International trade is a large and complex trade, it is different from domestic trade, more contact with a number of countries, and then have different import and export standards of different countries and related matters, in order to help trade parties, the introduction of freight forwarding services. The following will provide authoritative answers to common questions related to China freight forwarder.
See below for the main services that China freight forwarding can provide respectively.
- Customs clearance.
- Packaging.
- Insurance.
- Import and export paperwork.
- Storage.
- Inventory management.
This list is not exhaustive; other operations can be performed by freight forwarding entities.
As these services are grouped under freight forwarding, the whole process of importing and exporting products becomes less stressful.
Why is it profitable to use freight forwarding services?
We can see 5 key factors that make freight forwarding services helpful.
Flexibility. With freight forwarding services, you can easily change your choice of transport company or mode of transport without any hassle.
Versatility. A good freight forwarder knows how to react quickly and solve problems as they arise (such as rerouting to sea or air delays).
Cost-effective. Freight forwarding services can help you save a lot of money. Shipping companies handle bulk cargo, which makes it possible to reduce freight costs.
No customs hassles. Customs rules and regulations can make your deliveries confusing and complicated. A freight forwarder will ensure that you can avoid all these hassles.
Additional services. Such options include purchase tracking, packaging and on-demand reporting. When choosing a freight forwarder, it is a good idea to choose a company that offers helpful additional services.
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What are the main duties and responsibilities of a freight forwarder?
The freight forwarder uses the best routes and methods to deliver large shipments to their destination.
The freight forwarder must ensure that the goods reach the buyer in the shortest possible time.
Therefore, freight forwarders must make the most efficient use of multiple modes of transport.
The freight forwarder must carry out research while planning the route.
He needs to take into account
- The type of product to be transported.
- The distance to the final destination.
- Any specific customer requirements regarding the final delivery time?
The freight forwarder is also responsible for the
- The packing process.
- Insurance procedures.
- Customs documentation and other regulatory requirements.
A good freight forwarder must have a high level of organization.
She/he keeps a close eye on controlled shipments using satellite technology and software applications.
Finally, such a person (company) must communicate with her/his clients and make payments on their behalf.
What is freight forwarding insurance?
The freight forwarding process assumes a cash flow of billions of dollars, so insurance is an obvious choice.
- Good insurance coverage for freight forwarder liability includes
- Bill of Lading Liability.
- Errors and Omissions (E&O).
- Bailiff’s liability for warehouse and trucking operations.
- Packing and container filling liability.
- Container and transport equipment cover.
- Customs liability.
- Third party liability (mainly for 3PL companies).
- Rail cargo
How does the freight forwarder deal with lost cargo?
In this matter, it all depends on the contract you have with the freight forwarder.
Freight forwarders also have similar liability contracts with shipping companies and carriers.
Generally, such agreements set out the course of action in the event of loss or damage to the goods.
Once the freight forwarder has entered into a contract, he will endeavour to ensure that no such trouble arises.
If it still occurs, the freight forwarder will take care of such damage himself or with the help of an insurance company.
How much does freight forwarding cost? What are freight forwarding surcharges?
The freight forwarding process entails various costs and fees.
They can be divided into two groups: ordinary costs and non-standard costs.
In any case, there are 3 general charges that must be paid in practice.
Air/land/sea freight charges. This is the most obvious one. It depends on the size of your shipment, the country of origin and the distance of delivery.
Some freight forwarders may include additional charges here.
Cargo inspection fees.
Airline security fees.
Fuel surcharge.
Pick-up fees. These are the fees associated with picking up the goods from the warehouse.
Freight forwarding handling fees. These are fees associated with different paperwork, including copying documents and preparing bills of lading. This fee may range from US$35 to US$75.
Non-standard (additional) fees may refer to
Certificate of origin. In some countries, you may need this document to verify the manufacturer of the product.
Hazardous substances. There are always additional costs and fees for handling hazardous substances.
Legalization procedures. In most countries, the legalization process is linked to the verification of the document by the consulate or embassy.
Please bear in mind that each country/region charges additional fees.
For example, the US government assumes additional export fees, such as TSA security and AES fees.
What are the common problems with the freight forwarding process?
The freight forwarding process faces many challenges.
The following are the most common problems.
Unclear rules of the game
Freight forwarding depends on the economic conditions of each country, as well as international regulatory rules.
It makes the process quite complex and unbalanced due to different rates, fees and charges.
Customs clearance complications
Following on from the previous topic, here is another problem with the freight forwarding process: uneven global customs regulation.
This limits the scope for freight forwarders to operate. This means that most freight forwarders will take their chances in local markets.
