Tips for choosing a freight forwarder?

[tnet]

I'm a writing a guide on how to choose a perfect freight forwarder. Besides my own experience, I read a lot of content available online but would like to include experiences of others. Hence this post - your top tips for choosing a freight forwarder?

A short overview of my list so far:

1. Referral from a friend / business associate
2. Forwarder must have strong experience on my route
3. Bunch of positive online reviews
4. Membership in professional networks / associations
5. Must be mature, established company

 

[JEREMY HAWKE]

Must be a member of BIFA

 

[Mike Foulds]

Hi TNet,

Whilst I think a guide is a great idea, and does help first time importers/exporters especially, I think the below would be the most important points:

1. Referral from a friend / business associate
2. Membership of BIFA as a minimum. If the cargo specifically requires other organisations (EG MHRA, British Association of Removals, etc), then this should be checked as prior to the due dilligence, but would likely be irrelevant for most types of cargo
3. Knowledge in the types of cargo I will be handling, and knowledgeable when spoken to about relevant routes and methods of spoken to

I do question the other points, and would comment as below:

* Just because a company has been established for many years, does not mean that it offers the best service or rates. Some younger companies, who are more keen to grow, are able to offer good rates, and service level is often based on staff training and knowledge
* Which online ratings websites would you suggest? I've worked for many years in the industry, and haven't had customers mention that they've seen us on X site, and therefore trying us. Whilst I think customer ratings are great, for Business to business organisations, it is much less used and is more relevant to business to consumer logistics.

Good luck creating the guide, and I would be very interested in seeing a copy when completed, and happy to help with further suggestions and ideas if you believe useful.

 

[MOIC]

your top tips for choosing a freight forwarder?

Must/should be able to have/offer:

• An office in the origin country (not just an agent).
• All methods of shipping, air cargo, air courier, sea, train.
• Comparable quotes for the above shipping options.
• Selection of Incoterms for you to compare and choose from.
• A competitively priced (doesn't have to be the cheapest) door2door service.
• LCL shipments without inflated destination charges.
• Consolidated shipments to save on shipping fees.
• Customs clearance at origin country.
• Prepare & consolidate shipment documents to lower costs.
• Transparency on transit times.
• Transparency with all-incusive costs door2door.
• Delivery to warehouse using own vehicles.
• Delivery to warehouse using timed deliveries.

I'm sure there's more . . . . .

 

[Mike Foulds]

MOIC, I disagree with you completely on some of the above.

You are saying that the ONLY freight forwarders worth working with, are the huge multinationals with offices in EVERY country, and their own vehicles of every single type and every port and airport in every country worldwide. Do you really think that's the only type of forwarder who can offer good service and competitive pricing?

I've worked for forwarders that large, and have seen some of the WORST customer service I've ever seen in my life, whilst I've also worked for small companies who care immensely about their customers cargo, as it means so much to them and their own growth.

What is wrong with a forwarder who specialises in his country, who knows all the local requirements and laws inside out, and who has a strong network of similar companies who know their countries in a similar way?

Separately, why does a forwarder HAVE to own their own vehicles? I guarantee Tesco, DHL, etc, etc, don't ONLY use their own vehicles (I don't deny they do own a range). They outsource to local companies who can do the work if it suits them.

With the above logic you are implying (Only using own vehicles and offices), unless the forwarder also owns their own planes, trains and ships, they shouldn't be used.

 

[MOIC]

The OP asked:

Hence this post - your top tips for choosing a freight forwarder?

They are my tips, you may have others. I've been shipping for over 30 years from China, worldwide and these are the experiences and some of the challenges I've come across.

You are saying that the ONLY freight forwarders worth working with, are the huge multinationals with offices in EVERY country, and their own vehicles of every single type and every port and airport in every country worldwide.

Who said ONLY? Who said EVERY? Who said own every single type of vehicle . . . . . and at every port . . . .in every country?

What is wrong with a forwarder who specialises in his country, who knows all the local requirements and laws inside out, and who has a strong network of similar companies who know their countries in a similar way?

Nothing. It's preferable to work with a company with an forwarders office in the origin as well as destination. They are then responsible for each other's communication. I've had plenty of experience in working with agents who, simply put, get things wrong.

Separately, why does a forwarder HAVE to own their own vehicles? I guarantee Tesco, DHL, etc, etc, don't ONLY use their own vehicles (I don't deny they do own a range). They outsource to local companies who can do the work if it suits them.

Responsibility. If they are driving for a company, they have the reputation of the company to take into account. A 3rd party driver/vehicle may not be so accomodating.

Do you really think that's the only type of forwarder who can offer good service and competitive pricing?

No, did I say that?

I've worked for forwarders that large, and have seen some of the WORST customer service I've ever seen in my life, whilst I've also worked for small companies who care immensely about their customers cargo, as it means so much to them and their own growth.

There's good and bad in every size of forwarder. I know many of all sizes and offer different services.

With the above logic you are implying (Only using own vehicles and offices), unless the forwarder also owns their own planes, trains and ships, they shouldn't be used.

Weird way of thinking. . . . .



I'll stick with points raised in my post, as this is purely from 30 years experience in the industry.

 

[Mike Foulds]

MOIC, I'm not looking to create an argument on here, and agree with nearly all the advice you've offered on here (Which I know has been A LOT!), but your above came across very specific, and that's how someone may see it.

If I've misunderstood, that's fine, but the importer may be looking to import from multiple countries, potentially via multiple forms of transport over time, then having an office at origin and own vehicles (Which your comments do mention), just isn't workable.

Regardless, hopefully your advice will help the OP put together their guide and prove useful, and mine won't detract from that.

Keep up the good work in helping people.

 

[MOIC]

MOIC, I'm not looking to create an argument on

An argument?

I'm a writing a guide on how to choose a perfect freight forwarder.

The OP asked how to choose the perfect freight forwarder . . .

 

[tnet]

I was down with a flu for couple of days. Now reading all your feedback I must say - thank you very much for the insightful discussion!

@JEREMY HAWKE I see. How about international associations like FIATA, IATA in addition to national one? Would that be equally important in your view?

@Mike Foulds Thanks! Running a small web agency myself (10 people), my personal experience is that smaller teams, owner operated, typically offer more dedication and better customer care.
>> Which online ratings websites would you suggest?
Two years ago I run a research and came to a conclusion that they all sucks, at least in freight industry Thus I started working on a platform that will feature forwarders, their services, customer reviews etc. I am working on this guide to be published on my platform. To avoid self promotion, let me share a link once the article is improved based on all the feedback collected.
I very much appreciate your advices and offer to help further!

@MOIC I'd love to hear more on some of the points you listed. For example, benefits of having an office in the origin country vs just an agent.
Few points you mentioned are about ensuring competitiveness in terms of quality, pricing. How do you suggest for a first time shippers to validate this? Asking multiple companies for quote and comparing their offer & communication came to my mind.

 

[MOIC]

@MOIC I'd love to hear more on some of the points you listed. For example, benefits of having an office in the origin country vs just an agent.

A local office (in China for example) managed by the UK freight forwarder ensures you're communicating on the 'same level' and no-one in between. Agents in a foreign country (China) have a different business culture as well as not having a good enough grasp of the English language. Mistakes and miscommunication happens. I've had plenty of experience in this field and working with Chinese agents that have a different mindset to that of English speaking countries. They operate on their own level and price their services accordingly.

Few points you mentioned are about ensuring competitiveness in terms of quality, pricing. How do you suggest for a first time shippers to validate this? Asking multiple companies for quote and comparing their offer & communication came to my mind.

As in any business transaction, the prudent thing is to get quotes and compare prices and services included in the quotation.

There is no easy solution finding 'the best anything'. It's down to time and how much you want to get involved.

It's also a case of which boxes need ticking for an individual person and for a specific consignment. There will always be differences and areas which are more important to each importer.

 

[Import Expert]

I'm a writing a guide on how to choose a perfect freight forwarder. Besides my own experience, I read a lot of content available online but would like to include experiences of others. Hence this post - your top tips for choosing a freight forwarder?

A short overview of my list so far:

1. Referral from a friend / business associate
2. Forwarder must have strong experience on my route
3. Bunch of positive online reviews
4. Membership in professional networks / associations
5. Must be mature, established company

I'd recommend that any forwarder used is a member of BIFA (British International Freight Association) and if possible be an AEO (Authorised Economic Operator).

 

[JEREMY HAWKE]

Responsibility. If they are driving for a company, they have the reputation of the company to take into account. A 3rd party driver/vehicle may not be so accomodating.

Not sure about this one Ron My company is often that 3rd party transport company and we really look after out freight forwarding customers

 

[MOIC]

I did say may not be . . .

I know you're a fine upstanding gentleman and company and can vouch for the care you take, as has been passed to me by a mutual aquantance.

 

[Mike Foulds]

@Mike Foulds[/USER] Thanks! Running a small web agency myself (10 people), my personal experience is that smaller teams, owner operated, typically offer more dedication and better customer care.
>> Which online ratings websites would you suggest?
Two years ago I run a research and came to a conclusion that they all sucks, at least in freight industry Thus I started working on a platform that will feature forwarders, their services, customer reviews etc. I am working on this guide to be published on my platform. To avoid self promotion, let me share a link once the article is improved based on all the feedback collected.
I very much appreciate your advices and offer to help further!

I must admit I've not really used or paid any attention to ratings websites, just because, as you say, they all suck. Feel free to share a link, or ask for more information, but I think, based on the various comments, that the ideal list isn't something set in stone. I would personally say that the relationship is hugely important, and if you can build trust, and it's backed by competitive (Not ALWAYS the cheapest!) rates, and great service, then that's as important as some of the accreditation's.

 

[burning]

I'm a writing a guide on how to choose a perfect freight forwarder. Besides my own experience, I read a lot of content available online but would like to include experiences of others. Hence this post - your top tips for choosing a freight forwarder?

A short overview of my list so far:

1. Referral from a friend / business associate
2. Forwarder must have strong experience on my route
3. Bunch of positive online reviews
4. Membership in professional networks / associations
5. Must be mature, established company

hi ,
i agree wtih your advice