Reducing Risk with a Freight Forwarder

Freight forwarder

If you’re involved in any kind of multifaceted business and dealing witha multitude of moving parts, international shipping is likely a part of your operation. If it isn’t, you may be missing out on some lucrative opportunities.

The process of international shipping is quite daunting. There are complex regulations, mountains of paperwork, and a whole slew of other factors that may deter your business from a fruitful venture.

Thankfully, with the help of reliable freight forwarders, you can reap the benefits of international shipping without worrying about the risks that come from overly complex logistics.

Why you need a good Freight Forwarder?

You already have a lot going on with your business. International shipping is a challenge that requires a singular, undistracted focus because of the set of logistical challenges and burdens it presents. Given freight forwarders vast understanding of documentation, regulations, and transportation expenses, it’s easy to understand why they make the exporting process more efficient.

Most freight forwarders have strong networks of carriers such as air freighters, trucking companies, rail freighters, and ocean liners. With these inroads, they’re able to get affordable pricing for shippers. Goods are transported along economical routes because freight forwarders use their expertise to complete the shipping process with speed, cost, and reliability.

While most people know what a freight forwarder does, as an intermediary between a shipper and the slew of available delivery methods (from cargo ships, trucking, air freight, to shipping), a good freight forwarder offers a comprehensive approach that includes the following services:

  • Tracking inland transportation
  • Warehousing
  • Handling shipping and export documents
  • Reserving cargo space
  • Negotiation of freight costs
  • Consolidating freight
  • Insuring cargo
  • Filing insurance claims

Commonly, freight forwarders will ship under their own bills of lading or air waybill. Documents are usually delivered by the freight forwarders’ agents and they’ll provide deconsolidation and freight collection services as well.

freight forwarder

Mitigating Numerous Shipping Risks

While shipping internationally, there are a number of risks your company can be facing that could lead to painful headaches and damage to your business. By hiring a freight forwarder, here are some of the risks you’ll be avoiding:

Risk of loss: Once you are shipping goods globally, they are immediately at risk of being either damaged or lost during transport.

Why? This is because of multiple loading and unloading terminals and ports. The relationships and networks associated with the freight forwarder ensure best practices and that the goods are handled with utmost care. Furthermore, most freight forwarders insure goods to cover losses and take responsibility for delivery.

Risk of Customs: When you’re transporting goods internationally, it means you’ll be dealing with diverse and rather confusing customs legislation. Non-compliance with these regulations often leads to costly penalties and never-ending delays.

Also, the chances of your goods being confiscated escalate greatly if you don’t procure the services of a talented freight forwarder.

Reliable freight forwarders are very comfortable with customs laws throughout the world and are well-versed in the requisite paperwork, taxes, and customs duties no matter the location.

Freight forwarders have expert knowledge of the Harmonized Tariff Schedule (HTS), which is ideal for e-commerce companies who need to ensure the correct customs duties adhere to the correct classifications of goods. Plus, freight forwarders are adept at dealing with agencies such as the EPA, DOT, and FDA, and will manage with the Importer Security Filing and paperwork needed when dealing with them.

Risk of Financial loss: Any time your business buys or sells goods, there are going to be financial risks involved. Shipping internationally only heightens that risk. Freight forwarders are a crucial player in the safe, cost-efficient transport of goods from source to destination.

Any freight forwarder worth their salt understands how to navigate their way through virtually any hiccup – such as accidents, wars, natural disasters, and acts of terrorism – that disrupt the shipping of your goods.

They’ll have standard procedures in place for contingency plans that minimize the risk of your business’s financial loss, like insurance policies. Expert freight forwarders have a deep understanding of risk identification and mitigation strategies so that they’re equipped for any unforeseen circumstances.

freight forwarder


If your business is booming to the point that you’re shipping goods internationally, you will want to make sure that it is done right.

It is not a matter of signing a few pieces of paper and hoping for the best. You need to make sure your products are transported in the most cost and time efficient manners that mitigate the risks that can hurt your business.

With a freight forwarder, your business’s international shipping will be done in a way that ensures the best practices and your peace of mind!

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