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Top International Freight Forwarders: How to Choose the Right Partner
by Shipfusion Team on Sep. 20, 2024
Whether for ecommerce fulfillment or global shipping, the right partner can make all the difference in building an efficient logistics operation. Online stores that move goods across international borders need a freight forwarder with equal resources and expertise. This guide aims to paint a picture of what such a company looks like by outlining the key qualities and solutions all of the industry’s foremost players share. We’ll also help you get started with your search with a list of top international freight forwarders for North American ecommerce sellers in 2024.
What Is Freight Forwarding?
Freight forwarding involves the coordination of transporting large quantities of bulky goods from one destination to another via large-scale air, ocean, and ground transportation methods. It encompasses a suite of services that ensure the safe and compliant movement of products globally.
The complexity of global trade requires a nuanced understanding of different regulations, tariffs, and logistical hurdles. Companies seeking to expand their market reach often rely on freight forwarders to manage logistics, documentation, and transportation challenges.
The Role and Responsibilities of a Freight Forwarder
A freight forwarder acts as an intermediary between shippers and various transportation services. They manage the entire shipping process, from the initial planning stage through to delivery. These professionals offer valuable insights into the most efficient shipping routes, help navigate customs regulations, and ensure compliance with all legal requirements. Their expertise is particularly valuable when dealing with international shipments, where varying laws and regulations can complicate processes and pose additional financial risks.
Freight forwarders’ expertise allows businesses to focus on their core operations while leaving the complexities of transport logistics to specialists. This type of professional partnership both saves time and helps ensure packages get to their intended destinations, wherever that may be.
Freight forwarders provide clients with additional value through advanced tracking technologies and sometimes even discounted carrier rates that they wouldn’t otherwise be able to access. The right provider can make all the difference in successfully managing large-scale logistics operations.
Core Services Provided By Freight Forwarders
Freight forwarders provide a wide array of essential services, every one of which is meant to simplify the shipping process in some way. See an overview of these core responsibilities below.
Arranging Transportation
Freight forwarders coordinate shipments by selecting the most appropriate mode of transportation based on factors like cost, speed, and the nature of the goods being transported. They also manage transfers between carriers when multiple modes are involved.
Quoting Different Shipping Options
Freight forwarders leverage their relationships with carriers to negotiate competitive rates on behalf of clients. Businesses are usually provided multiple detailed quotes, taking into account factors like delivery timeframes, cargo size, and special handling requirements, so they can pick the best option for their needs.
Preparing and Processing Documentation
Freight forwarders ensure that all necessary shipping documents, including bills of lading, commercial invoices, packing lists, and certificates of origin, are properly completed and submitted. Accuracy here is important for several reasons. Working with a freight forwarder gives businesses assurance that they’ll be able to track shipments, remain compliant with regulations, and clear customs without issue on an ongoing basis.
Managing Customs Clearance Processes
Acting as intermediaries between clients and customs authorities, freight forwarders ensure that all import and export regulations are met for each of their client’s shipments. Some of the work involved includes preparing customs declarations, calculating and paying duties and taxes, and resolving any issues that arise during the clearance process.
Offering Cargo Insurance
Freight forwarders assess the risks associated with specific shipments and recommend appropriate cargo insurance coverage to protect clients against potential losses due to damage, theft, or other unforeseen events during transit.
Coordinating Warehousing and Storage Solutions
Freight forwarders may also arrange for short-term or long-term storage of goods when necessary. They help clients find suitable warehousing solutions that fit the specific requirements of their shipments, like temperature control or special handling.
Criteria for Selecting a Top Freight Forwarder
Choosing the right freight forwarder is a significant decision for any business involved in international shipping. Several criteria need to be considered to ensure that you partner with a reliable and capable forwarder.
Reliability and Reputation
Reliability is paramount in freight forwarding. A competent forwarder will have a proven track record of timely deliveries and satisfied clients. Reading reviews and asking for client testimonials can provide insights into their reputation within the industry. A forwarder with a history of reliability creates peace of mind for shippers, as they can trust that their goods are being managed by someone who knows what they’re doing.
Range of Services
The range of services a freight forwarder provides can vary between individual providers. Some may specialize in specific transport modes, whereas others provide comprehensive multimodal solutions. When evaluating a freight forwarder, consider whether they can meet all your logistical needs under one roof. Doing so will save you time and reduce the complexity of managing multiple vendors.
A select few third-party logistics (3PL) companies offer freight forwarding services in addition to ecommerce order fulfillment and inventory management. For example, Shipfusion specializes in freight solutions for clients in B2B and wholesale.
Global Network and Reach
A well-established global network is vital to facilitate the smooth transit of goods and access to international markets. Companies should select a forwarder with strong relationships with carriers and agents worldwide. This ensures that they can efficiently handle customs procedures and transportation logistics in multiple regions. A strong global presence also enables quick response times and efficient resolutions to any challenges that may arise during transit.
Overview of Top International Freight Forwarders
There are numerous freight forwarders in the market, but a few stand out for their global reach, reliability, and comprehensive service offerings. Below is an overview of some of the best freight forwarders for ecommerce businesses based in North America.
Shipfusion
Shipfusion is a growing North American freight forwarder with a specialized focus on fulfillment for growing ecommerce businesses. Headquartered in Chicago, Shipfusion offers a robust range of logistics services, including freight forwarding, warehousing, and fulfillment. Their expertise lies in helping ecommerce companies navigate the complexities of cross-border shipping, especially within North America.
What sets Shipfusion apart is its use of advanced technology to optimize every aspect of freight management. Proprietary software captures and organizes SKU information, pallet details, and shipment addresses for easy access, has a built-in calculator that automatically classifies freight based on density, and presents clients with quotes from multiple industry-leading carriers in real-time.
Users can shop quotes, experimenting with different shipment dates and accessorials to find the most cost-effective selection for their given needs. There’s no need to worry about timelines thanks to an interactive Google Maps view that refreshes its status as frequently as every hour.
DHL Global Forwarding
DHL Global Forwarding is one of the largest freight forwarders in the world. It operates an extensive global network of air, ocean, and road freight services that spans over 220 countries and territories. That’s in addition to other logistics solutions for domestic parcels, most notably last-mile delivery. Beyond its core offerings, DHL Global Forwarding gives businesses the option to pay more for value-added services like customs support, cargo insurance, and a sustainable shipping program called GoGreen.
Name recognition is one of the main reasons ecommerce businesses choose to work with DHL. The company’s wide-reaching infrastructure handles a wide range of goods, from high-value electronics to large industrial equipment. However, with this large scale comes many opportunities for quality control to slip through the cracks. The MyDHLi portal aims to reassure businesses on the status and location of their shipments with periodic updates and reports.
Kuehne + Nagel
Based in Switzerland, Kuehne + Nagel is a prominent name in global logistics with a well-established reputation for handling complex freight movements across air, sea, and land. The company operates in over 100 countries with a strong focus on ocean freight for businesses in the aerospace, automotive, and healthcare industries.
Kuehne + Nagel is widely recognized for its sustainability initiatives. Investments in CO2-reducing technology have earned the company a ranking in the SXI Switzerland Sustainability 25 index.
This forward-thinking approach is reflected in the use of technology for freight quotation, booking, and tracking. myKN consolidates all of the basic information businesses need to know about their large-volume shipments in one place.
DB Schenker
DB Schenker handles a myriad of logistics responsibilities for businesses in sectors ranging from ecommerce to cloud computing to aerospace and defense. Although diverse, it’s worth noting that online stores make up only a fraction of this company’s clientele. Its global freight forwarding services are primarily focused on the needs of industrial markets.
DB Schenker’s robust customs brokerage services are a key differentiator for businesses operating in sectors with stringent regulatory requirements. An in-depth understanding of global trade regulations keeps customs clearance compliant efficiently.
Customers can easily book freight services through the company’s website, which generates spot offers for land, sea, and air transportation based on location inputs. Like most freight forwarders, DB Schenker has an online portal with basic shipment booking, tracking, and reporting tools.
Evaluating Freight Forwarding Costs
When evaluating freight forwarding costs, it’s important to go beyond the initial quote and understand what drives the pricing. By doing so, you can better manage your shipping budget and choose a provider that aligns with your business needs.
Several key factors affect freight forwarding costs. The mode of transportation – whether it's air, sea, road, or rail – plays a significant role in pricing. Air freight, for example, is generally more expensive but faster, making it ideal for high-value or time-sensitive goods. Sea freight, while slower, offers a more cost-effective solution for larger shipments that aren’t as urgent. You'll also want to factor in the size and weight of your shipment, as heavier or bulkier items typically cost more to ship. For instance, shipping furniture across international borders may incur different fees compared to lighter goods like apparel.
The distance between origin and destination also matters. Longer distances naturally increase costs, but certain routes may come with higher expenses due to fuel prices or port fees. Additionally, the type of goods you're shipping influences pricing. Fragile or hazardous materials often require special handling, which could add to your overall cost.
Don’t overlook variables like seasonal fluctuations and fuel prices, which can impact shipping costs. For example, during peak seasons such as the holidays, demand for freight services rises, often leading to higher prices. Planning ahead and booking shipments during off-peak times can sometimes help mitigate these costs.
Remember to look beyond the base rate when reviewing quotes. Freight forwarders structure their pricing differently, and additional fees can add up. A quote that seems cheaper upfront might exclude key services, leaving you with unexpected costs later. For example, one provider might include customs clearance in their base rate, while another might charge extra for it.
Always ask for detailed quotes that include handling fees, customs duties, and any extra services such as insurance or expedited shipping so you can budget accordingly. And don’t forget that cost isn’t the only important criteria to consider among freight forwarders – price should be considered alongside reputation, service quality, and contract terms.
Shipfusion Ranks Highly Among Top International Freight Forwarders for a Reason
Navigating the complexities of freight forwarding can be overwhelming, but with Shipfusion as your partner, it doesn’t have to be your problem. Shipfusion’s value as a 3PL extends beyond ecommerce fulfillment to include comprehensive freight forwarding services. Our solutions streamline cross-border shipping for ecommerce businesses that want to expand their reach without the complexity or overhead of doing it themselves.
When you trust us with your fulfillment and freight forwarding needs, you’re getting all of the logistical support, expertise, and technology you need under one roof. Contact us today to learn more.
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