What is Freight Forwarding?

Freight forwarding is the process of the movement of goods and commodities from one destination to another. Also known as freight shipping, it uses different modes of transportation to complete the process. International trading is a good expansion for your business. This can only be done with the help ofservices offered by freight forwarding companies, as they help to facilitate easy movement of freight from one destination to another.

Who are Freight Forwarders?

Freight forwarders are primarily the ones who are responsible forkeeping track of every aspect of the movement of cargo. They play an important role, as they are the ones who plan, organize and ensure all the tasks are performed properly, whether it be the paperwork and documentation required, the goods delivered as per the schedule, items carried in and out safely and securely, or any other work involved in moving the freight is taken care of by them.Therefore, with so much responsibility, freight forwarders tend to make common mistakes that can be avoided if they are careful.

Common mistakes Freight Forwarders can avoid

Regardless of the size and experience of freight forwarders, almost every freight forwarder tends to make mistakesonce in a while. Working internationally brings many responsibilities, and requires proper planning and execution so that the goods/commodities reach their destination safely. There is anxiety about the goods/commoditiesduring the long wait and duration it takes to reach theirdestination. This anxiety can sometimescause unintentional mistakes.

Let’s look at some of the most common mistakes freight forwardersmake:

Not purchasing insurance to cut costs

Freight forwarding is an area where freight forwarders should be ready for every kind of unforeseen contingencies such as theft, accidents, natural disasters and otherdangers. Not giving importance to insuring your goods mayresult in you suffering a great loss. Therefore, to avoid this, investing in insurance for your cargo is the safest thing to do.

Wrong estimation of size/weight

When it comes to shipping, evaluation of the cargo’s weight or size becomes important, but many shippers make errors, most likely because they use the client’s data for doing the calculation for shipping. A freight forwardershould always do the calculations needed because there is always a chance that the carrier might re-rate and re-classify the cargo once it leaves their client’sorganization. There are online cost calculator tools which can help calculate the cost.

Improper packaging

Palletizing your cargo is a time-consuming process, but do not avoid the proper packaging of any commodity. If, while shipping, any of the packages open up then it’s going to be an overall disaster. It is important to note that if you are shipping in bulk, pallets are inseparable. 

Don’t go for the cheapest freight rates

While dealing internationally or in another city, one has to choose a partner. However, shippers are on the lookout for the lowest possible freight rates to maximize their profit. But the cheapest ones willnot necessarilyprovide the best quality services. Therefore,cost shouldn’t be the only determining criteria when it comes to choosing a partner.Instead, the experience of the company, track record, and reviews of the services provided should be the major criteria whenchoosing.

Evading road transit

Goods can be transported by sea, road, rail, or air, as well as other forms of transportation. However, many freight forwarders avoid using road/ground transportation because it is considered the slowest means of transit. This is true when compared to air shipments done between cities. However, in a few cases that doesn’t guarantee that the delivery will be completed quickly or on time. Before making any decisions as a dynamic freight forwarder, you should carefully analyze and select from all the modes of transportation.

To conclude, these are some of the most common mistakes that a freight forwarder might make and therefore should be kept in mind to avoid them.