What advantages are there when using a freight forwarder versus working directly with transportation carriers?

What is a Freight Forwarder?An international freight forwarder is an agent for a shipper who can move cargo from door-to-door, providing several significant services such as: Advisor on overall transportation costs including port charges, consular fees, documentation, insurance and freight handling; Files required documentation such as the bill of lading and routing appropriate documents to the seller, the buyer or a paying bank; Packs and loads cargo on the leanest transport mode (air, ground, sea); Clear goods through local Customs to ensure that goods and documents comply with customs regulations. *Source: http://export.gov/logistics/eg_main_018144.asp

Forwarder Versus CarrierWhy should you choose to work with a freight forwarder versus a transportation carrier? Shipper flexibility Spot rate marketNo contract High-volume contractsOne vendorDoor-to-door serviceSave on personnelCredit termsValue-Added Services

Spot Rate MarketHow can you take advantage of the rapidly fluctuating freight rate market when prices drop? The freight rate market is in a state of constant fluctuation, especially in the ocean freight market. The ocean freight rate market is now changing rapidly on a weekly, sometimes daily, basis! Customers who are locked in to a carrier contract at a certain rate are not able to take advantage of the ebbs and flows when cargo transportation rates drop dramatically.

Shipper Flexibility How do shippers ensure they have the greatest flexibility to take advantage of the trends in the freight transportation market?

The importance of price, transit time and carrier preferences vary on your order.With a freight forwarder you can change carrier preferences when the needs of your business change. Does your customer need the goods as cheap as possible? You can go with a cheaper carrier option. Does your customer need the goods as quickly as possible? You can change to a carrier with the shortest transit time.

No ContractsHow can you take advantage of the absence of contracts when dealing with most freight forwarders?

What shipper wants to be liable for surrendering all their cargo to one specific company for an entire year? How does the shipper hold the company liable? With no contract dealing with freight forwarders, the shipper is able to hold the company accountable ensuring better service and cargo rates.

High-Volume RatesIts generally assumed that a carrier produces lower rates by larger volume, but is that always true?

Large international freight forwarders have large high-volume rates based on a client portfolio shipping the same routes. With that portfolio, freight forwarders are able to secure contracts with various carriers to produce a lower rate for the customer while still ensuring flexibility.

One VendorBusiness owners and logistics professionals have a lot on their plate! How can freight forwarders simplify this?

Using a freight forwarder versus choosing and vetting carriers, brokers and insurance providers saves time, money and frustration.Freight forwarders deal with the headache of securing strong partners across the supply chain so logistics professionals do not have to.Having one point of contact use their volume to negotiate better rates for customers saves the client money and all freight charges are billed on one invoice.Save frustration of having multiple companies working on your one move, have one company communicate effectively to find the best overall supply chain solution.

Door-to-Door ServiceThe last mile of the shipment is the most technical, how are you securing your cargo gets to its final door destination?

Most logistical problems happen during the last mile of an international move.The last mile is the most technical when dealing with local customs compliance and complex regulations.Carriers ensure your delivery from port-to-port, but the shipper is responsible for the most technical portion of the shipment if they are not using a freight forwarder.

Save on PersonnelSupply chain optimization can make or break your bottom line, do you have a budget to hire a team of logistics professionals?

Logistics managers are a hot commodity on the job market, which is great for job seekers, but the demand for a small pool of talented individuals increases salary costs.By working with a freight forwarder, you have access to top supply chain personnel for a fraction of the cost (and liability)!Outsourcing your logistics department to individuals who are trained professionals allows you to focus on other aspects of running your business.

Credit TermsHow much more inventory could you buy from your supplier if you had credit terms for your freight?

When buying from an international supplier and shipping with an international transportation carrier, the majority of the time the shipper is expected to pay freight costs collect.Buy having credit terms with a freight forwarder, distributors are given the opportunity to purchase additional inventory or they can just free up their cash flow in general.The credit extended for transportation costs can go from door-to-door, not just port-to-port.

Value-Added ServicesWhat can a freight forwarder do to make my shipping process go as seamlessly as possible?

Purchase Order Tracking ability to track your purchase order from origin to destination no matter what time of day it is so you do not wake up in a cold sweat wondering where your shipment is.Cargo Insurance the freight forwarder can insure your cargo from door-to-door, not just while in transit on the carrier mode of transportation.On-Demand Reporting the freight forwarder can organizes all your shipping history, containing all relevant documentation, online so no matter where you are in the world, you have access to your order history.

Can a Forwarder Benefit You?Find out today if a freight forwarder can benefit your bottom line and organize your supply chain!

Contact Lilly + Associates International by clicking here.Lilly + Associates International is a multinational shipping and logistics services company, specializing in ocean freight. The company is headquartered in Miami, Florida and operates wholly-owned offices in Colombia, Venezuela, Panama, and Guatemala. With employees and agents around the world, Lilly offers competitive import and export rates with effective door-to-door transportation and logistics solutions. For more information about Lilly, visit shiplilly.com.