How to Choose the Right Partner for Global Freight Forwarding

How to Choose the Right Partner for Global Freight Forwarding

The world of commerce has come a long way in the past few decades. Customers aren’t restricted to purchasing products from the stores closest to their home anymore. Anyone can purchase almost anything, and have it shipped to them anywhere in the world.

This means business leaders have an incredible opportunity to increase their sales and revenue by tapping into the ecommerce market, set to reach a value of around $8.1 trillion by 2026. 

The only problem is that it’s difficult to manage the complexities of global logistics alone. If you’re going to be shipping products to warehouses and consumers around the world, you need the right partner. That’s where a freight forwarding company comes in.

Factors to Consider

A freight forwarding company is a business that acts as an intermediary between your company and the final destination for your goods. They work with trusted contacts to negotiate the best routes, shipping rates, and strategies for your logistics efforts.

However, not all freight forwarding partners are alike. If you want to ensure you’re getting the best results (and support) from your partner, you need a strategy. Here are some of the key factors to consider when choosing the ideal freight forwarding partner.

1. Traditional and Digital Freight Forwarders

One of the first things you’ll need to think about when selecting a freight forwarder today, is whether to work with a “traditional” company or a digital freight forwarder. The main difference is that with a traditional freight forwarder, there will be lots of manual processes involved in organizing your logistics. You might have to post forms to your partner, call them regularly over the phone, and so on.

With a digital freight forwarder, you manage most of the work through an online platform. You can communicate with both your freight forwarder, and their network of suppliers through the web. You may also be able to use the platform to access up-to-date shipping quotes in real-time, or track the whereabouts of your shipments.

For most businesses, a digital solution will be the more efficient option. However, if you’re a large business with existing connections to freight forwarders, you might go the traditional route.

2. Expertise, Experience, and Reputation

Whenever business owners or consumers shop for anything online, the first thing they’ll often evaluate is the product or company’s reputation. The same due diligence should apply to your search for a global freight forwarder.

You can check a company’s reputation by looking for reviews online, or case studies from other clients. You can also look to see whether certain companies have earned certifications or rewards for their work. Once you know you’re dealing with a reputable company, ensure they have the experience and expertise to support your company.

For instance, your freight forwarder should be familiar with your industry, and the unique shipping challenges you might face with your products. They need a good knowledge of the local markets you want to ship to, as well as their customs regulations.

3. The Forwarder’s Network

Freight forwarders don’t actually ship products overseas themselves. Instead, they connect you with shipping partners they’ve already developed strong relationships with. The broader, and stronger your freight forwarder’s network is the better off your business will be.

First, make sure your freight forwarder has partnerships and connections with major shipping companies in all the regions you want to reach. It’s also worth looking for what kind of shipping options the company offers, such as sea, land, or air freight, express delivery, and even LCL or FCL shipping options.

Additionally, pay attention to how your freight forwarder helps you choose the right partners for your shipping strategy. For instance, do they have an online platform or tool that allows you to compare shipping rates, routes, and options from various vendors?

4. The Pricing

Every business wants to find ways of reducing operational costs. If you’re shipping products overseas, then looking for an affordable solution can save you a lot of money in the long-term. Freight forwarders can help you to reduce expenses, by giving you access to preferred shipping rates and discounts, based on their relationships with carriers.

However, some companies will charge you for this service. Others will take a small commission from the price you pay to your carriers. When you’re choosing which freight forwarder to work with, don’t get too caught up on which company has the lowest shipping prices.

Think about the value you’re getting from the service too. For instance, if one freight forwarder has slightly higher rates, but makes it easier to streamline logistics with a door-to-door service, it might be worth the extra money. A door-to-door service helps you plan everything that happens after your products arrive at a specific port or location.

5. The Customer Service

Finally, one of the most important things to consider when choosing your global freight forwarder is the support they can offer. Most companies promise to be available to answer your questions as often as possible, via chat, email, or even phone. However, only a handful will provide 24/7 service, and even fewer will give you direct support from a human agent.

If you need extra guidance throughout the shipping journey, choosing a company that goes above and beyond with its customer service strategy is crucial. It’s also worth looking at how your freight forwarder commits to making your life easier. Some companies will be able to help with things like preparing customs documents and evaluating routes, while others will only provide basic technical support.

Pay Attention to the Whole Package your Freight Forwarder Provides

If you’re planning on taking your business to the next level by going global, you’re going to need a freight forwarder to help you move your products overseas. Choosing the right partner will be crucial to your success, ensuring you can keep costs low and boost the efficiency of your logistics strategy.

Pay close attention not just to the prices your freight forwarder offers, but their commitment to customer service, their experience, the digital tools they provide, and even their network, to ensure you make the right choice for your company’s future.