There are a lot of myths out there about freight forwarding. Some people think it is a complex process; others believe it is expensive. In this blog post, we will bust the myths and set the record straight about freight forwarding.
We will explain what freight forwarding is, how it works, and why it is essential to the supply chain. We will also dispel some of the myths commonly associated with freight forwarding. So if you’re curious to know the truth about freight forwarding, read on!
What Is Freight Forwarding?
Freight Forwarding is the act of getting goods from one place to another. In a nutshell, freight forwarding is the logistics of obtaining goods from your warehouse to your customers. Freight forwarders serve as middlemen between the suppliers in one country and the customers in another country. They help you get your goods from one country to another.
Some freight forwarders act as customs brokers or freight brokers, which means that they serve as an intermediary between the shipper and importer. Other freight forwarders work with manufacturers to ship their products directly to the importers. Freight forwarders act as part of your supply chain. They typically handle different supply chain details, such as warehousing, transportation, and customs.
For most of your logistical needs to be met, it’s best to use an experienced freight forwarder. As a business owner, you need someone who can take care of customs clearance in your name and help you with a variety of transportation options, including air and ocean shipping.
Myths Of Freight Forwarding Busted
Myth: Expensive and Takes a Lot of Time
This is one of the most common myths that we hear. Many people think that freight forwarding is too expensive and takes time.
Truth: Save You Money and Time!
Freight forwarding can be surprisingly affordable, especially if you compare it with the cost of transporting goods by air or sea. Freight forwarding is typically only more expensive than air or ocean shipping if you are moving large amounts of goods across continents. But if you are sending goods to another country, you may find that it is cheaper than other modes of transportation such as air or ocean shipping.
This is another common myth about freight forwarding. Some people think it is a complex process involving purchasing and storing goods in warehouses.
Truth: Simple Process
Freight forwarding is very simple. When you use freight forwarding services, you outsource your logistics and transportation to a professional. An international freight forwarder will handle the shipping process for you. This means that you don’t have to store your goods in a warehouse, purchase packing materials, or ship your goods yourself. You need to give the shipping details to the forwarder.
Myth: Only Used by Large Companies
Traditionally freight forwarding service was used by small-and-medium-sized businesses. However, large corporations are now using freight forwarding much more frequently.
Truth: Used by Everyone
Today freight forwarding is used to send goods pretty much anywhere globally. It can be used by businesses and organizations of all sizes, from small businesses to international corporations.
Myth: Only Used by International Businesses
While international freight forwarding is the most common type of freight forwarding, domestic freight forwarding is also available.
Truth: Used by Both Domestic and International Businesses
Domestic freight forwarding is used when businesses need to send goods domestically, between states or provinces. It can be utilized by both small and large businesses. When a company needs to ship goods from one country to another, they use international freight forwarding.
Myth: Only for Goods That Shipping Container Sends
Some people mistakenly think that freight forwarding is only for goods sent by shipping containers.
Truth: Lots of Types of Goods
Freight forwarding is used for all sorts of products, including perishable foods, machine parts, cars and other vehicles, and even live animals.
How Freight Forwarding Works
Freight Forwarding Process
Stage 1 – Export Goods
Your goods are shipped to the loading port either by your transport or the freight forwarder. Some freight forwarders hold stock in the destination country; others will hand it over at port.
Freight Forwarder is your “bridge” between your customer and your supplier, and they are responsible for seeing that your customer is satisfied with the service they provide.
Stage 2 – Items Checkpoint
The freight forwarder will conduct internal and external inspections of your items at this stage. This is important to ensure that your products are in good condition when they arrive at their destination.
Stage 3 – Export/Import Customs Clearance
In this stage, customs brokers will do all the required paperwork for clearance. The freight forwarder will also ensure that all the relevant paperwork is in place for customs clearance.
Stage 5 – Destination Arrival and Handling
In this stage, the freight forwarder will handle all your items to ensure that they arrive at their destination in the same condition once they leave their warehouse. International freight forwarders can ensure that goods stay safe and secure, no matter where they are transported.
Stage 6 – Import Haulage
The freight forwarder will handle items from the port or airport to the warehouse at this stage. If you have arranged transportation after clearing customs, the freight forwarder will ensure that all your items are transported to your warehouse.
How Freight Forwarding Can Benefit Your Business
Freight forwarders benefit the business in several ways. Here is how
Benefit #1: Reduce Cost
Freight forwarders reduce the cost of shipping. The benefits of using a freight forwarder are significant when shipping goods across continents. You can save quite a bit of money by avoiding the hassles of purchasing tickets and making your travel arrangements. Freight forwarders can help you save money on:
Freight forwarders can negotiate better shipping rates with shipping companies by buying in bulk or negotiating special rates. By finding the best price, they can save you time and money.
Benefit #2: Save Time
Another benefit of using freight forwarding is they will deal with all the logistics. They will take care of everything, including customs clearance and transportation to your warehouse. You only need to focus on running your business, not on the logistics.
Benefit #3: Save Effort
Freight forwarders can also save you a lot of time and energy. Their understanding of customs laws and regulations can also save you a lot of hassle, especially if you’re new to importing or exporting. You can free up time and energy by avoiding the hassles of customs and transportation.
Benefit #4: Save Space
Freight forwarders can also save you a lot of space. You can save a lot of space because you don’t have to pack and store your goods in your warehouse. For example, Zggship, a freight forwarding company in China, has warehouses in various countries, so they can store your goods safely and securely wherever you want them to go.
Image Source: PIXABAY
Benefit #5: Save Headache
Freight forwarders save you from a lot of headaches. Removing the hassle from the shipping process helps you avoid unnecessary stress.
They take care of everything, for a forwarder is a time-saving factor. If you are shipping goods internationally, you won’t have to wait in a long line at customs. You don’t have to spend time purchasing transportation tickets in advance. You need to give the freight forwarder your shipping details and leave the rest to them.
Benefit #6: Avoid Shipping Delays
By outsourcing your logistics to a freight forwarder, you can sidestep a lot of shipping delays. For example, if you are shipping from Australia to the United States, you can avoid the delays caused by the “yuletide effect.”
Benefit #7: Avoid Customs Hassles
Freight forwarders are experts at dealing with customs. Because of their high level of experience, they know how to avoid customs hassles. For example, FBABEE, a 3PL Freight Forwarding Company has experienced staff that will handle your shipments to your customers without having to worry about customs.
Benefit #8: Customs Clearance
Many people mistakenly think that freight forwarding is only for goods sent by shipping containers. However, freight forwarders can handle all sorts of products, including perishable foods, machine parts, cars and other vehicles, and even live animals.
Is Freight Forwarding Important?
In today’s world, you must use freight forwarding services because it saves the precious time needed for your business. Freight forwarding is essential, especially for companies that receive goods overseas, as it is cost-saving and faster. Freight forwarding services can save your company up to 20% of its costs in shipments.
If you are using freight forwarding services, you can easily avoid shipping delays, which positively affect you. In addition to fast shipping, you won’t have to deal with long lines. Using freight forwarding services is an excellent decision because they can help you deal with customs hassles. Freight forwarders know how to deal with customs officials, especially in your destination country. With this data in mind, you must use freight forwarding services.
In this reading, we have debunked some of the myths associated with freight forwarding. We have explained what freight forwarding is in detail and what makes it a vital part of the supply chain. We have also demonstrated that using a freight forwarder can be cost-effective to ship goods internationally.
Freight forwarding is a vital part of the supply chain, and it has the potential to save you valuable time, money, and resources. If you’re considering using freight forwarding services, you should take some time to learn more about them. By educating yourself about this service, you can ensure that you make a wise and informed decision.