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..
FAK it.. A deep dive into FAK rates and how it works..
The process of global trade is simple to look at, especially if you look at it from the outside..
- There is a buyer who needs a product ;
- There is a seller who sells this product ;
- They discuss and agree on a price ;
- The buyer pays the agreed price ;
- The seller arranges for the product to be transported to the buyer
End of trade..
Simple, right..?? Many would wish it was so..
While there are several processes and documentary flows involved in trade negotiations, there are even further processes involved in the actual movement of the goods from Point A to Point B..
One such process in the movement of goods that influences product pricing is the process of freight negotiation and freight quotation in which there are several types..
Let us take a deep dive into FAK rates and how it works..
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..
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.
8 tips to reduce freight forwarding expenses
If you use shipping services often, price may definitely a very important factor for you. Especially if you own a business that includes constant freight forwarding. People often think that the way carriers ship the freight are pretty much fixed and cannot change.
But just because everyone is used to the standard freight shipping ways and expenses, it doesn’t mean that is the only way. Luckily for you, there are many ways to reduce freight forwarding expenses.
Here are 8 tips to reduce freight forwarding expenses. Follow these steps and start implementing the changes that will help you today.
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.
Executive Insights: TNX Logistics Co-Founder & Managing Director Alex Hoffman on striking the perfect human/machine balance
A day in the life of a Freight Forwarder – find out how it all works
Recently I posted an article “Who is a Freight Forwarder..??”.. If that article gave you a good introduction into the activities of a freight forwarder, this article will give you a detailed glimpse into “A day in the life of a Freight Forwarder”..
What you need to know when you choose a freight forwarding company
Guest article covering what you need to know when you choose a freight forwarding company..
Are Incoterms® EXW rules suitable for international trade..??
Exporting for the first time huh..!! Then you should read this..
If you are exporting for the first time, then this article is for you.. This article provides practical advice for the first time exporter covering what you should expect and what documents to foresee and prepare for and many more tips..