How to choose a freight forwarder

The Freight Forwarding Bill
Generally speaking, a business will need to provide a commercial invoice and shipping details to a forwarder, who will then take care of the other details. Components of your forwarding bill will include handling, freight activity, customs processes, local cartage, import charges and terminal charges as well as a fee for the forwarding service. “At the end of the day, the size of the business will also affect what you’ll pay. The bigger you are, the more volume you send, the lower your costs,” says Murphy.

But it’s not just money that makes the freight go round; the relationship you develop with your forwarder is also a significant factor. A freight forwarder needs to understand and care about your products and your business, so choose an organisation that will take the time to understand what you do, and one with whom you feel comfortable in building a relationship.

“Freight forwarding is a service, it’s about people and feeling confident they’re going to deliver what you’re after. It’s very important that there’s a partnership between the two organisations,” says Murphy. “The more understanding the freight forwarder has of what the customer’s objectives are, their direction, their strategy, their focus, the better it’s going to be in terms of being able to get more out of that relationship. It really helps the way people deal with each other too.”
A forwarder with good interpersonal skills can also provide tangible rewards for your business in their relationship with carriers. “A better relationship between the forwarder and the shipping line will ensure things like the pricing and they’ll ensure capacity as well. It could be the ability to get your container on board during peak season,” says Murphy. “If you want to pull strings, it’s definitely about relationships.”

Choosing a freight forwarder is dependent on so many factors that it’s hard to know where to start. While examining your business and looking at what you want from a forwarder is the best way to begin, sometimes it’s the rapport that goes beyond just a supplier-client relationship that could prove the clincher.

Options Besides Freight Forwarding
Forwarding is best suited to shipments containing several items going to the one destination, such as a supplier servicing a distributor in another country. One off items or shipments with only a few items might be better served through regular post, which you can manage yourself.

“Australia Post international services are very competitive for goods up to 20 kilograms, especially when sending product samples and online fulfilment,” says Mohammad Khan, international business development manager for NSW/ACT at Australia Post.

Far from being the humble post office, Australia Post now boasts a range of international services, from courier deliveries and priority mail services as well as standard airmail. The best part is that all these products can be lodged at any post office nationally. Metropolitan businesses can even order pick-up.

As for documentation, there’s just the consignment note and a customs declaration form to be completed. “There’s no requirement for formal customs clearance in the destination country if your goods are under the duty free threshold,” says Khan.

There are, however, restrictions on what can’t be sent overseas, some of which may apply to specific countries. Check www.auspost.com.au for details.