Why should I use a forwarder

Why should I use a forwarder?

In fact, you shouldn't - if you can navigate the shipping market, optimize your shipping process, your shipping costs, and maintain good competitiveness, you shouldn't. But if you are not good at these things, then it is advisable to use the services of a freight forwarder and we will explain why.
The transport activity serves the production and distribution of products and for this reason increases their value at the place of their consumption. From this point of view, there are many stakeholders who wish to optimize transport costs. This optimization is not a very easy process, due to the fact that customers who are manufacturers, consumers use the services of forwarders, consignors, shippers. These countries have a choice regarding the transport services they expect. These services are available in the transport market, and in order to navigate, we need to know it. Many of the produced services are spatially distant from their use, therefore it is necessary to optimize the transport process, which is not very easy and requires a special organization that includes several and carriers, different types of transport, the conditions for obtaining transport services, and in order to obtain some price, we have to tie it all together. But some price couldn't keep you competitive, could it?
The freight forwarder is a direct agent in the transport market and has an important role in the entire logistics chain. It operates in "its waters" in freight transport and generally its functions are expressed in assisting customers in relation to deliveries and in solving all their transport problems. Freight forwarders act as intermediaries between manufacturers and/or traders, or in general between people who need to transport the goods and the carriers who are looking for goods.
Forwarders can be local and/or representatives of international companies, they can combine shipments (group transport) and organize whole vehicles for them in order to optimize costs. A forwarder is not a carrier, although there are forwarders with their own fleet, the forwarder is a representative of the consignor. A freight forwarder is an agent who enters into a contract of carriage on his own behalf, but at the expense of his clients, against a commission for him. Freight forwarders deal with the preparation of documentation, shipment of goods and others. They organize and optimize loading and unloading activities, since in most cases additional transport machines, for example forklifts, are needed.
Regardless of the type of transport, if it can be summarized - the main functions of forwarders are:
- the forwarder chooses the most suitable transport, if necessary, combines types of transport and concludes a transport contract, for the execution of which he is responsible to the customer jointly with the carrier and, accordingly, assumes responsibility for untimely delivery or other problems during transport (damaged goods);
- the freight forwarder is responsible for the preparation and completion of the main transport service.
But the freight forwarder can engage in: choice of packaging; assembly and packaging of transported goods, issuing a document indicating the contents of each package; auxiliary transport operations transport to and from the main means of transport; loading / unloading of the main means of transport; issuance of so-called clean transport documents. They indicate that the carrier acknowledges acceptance of the goods in good condition and with good packaging; en route tracking of goods when necessary; insurance operations for products (cargo insurance) that are subject to international transport, on behalf and at the expense of the client and are in most cases mandatory for international transport; gives the right to the owner of the transported goods to choose the type of insurance coverage of the transported goods - minimal, limited or full coverage. Also, the freight forwarder can represent his client and his goods before the customs authorities.
In addition to the above, it can be added that the forwarder has and maintains direct contact with the carriers, they are in most cases also his partners, and he - the forwarder - is responsible for monitoring the quality of their services and the ability to provide safe transport services. and to be informed about all documents certifying their professional competence as carriers.
The freight forwarder maintains relationships with other partners who are potentially involved in the movement of material flows, in order to ensure efficient logistics networks. The areas in which there is a similar interaction are financial and accounting, engineering (including standard packaging, transport equipment and means of handling), warehousing and distribution (for just-in-time deliveries, purchasing management, etc.).

Carrying out all the above functions of the freight forwarder makes it easier for the customer, because if he had to do them himself, it would be a big waste of time, and in business, time costs a lot of money.
Practice shows that the main problem arising in the transport process is caused by a delay in the delivery of the necessary products. For any delay, the carrier / freight forwarder bears its own losses, because with every contract there are corresponding penalties for late delivery. This is because the customer himself may suffer financial losses from not delivering the goods on time and thus be at least somewhat secured. Good freight forwarders and their companies manage to overcome the delay and thus provide added value to their customers. The appropriate spatial relocation decisions of freight forwarders have an impact on the concluded contracts and on the overall costs of distribution and delivery, with the main objective being cost optimization.
If you want your goods to reach their final destination undamaged, on time and at a good price - then you need a freight forwarder, right?!

See more:
Why cargo consolidation is important
International freight transport and international forwarding
8 FACTS ABOUT FORWARDING