A freight forwarder is called a firm established with the main purpose to arrange the movement of goods from one country to the other. In other words, a freight forwarder is a facilitator in the process of export and import of goods from the country of origin to the country of destination. Please note that a freight forwarder does not simply facilitate the process of movement of goods. In addition, a freight forwarder enables value addition during the specific freight-cycle. In this respect, this article treats 13 reasons why you need a freight forwarder to penetrate international markets successfully.

How Does Freight Forwarders Work?

Documentation represents one of the most crucial aspects in the process of exporting. A freight forwarder will do just that, prepare most of the shipping documents on your behalf (exporter’s behalf). In this respect, a freight forwarder will hold your hand through this process and help make your exporting endeavors run smoothly.

Freight forwarders are your agents, authorized by a power of attorney who cover the transportation process of you merchandise from a specified shipping point to a foreign port or to your customer’s location overseas. Therefore, freight forwarders simply provide a service to make it easier for you, the exporter, to ship your goods to global markets.

Freight forwarders make money during the process of transportation. Specifically, they buy high volume space (from airlines, ocean shipping lines, etc) at a low cost and then resell that space to an exporting company.

Freight forwarders in many instances get involved in many aspects of international marketing. Moreover, Since they are a stricly service organization, their success is dependent on your experience. Thus, freight forwarders can also help to generate sales leads in order to create a long-lasting relationship with you.

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13 Reasons Why You Need a Freight Forwarder

There are 13 reasons why you need a freight forwarder to play an essential role in the process of exporting. A freight forwarder will do the following:

  1. provide helpful information on which model of transportations best suits your needs
  2. book necessary space for the shipment of your goods (on air/shipping vessel)
  3. provide crucial information in regards to the type of packaging needed
  4. arrange for inland freight
  5. provide space for your products if there is a necessity to be held at piers/terminals
  6. alert you in regards to possible commerce violations and risky foreign endeavors
  7. cover the process customs clearance
  8. prepare and examine all of the necessary documents to ensure accuracy and compliance throughout the whole process of exporting
  9. distribute all documents involved in a shipment, including requested delivery of documentation directly to shipper’s bank
  10. oversee the whole process of movement of document through consulates
  11. prepare letters of credit, drafts etc., namely the banking and the collection papers
  12. provide for cargo insurance and,
  13. inform the foreign buyer that your products are on the way

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Post Author: ExportCounseling Staff

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