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How to Know if Ocean Freight Forwarding is Right for You?

By Bia Pendelton, California Business Journal

An increasing number of businesses rely on freight forwarders. According to Dedola Global Logistics, ocean freight forwarding is the backbone of international trade. Are you considering using an ocean freight forwarding company but are not sure if that’s the right choice? We can help you. Here are the top reasons why ocean freight forwarding could be the right choice for you.

You Don’t Want to Deal with all the Paperwork

One of the primary benefits of working with an ocean freight forwarding company is that you can offload most of the freight paperwork to the forwarder. This includes various documentation, such as customs clearance, certificate of origin, packing list, and invoices. When you have a professional freight forwarder handling all the paperwork, you remove any guesswork from the process.

If you are shipping freight to an international destination, the freight will be subject to various international rules and regulations. An experienced freight forwarder should be well-versed in these laws and have the resources to handle any issues during transit, such as incomplete paperwork.

International shipping often involves compliance with duties, tariff codes, and taxes. A small error can cause massive delays, which can be costly. In some cases, your cargo might even be seized by customs officials and only released once you can provide the required documents. If you want to avoid handling the paperwork, ocean freight forwarding is the right choice for you.

You need Specific Logistic Expertise

You are an ideal candidate for an ocean freight forwarding company if you need specific logistic expertise. Importing and exporting freight is a highly complicated and in-depth process. The best freight forwarders have a deep understanding of the different processes involved in moving cargo across the ocean.

While you can choose an all-in-one forwarder, you can also pick a company specializing in specific logistics expertise. For example, if you need a company that can optimize loading and unloading to help you save time and cost, then you can seek a forwarder that offers this expertise.

Similarly, you can choose a company that specializes in handling sensitive cargo items. Businesses ship perishable items that need a temperature-controlled environment during transit. If you need this type of special handling, you should look for this specialty when choosing an ocean freight forwarding company.

You are Shipping to a New Destination

Different ports around the world have a unique set of rules and regulations governed by their country. If you are shipping to a new or unfamiliar destination, you should consider hiring an ocean freight forwarder with experience shipping to that destination.

Ideally, you want a forwarder with an extensive network, including relationships with carriers and agents in your destination country. The connections can play a crucial role in ensuring the smooth transit of your shipment through the port. If you are stressed about shipping to a new destination, discuss your concerns with the freight forwarder to seek their expert advice on minimizing the chances of any issues.

You want to Minimize Costs

Organizations in all industries want to minimize costs and are always looking for new strategies to reduce waste. If you are interested in minimizing your shipping costs, you could be a good candidate for using ocean freight forwarders. However, the cost-effectiveness of using freight forwarders depends on several factors.

If you don’t have the right expertise, experience, connections, or digital structure to manage ocean freight, you are likely to find ocean freight forwarders a more cost-effective alternative. To ship the freight yourself, you need to invest significant resources in different processes such as documentation preparation and submission, invoicing, loading and unloading, booking vessels, etc. All of this costs money, especially if you don’t have the right digital solutions and need to rely on manual work. Not choosing the right custom tariff codes, having an incorrect country of origin certificate, or simply not understanding customer valuations can lead to costly delays.

Freight forwarders can help minimize your costs as they have optimized processes to handle various aspects of ocean freight shipping. They also have industry knowledge and expertise on moving freight across the ocean. While you will have to pay more upfront, the overall costs of freight could be significantly cheaper.

You are Not in a Hurry

Ocean freight has inherently longer transit times, especially when compared to air freight. If you are not in a hurry to have your freight reach its destination, then consider an ocean freight forwarder. While a forwarder can help optimize the processes to help minimize unnecessary delay, some factors are not in their control. This includes factors such as port congestion, which is notorious for causing major delays. The forwarder also has no control over the weather and seasonal factors. If you have chosen a third party for loading and unloading, then that’s another factor that could delay the overall transit time of the freight. Consider booking shipments in advance if you want to minimize delays.

You want to Minimize your Carbon Footprint

Several top ocean freight forwarders use sustainable practices. If you want to minimize your carbon footprint, then ocean freight forwarding might be a good option for you. There are several ways a forwarder can help you minimize your carbon footprint. They can help consolidate your freight to minimize the frequency of shipments. Of course, this is only possible if your freight can fit into full container loads (FCLs).

Another way ocean freight forwarders help you reduce your environmental impact is by choosing more optimized shipping routes. Shorter routes mean less fuel is needed, which creates less carbon emissions.

Some forwarders also offer more energy-efficient vessels that are designed to burn less fuel without compromising performance. This means you can choose to reduce your carbon footprint without extending your shipment schedule. There are other ways a forwarder can help reduce environmental impact. This includes eco-friendly practices such as going paperless or using eco-friendly packaging.