What is Freight Forwarding about?

Discussion in 'International Business' started by Delarosa, Jan 4, 2020.

  1. Delarosa

    Delarosa UKBF Newcomer Free Member

    2 0
    Hi all,

    Just wondering as a supplier, what is Freight Forwarding about? What value do freight forwarders might add to my business as I'm using logistics/transport companies to ship my products all over Europe (I'm not using a courier, I would rather order a lorries to ship full container of steel)? Can you answer these questions?
    Problem their solve?
    Why they believe supplier has this problem?
    Why they believe this supplier wants to solve this problem?
     
    Posted: Jan 4, 2020 By: Delarosa Member since: Jan 4, 2020
    #1
  2. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    6,188 2,045
    Posted: Jan 5, 2020 By: Ian J Member since: Nov 6, 2004
    #2
  3. Connornew

    Connornew UKBF Newcomer Free Member

    7 0
    Yes... School definitions don't match with reality
     
    Posted: Jan 5, 2020 By: Connornew Member since: Dec 16, 2019
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    24,815 3,025
    Suppose you were ordering from a dozen Chinese companies in one region. pallet or two from each one.
    You can have the goods shipped to a freight forwarder who combines your order into one container load and ships it to you.
    Rather than a dozen shipments coming in you have one.

    Or suppose you were ordering from all over the world and you didn't want deliveries every day - you can have a freight forwarder collect the goods and hold them until delivering on an agreed day.
     
    Posted: Jan 5, 2020 By: Mr D Member since: Feb 12, 2017
    #4
  5. Mike Foulds

    Mike Foulds UKBF Contributor Free Member

    50 16
    Hi there.

    Freight forwarders are the equivalent of a supermarket, or a car dealership.

    They do a job which TECHNICALLY you could do yourself, but a specialized company can do it quicker, and likely cheaper, than you could.

    As you can probably imagine, a Freight Forwarder would:
    * Arrange the collection of your goods from your shipper
    * Make the booking with the shipping line/airline at a competitive rate
    * Arrange for the export clearance to be done prior to departure (Usually using a partner they work with)
    * Monitor the shipment whilst in transit
    * Notify you a short while before arrival of cargo
    * Clear the goods with UK customs upon arrival, including paying duty/vat on your behalf
    * Arrange delivery in the UK to your delivery address
    * Possibly arrange for warehousing of your cargo if need be

    I would comment that, a Freight forwarder can definitely both save you money, and simplify your shipping.

    Hope that helps.
     
    Posted: Jan 6, 2020 By: Mike Foulds Member since: Mar 21, 2018
    #5
  6. Delarosa

    Delarosa UKBF Newcomer Free Member

    2 0
    Thanks for reply, Ian J was far away from reply I wanted to have, Mike Foulds is the closest one.
    This is because my process looks like this:
    I have base of transport companies I have been using since it started (around 20 haulers). Sales department sales full truck of steel structures to a client in Spain, they ask me to organize transport providing all necessary details, like addresses, dates, weight etc.
    I forward these details to all of members from my base of transport companies by an e-mail (the same to everybody, e-mail addresses of course are hidden so they do not know about each other). They send back prices and possibilities, some of them do not have possibilities at all, some have, than I select the cheapest one and order a lorry from them. If somebody bugs out, I would kick him off from the list, but is happens very rarely, if it happens, I would have another 19 companies so there is nothing to be worry about from my side (last 3 years I kicked off only once).

    In this particular situation, should I consider using freight forwarder so I can pass all details to him and he spreads out to a haulier? He will charge me transport rate I would pay plus his margin, is it worth it? What advantage does it also have? What stands behind paying more?
     
    Posted: Jan 6, 2020 By: Delarosa Member since: Jan 4, 2020
    #6
  7. Mr D

    Mr D UKBF Legend Free Member

    24,815 3,025
    His transport rate may be lower. He may well be using certain companies for a lot more loads than you so getting discount you cannot get.
     
    Posted: Jan 6, 2020 By: Mr D Member since: Feb 12, 2017
    #7
  8. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    5,221 1,800
    The advantage of using a forwarder over the way you operate is that you wont have all the aggravation that you have doing all the donkey work yourself .
    You will obviously pay more for this but it freees you and your staff up

    The advantage of a good forwarder can also be the worldwide contacts that they have and should some boarders be difficult with legislation and paper work they will have the expertise
     
    Posted: Jan 7, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
    #8
  9. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    11,931 2,485
    With regular orders you are likely to get lower rates, get to know who your dealing with and they understand your business, they may save you quite a lot of money and your only work is a phone call away
     
    Posted: Jan 7, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #9
  10. Mike Foulds

    Mike Foulds UKBF Contributor Free Member

    50 16
    TBH, for what you are describing, a forwarder would add very little benefit. However, if Brexit occurs, you will now need to have a customs clearance done for the goods to/from Spain.

    It may be worth using 1 or 2 forwarders in your list of 20, to get a comparison and idea. Where a forwarder will often not have their own vehicles, they may be able to find options which aren't available to your current hauliers, who would only use their own vehicles.

    Hope that helps.
     
    Posted: Jan 7, 2020 By: Mike Foulds Member since: Mar 21, 2018
    #10
  11. consultant

    consultant Your Business Community Staff Member

    5,685 804
    Why not ask a freight forwarder?

    You can discuss your exact needs and they can tell if/how they can help!
     
    Posted: Jan 7, 2020 By: consultant Member since: Jan 21, 2008
    #11
  12. Nissenel

    Nissenel UKBF Newcomer Free Member

    24 1
    I'm beginner in Freight Forwarding industry, the truth is clients usually do have better rates from direct hauliers than from Freight Forwarders, the reason is Freight Forwarding company needs to pay a haulier, pay people which manage with orders, accountants etc. and still have a margin. Clients usually have haulers from area they are based on or they have built predictable back loads and relationship so everything goes smoothly.

    I agree that they may be able to find options which aren't available to your current hauliers, who would only use their own vehicles because the worldwide contacts that they have.
    You wont have all the aggravation that you have doing all the donkey work yourself - also benefit.

    Can I treat 2 of these above as a good value proposition when I'm looking for new customers in my job?

    Do you have anymore ideas? I would like to have read as many benefits of using Freight Fowarding as possible so I can use them.
     
    Posted: Jan 7, 2020 By: Nissenel Member since: Nov 6, 2019
    #12
  13. laudhh

    laudhh UKBF Newcomer Free Member

    11 1
    I'm looking to recruit an experienced freight forwarder, can I ask what's the best way to go about it ... thanks
     
    Posted: Oct 8, 2020 By: laudhh Member since: Jul 24, 2020
    #13
  14. laudhh

    laudhh UKBF Newcomer Free Member

    11 1
    I'm looking to recruit an experienced freight forwarder, can I ask what's the best way to go about it ... thanks
     
    Posted: Oct 8, 2020 By: laudhh Member since: Jul 24, 2020
    #14
  15. consultant

    consultant Your Business Community Staff Member

    5,685 804
    Sadly, the truth is rarely (or good advice) something you want to hear!
     
    Posted: Oct 9, 2020 By: consultant Member since: Jan 21, 2008
    #15
  16. SillyBill

    SillyBill UKBF Regular Free Member

    262 141
    All our export business is done through a trusted freight forwarder. We make and sell chemicals, the less time we spend traversing a sea of red tape and paperwork the more time we can devote to doing what we do best: making and selling chemicals. Find a good one and the process of export is so easy its embarrassing. Their margin is well earned.
     
    Posted: Oct 10, 2020 By: SillyBill Member since: Dec 11, 2019
    #16