Why is it more profitable to cooperate with a freight forwarder? How can freight forwarders offer lower freight costs than the carrier? Is it possible to trust a freight forwarder? DSV submits answers to all these questions.
An international freight forwarding company is first of all about the necessary experience and strategy of work, allowing the most efficient and fast execution of customer orders. It provides well established logistics supply chains, the most optimal modes of transport, assistance in the related services such as insurance and customs brokerage support, as well as reliability, stability and individual approach to each client and partner.
That is why most carriers are interested in cooperation with such forwarding companies and often provide them with more favorable financial conditions for cooperation:
- A freight forwarder works with cargoes of different companies and generates consolidated consignments for certain directions, which in turn guarantees the carrier stability of loadings
- Communication with customers, consulting, preparation of cargo and documents - all organizational issues and costs are the responsibility of the freight forwarder, and not the carrier.
- Long-term contractual obligations between the freight forwarder and the carrier that determine the obligations of the parties and payment schemes, also remove additional pressure from the carrier.
As a result, the carrier receives one permanent partner - the freight forwarder. The freight forwarder, thus, can offer its customers the most favorable transportation cost. Moreover, a lower price does not mean lower quality of the services.
The choice of the logistics scheme and the quality of organization of the transportation largely depend on the actions of the freight forwarder, so it is very important to choose the "right" forwarder.
Which is the "right" forwarder?
As with the choice of any other service, the basic criteria for the "right" forwarder are the cost and the quality of the provided services. A responsible freight forwarder will necessarily warn you about the peculiarities of work with a certain type of cargo and all possible difficulties, such forwarder will always help to choose the best logistics scheme.
The main indicators of the "right" forwarder:
- sufficient experience of the freight forwarder with similar cargo and / or delivery schemes,
- full forwarder’s understanding of all the nuances and requirements to the transported goods,
- providing a personal manager by the freight forwarder,
- lightness and frankness of communication with the forwarder,
- prompt response and resolution of organizational issues and complexities by the forwarder,
- provision of additional and value added services by a forwarder,
- availability and convenient location of the freight forwarder,
- compliance with contractual obligations by the freight forwarder,
- freight forwarder’s notification about additional expenses, time limitations and the description of services that are included in the rate, etc.
In addition, one of the important criteria for choosing a logistics freight forwarding company is its reliability and trust. For more than 10 years of work in Ukraine, DSV has been able to create all the necessary conditions for the successful development of its customers' business. To provide additional guarantees, DSV takes full responsibility for the transportation of any type of cargo.