Tips for Selecting Freight Forwarding Company and Logistics Vendor

Tips on Freight Forwarding Company and Third Party Logistics Vendor Selection

Moving freight around the world can be a costly and labor-intensive process. Selecting a Freight Forwarding or Third Party Logistics company can be a challenge. The company must have enough experience to handle payment between buyer and seller and understand the proper incoterms of trade so that responsibility can be provider assigned to each party.

The most important issue when making your selection is ensuring that the Freight Forwarding company spends enough time check prices on the various transportation providers (airlines, railways, ocean liners, and ground haulers) in order to be confident that the price they quote you will be competitive. You can accomplish this yourself by contacting 5 to 10 brokers and choosing the lowest price with the firm that you think has the capabilities to move your freight. Or, you can select a broker which handles this task for you by doing enough research in the marketplace.

Besides selecting a competent and competitively priced firm, handling the shipment will rely on your making providing timely responses to the Freight Forwarding company. For international shipments, the Freight Forwarding company will require you to provide several documents that are essential to clearing customs and to avoid any delays en route. You should have prepared the Commercial Invoice, which shows the items and selling prices of the goods in the shipment. A packing list which details the weights and quantities of each carton and pallet should also be included.

Finally, the Shipper's Letter of Instruction or the Shipper's Export Declaration is necessary to keep on file for Customs and to specify the Incoterms of trade. Be advised that these documents will be required as soon as the shipment is booked, so it's best to have these documents ready as to not cause any delays in the shipment.