good support for your business.
A freight forwarder is an International logistics company Which use to ship cargo Overseas. According to statistics in December 2021, there are 4000 to 4500 logistics companies in Vietnam. Do you consider a good freight forwarder before you ship cargo?
By now, Alotrans will go through the role of freight forwarder, and point to how to choose one. There are 7 essential factors in choosing the right freight forwarder.
1. Freight Forwarder’s Strength and Weakness.
Not all freight forwarders can arrange all logistics arrangements smoothly. They are companies dealing with freight forwarding and customs clearance and they specialize in the following: Asia and South-eastern Asia/DG Cargo/ import/ Reefer/ Air Shipment,…
For example, If you want to send Air shipment and use a freight forwarder who does not specialize in Air shipment, the cost will increase. Also, they will be unable to deal with problems as they happen. If you intend to ship Air shipment, you should use a company which specializes in Air shipment.
2. The Freight Forwarder has Secure the Vessel/ Airplane space.
The next point is to understand that the transport space of ocean freight vessels and air planes are limited.
Your business is unable to ship whenever you like. Especially prior to extended vacations such as New Years, Golden Week and National Day holidays since space will be very limited as companies will ship before the holiday starts.
You may be required to ship urgent cargo on behalf of a customer. A freight forwarder who is able to secure space during high seasons, is a strong player.
3. Cost Effective.
Once cargo can be transported safely and on time, the next thing to look at is cost.
If the cost of logistics is high, The product unit price will increase.
Companies who can provide a competitive price are strong forwarders. If the cargo can be transported safely and on time, reduced cost transport will be preferred.
Where does this competitive price come from?
This depends on the volume of cargo the freight forwarder deals with, and the sales person in charge. If the freight forwarder is dealing with high volume, the shipping line will provide them with high volume, the shipping line will provide them with a special rate.If the sales team sells at a higher price, then the cost will be naturally high. There is a case that when a sales representative sells at a cheaper price to obtain additional work, the quality of their service may decrease. So, It is important to maintain the balance.
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4. Many choices of schedules and routes.
A freight forwarder does not own vessels or airplanes, however, they deal with different shipping lines and airlines. Therefore, they can provide different options on price, schedule and free time to their customers.
Customers are happy to have more choices. There are freight forwarders who only deal with a specific shipping line or airline. However, a customer will gain additional benefits from dealing with a freight forwarder who can provide more choices.
5. Smooth Custom Clearance.
Customs clearance is a hurdle for international transport. You are unable to ship whatever you want in cross border transportation. You may be required to have a permit or register items.
It is important for a freight forwarder to be able to communicate this information to their customer in advance. Right freight forwarder will be able to ship cargo smoothly, without the cargo being held at customs clearance and employs an experienced customs specialist who can deal with problems efficiently and quickly .
This is how companies should operate. An exporting freight forwarder and an importing forwarder located in two different countries co-operate with each other to ship international cargo. A large business has many branches overseas and there are freight forwarders who have a network of agency contracts.
6. Freight Forwarder’s Overseas Agent Network.
If two countries do not communicate effectively, it may cause delays with customs clearance which will affect the delivery schedule.
Important factors are to check such as whether the importing country has a branch or agent. Also, check if they have good communication skills where they communicate regularly.
A freight forwarder is a service business. The customers will be easy to work with, and will have positive feedback toward them If a forwarder is able to provide good service and work with a good attitude.
It is important to have a quick response and flexibility toward complicated requests when choosing a freight forwarder.
7. Service quality with a Team.
To provide a good service, it is important to maintain a high level of cooperation within a company. Responsibilities and roles differ between each company.
However, it is important for sales representatives, customer services, and customs specialists to work and cooperate effectively. If effective communication is not maintained within the team, the customer will be unable to forward issues, and concerns to the appropriate person.
Customers will not be able to proceed with the jobs when they cannot contact the person in charge. Also, if a sales representative leaves a company, the customer will necessarily need to know who they need to contact.