Freight Forwarder: 3 important ways they reduce risks

As many businesses transport goods to and from Maryland and other parts of the US, the need for a freight forwarder has become increasingly important.

Freight forwarding

Freight forwarder

With freight forwarding comes complexities involving possible loss and damage of goods, customs infringements, cargo insurance, and delivery delays due to unforeseeable events. This can be challenging to businesses.

Most people know what a freight forwarder does. He is the middle man between a shipper and the transport carriers (from cargo ships, trucking, aircraft, to railway). A good freight forwarder should offer the following services:

  • Tracking inland transportation
  • Warehousing
  • Handling shipping and export documents
  • Reserving cargo space
  • Negotiating freight costs
  • Consolidating freight
  • Cargo insurance
  • Filing insurance claims

Related: Freight forwarding: 5 important facts you don’t know

Freight forwarders provide domestic and international solutions to businesses who wish to transport cargo and goods from one location to another. Some own their mode of transportation while others partner with goods transport service providers such as:

  1. Shipping lines
  2. Airlines
  3. Railway companies
  4. Road Carriers.

To ensure the safe delivery of your goods and items in the required time and to overcome certain dangers, you need the services of a well-experienced freight forwarder to check the bill of carriage, freight insurance, ensure customs compliance, and provide visibility of goods in transit. In essence, forwarders make freight forwarding easy for businesses.

Learn More: Reducing risk with a Freight Forwarder

How do freight forwarders reduce risks?

Freight forwarding comes with various risks and dangers. However, an experienced forwarder can help businesses avoid certain risks.

1. Loss and damage

When a company or business engages the services of a freight forwarder to transport their goods from one point to another, they want a stress-free operation. They want their goods delivered safely and on-time. Goods transported by ship or air get loaded and offloaded several times before they arrive at their final destination. The process of loading and offloading can increase the chance of loss or damage to the goods.

An experienced forwarder will partner with a transport provider to ensure the goods are well protected and preserved. A good freight forwarder will go the extra mile to protect the goods from issues beyond anyone’s control. This minimizes the potential for loss and risk.

2. Customs clearance

When it comes to freight forwarding, customs clearance is necessary for the transportation of goods. The customs clearance process includes the preparation of the paperwork used for the entry of goods into a customs territory, payment of taxes, and duties.

Non-compliance with customs rules and regulations will increase the time it takes for you to receive your goods. It may also create fines for your business, and your cargo may get confiscated. This may eventually blacklist your company.

An experienced freight forwarder with strong custom clearance knowledge can assist in preparing and acquiring your customs documentation and can advise you on how to comply with customs procedures.

3. Financial risk

Freight Forwarders play an important role in the transportation of goods from one point to another. When goods are bought and sold there is always a financial risk attached to that trade. An experienced forwarder always has a risk management plan in place for their customers and themselves.

A risk management plan averts the risks involved in the trade. The forwarder conducts a risk analysis of every load and advices the customer. He goes ahead to initiate and implement plans to avoid the risks.

A well-experienced forwarder has a good risk management procedure and ensures the customers are familiar with the procedures and also the risks involved in freight forwarding.

 In conclusion

Freight forwarders make the transportation of goods stress-free and risk-free. This makes businesses more profitable. We hope we have been able to educate you on the importance of a freight forwarder, how they reduce risks, and why you need an experienced forwarder like Jenbuck Trucking.

Contact us to book now.