Freight forwarding is a service that deals with the import and export of international shipments. While long-distance moves utilize agents that track shipments and maintain the connection between the customer and the movers, the freight forwarder provides a similar service for overseas shipments.
The freight forwarder acts as a mediator between the customer and company, helping to resolve any disputes or issues that may arise. It also helps customers by narrowing down the field of carriers, understanding specific requirements, and dealing with particular legal formalities.
How do Freight Forwarders Help Customers?
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Photo by samlevan, sxc.hu |
Freight forwarders add an additional sense of protection and security to your international shipment. They help customers in a few specific ways.
- Ensuring that goods arrive at the destination in good condition at the scheduled time and accounting for any delays that may occur
- Inviting the customer to enjoy the benefits of a pre-established relationship with carriers associated with the forwarder, including air, ocean, and ground transport services
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- Arranging the necessary documentation and licensing for individual shipments.
- Seeking out and employing the safest route at the most economical price
- Arranging estimations and negotiations on behalf of the customer
- Providing a one-stop payment service for customers
- Some freight forwarders also arrange for airfare to help the customer travel between the origin and destination
The freight forwarder's primary responsibility is to help the customer, and, in doing so, the company is expected to provide reliable, accurate information to those who use its services.
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| TIP: In addition to air, sea, trucking, and rail freight services, most freight forwarders also provide shipping services and logistics management to ensure a smooth, simple move. |
Finding a Freight Forwarder
Finding a freight forwarder requires careful attention to detail and a thorough investigation similar to selecting a mover. Like moving companies, some freight forwarders can rely on unethical tactics to lure and entice potential customers, but a keen eye can help protect you against fraud and deceit.
As you begin your search, call various freight forwarding services to get estimates and quotes. Create your initial list by working backwards and seeking freight forwarders that operate near your desintation. Make a detailed list of your findings and compare the services each company offers. Some may charge a slightly higher price but offer additional services (such as travel arrangements for the shippers). Others offer lowball quotes to entice potential customers but offer sub-par service.
Ask for referrals from friends or family members, and do your research online to check various sources for credible reviews. You can ask the companies for references, but be sure to look for phony references and other deceitful tactics. Inquire about the company's number of years in service, and ask about their operations. Listen for freight forwarders who proudly advertise their membership in the Household Goods Freight Forwarders Association of America (HHGFFAA) and American Moving and Storage Association (AMSA). You can also check the Better Business Bureau (BBB).
Since overseas shipments generally depend on the status of the ship or plane scheduled to carry the goods, ask about these timetables. Good freight forwarders should be able to quickly provide this information or estimate when the next vessel will be leaving.
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| TIP: Ask about the insurance the freight forwarder recommends, and see if they can provide it or if you will need to acquire it through the moving company. Overseas shipments are generally secure, but even the unsinkable Titanic found its place on the ocean floor! |
Insuring Your Goods
Before you select a freight forwarder, ask about how to properly insure your goods. There are several options that freight forwarders often provide.
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- Replacement Cost Protection (RCP) – This type of coverage covers the repair, replacement, or reimbursement of your lost or damaged belongings. Depreciation is not considered in the coverage, and you must provide the freight forwarder with a complete list of goods contained in the shipment. The forwarder can limit its liability if an unlisted item of extraordinary value is lost or damaged
- Depreciation Value Coverage – This coverage allows for the repair, replacement, or reimbursement of lost or damaged belongings, but it does take depreciation values into account. The freight forwarder limits its liability to $1.25 per pound of the shipment's weight, and it can put this value toward bringing the damaged goods back to their original condition
- Basic Liability – This coverage generally includes the repair or reimbursement for a certain amount per pound, generally around $0.60 per pound
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Photo by decar66, sxc.hu |
Documentation
Freight forwarders should have the following documents available when charged with shipping your belongings overseas.
- Documents related to the exportation of your belongings, including inventories
- The bill of lading, as completed by the customer and moving company
- Customs documentation, which reputable freight forwarders should prepare on behalf of their customers
- The terms and conditions for the individual move, decided upon by the customer and the freight forwarder prior to the shipment
Freight forwarders take a lot of stress out of the moving process and help to ensure that your goods have a safe, trouble-free overseas voyage aboard an ocean or air vessel. When moving overseas, it is almost always a good investment to make to reduce your moving stress. |
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