What are the potential problems with acting as your own Freight Forwarder?

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Moving freight without the help of freight forwarding companies sounds pretty simple. Your products need to get from one place to another. All you have to do is load them on a truck or a ship or a plane or a railcar and drive, sail, fly or rail them to their destination, right? It’s not that simpleThere are coordination and legal aspects of international logistics that can cost companies significantly, in terms of both time and money, if not understood and handled properly. Additionally, the coordination and legal aspects typically involve multinational knowledge. Because of the multinational complexity of moving freight around the globe it is important to hire a freight forwarding companywith the necessary experience and expertise to help you with your shipping and logistics needs, to ensure your goods get where they need to go when they need to be there.

Logistics

One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer". Business logistics evolved due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals to manage this business need to derive efficiency, lower costs and to minimize risk. The primary function of a logistics expert is to coordinate the outside resources necessary to deliver products on time and onbudget. This can include inventory management, purchasing, transportation, warehousing, consultation, and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization.

Budget

Your budget is a function of the balancing of your need for expedited service versus cost for expediting. Anything can be delivered overnight, if you are willing to pay the price. However, most people can price themselves out of the market if they insist on having the quickest supplyroute available. A freight forwarder will help you understand the options and the trade-offs of each option. In some cases accepting a 14 day deliveryoption versus a 10 day deliver option could mean a 50% savings in cost. Your freight forwarder can work with you to determine which options meets your needs.

Laws

One of the most complicated aspects of international shipping is the vast field of laws and regulations that govern imports and exports to other countries. Failure to understand and adhere to these laws and regulations can cost you money and time. You may also be faced with serious sanctions. In most cases, it’s not feasible to have knowledge of all these aspects of shipping. However, freight forwarding companies make it their business to handle these issues so you don’t have to. This is the most important reason to hire one of these companies to handle your freight forwarding and shipping needs. Your freight forwarding company will take this burden off your shoulders so you can focus on the other aspects of your day to day business that need your attention.

If you are planning to choose one of the many freight forwarding companies available to handle your shipping and logistics needs, Hawthorne Global can help. We have many years of experience in this industry. We have a large network of partners that allow us to get your products where they need to be when they need to be there. Give us a call today to see how we can help your business meet your shipping and logistics goals.

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Gary Gardner
Author: Gary Gardner
Category: freight forwarding