Do I need a freight forwarder? Many U.S. exporters find it difficult to answer this crucial question. The complex landscape of global shipping can be quite challenging to navigate. These intricate responsibilities make freight forwarding services seem like a necessity rather than an option.
According to the International Federation of Freight Forwarders Associations (FIATA), you don’t need a freight forwarder, but they can significantly ease the complexity of international shipping. They manage the documentation and logistics challenges exporters don’t understand. Their knowledge can save shippers time and money.
While you don’t need a freight forwarder, we’ll explain why you should get one and how it will help your exporting operations.
In the complex world of global trade, a freight forwarder can be a U.S. exporter’s best ally. That said, shippers aren’t required by any laws or regulations to hire one. Freight forwarders are available to assist exporters that need help with the logistics and other considerations that go into planning an international shipment.
Most of these individuals have an extensive background in the global transportation industry. A freight forwarder may work for a larger company, or they could be self-employed. Either kind will be useful, but individuals that work for a larger company typically have more resources at their disposal.
Freight forwarders facilitate transportation of cargo for international shippers. Therefore, they’re an valuable asset for any business involved in international trade.
They can help U.S. exporters in important ways, such as:
International shippers should understand each of these points to fully appreciate how a freight forwarder will make exporting easier.
Freight forwarders have the ability to navigate the complexities of global shipping logistics. They manage a multitude of tasks that make the shipping process much smoother for U.S. exporters.
These include:
Coordinating shipments to ensure every load arrives on time can be a logistical nightmare for exporters. Freight forwarders have the know-how to organize multiple routes efficiently, ensuring products arrive on time.
Every country has different customs regulations that U.S. exporters will need to follow. A freight forwarder is well-versed in handling these kinds of regulations on behalf of shippers. This applies to U.S. and foreign requirements alike.
Providing the correct documentation for international shipments can be exhausting. Freight forwarders work with these kinds of documents frequently. Therefore, they can help fill the right forms before an exporter’s goods are transported.
Finally, navigating port operations can is another way freight forwarders can help an international shipper. These professionals have extensive experience working with various individuals at these locations. This allows them to get freight through each port more efficiently.
One misconception shippers make is that freight forwarders are an additional expense. While exporters will have to spend money to hire one, these professionals will end up saving them both time and expenses in the long-run.
Freight forwarders can help international shippers save money and time by:
One of the ways freight forwarders can save money is by negotiating better rates. Small businesses and new entrepreneurs usually have trouble getting competitive shipping rates. Freight forwarders have connections with numerous carriers that allow them to negotiate better rates for their clients.
Another factor that can inflict costs on shippers are documentation mistakes. Error in customs paperwork can lead to costly fines or delays. Freight forwarders can prevent such costly mistakes with their thorough understanding of international shipping rules and regulations.
Getting goods to another country on time is a worry of many U.S. exporters. Freight forwarders can save time by choosing the best shipping route to ensures a shipper’s products get to from one port to another port in the quickest and most cost-effective way.
Risks are inevitable in the complex landscape of international trade. A freight forwarder can help mitigate these challenges by keeping an export shipment on track.
They can do this using the following methods:
The risk of damage during transit is high for international freight. A forwarder is more likely to make sure goods are packed appropriately by selecting reliable carriers. These professionals can also provide cargo insurance as another form of protection.
Depending on the type of coverage, an exporter’s freight will be protected from the following:
If something does happen to a shipment, freight forwarders can assist with claims processing. Their expertise and understanding of the insurance process will be invaluable during these situations.
Read our article on how to choose a freight forwarder to find one that’s right for you.
Exporters can organize and send their international cargo without any assistance if they choose. That said, operating without a freight forwarder can bring a host of challenges and potential problems. We’ll discuss some of these factors to demonstrate the dangers exporters will have to overcome.
Without the help of a freight forwarder, exporters are much more likely to run into shipping delays. This can put a serious dampener on the international shipping operations of U.S. sellers.
Common delays exporters can encounter include the following:
Freight forwarders send cargo down different routes to avoid potential delays. Unanticipated factors like bad weather or port congestion could prevent a shipment of exports from arriving on time. Without the expertise of a freight forwarder, U.S. sellers might not be able to adjust to delays that can occur on a route.
U.S. companies that supply buyers in other countries might have trouble coordinating pick-up times for their cargo. Without a freight forwarder to keep them organized, businesses might run behind in their shipping operations. There are many unexpected events that can also delay cargo. A freight forwarder can help with overcoming these challenges.
This includes:
Factors like these disrupt the global supply chain. However, managing these unexpected events without a freight forwarder’s network and contingency plans could make delays even worse.
Engaging in international trade means dealing with a multitude of regulations and customs procedures. Many U.S. exporters have trouble managing these requirements without any assistance.
Mistakes that U.S. sellers could make include:
There many products have different export control laws placed on them. Sellers in the U.S. will need to understand these rules to successfully send their goods out of the country. Non-compliance could result in fines and loss of exporting privileges.
Many foreign countries have laws regarding importation. This can include specific rules about labeling and safety standards. Goods sent by exporters might be rejected if they don’t abide by these regulations.
Finally, it’s essential that U.S. sellers correctly classify the goods they send to other countries. This is done by ensuring the right Harmonized System (HS) code is used for their shipment. Mistakes in classification can result in the wrong duty being levied on the importer.
Despite Alibaba being a Chinese company, U.S. sellers on this platform won’t need a freight forwarder to ship products to buyers in other countries. That said, hiring one to help with shipping operations is a good call to make.
Freight forwarders can provide the same types of services to sellers using this platform. According to Alizila, there are over 10 billion buyers on Alibaba in 190 different countries and regions. Therefore, U.S. business and entrepreneurs on the platform should consider hiring a freight forwarder when shipping internationally.
Like with Alibaba, U.S. sellers won’t need to use a freight forwarder when using fulfillment by Amazon (FBA). However, the option is always available if exporters feel like they require extra assistance.
Sellers should know that 80 percent of buyers that use Amazon are U.S. based. This means American exporters are much less likely to sell to other countries than they would when using Alibaba. While Amazon earns most of its revenue from buyers in the U.S., there are other countries that use this ecommerce company as well. We’ve included some data on each.
| Country | Revenue Earned by Amazon |
| Germany | $33.6 Billion |
| United Kingdom | $30 Billion |
| Japan | $24.4 Billion |
Provided by FourWeekMBA
U.S. Amazon sellers might be able to sell their goods to buyers in these countries. Therefore, they can use the services of a freight forwarder to help them export their products.
USA Freight Forwarding can help you send shipments of international freight. Our team consists of experienced individuals that can take over all the challenging responsibilities that come with shipping goods to other countries.
The services we provide include:
In one of our consulting sessions, you’ll learn about your responsibilities as an exporter. We also provide international air shipping that can transport your goods to another country in a short period of time. If you need to send shipments in bulk, then ocean freight transport is the method to use.
Contact our team if you’re ready to send your goods overseas. You can also reach us at (866) 941-8081 for any questions or concerns.
