For something to be sent, someone must send it; but for a speedy shipment you need to find a freight forwarder. However, what kind of freight forwarder should you be looking for? How will you know if he or she is the right one for you?
These are the initial things you need to know before exporting or importing goods. Let’s begin your journey.
Customer’s role in the freight forwarding process
Any person or company physically and administratively responsible for shipping goods from one place to another is called the customer. This could be:
- The owner of the goods
- A maintenance company who holds the goods to be shipped
- A customer of a freight forwarding company
Known Shipper Program: How to become one?
A known shipper is a term used to define either a company or a person that has an established business relationship with an indirect air carrier, aircraft operator or air carrier. It typically requires providing the following proof of items:
- Customer records
- Shipping contracts
- Business history
At times, the government may even require a site visit or a current Dun and Bradstreet vetting.
Is there an easy way to have this completed?
There is no shortcut to this process, but you can leave behind the worries and stresses behind by finding a freight forwarder that is not only knowledgeable; but also offers competitive and honest quotes. Talk to us to know how we can make it simpler for you.
Why is there a need to become a known shipper?
After the 9/11 incident, the U.S. Department of Homeland Security (DHS) implemented new rules with the goal of insuring the safety of domestic and international air flights. This includes the Known Shipper Program.
Today, The Transportation Security Administration (TSA) implement these rules and programs. Non-compliance can result to:
- Delays
- Higher costs
- Longer more circuitous flights
So unless you are willing to experience these inconveniences, you’ll find a way to become a known shipper. FFQO can help you become one.
We have offices and partnership with warehouse and supply chain facilities and vendors known shippers of their freight forwarder who are know shippers.
We deliver better costs, fewer delays, increased shipping options and more direct flights for both airfreight importers and exporters.
Call us at 1-877-901-2004.
Save money! Know your Incoterms and find a freight forwarder
After familiarizing ourselves with the responsibilities of the customer, let us go further by exploring the freight forwarding vocabulary – Incoterms.
Why is it important to know your Incoterms?
Learning the different Incoterms could save you lots of money. Imagine this case scenario:
An importer normally purchases goods on an Free On Board (FOB) port terms from China. Unfortunately, they overlooked the Ex Works (EXW) terms on their purchase order (PO) and had to pay an additional $1500 which weren’t originally accounted in their requested port-to-port quote.
This could have been prevented if the importer/exporter is knowledgeable of these terms. Avoid having to pay unnecessary money. Know some of the most common Incoterms today by finding an expert freight forwarder to help you.
FOB – Free On Board (named airport of shipment)
This is a term most often used when importing from Asia. It states that a seller retains ownership and is responsible for all costs up to and until the shipment is loaded onto the vessel at the named port.
The transfer of ownership and liabilities fall under the responsibility after the shipment is loaded on the vessel.
EXW – Ex Works (named place)
This is a term often used when importing products from the European Union (EU). It states that it is the seller’s responsibility to make the goods available at their facility. However, all charges incurred for transportation of these goods falls under the responsibility of the buyer.
The transfer of ownership also happens after the goods leave the seller’s facility.
CFR – Cost and Freight (named airport of destination)
The seller is given the responsibility for the transportation to the destination port but the liability for loss or damage that may be incurred during the transit will fall under the buyer.
CIF – Cost, Insurance and Freight (named airport of destination)
It is an extended version of CFR as it includes an agreement requiring the seller to purchase insurance that will cover loss or damage of goods while on transit.
DDP – Delivered Duty Paid (named place)
This could be the ideal Incoterm to choose for any importer as it entails giving all responsibility for all charges to the seller include all charges such as customs clearance, duties and taxes.
Visit our page for first time importers to know more about this.
Basic import shipping terms
Disclaimer:
FFQO is an expert in moving goods, but we are not a legal expert in any manner. It is best to consult with your legal counsel before making any sales or purchase agreements.
Find a freight forwarder by comparing freight quotes
Great! You’re learning heaps of freight forwarding information and now ready to compare freight quotes.
Yes! You need to shop around to find who among the many freight forwarders to know which among them are offering the best rates.
Here at FFQO, we instantly provide you freight rates without any sign-up or registrations requirement. Moreover, there are no hidden or surprise fees.
Online freight calculator for your airfreight needs
Click here to use the calculator.
To consolidate or not to consolidate: What should you do?
Another important consideration for the customer is whether or not to (let) consolidate goods into one shipment, or to send the goods as individual shipments.
In most cases consolidation of goods is cheaper but also slower, especially if the forwarder consolidates goods of several customers to a certain destination. In case of emergency freight, if speed is required, shipping the goods as individual shipments can be an advantage, because it is more easily tracked and expedited during the process. However, it will be more expensive as well, because the costs cannot be spread over a bigger volume.
Find a freight forwarder with these skills
Ultimately, you should look for a freight forwarder who is not only knowledgeable but is also reliable in moving your goods. This means choosing someone who will
- Provide you freight quotes without any hidden costs
- Simply the shipping process, including customs clearance for you
- Answer questions about the freight forwarding process
- Respond to your shipping queries and concerns
- Secure the delivery of your goods to its destination
Talk to us at 1-877-901-2004 for your freight forwarding concerns. We are always happy to help.
