How to choose a freight forwarder

The Right Freight Forwarder
Factors that determine the right freight forwarder for your business include the type and volume of product you’re looking to shift, the pick-up point and destination of the product and the mode or modes of transport by which the cargo will travel.

“There are a lot of freight forwarders and their areas of expertise vary greatly. You have the large multinationals who have a global infrastructure, which suits some customers, but you also have niche players that suit other customers,” remarks Murphy. “I know some forwarders would look at the total logistical environment end-to-end as opposed to commodity-based point-to-point, so it comes down to what a particular exporter is looking for in a provider. And if they’re too particular, often the large players won’t even deal with them because the cost of service is too great, they won’t give the same sort of love as a smaller provider.”

Shipping Requirements
The type of product you’re exporting will immediately narrow down your choices, particularly if you have cargo that needs particular attention, for example fragile goods, such as glassware or specialist instruments, or a shipment requiring refrigeration, like food or pharmaceuticals. It is advisable to seek freight forwarders who deal with your type of product so they know how to handle it for export. A good place to start would be to ask businesses similar to yours whether they can recommend a freight forwarder, or you can make enquiries with the freight forwarder as to comparable clients to see if they may be a good match for your business.

Similarly, the volume of product you want to move could determine both the mode of transport by which it will need to travel and whether or not a particular freight forwarder can move it. Freight forwarders manage small loads by fitting them together with other small loads to make up full containers so the more clients a forwarder has, the more likely they’ll be able to fit you in. However, it’s also true that some of the larger companies won’t bother with the small stuff. On the other hand, if you have massive shipments, some of the smaller companies don’t have the leverage to deal with it properly and it may mean that some modes of transport, for example moving it by airfreight, becomes too expensive for you.

Service Location Limitations
Service locations could further refine your choice of forwarder. If you’re exporting from a remote or regional area, for example, there may only be a handful of organisations that service your location. Additionally, the destination of your goods may determine who you choose. Some might specialise in particular regions, countries, or even specific locations within countries, while others might provide a broad global service, which suits businesses that export to several countries.
 
Freight Modes
Finally, the mode or modes of transport you choose for your cargo is also an important factor that will determine which freight forwarder you choose. This is because some freight forwarders have special relationships with carriers that could determine aspects like discounts and priority for your shipment.

If you expect to send most of your cargo by sea, it’s best to find a freight forwarder aligned with a shipping line, or similarly, if you’re looking for someone to handle airfreight, seek out an airfreight forwarder. Don’t forget that you may want to combine modes, with air-sea freight an option. In this case, a freight forwarder with connections at an external port, for example hubs like Singapore or Dubai, will prove helpful. And remember that airfreight forwarders with IATA accreditation will make things smoother for you.