Checking Out Your Freight Forwarder - Brief Article

AgExporter, Nov 29, 1999

Sure, the firm looks promising. But before you make a commitment, AgExporter suggests that you obtain answers to a few savvy questions:

1. Is the freight forwarder licensed or approved by the appropriate entities?

Ocean freight forwarders must be licensed by the Federal Maritime Commission to handle ocean cargo. Although not legally required, the International AirTransport Association (IATA) registers freight forwarders to deal with international air cargo shipments.

2. Is the freight forwarder's company big enough to handle your business when the forwarder is away from the office?

Just because the forwarder is on vacation, your export efforts shouldn't come to a halt. Consider whether there is sufficient staff to answer questions or handle shipping instructions for your product at all times.

3. Is the freight forwarding firm financially stable? Has the company "been around" very long?

Commercial banks and trade references can help answer these questions.

4. Can the freight forwarder handle whatever product you want to ship, whether you want to ship it by air or sea?

The shipping needs of your product should be clearly spelled out in writing. Furthermore, the freight forwarder should be an import broker to handle the customs angle for you, in case you need to import something or have goods returned from overseas.

5. Does the freight forwarder have a good network of agents overseas, particularly in your target market? What do these agents handle?

A good network of overseas agents ensures a smooth path for your product with a minimum of delay. This is vital for perishable products or ones that need special handling. Just one careless mistake - say, a container left on a dock in warm weather - can pose a serious hazard to the consumer, and can ruin your product's reputation overseas.

6. Can the freight forwarder communicate with you if you are a novice?

Communication is a two-way street; it is of paramount importance that you first become an informed shipper. A good place to begin your education is on the Agricultural Marketing Service's Internet site at www.ams.usda.gov/tmd/freight

Equally important, you should select a freight forwarder who is willing to take the time to explain the terms and procedures in a way you can understand.

7. What is the freight forwarder's turnaround time for documentation?

Is the freight forwarder located near the airport, steamship offices and banks? A strategic location cuts documentation turn-around time and helps ensure that you get paid quickly via the banks.

8. Does the freight forwarder really know your product?

If possible, choose a freight forwarder who understands the special needs of your product line. For example, if the firm usually handles only furniture, will it be attuned to the special needs of fresh produce?

9. Have you checked the freight forwarder's references?

Do your homework. Check references for any company that will be handling your business. Also check customer satisfaction.

10. Does the freight forwarder have errors and omissions insurance?

Even the most conscientious freight forwarder can make a mistake. A minor error on documents can delay your product, hurt sales and stall your receiving payment for goods. Make sure your freight forwarder has "errors and omissions" insurance to provide for just this contingency.