How to find a reliable carrier?
In international trade , freight forwarders play an essential role. If you want to ship your goods to your country, you'll definitely want to consider finding a reliable freight forwarder to help you arrange the shipment. This is because international shipping is a fairly complex process. The following article will help you better understand freight forwarders. Let's break it down.
Meaning and types of carrier
Carrier description
Freight forwarders, also known as shipping agents, are the intermediaries between buyers and sellers, responsible for delivering your goods to you.
In fact, freight forwarders work with shipping lines, airlines, and other transportation companies to become your agents. They then book space with these companies, collect your goods, and provide you with a range of transportation services, such as customs clearance and shipment arrangements. This can significantly improve the overall efficiency of freight transportation.
You may have questions. Since carriers are intermediaries, can I avoid them and book directly with shipping companies and airlines?
It's impractical. Take ocean freight, for example: if you want to book directly with shipping companies, first, your cargo volume must be very large, such as dozens or even hundreds of containers per month. If your cargo volume is small, the shipping company won't accept your order. Second, the shipping company only provides vessels. Even so, you need a forwarder to help you with other complex procedures.
Therefore, regardless of whether your cargo is large or small, you can save time and effort by relying on a carrier. Furthermore, there is collaboration between carriers and shipping companies, which allows them to obtain discounts. The price will be lower than if you hire them yourself.
Types of carriers
There are many types of forwarders. This article has divided them into two categories, depending on the type of services they provide: full forwarders and dedicated forwarders.
A full-service freight forwarder can handle all the paperwork from the seller to the destination. These carriers offer various transportation methods by land, sea, and air . They can also offer you the best transportation plan based on the quantity and characteristics of your goods. This will save you a lot of trouble.
Compared to all-inclusive carriers, specialized carriers offer advantages when shipping to certain countries. They work with carriers or brokers with strong customs clearance capabilities in the destination country. This streamlines the shipping process and shortens shipping times .
It's well known that customs procedures in countries like Russia, Brazil, Turkey, India, and so on are difficult. Therefore, when shipping to these countries, it's best to hire a specialized carrier.
What does a carrier do?
International freight forwarders typically handle transportation and manage all tasks quickly and efficiently. Let's say you're importing goods from China to the U.S. and want to ship the cargo by sea. In this process, freight forwarders primarily offer the following services. Let's look at each step.
Step 1: Make your reservation and collect your cargo from your supplier
Your carrier knows the weight, volume, and shipping plan in advance, and reserves the space with a shipping company. If you need your carrier to pick up the cargo at the factory, they will negotiate the pickup time with the supplier and then arrange for truck transport to the designated location to load the cargo into the container.
Before loading, the carrier will check the quantity and packaging to ensure the goods are in good condition before shipment. The containers will then be sent to the dock and await loading onto the ship.
Step 2: Make the export customs declaration and load onto the ship
At this stage, your freight forwarder should prepare the detailed information and all supporting documents for the shipment, then complete the declaration form and review the export customs declaration. For filing the ISF form (required for all ocean cargo entering the U.S.), your import freight forwarder can do it correctly and in a timely manner if you need assistance.
After completing these procedures, you will receive a clearance pass. Once the cargo has been approved by customs, the containers will be loaded onto the ship and placed in the designated space, awaiting the vessel's departure. After the ship's departure, your freight forwarder will help you track the shipment and provide you with timely logistics information.
Within a few days of the ship's departure, your carrier will issue the bill of lading to your supplier. They will deliver it to you after receiving payment for your order for pickup. They can also help you arrange cargo insurance if needed.
Stage 3 Processing of import customs clearance
When the ship arrives at the designated port in the U.S., your customs broker may not directly handle the import procedures for the cargo. You'll find U.S. customs companies that cooperate with you or local U.S. customs brokers to assist you. This is because locals will be more familiar with customs procedures and requirements. This approach can significantly improve efficiency.
Stage 4 Delivery to your destination
The carrier can also help you ship the goods to your home after dispatch. For example, if you sell on Amazon FBA in the US, your carrier can help you connect with shipping companies, courier companies, or your local cooperative carriers to transport your goods from the US port to the Amazon FBA warehouse.
Differences between carriers and brokers, NVOCCs, shippers and 3PLs
When you search for "freight forwarder" on Google, you may see terms like "broker," "NVOCC," "carrier," "3PL," and others pop up on related search pages. Below, we'll briefly explain the differences between these terms.
Freight forwarder vs. customs broker
Both freight forwarders and customs brokers play an important role in international trade. The difference is that freight forwarders are responsible for shipping goods to their destination within a specified timeframe. International freight transport involves several stages, such as booking, cargo handling, import and export customs clearance, cargo transportation, and so on. These tasks can be performed by freight forwarders.
While the customs broker is only responsible for customs clearance when the goods arrive in the importing country, as mentioned above, many international shippers are also required to cooperate with local brokers to facilitate their clients' customs clearance and examinations, if any.
Carrier vs. NVOCC
NVOCCs (Non-Vessel Operating Common Carriers) are agents of shipping companies. They exclusively offer ocean transportation services. They can be considered ocean freight forwarders.
Carrier vs. transporter
A freight forwarder is a shipping company, airline, railroad, etc. They help you ship cargo by ship, plane, or vehicle. Freight forwarders are agents of shippers. They offer shipping services to buyers or sellers. In the business world, you deal more with a freight forwarder than a carrier.
Carrier vs. 3PL
3PLs, also known as third-party logistics services, can offer more services than shippers. They have warehouses to help you store, pack, and deliver to your end customers. Not all shippers can perform these tasks. Some large shippers rent warehouses in destination countries and can offer these services.
For example, if you have an online store and want to focus your efforts on marketing, you need someone to help you deliver the package to your customer. In that case, you can outsource to a 3PL company. Amazon FBA is a typical third-party logistics model.
How to find a carrier?
From the supplier's carriers
Typically, your suppliers will have carriers they've worked with for a long time. You can ask them if you need one. It'll be much easier than sorting through millions of carriers yourself. You won't have to worry too much about the supplier making money off of it. After all, they also want to do business with you long-term, so they're not willing to lose your order.
From Google or social networks
You can also find carriers through common search engines and social media platforms like LinkedIn and Facebook. Many carriers advertise on these sites. But be careful when searching. For example, if you want to find a carrier specializing in Brazil, you can type "shipping from China to Brazil" or "shipping company Brazil" into the search bar.
Of course, this doesn't mean that the higher the rating, the more reliable the carrier, because some professional carriers may not be good at marketing.
From the online freight market
Platforms like Alibaba and Freightos offer a variety of freight shipping options. By entering freight information such as origin, destination, weight, dimensions, value, etc., these platforms help you calculate shipping costs from various shipping companies. You can easily compare prices and choose the best option. You can also place orders on these platforms, which significantly improves the experience and efficiency.
From your acquaintances
It's also great if your acquaintances are willing to recommend reliable carriers. You can leverage their experience to find the best fit for your business. However, it's important to keep in mind that, in doing so, you need to know for sure if these carriers are right for you. If you want to transport sensitive cargo, you should ask if they can handle it.
What is a reliable freight forwarder?
The above is just a guide to finding carriers, but determining their reliability also requires further communication and judgment. Below, we'll list four common characteristics of good carriers for your reference.
Transparent pricing structure
When you discover that the price you have to pay is higher than the negotiated price, you'll undoubtedly feel cheated. Price transparency can avoid hidden costs and give you greater peace of mind when doing business with your business partners.
Great experience
A professional freight forwarder should be thoroughly familiar with the knowledge and processes of international freight transport, knowledgeable in import clearance policies for the routes they operate, and able to offer professional advice on your questions.
Always stay informed
Qualified carriers can answer all your questions quickly and accurately. They'll provide you with real-time logistics information for your peace of mind. If a problem arises, they can actively think ahead and offer solutions.
Duly authorized with all necessary credentials
Carriers can demonstrate their professionalism through certifications such as WCA and IATA. Reviewing these certifications can also help you choose the most suitable one.
The end
After reading this article, we hope you have a clear understanding of the term "transporter." If you have any questions, please share them in the comments.
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