Unless your company is big enough to do its own international logistics, you can’t go into foreign trade without a forwarder. And it should better be a good one, because you’ll hand them over almost full control over your cargo while it travels.

So, how do you choose the right forwarder for your business among hundreds and hundreds of companies operating on the market? Here are a few tips that will help you with your search and make the task of finding a forwarder less daunting.

1. Start from within

Before you start searching for a forwarding company, you have to analyze your own business. How big are the volumes you plan to export or import? How regular will the supply be? Does your cargo require special conditions or equipment to be shipped? Do you need a personal manager or can you work with different managers along the way?

Don’t limit your analysis with just these questions. Consult with your staff and make a list of services your business will need to get the cargo going. Only then can you start googling forwarders in your area. And keep that list; it will come in handy at negotiations.

2. Background check

We keep saying it a lot, but only because it’s of utter importance: perform due diligence. If you’ve found a company online, do some research. Check their website and social media, read reviews. If you can’t find any background information, ask for references directly from the company. Any reputable forwarder will gladly oblige.

Also, check if the forwarder has licenses, certifications and permits that might be required to process your cargo. It’s especially important if your cargo is sensitive or dangerous. Usually, these docs are posted on the company’s website to show off all it has to offer, but don’t hesitate to inquire about them directly.

3. Look for the right services for your shipment

Make sure that the forwarder can provide all the services that will be required to ship your product. At a preliminary negotiation, check if they understand what document management your specific cargo will require.

The document services should include but are not limited to:

· Notarizing

· Cargo certification

· Insurance

· Customs clearance

· Documentation review and corrections

In regards to shipping itself, check for the following:

· Negotiating freight rates with carriers for sea, air, and road transportation;

· Providing import and export quotations

· Suggesting reasonable shipping routes

· Arranging stuffing and loading (if required)

· Making payments to carriers, customs, and ports on your behalf.

This is just a fraction of the services a forwarding company can usually provide, so ask them about whatever services you might require. Even if they can’t do it themselves, they definitely know somebody who can. Outsourcing is quite common in forwarding.

4. Ensure they’re well-connected in the industry

Having good connections in the logistics industry is vital. It’s how you get better rates, faster service and slots on vessels during congestion, etc.

It wouldn’t hurt to know if the forwarder is in good standing with customs and port authorities, but this is not easy to check, so you’ll just have to trust them on their word.

However, don’t forget to ask with which carriers the company has contracts with. The more lines they work with, the more options they will be able to offer in terms of rates, services and shipping time.

5. Pay attention to customer service

Multi-modal logistics is a complicated mechanism that never runs like clockwork. Mistakes, delays and force-majeure situations are inevitable, so you have to look for people who will react fast and do their best to solve the problem.

When you send a rate quotation request to a forwarding company, take note of how fast they answer. Get on the phone with the manager and see how knowledgeable he/she is and how willing to answer your questions.

lan a personal meeting and if you are convinced, try to establish good relations with that manager. After all, this is the person you will call in the middle of the night to tell them you made a mistake in your Bill of Lading.

These are our five tips, but we have one last piece of advice. Shipping is unpredictable. This is why vessels never have exact schedules, only expected times of arrival. So no matter how efficient your forwarder is, they can’t do magic.

Whenever a complication arises, work through it and don’t drop the company immediately. But if those complications occur too often, and you’re sure it’s the forwarder’s fault, maybe it’s time to look for someone better.

Hope this helps and thanks for reading.

5 tips on how to choose a freight forwarder

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