Common Myths About Freight Forwarders

Freight Forwarders

If you are looking for freight forwarder services in Montreal but are not sure whether freight forwarding companies will be able to provide the required services, then the following details will help you make the right decisions. Our focus here will be on debunking myths surrounding freight forwarders and services they provide.

Myths Surrounding Freight Forwarding Services

Myth #1: Freight Forwarding Services Tend to be Expensive

A common misconception is that freight forwarding services tend to be expensive, but that is not true. When utilized properly, freight forwarding can help you save a considerable amount of money.

For instance, if you are not using these services it is likely that you will not be aware of the intricacies involved when your freight arrives, such as import duties, customs clearance, carrier price negotiations, and similar other details.

It will take a lot of time for you to analyze what is to be done, discuss the details of charges with customs officers, and finally arrange transportation so that the freight can be delivered to your warehouse. It is likely that you will have to spend around three to four days sorting all the details. In addition, it is likely that the rates that are offered will not be the most competitive ones since for the carrier you will be a new customer.

The benefit of working with experienced freight forwarding companies is that they will be able to complete all the formalities within three to four hours.

Thus, utilizing freight forwarding services will help you save time and avoid headaches.

Myth #2: Control Over a Freight is Lost When these Services are Used

Many shippers think that if a third party will be handling their freight then they will lose control over the whole shipping process. On the contrary, during the journey there will be multiple contact points and it will be necessary to get in touch with different carriers and shipping lines to get things done. Oftentimes, you will have to cross language barriers to deliver the right message.

On the other hand, freight forwarders already have their own network consisting of professionals that have the competency to interact and communicate with other professionals with relative ease. As such, you will have a single point of contact instead of having to deal with several disjointed parties. This will help you retrieve the required information from a single source as well as maintain the required control over the complete supply chain.

Myth #3: Freight Forwarding is Better for Higher Volumes

Another myth that many people believe is if a business has a higher volume requirement then only freight forwarding will be right for them. People believe that the large margins charged by freight companies over and above the carrier price cause them to be an expensive option to utilize.

On the other hand, freight forwarders leverage volumes to get better rates for their customers. Many freight forwarders have an open book policy under which they levy agency or handling fees for every shipment instead of marking up freight costs.