What Is Freight Forwarding and How Can It Benefits Your Business

Approximately 2,760 packages are shipped every day. Any service that can speed up or improve the shipping process is worth the investment. Freight forwarding is one of the best methods, as it allows you to have a professional manage all parts of the shipping process for you.

Several different companies provide a range of forwarding services. They can include anything from document and customs knowledge to ensuring speedy, safe deliveries.

It makes shipping easier and more effective regardless of the type or size of the cargo and where it’s going. Read on for a complete guide to the process and its many potential benefits.

What Is Freight Forwarding?

Freight forwarding is a $60 billion industry and one of the most popular ways for a business to improve its shipping process. As online purchasing continues to grow in popularity, the need should only continue to grow.

The more you understand about what it is and how it works, the better you’ll be able to utilize it. The best way to start is by developing a complete freight forwarder definition.

A freight forwarder is a company that handles the exporting and importing of products for other companies. This includes every step of the process, from managing documentation and insurance claims to delivering and tracking cargo.

Before hiring a freight forwarder, you’ll need to develop a freight forwarding agreement. This legal document establishes the terms of your partnership with the freight forwarding company.

A freight forwarding agreement includes several components. Two of the most important are the services provided by and payments given to the freight forwarding company. Putting them in writing ensures both parties know what to expect.

Once you’ve handled the legal side of the operation, you can start benefiting from freight forwarding services. Understanding what they’ll do for you is the best way to prepare yourself.

There are several steps in the freight forwarding process, including:

  • Export haulage
  • Passing through an items checkpoint
  • Export customs clearance
  • Origin handling
  • Import customs clearance
  • Destination arrival and handling
  • Import haulage

Not every freight forwarding delivery requires all of these steps. If cargo isn’t shipped internationally, there’s no need for customs clearance.

No matter what type of cargo you’re shipping or where you’re sending it to, freight forwarding services make the process much easier. They help ensure your products arrive safely without violating any regulations.

What Are the Benefits?

Not every company uses a freight forwarder, but in choosing not to do so, they miss out on a variety of potential benefits. Knowing them ahead of time helps you decide if your business needs the service.

Some of the most important advantages to keep in mind are faster delivery times, a variety of services, the extensive knowledge they provide, and reduced costs.

Faster Delivery Times

51% of shoppers expect a shipping refund if their package arrives late. Ensuring your cargo arrives on time is one of the best ways to retain customers. 

Companies work to provide the fastest, most efficient routes to every destination. They also prevent your cargo from getting stuck in customs.

Variety of Services

Freight forwarding companies can transport your cargo in any type of vehicle you need. Airplanes, boats, trains, and trucks are a few examples.

Freight forwarding companies also know how to handle a variety of different materials. This includes oversized loads and potentially hazardous cargo.

Breaking the hazardous materials law costs $81,933 per day per violation. This is just one example of the serious penalties it can help you avoid while transporting hazmat loads.

Freight forwarding companies customize shipments based on the size of your loads. Whether it’s oversized or small, your load will arrive quickly and safely.

The more services your freight forwarder provides, the more types of cargo you can ship and the more effective the process will be.

Extensive Knowledge

International cargo must pass through a process known as customs. The regulations they require differ in each area and change often, making them difficult for a single person to keep track of.

Even if you don’t ship outside of the country, keeping track of all the necessary requirements can still be a major task. The penalties for violating them can also be severe, harming both your reputation and your bottom line.

Freight forwarding companies are aware of any and all global requirements and regulations. This is especially important for international shippers, as the laws differ from country to country.

The knowledge a freight forwarder provides protects you from getting into serious legal and/or financial trouble. This is only one type of specialized knowledge they provide, however.

Freight forwarding companies also have extensive knowledge of the best routes to any and every destination. This improves delivery times, reduces costs, and provides a host of other related benefits.

Reduced Costs

Freight forwarding services are worth the fee they charge thanks to the time and money they can save you. They reduce legal fees, employment costs, and more.

Hiring a company saves you from having to add a large number of employees to your workforce to provide the same services. This can save you a great deal of money on employment costs.

Freight forwarding can save you thousands of dollars in fines from breaking international and/or local regulations. Doing so also helps protect your reputation which is important for retaining customers.

It also reduces the cost for each individual delivery by finding the fastest, most affordable route.

Where Can I Find Freight Forwarding Services?

Getting products to their destinations is critical to the success of your business. You can’t afford not to make the process as fast and effective as possible. Freight forwarding allows you to do so affordably and easily.

There are several freight forwarding companies to choose from, but their services and quality differ. You must find one with the necessary level of experience and proven results at a fair price.

We provide a range of logistic services you can trust. Request a quote or schedule a consultation today.