Freight Forwarding is expensive and as with most expenses, it can be difficult to know what is a fair price. Freight Forwarding is no exception to this! No matter how big or small your business, you will need to transport goods from one location to another and as a company, you are going to need a Freight Forwarder in order to handle all of this for you.
The process for getting a great deal on freight forwarding can be complicated. If you’re a business owner, you can save thousands of dollars by looking for the best freight forwarder. However, to get the best deal, you will need to understand how this process works.
Hopefully, this guide can give you some confidence in choosing the right freight forwarder for your needs and help you negotiate the best possible prices for shipping your cargo.
Planning Is Key
If you are running a logistics or supply chain company, the first thing you must consider is your budget. As freight forwarding companies vary in their services, they also have a variety of packages. Always remember that the highest quality of services comes with a hefty price. However, there are other alternative tips that you can rotate upon if you’re negotiating with the freight forwarding company:
Carefully Plan And Route Your Shipments
More often than not, freight forwarders are fine with last-minute shipments or requests, although it may require a higher fee due to the process going through another connection to confirm the request. To prevent unnecessary last-minute requests, carefully plan your shipments ahead so that your freight forwarding company can complete all of the required documents, without pressure and time constraints, allowing for a one-time expense.
Integrating Shipments
Learning how to consolidate your shipments can make it easier for your company to save up for freight forwarding costs. Learn about the difference between container load costs as they have different methods and costs on your merchandise. When this is met, you are going to save a lot of time and money from avoiding multiple deliveries and shipments for your items.
Consider Transit Time of Different Freighters
Transit time is an important factor in the shipping industry. It directly affects your freight forwarding operations and also the quality of your items and service. Freight forwarding can be executed in three methods: air, sea, or land. An air freighter might get your items to the destination point faster and safer, but the price will be high; compared to a sea freighter which will take longer but more affordable due to bulk containers. Letting your freight forwarding know what type of carrier you’re gonna be using and the item you’re gonna be transporting will help them have an understanding of the best rate and type of carrier that fits your budget and help your business deliver its items on time and with the best of quality.
Discuss Annual Shipment Volume
Shipping merchandise often may prove to be an advantage for your business. Freight forwarders often book massive volumes of cargo annually which will require a lower price compared to companies directly booking steamship lines. This will turn out to be beneficial for you as freight forwarding companies love customers that book massive volumes on a frequent basis, annually. If you are continuing your shipments in large quantities or changing them to lower ones, reach out to your freight forwarder to let them know. Transparency is important as it lets you get the best deals from your freight forwarding company.
Process Of Getting The Accurate Freight Quote
If you’re able to plan and reduce your costs down, it comes down to the actual freight quote. Like with any other business transaction, a freight quote requires careful analysis and thorough reading to make sure that your prices are accurate. Here are some tips to make sure the information is right
Freight forwarders are your best bet when you want to have a “one-stop” shop of brokerage, carriers, freight services, and compliances for your operations.
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Be specific with your shipment details In order for your freight forwarder to provide you with an accurate freight quote, you must provide them with the following details:
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What are you shipping?
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What is the value of your shipment?
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What is the size and weight of your shipment?
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Where will your shipment come from?
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Where is your shipment going?
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When does it need to arrive?
Prepare an RFQ (Request For Quotation)
Once every detail mentioned above is cleared, the next step is to provide them to your chosen shipping provider. Depending on the services they provide, you may receive just one quote or several to choose from. After you pick a price and service, review all the details to make sure it’s accurate and in order.
Conclusion
Your final decision on a quote won’t be based on the actual price that you will see in the RFQ, but rather it depends on your current and future business plans for the company.
The best way to learn and get the best rates for your shipments is to always have a conversation with your freight forwarding company. If you consistently keep in touch with them through communication tools, your prices will be adjusted and they can add more value to your items and business. Dash Cargo offers a streamline of communication tools and practices to keep in touch with your concerns and questions about prices, shipments, and other services.
