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Did you know that over 35% of all shipments show up late? Delays can cost a company over 25% of the product’s value.
As a construction company, your schedule depends on products arriving on time. Luckily, that’s where forwarding services come in. This service takes care of all your freight planning to increase your products’ odds of arriving on time.
To understand what forwarding services are, keep reading.
What are Forwarding Services?
A forwarding service is when a company acts as an intermediary between your company and another business. Their role is to ensure that all transportation of products occurs without issue.
A forwarding freight can handle national and international trade via air, ground, and sea. The freight’s job includes completing all the paperwork and handling any problems that might arise.
History
The first freight forwarders were London innkeepers who would hold on to hotel guests’ personal effects and then forward them.
Then in the 1800s, there was a growing amount of confusion with the transport of goods because of railroad transportation. This confusion was due to the many different available routes.
Thus, to resolve this issue, Thomas Meados and Company began coordinating shipping orders for multiple companies. As trade continued to grow between Europe and North America, many other companies also began offering similar services.
Why is This Service Helpful Today?
If you are a construction company owner, you might be asking why this service is currently vital to you. There are a couple of reasons.
Delayed Shipment
One of the advantages, as discussed previously, is that a forwarding service can help your product arrive on time. Freight companies accomplish this timeliness by assisting you with all the paperwork so your shipment is not stuck in customs.
Now, there is always a possibility of a delay. Yet, instead of you having to handle any issues, the freight company takes care of them for you.
Knowledge
Another advantage of a freight company is that they know all the regulations and rules of transportation. Their knowledge helps protect you legally from any trouble.
It also ensures that your route is the fastest possible.
Connections
The final advantage is that they have connections across the world. Most freight companies have been working in this field for years and have resources across the world. So if something goes wrong, they know whom to reach out to and whom to trust to fix the issue.
Process
There are six main steps that freight forwarding services help with. This next section will give a brief overview of each step.
Export Haulage
The first step is that the products that you are shipping or receiving are transported via a bus or train to the freight forwarder’s warehouse.
As soon as the product arrives, there is an in-depth check to ensure the shipment is intact and correct.
Export Customs Clearance
Then the freight company coordinates with local custom agents or an independent third party to check your goods for clearance before leaving the country.
Typically, the customs agents are looking for illegal substances, prohibited foods, or other dangerous items.
The customs officer then checks your shipment against the commercial invoice. This invoice is your agreement with the seller on what should be included in the shipment. They check to make sure this document accurately reflects the present materials.
Origin Handling
Once they have passed customs, the cargo is again checked to see if everything is present and properly stored in the box. The products are also sometimes consolidated with other loads going to the same destination.
Import Customs Clearance
Next, an import customs officer checks your supplies to confirm your products match your commercial invoice list and that nothing is illegal.
This customs check can begin before the cargo arrives, but it must happen before entering the country. Most freight forwarders are either licensed to handle the check or have an agent who handles the clearance.
Destination Handling
Then, the freight company transports the shipment to the final warehouse. Once the product arrives, several jobs must happen.
All the documents have to be received and double-checked. The cargo also has to be sorted. Anything that has been consolidated needs to be separated.
Import haulage
Finally, the materials are transported from the warehouse to their final destination. Or, if the receiving company prefers, they can pick up the product themselves.
The final transportation usually involves trains or trucks. It can take hours or days, depending on the distance the shipment needs to go.
Some freight services have their own trucks to do this final part. If not, they will have a trusted third party that they use instead.
Documents
The other massive role of freight forwarders is that they handle all the documents you need for transporting goods. There can be over a hundred documents involved in transportation. Here are just a few examples.
Bill of Lading Contract
This contract is your agreement with the freight company. It contains all the necessary details about the delivery and how much you will pay for the service.
Certificate of Origin Statement
This document is a statement that says the product meets the standards of the country that the product is leaving and explains why the country of import’s customs should accept it.
Export License
This license is a document that the government grants that gives a company permission to export a product.
Benefits
For any size of the company, having a freight forwarder can have many benefits, some of which have already been stated. Here are a few more examples.
First, it will save you money. Second, it will make the transportation process easier for you. Finally, they have facilities that you can use instead of having to provide your own.
Save Money
Working with a forwarding service will save you money because a forwarder can find better deals than you can. This is because they know the business and have connections.
These connections also allow them to negotiate on your behalf for better deals. Plus, they are less likely to make mistakes, saving you a lot of money in the long run.
Ease
Second, this service makes your transportation experience smoother. It will save you countless hours of paperwork and planning.
The only job you have to do with a forwarding service is to tell them where to pick up the goods and where to drop them off.
Included Facilities
Third, another advantage is that most freight forwarders have facilities included with their services. Therefore, they can house your goods and consolidate for small loads.
Choosing a Forwarder
There are many great companies to choose from, so choosing a forwarder can be a difficult choice. However, here are some essential items to look for when deciding.
Approachability
It is essential to have a forwarder with whom you can communicate quickly. Pay attention to how fast the company communicates with quotes or any questions. You will need to communicate with your freight often, so you need to feel comfortable reaching out.
Availability
One of the key items to look for is a freight company capable of transporting to your crucial area. Similarly, if you have a primary country of focus, finding a freight company with expertise in that country will ensure you have the highest level of knowledge.
An example of this is JS Forwarding, which specializes in transporting in the UK. Other companies specialize in the USA and areas of Europe.
Others Experience
Finally, read the reviews of a freight company. Again, the best way to find the right fit is to listen to the experiences of other individuals.
Pricing
There are a couple of elements that you need to understand the pricing of forwarding services.
Cargo
Depending on the material that you are shipping, the cost of shipping will change. For example, if the item is perishable or dangerous, it will cost more for a company ship. Other items might require additional paperwork, which can also increase the expense.
Dimensions
The cost is also determined by how much your product weighs and how much space it takes up. So even if your product is heavy, the price might be less than something light if it is small but requires much space.
Distance
Another part of the cost depends on the freight company’s overall distance to travel with the shipment. Another element is whether the route needed is often traveling or if it is a rare path.
In the end, the best way to figure out your price is to get a quote.
Get a Quote Today
If this article seemed a little overwhelming, it is because the process of transporting is overwhelming. Luckily, there are forwarding services that can make the whole process easier.
To find other services and ideas on how you can improve your construction company, keep exploring this blog.
