www.structuredfreight.com | June 2017 | CEO COLUMN | 6-7
For example, sometimes when shipping multiple packages, they will charge you for the total weight of all the packages. But what may not be obvious is that for some services, there is a minimum weight per box.
In short, when shipping your merchandise internationally or domestically, the people you choose to do it need to know the laws governing each mode of shipping, the transit times, and the pricing conventions. From there, they will need to determine the most cost-effective way to get your goods to their destination on time. Sometimes, this will just be sending the box with UPS. But other times, the best option is to consolidate your goods with those of other companies to get a bulk discount. And this is something that a freight forwarder can do that you cannot do alone. Because freight forwarders work with so many small companies shipping their products around the world, they get a bulk discount from the suppliers, and can pass those savings on to you.
Choosing the right freight forwarder for your company is important. The first thing you should do is add up what volume you ship every year and how quickly you need it to get to your customers. If you have a large volume, then a large freight forwarding company is a good choice, because they can offer you excellent rates and a wide variety of services. However, if you are a smaller business, you may not get the level of service or the low prices you expect from these larger suppliers, simply because you aren’t that important to them. A smaller freight forwarder that can supply better customer service and more personalized options may be a better fit.
In the same way that many small companies outsource their bookkeeping and payroll, it makes sense to outsource your freight management. It’s a complicated problem that, in many cases, is simply cheaper and easier to pay someone else to handle.
Carlos Saiz-Perez
CEO & Business Operations Director