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| Get a Freight Forwarder ! |
Well you have created your basic necesities to start exporting. You have access to basic communication tools... your phone and fax, your email address so what's next.
Get a Freight Forwarder !
It may sound easy but it is a major decision that any exporter must carefully decide. Search any directory you may get your hands on, whether online or offline. Or just get the latest telephone directory under "Freight Forwarders" and you will see hundreds of listings. But how do you really decide which one suits you best based on your own company and products ?
These are some criterias that you can used to measure the freight forwarders suitability with your operations ; - How big is the freight forwarder’s company i.e how many staff does it have ?
Some forwarders are run with very minimum staff, if the person allocated to service your account is away on a business trip or on vacation, your export efforts shouldn’t come to a halt because there’s no one to answer questions or handle shipping instructions for your product.
- How stable is the freight forwarding firm ?
Look at how long the the company has "been around"? Does it have financial stability? Check out who are their bankers or clientele and perhaps a friendly call to them to find out their credentials.
- Does the freight forwarder able to handle whatever product you want to ship, whichever way you want to ship it (air or sea)?
The freight forwarder also should be an import broker to handle the customs angle for you in case you need to import something or have goods returned from overseas.
- Does the freight forwarders have a good network of agents overseas, contacts or clients particularly in your target market?
A good network of overseas agents, contacts or clients means that they have had experience shipping to your target market, thus ensures a smooth path for your product with a minimum of delay. This is important for perishable products or ones that need special handling.
- How do the freight forwarder fair in document turnaround time? Where are they located ?
Document turnaround time will determines how fast you get your payment from your bank, so if the freight forwarder are located near your preffered shipping means be it the airport or the steamship offices and banks. Chances are they met your requirement.
- Does the freight forwarder have any knowledge of your type of product?
By any chance please check if the forwarders have any knowledge of your products, this would make things a lot easier as they would know what is required to handle your products. So, choose a freight forwarder who has knowledge of the special needs of your product.
- Does the freight forwarder have errors and omissions insurance?
Anyone can make mistakes, a minor error on the shipping documents can delay your product, hurt sales and stall your receiving payment for the goods. Make sure your freight forwarder has "errors and omissions insurance" to provide for just this eventuality.
- Would the freight forwarder able to communicate with you as a novice?
You being a novice would definitely requires a lot of explanation in terms of procedures, check out their patience level and whether you can really understand their explanation. If they are willing to assist you then fine you can consider them as your freight forwarder.
The article is based from an exporter’s perspective, however there are numerous overlapping scenarios which are applicable for both the Importers and Exporters in general.
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