No matter what the subject matter, opinions without expertise seem to be the new norm. With so many so-called "experts" who's opinions are just a Google search away it can be easy to forget that expertise takes time and repeated practice to become reliable.
International freight shipping is not exempt! There are so many parties involved in international freight shipping from shipping handlers to freight forwarders to customs agents you need to be sure that every piece of the puzzle is accurately in place to ensure that the shipment is both time and cost effective.
How do you know who to trust?
We've asked this question many times, and not just in our meetings with each other... but with people just like you. See, many of our clients come to us to clean up the messes created by cutting corners and working with unscrupulous businesses - so, over the years we saw the patterns emerge, and came up with a list of the things you can look out for thanks to your feedback!
Expert Freight Forwarders
To be an expert in shipping overseas, whether importing or exporting, less or a full container load, via ocean or air freight, the smart shippers have the good sense to contact an international freight forwarder. Now, shippers, be aware that not all forwarders are equal! Licensure can differentiate between a quality freight forwarder and a shipping company without the proper international shipping knowledge or experience.
Air Freight Licensure
A licensed freight forwarder will carry licensure that requires many years of experience in the field before you they can be issued. The International Administration Transportation Agency (IATA) is the world's trade association for air transportation and represents 83% of total air traffic. Freight forwarders who are licensed by IATA receive access to an array of airlines and receive competitive shipping rates.
Freight forwarders should also be Transportation Security Administration (TSA) certified. Enterprises calling themselves forwarders that actually aren’t certified by these agencies work using a portal which can adding cause issues with liability for the shippers.
Ocean Freight Licensure
Shippers with the intent to ship via ocean freight should inquire if their forwarders are Federal Maritime Commission (FMC). This independent federal organization regulates the US international ocean transportation systems for the benefit of US importers, exporters, and consumers.Their goal is to encourage competitive and efficient ocean transport as well as protect the public from financial harm.
Some freight forwarders, like ETC, choose to be bonded as well, they are called a non-vessel operating common carrier (NVOCC), which allows them to purchase yearly ocean contracts with select carriers. I like to compare the NVOCC bond to a wholesaler because we receive discounts on freight charges and can pass those savings on to our customers.
Shippers with shipping experience and expertise in their field like to work with NVOCCs. Why would you want to go retail when you can buy your freight wholesale?
The Expertise of ETC International
If you wonder how my expertise in freight forwarding came about, I simply have to tell you, I started in this field in 1981. I have developed by expertise after over 30 years of learning, industry connections, and sometimes even trial and error.
Where it gets more complicated is when you call an international shipping company that is a licensed freight forwarder, you are not guaranteed to get much expertise. So what I mean can be explained with a quick illustration.
The other day, I got a call from a prospective customer, he was a foreign born veterinarian working in the USA and was asking questions about how to import animal food supplements specifically for horses and dogs. His questions ranged from the legal aspects of importing into the USA with a foreign passport or a EIN number for an individual as he did not want to import using his veterinarian office.
Next, he needed to understand the most suitable mode of transportation and what kind of clearances were required in the US as well as other information such as the import bond, the duty rate and other shipping details. I listened and made sure to assess what he needs were making sure I cut through any freight misconception so he can be on his way happy and with a plan.
In short, we talked about the various steps he needed to go through in order to obtain clear pictures of costs of all of the stages involved like getting a pro-forma from his suppliers, harmonized system number with value per item as well as packing, mode of transportation, and freight terms.
His needs were a little bit unique and he confided that he called no less than 15 forwarders and could not get find one that was able to completely and economically handle his entire project.
Many international licensed forwarders segregate each department by import air from import ocean, countries involved, from import full container load or less than a container load and the same for export services making the process for someone like our customer convoluted.
When you work with a small, family-owned freight forwarder like ETC you are ensured that your assigned contact will be able see you through the entire import/export process from dispatch to delivery. The uninformed or unlucky shippers will be dealing with different people at all stages. The clearance will not be performed by the person that handled the ocean import. Lost time and aggravation can become the new norm.
CONCLUSION: Making a Difference in the Freight World
When dealing with an international shipment, it is best to seek out the expertise of a licensed forwarder. Ask questions to determine the level of expertise that the company has. Within several minutes of speaking with an expert you should be much more clear about the import or export process of your next shipment. If you find yourself confused then consider reaching out to another forwarder and compare your experiences.
If you plan to regularly ship internationally it is best to find a freight forwarder that offers a wide variety of services so that they can easily provide for each shipments unique needs. Look for a licensed international freight forwarding company that is well versed in shipping via air or ocean freight to a broad customer base, offers warehousing, distribution, packing, crating, trucking, customhouse brokerage and inland delivery/pickup services.
A great company will easily assist you all the way from start to finish, with consulting, quoting, executing a shipment, clearing it and for you to know of each phase and cost ahead of time saving you time, money, and most importantly aggravation!
