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9 Interesting Facts About the Freight Shipping Industry

Did you know that COVID-19 had a major impact on global shipping? Consider how many people all over the world rely on the shipping industry. If you want to learn about freight shipping, we can help.

This guide will go over the freight industry and interesting facts to know about the process.

Want to learn more? Keep reading.

1. Who Is a Freight Forwarder?

Freight forwarders will transport goods from different destinations. A freight company will organize the process for folks who would like to ship goods.

The company will handle the storage procedure. Also, the freight company will ship the goods to a particular destination.

They work as the middle person between the transportation services and the shippers. The freight forwarder will negotiate with different carriers.

They negotiate to get the most reliable, inexpensive, and fast route.

2. What Services Do Freight Forwarders Provide?

A freight forwarder provides services to help deal with the supply chain process.

For example, the freight forwarder will need to handle customs clearance. Countries across the world have different ports.

Your cargo will need to go through different customs clearance processes. Every country will have a particular regulation, rule, and law. Sometimes, the laws will differ within various ports in the country.

Custom clearance involves preparing documents to ease the import or export process.

The custom clearance will represent the shipper during the custom examination and assessment. They’ll represent the shipper during the payment and deliver the cargo from customs.

3. Maintain a Solid Relationship With the Freight Forwarder

Freight forwarders will remain in charge of your cargo. As a business, you should try and establish a solid working relationship with the forwarder.

Make sure you choose a reliable company that you can trust. Look for a company that will provide top customer service. This way, you know your items will arrive safely.

4. Prepare Documents for International Imports and Exports

Before you leave any items with the freight forwarder, make sure the paperwork’s in good order.

The freight company can help you with the paperwork. Yet, make sure you reduce the risk of items not getting released from customs.

You will need different documents for customs clearance. Some import documents will include:

  • Sales invoice of supply
  • Purchase order from the buyer
  • Airway bill
  • Packing list
  • Certificate of origin

Other documents might get required from the financial institution or buyer.

Export documentation will include similar documents. A packing list, certification of origin, or purchase order from the buyer.

5. What About Freight Insurance?

Freight forwarders become responsible for the loss or damage of goods during transportation. In some cases, the freight forwarder will get sued for damaged goods.

A reputable freight forwarding company will ask clients to purchase cargo insurance. Customers will get persuaded to buy insurance. It’s in their interest to protect cargo, and it’s a good practice.

The freight company will need to ensure the consignment gets insured on the client’s end. If not, the company asks clients to buy cargo policy. At times, the value of the liabilities is less than the value of the consignment.

To have an advantage against competitors, freight forwarders will buy cargo insurance for clients. The insurance will cover a client’s consignment.

Big logistics companies get known for investing in cargo insurance.

6. What About Packaging?

Freight forwarders will help clients with preparing and packing products for upcoming export. The task can be a little difficult based on where the product will go.

Packing for shipping within the US is a lot simpler compared to packing a product for long transit. Items get shipped in massive containers and will get unloaded often during the trip.

Goods will get stored in environments of low or high temperatures. The goods can also experience turbulent weather and shake on a ship.

7. What About Storing Goods?

The freight forwarding company offers help by storing the goods in warehouses. They do this before they get placed for transit.

Inventory management is critical for a freight forwarder company to find success. The company supervises the flow of different goods from clients to warehouses.

8. What About Product Restrictions?

With transporting on an international level, forwarders stick to strict regulations.

The freight forwarder isn’t capable of shipping some products to particular areas. For ocean and air freight, there’s a list of prohibited goods depending on the final destination.

Some include alcohol, sharp objects, dangerous goods, batteries, drugs, and perishable goods.

Ask the shipping company what’s allowed and what isn’t allowed to get shipped.

9. Expect Some Shipping Delays

It’s challenging if your goods become delayed during the shipping process. Yet, keep in mind that it probably isn’t the fault of your freight forwarder.

Delays will happen for many reasons. With ocean freight, a breakdown or poor weather can impact the journey. Sometimes, the cargo will have to change the route.

The freight forwarding company will have to figure out how to resolve the issue right away.

Find a Reputable Freight Forwarder

If you’re a business and need to hire a freight forwarder, make sure you spend time searching for a reputable company. You want your items to get shipped by trustworthy people. Check out JS Forwarding.

Share These Interesting Facts About Freight Shipping

We hope this guide on freight shipping was helpful.

Knowing about shipping will give you an appreciation for the goods that transfer across the oceans. If you need to ship with a company, make sure you find a reputable and experienced company.

Are you looking for more business tips? Check out our resources on the blog.

Read Also: Top 5 Factors to Consider When Hiring Managed IT Services

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