How to Choose Freight Forwarding Companies

Exporters and others looking to transport shipments often enlist the services of a freight forwarding company. Freight forwarding companies are businesses that that dispatch shipments via asset based carriers, and book or otherwise arrange space for those shipments. Common carrier types used by freight forwarding companies could include waterborne vessels, airplanes, trucks or railroads. Freight forwarders assemble and combine small shipments into one lot and take the responsibility for the transportation of such property from the place of receipt to the place of destination. Clients with the need to ship products internationally often will hire a professional freight forwarding company to help the client with the logistics of shipping products across the globe.

What Do Freight Forwarding Companies Do?-- Freight forwarding companies typically arrange cargo movement to international destinations. Also referred to as international freight forwarders, the role of a freight forwarding company is to collect and consolidate shipments that are less than a carload or truckload and obtain common carrier transportation for the long-haul transport of the property, which is owned by individual carload or truckload shippers. In these cases the freight forwarding company takes on prime responsibility for the entire transport operation, specified in each contract, for a charge or fee which covers the total transport operation and, in turn, pays the actual carriers for the transport services rendered to it.

Why Use a Freight Forwarding Company?-- Freight forwarding companies have the expertise that allow them to prepare and process the documentation and perform related activities pertaining to international shipments. Some of the typical information reviewed by a freight forwarding company is the commercial invoice, shipper's export declaration, and other documents required by the carrier or country of export, import, or transshipment. A professional freight forwarding company is aware of the constantly changing regulations which affect cargo movements, such as foreign documentation requirements, hazardous materials rules, U.S. government regulations, special packaging or handling restrictions, and any applicable licensing provisions. Goods that are shipped overseas must be properly packaged and marked, and the freight forwarding company can advise the client of the best way to ship goods being transported overseas. Freight forwarding companies will take into consideration the type, weight and destination of a shipment when advising the client.

How to Select Freight Forwarding Companies?-- Businesses that are looking to select a freight forwarding company will often seek the referrals of others in businesses with similar shipping requirements. It is a good idea to evaluate several freight forwarding companies regarding the services offered and the costs associated with them when selecting a freight forwarding company. People selecting a freight forwarding company may ask the freight forwarding company for references prior to making a final decision. Some freight forwarding companies may be members of trade associations, such as the International Federation of Freight Forwarders Associations (FIATA). --Freight forwarding companies can be of great value to businesses that need to ship freight to foreign destinations.