What does it take to be profitable in Freight Forwarding
Achieving and maintaining profitability has been one of the serious problems faced by many freight forwarders and more so, in these trying times..
A Freight Forwarder is a multi-function agent/operator who undertakes to handle the movement of goods from point to point on behalf of the cargo owner and the essence of freight forwarding is to ensure that the cargo is collected from the seller and delivered to the buyer at the required place, at the right price and in the same condition that it is picked up from origin using the most suitable and optimal resources and routing possible..
While reducing costs, keeping costs low or maintaining the costs over a period of time is key to achieving profitability in freight forwarding, there are also other ways to be profitable in freight forwarding..
10 tips to avoid losses due to abandoned cargo
In any normal year, hundreds of thousands of containers filled with cargo are abandoned all over the world.
While abandoned cargo could be quite stressful and considered to be a big headache for everyone concerned, a freight forwarder may be especially affected by cargo abandonment.
Here are 10 tips to help you avoid losses due to abandoned cargo..
Risks and Liabilities of a Freight Forwarder
Freight forwarders are an integral part of the supply chain and global maritime trade..
A freight forwarder serves as a conduit for global trade between importers, exporters, BCOs (Beneficial Cargo Owners) and the transportation and regulatory entities such as shipping lines, customs, port etc..
The moment a freight forwarder signs/accepts a contract with the customer, they are exposed to several unique risks and liabilities..
This article discusses the risks and liabilities of a freight forwarder..
So you want to become a Freight Forwarder huh..!!
First question you need to ask yourself is WHY..??
It is important that you understand the purpose of wanting to become a freight forwarder.. What is the objective..??
- Maybe its your intrigue or love of the industry and your ability to connect people and businesses ;
- Maybe because you are tired of the current forwarders in terms of their service offering and their attitude towards business and you think you can do it better ;
- Maybe you think you have a set of loyal customers who would support you if you ventured out on your own ;
- Maybe its the glitz and glamour that you see some of the freight forwarders exhibiting especially the new startups who the venture capitalists are fawning over ; or
- Maybe you are truly well versed in the business and you decided it is time for you to strike out on your own..
Whatever the reasons for you wanting to become a freight freight forwarder, here are 6 points you need to consider and a few things you need to get right first..
How to find a qualified Chinese freight forwarder
China, often termed as “the world’s factory” is unavoidable when it comes to global trade. As of 2017, China accounted for 15% of the world’s GDP. China’s GDP is 64% of that of USA thereby making it the second largest economy in the world.
For majority of the countries around the world, when importing Chinese products, international freight movement is required and you will definitely deal with a variety of freight forwarding companies.
Unverified statistics indicate that in the city of Shanghai China alone, there are more than 10,000 freight forwarders registered. It is conceivable that the total number in China is even more astronomical.
Chinese freight forwarders have also had a bad rap due to a few of them perpetuating fraud and other illegal activities which are affecting many of the legitimate Chinese freight forwarders.
“How can I choose a qualified freight forwarder in China from such a large number?” is a question that might be on the minds of many people.
David Fan gives you some guidance through different perspectives based on many years of industry experience.
Fraudulent freight forwarders and their scams
The activity of Freight Forwarding has been around for many years and there has been a recent resurgence of the forwarder especially in the form of a digital freight forwarder. Unfortunately fraudulent freight forwarders have permeated this industry as well.
Like any industry, freight forwarding has its good and bad sides and it is quite easy to become a victim of fraud and most of the time, freight forwarders are not associated with the crime or fraud and they may be co-victims just like you.
Here are some of the ways of fraudulent freight forwarders and their scams.
DSV finally gets its way, reaches an agreement to buy Panalpina
They get us, They get us not, They get us, They get us not, They get us……………………….. and thus ends the saga of Panalpina’s buy out by DSV..
After months of speculation and back and forth, the Danish forwarder DSV will finally have their hands on their Swiss rival logistics group Panalpina through a $4.6 billion deal, making them one of the leading global transport and logistics companies in the industry with significant growth opportunities and potential..
Freight Forwarder and Clearing Agent
There are several entities involved in the successful transportation of a shipment.. However big or small a shipment is, two entities stand out due to the importance of their roles in a shipment..
These entities are a Freight Forwarder and a Clearing Agent..
It is very important to understand the functions of a freight forwarder and a clearing agent and their role in a shipment as this is often confused..
While in a lot of cases, a freight forwarder and clearing agent may be the same entity, there are many cases where they are different as well and in this post we explore the similarities and difference between a freight forwarder and clearing agent..
Fake goods and a freight forwarder’s liability
Freight forwarders are an integral part of the supply chain and global trade, involved in handling goods using all modes of transport (sea, road, rail and air)..
However, many people are still unaware of Who is a Freight Forwarder and their role in the whole chain.. There is no one simple and quick explanation as to who is a freight forwarder and what they do..
In the most succinct and layman terms, a Freight Forwarder is a multi-function agent/operator who undertakes to handle the movement of goods from point to point on behalf of the cargo owner..
The essence of freight forwarding is to ensure that the cargo is picked up from the seller and delivered to the buyer at the required place, at the right price, and in the same condition that it is picked up from origin using the most suitable resources and routing possible..
Freight Forwarders however sometimes face situations which holds them liable merely due to them representing customers or handling shipments on behalf of customers..
Here is a real life example from Singapore..
Difference between a Freight Forwarder and NVOCC
NVOCC and Freight Forwarder are entities that many customers use for the movement of their cargo around the world.. Is there a difference between a NVOCC and freight forwarder..??
Let us explore in this article..
Executive Insights: FreightHub Co-Founder Michael Wax on online freight forwarding
We talked with FreightHub co-founder Michael Wax about What his company is doing to establish itself as an active partner to shippers, and what the ideal forwarder-shipper relationship should look like.