The Secrets to Successful Freight Forwarding. Updated for 2022

Freight forwarders are mainly paid by commissions or commission. Most freight forwarders provide delivery services for the entire container, but consolidation freight forwarders mainly provide goods that are less than the entire container, and then consolidate other goods into one container, and then hand over to the shipping company to transport to the destination.

How to Succeed in the Industry of Freight Forwarding?

First, freight forwarders must be familiar with the general knowledge of maritime geography. First of all, as an international freight forwarder, because the ship in and out of different countries, so should be familiar with the world's geography and routes, the location of ports, trans-shipment and its inland distribution points. Second, freight forwarders should also understand the mode of international trade and its development trend, the flow of goods, such as Western Europe and the United States, Canada, Japan and other countries with a high degree of industrialization, a large number of imports of raw materials from developing countries, and exports of industrial manufactured goods to these countries.

Second, freight forwarders should be familiar with the applicability of different types of transport to the goods. There are four types of transport in the world shipping market: liner shipping, chartered transport, NVOCC transport and multimodal transport. Liner transportation is characterized by fixed time, route, port order and rates. Chartering transportation means unscheduled transportation, which does not set a fixed route and schedule, and can be engaged in operating business on any route according to the supply and demand in the shipping market, and the tariff is still negotiable, which is suitable for bulk cargo carriage. NVOCC is a carrier engaged in regular operation, but does not own or operate the ships required for maritime transportation, NVOCC is the identity of the carrier relative to the actual shipper, but is the identity of the shipper relative to the actual carrier. For the cargo owner or shipper, choose the appropriate mode of transport, determined by whether the freight forwarder is proficient in the following aspects of business.

1. The regularity of transport services, such as the goods must be shipped within a certain fixed period of time should choose liner transport;

2. Transportation speed;

3. Transport costs, when the time and speed of transport is not the main factor considered by the shipper or cargo owner, the price of transport becomes the most important;

4. The reliability of transport, the choice of freight to be entrusted to the shipping company should be examined before the strength of its reputation, in order to reduce the possibility of maritime fraud and become a victim;

5. Operating status and responsibility, apparently a ship owner enjoys ownership of the ship, but in fact he mortgages the ship to the bank and becomes the operator through the operating contract with the bank. This will bring negative impact on the interests of cargo owners in the future when cargo transportation disputes go to court.

Third, freight forwarders should understand the suitability of different types of ships for cargo owners' goods. As a freight forwarder, it is necessary to understand the characteristics of the ship, such as the ship's country of registration and and tonnage, gross register tonnage (GRT), net register tonnage (NRT), bulk cellar, packing cellar, gross deadweight tonnage (DWT), load line, class and other aspects of knowledge. The better freight forwarder should also understand several types of conscious cargo ships, such as liner, semi-container ship, semi-pallet ship, bulk carrier, ro-ro ship and full container ship. The third generation of container ships have 2000-3000 TEU container capacity, can pass through the Panama Canal, so also known as Panama-type ships. The fourth generation and ships with greater container carrying capacity are not suitable for passing through the Panama Canal and are often called super-Panamax ships.

Fourth, the first-class freight forwarders should be familiar with shipping regulations. In addition to understanding the "Hague Rules", "Wisby Rules", "Hamburg Rules", but also should be appropriate to understand the export of goods or destination port country's maritime regulations, port operating habits.

Fifth, the first-class freight forwarders should be skilled in the operation of sea cargo transport documents, and to ensure that the base production of correct, clear and timely. The main shipping documents include bill of lading, sea waybill, manifest, delivery note, bill of lading, packing list, port receipts, first mate receipts and so on.

Sixth, the better freight forwarder should know the customs procedures and port operations process. In the import and export trade, customs clearance is a traditional function of the freight forwarder. In the dual relationship between freight forwarders and customs authorities and their customers, the legal direct position for freight forwarders, the provisions of different countries, but customs agents are usually authorized by the government. Customers (i.e., cargo owners should consider the identity of the freight forwarder as a customs agent in the performance of its duties, whether it has the ability to protect both the customer and the customs authorities liability. It is very important that the freight forwarder has the ability to operate the port procedures such as the ability to lose to the agent of departure procedures, bonded storage, inland clearance, etc. In addition, the freight forwarder can provide a lower freight rate is also an important factor to consider, freight forwarders are mainly closely related to the liner rates. Of course, the examination of freight forwarders, should also pay attention to some other factors such as creditworthiness. The operation of a first-class freight forwarder is very important for the cargo owner to complete the trade contract.

How to become a good freight forwarder?

Now the freight market competition is very fierce, each freight forwarder hope that they are contracted more business, but not every freight forwarder can do a good job, how to do with the customer's positive interaction, how to become an excellent freight forwarder?

1. Sincerity to customers. Cargo transportation process will inevitably be a lot of problems, we should be timely and effective communication with customers, do not wait until things can not be undone before telling customers, at that time the loss is greater, and customers are unlikely to trust you again, so encounter any thing to customers honest, do not cover up these unfavorable information.

2. Pay attention to the details. Details determine success or failure of the saying is not without reason, many projects may fail in many small details above, responsible for their own customers is responsible for their own, in the shipping process to pay attention to every detail, do not end up causing some problems.

3. professional knowledge. For their own unclear business to seriously study, in the process of communication with customers to be able to give customers professional answers, customers can have a good impression of you.

4. Diligent thinking. Any industry has a lot of room for progress, diligent thinking talent can go to the next level, do not what the problem is to ask others, never think about why this is too much reliance on others to give more bad.

5. Consider the big picture. Even if the business is their own, but in the same company, we should help each other, if colleagues need your side of the support you should respond positively, if something is not in, should do a good job of all the records and all aspects of the work of the interface, so that your team can take over smoothly.

From STU Supply Chain: https://stusupplychain.com/the-secrets-to-successful-freight-forwarding.html