Freight forwarding has a number of benefits for businesses, whether you’re a small business faced with your first foreign shipment or an established multinational firm. Let’s learn how freight forwarding can contribute to the success of your business.
It Reduces the Risk of Costly Mistakes
Your business cannot afford your shipment to a customer to get stuck in customs. The experts at Dedola Global Logistics warn you against losing your new customer if their shipment is several weeks late due to a lack of proper paperwork or if they’re stuck with an unexpected bill for import duties. In a worst case scenario, the shipment is literally lost between here and there. Now you owe your customer money for items they didn’t receive, but you didn’t even get the product shipped back to you. In other cases, the shipment comes back to you, but you have to pay for shipping a product that didn’t result in sales.
It Can Reduce Your Overall Shipping Costs
Freight forwarders tend to ship a large volume of products to various destinations. Transportation services like trucking companies, airlines and railroads often give them a volume discount. This is why freight forwarders in London may be able to ship something for you for less than what you’d pay if you paid the shipping service yourself. You could save money whether you’re shipping it on an overnight flight to Asia or a slower cargo container ship. For a foreign firm, a freight forwarder could collect a variety of orders and send them together to the destination, resulting in a lower bulk rate than if they were shipped individually.
It May Reduce Your Overall Workload
Freight forwarders are familiar with international shipping paperwork. How many copies of the invoice do they need to process it at customs? What is the right harmonization standardization code to use with that type of product? Whose contact information should be listed on the paperwork so that issues can be resolved quickly? What fees or permits are required to send something like electronics containing lithium ion batteries? The freight forwarder also takes responsibility for what they’re shipping, so they’re the ones who file the insurance claim if the item is lost, even if it is their insurer.
It Can Protect Everyone’s Privacy
Suppose you’re selling products online. You may be selling collectibles online or buying exotic goods directly from an international source. Using a freight forwarder could protect your privacy. You aren’t shipping internationally from your home address, and international customs authorities aren’t going to call you personally to collect import duties or a value added tax. You can also use freight forwarders to collect a variety of items you’ve ordered and send them back home for you. Now you don’t have to give the businesses you ordered from your personal address.
It Gives You More Flexibility
You’ll pay the highest possible rate if you’re shipping items on a case by case basis with a major firm like Fedex or DHL. You could save money by getting a corporate account, assuming you do enough business with them. Unfortunately, you’re now stuck with their contracted rates. Using a freight forwarding service gives you more flexibility. You can compare rates and can take advantage of options that aren’t available to a small business account.
