Best Freight Forwarder, offering Reasonable ShippingRates

Freight Forwarding Services: The Ultimate FAQ Guide

If you’re looking for freight forwarding services in China, then you’re in the right place.

Because this guide explores everything you need to know about freight forwarding services in China.

Also, you’re going to know the cost effective and reliable way of importing from China.

Keep reading to learn more.

What is Freight Forwarding Service?

Freight forwarding is the business of organizing shipments for corporations or individuals from the manufacturer to final destination.

It involves specializing in the lowering of overall cost as well as facilitation of the main logistics of transporting cargo.

Freight forwarding

What is a Freight Forwarder?

A freight forwarder is an individual or company who will organize shipment for your goods from manufacturer to final destination.

As a freight forwarder, you will try and transport the goods at the lowest price possible while dealing with the logistics.

In other words, you will be taking responsibility of transporting the cargo from the seller to the location of the buyer.

What are the Services Offered by the Freight Forwarders?

As a freight forwarder, you have to be up in your game and ensure that you provide the best services.

As an importer, you will hire a freight forwarder to perform particular tasks on your behalf to ensure the cargo arrives.

Well, at a fee, here are the main services that a freight forwarder will provide to the buyer of the cargo.

Offering of Expert Advice

As a freight forwarder, you will offer expert advice to the importer on logistical issues such as expenses and documentation.

Apart from that, you will give them advice on the safest mode of shipping which will cost the least prices.

Choose Best Route Option

You will also look at the type of goods and their level of perishability before choosing the fastest route for shipment.

In this case, you must also look at how safe the goods are while on transit and suggest the most suitable option.

Booking of Spaces

After confirming the best option of transport, you will also go ahead and book a suitable space for transporting the cargo.

In this case, you can decide on FCL or LCL on ocean freights depending on the type of goods to ship.

Apart from that, you can also opt for a space on the plane, train, or even truck for shipping the cargo.

Organize for Insurance

You will also organize for the best insurance policy that will cover the goods in case of an accident while on transit.

In case an accident occurs and the goods are damaged, you will have to follow up for payment of goods.

Organize the Documents

You will also be responsible for organizing the import documents for transporting the cargo from the manufacturers.

It is also important to share copies of the documents with the relevant customs authorities in both countries.

Oversee Transportation of Goods

As a freight forwarder, you must oversee every aspect of transporting the cargo from loading on trucks from the factory.

In other words, you will oversee the packaging, loading of the goods on the ship, transportation and delivery to customer.

What are the Principles are Freight Forwarding?

As a freight forwarder, you will have to follow the main principle of cost-effective and efficient cargo transfer.

You have to ensure that the goods are in the best condition throughout the travel while paying the least cost.

This is possible when you become an expert in the management of logistics that ensure the goods arrive in time.

You must also have the right freight forwarding tools that will facilitate the transportation of cargo overseas.

Some of the tools that you will need at your disposal as a freight forwarder are:

• Negotiation Skills for the negotiation of tariffs
• Proper Understanding of the Regulations and being fluent with the shipping requirements
• Management Skills in order to manage both benefits and risks of shipping nationally and internationally.
• Using the latest forms of technology in the transportation of the cargo through borders

What are the Benefits of Using Freight Forwarders?

As a freight forwarder, it is important to maintain a good relationship with the global agents.

With a good relationship between the global agents, you can transfer the benefits to the client.

Here are the main benefits that you will be offering the client as a freight forwarder.

Saving on Cost

You will save on a lot of money that your client could spend if he or she were to carry out importing personally.

In other words, you will manage the negotiations using better terms and relationship due to high container volumes.

Multiple Contracts Freedom

You will also free your client from signing contracts and agreements between different transporting companies.

Implying that you will take care of the agreements by using your relationship with the transport agencies in different countries.

Peace of Mind

As a freight forwarder, you will free your client from the hassle and bustle of shipping cargo from the manufacturers.

Your client will part with a little fee to pay for the freight forwarder and all the other expenses of importation.

Flexibility

You will also deal with the unforeseen obstacles by navigating through tight deadlines to ensure importation and exportation of goods.

In other words, you will use your own expertise and experience to predict the future outcomes for the safety of goods.

Extra Service Provision

You will also provide your client with the extra services such as warehousing, storage, and special transportation at a low cost.

This will provide you with a proper inventory and having a better position for shipping your client’s goods faster.

How Do You Choose a Freight Forwarder?

JMS freight forwarder

You should try your very best and choose the most efficient freight forwarder to help in moving your cargo.

When you choose the right freight forwarder, you will have better success just like an individual with a good business partner.

Here are the steps that you can follow when choosing a good freight forwarder.

Do Thorough Research

You have to do the homework that involves checking the background of the freight forwarder as well as your import needs.

After that, you will choose a freight forwarder with a great reputation, credibility and can handle all freight with minimal interruptions.

Consider Industry Reach and Experience

You must also look at the reach as well as experience that the freight forwarder has in the shipment of cargo.

It is important to dwell on a freight forwarder who has the reach and experience in your line of shipment.

Proper Risk Management Capabilities

You should look for a freight forwarder who has the right set of tools of risk management that might occur.

For instance, you should look for a freight forwarder who can handle all the insurance needs and follow upswell.

Wide Array of Service Provision

It is also important to look for a freight forwarder who can handle a variety of your freight forwarding tasks.

In other words, your freight forwarder should have the capability of handling, road, sea, and air transport among other logistical measures.

Consider Customer and Communication Services

You should make a call and have a discussion with the prospectus freight forwarder and gauge his customer or communication service.

It will help you know the freight forwarder you will be dealing with and how they will handle your needs.

Research the Legality of the Freight Forwarder

You must be careful when dealing with freight forwarder as you might fall victim of scam artists posing as freight forwarders.

Implying that you need to look at the legality of the freight forwarder by checking the work permits and licenses.

What are the Common Charges on Freight Forwarding Services?

Your freight forwarder will send you an invoice after completing the service provision.

It is also important to negotiate the price with the freight forwarder before acquiring his services.

Well, during the negotiation process, here are some of the charges you should expect to discuss.

Ocean Freight or Air Freight Forwarder Pricing

You will talk about the most obvious fee which is the cost of shipping cargo via air freight or ocean freights.

In this case, you will look at particular factors such as:

i. Physical size of the cargo you intend to export or import

ii. Origin of the cargo

iii. Destination of the cargo

Apart from that, your freight forwarder may include additional fees to ensure that your shipments sail successfully.

You ought to expect other charges such as security charges, fuel surcharges, and X-ray or cargo screening charges.

Pick Up Costs

You should expect to talk about the cost of collecting the cargo from the floor of the factory to the point of shipment.

There are circumstances where your manufacturer may offer such services as a bonus on conducting business with them.

In the absence of such, you will have to carter for the cost of transporting the cargo via train or on a truck.

Handling Fee

You will also talk about the handling fees of the cargo which the freight forwarder will perform on your behalf.

It is the price you will pay the freight forwarder for the efforts of doing the paperwork and other important calculations.

AES Fee

Automated export systems also attract fees that will pay for the due diligence of importing or exporting your cargo.

It will be the cost of submitting the electronic export information which the freight forwarder charges between 30 and 35 dollars.

TSA Security Fees

Transport security administration is a very important cost which you will pay as a mode of compensation to freight forwarders.

You will pay a certain amount of money to help in compensation for the training of personnel the freight forwarder presents.

Which Non-standard Charges Will You See on Your Freight Forwarding Invoice?

During your discussion, you must also look at the invoice and talk about the non-standard charges.

These are the costs that usually come up during the shipment of the cargo and you may not be aware of.

Here are the non-standard charges that you might come across when dealing with the freights.

Export Licenses Fee

You will require a license for all types of goods that you will be importing or exporting to other countries.

It is a non-standard fee that usually applies when you are importing into a country that has license requirements.

Certificates of Origin

Here, you may pay for the certificates of origin if it is a requirement from the government of the destination country.

You will pay for two main types of certificates including “Free Trade Agreement” and “Generic Certificate of Origin”.

Certificate of origin

Hazardous Materials Fees

You should expect to pay the freight forwarder for properly handling hazardous shipments without causing mayhem.

In other words, you will be paying for the expertise of the freight forwarder in handling such cargo.

Legalization Fee

You may have to pay your freight forwarder for handling legalization documents to fulfill government requirements.

It is a fee that you will only incur when importing cargo into a country that requires the legalization documents.

How Do You Ensure a Good Relationship with Your Freight Forwarder?

Having a good relationship with your freight forwarder is one of the keys to a successful import and export business.

You must make sure that the relationship between you and the freight forwarder is solid and unwavering.

Here are some tips that you can follow to ensure that the relationship with your freight forwarder is solid.

Understand the Compliance Responsibilities

You must have a proper grip on export compliance requirements when dealing with your freight forwarder.

It is a very important aspect that you need to take care of liability issues you might have with the freight forwarder.

As an exporter or importer, you have to know the following aspects of compliance with responsibilities.

i. Proper classification of the goods you are exporting or importing

ii. Understanding the country’s trade regulations and policies and how they relate to particular entities.

iii. Understanding the requirements of labeling your cargo

iv. Understanding the documentation procedures as well as requirements

Payment of Fees on Time

You must also make sure that you pay the invoices that you get from the freight forwarders within the right time.

Paying the bills at the right time will create a very good credit relationship with your freight forwarder.

Proper Communication

You must also be in a position to explain every detail with the freight forwarder accordingly to improve understanding.

This will increase the ease with which your freight forwarder will handle every situation thus fostering great relationships.

Proper Training of Staff

You may not be in a position to handle every business on a personal basis thus the need to delegate duties.

In your absence, your staff must be in a position to handle business with the freight forwarder better than you.

What are the Main Compliance Responsibilities Between You and Your Freight Forwarder?

Having knowledge of the responsibilities that you have with your freight forwarder is very important.

As an importer or exporter, there are particular responsibilities that you need to take care of.

Here are the responsibilities that you should have with your freight forwarder.

Proper Classification of Cargo

You must give the freight forwarder an y time when it comes to giving the right instructions.

It will help in the determination of the right documents such as licenses and the people handling your cargo.

Understanding the Trade Policies

You must also have grip of the trade policies especially in the country you are exporting to or importing from.

In addition to that, you must also note the red flags, restricted screening lists, and deemed export restrictions.

Understanding Labeling Requirements

You must also have knowledge on the requirements for labeling of goods that you intend to import or export.

Having proper labels on the goods will make the work of your freight forwarder very easy thus fostering good relationships.

Proper Documentation Requirements

You must also have proper knowledge on the documents that you require for the shipment of the goods to various destinations.

Apart from having the documents at hand, you must also make sure that the filling process of the documents is complete.

How Does Logistics Compare to Freight Forwarding?

You have to keep in mind that freight forwarding and logistics may seem to be similar but are not.

There are various pointers that indicate a great difference between the freight forwarders and logistics officers.

Here are some of the differences that distinguish freight forwarders from logistics officers.

Ownership of Equipment

You ought to understand that logistics companies own everything that they use in the import and export business.

Despite the ownership of every piece of , the logistics companies do not have an ent to any shipping routes.

On the flip side, freight forwarders do not own most of the equipment that they use even though there are exceptions.

In the past most of the freight forwarders had more interest in organizing but they are slowly owning some equipment.

Specialization

Your logistics provider will only provide you with the necessary information and services about specific modes of shipments.

For instance, you may have a logistics provider dealing with long haul, dry box, cold storage, or intracity among others.

On the other hand, freight forwarders deal with every aspect of the import and export business that you may need.

Freight forwarders may also have specializations on specific areas of imports and exports that you may need.

In general, your logistics company is responsible for the gement of goods, and physical movement along supply chains.

There are instances when the logistics company may indulge in document handling but on very rare occasions.

On the other hand, you will find freight forwarders handling every mode of shipment from the manufacturer to supplier.

Your freight forwarder will also handle all the documentation requirements among other requirements at a fee.

Who are the Top Ocean Freight Forwarders?

You need to have the right knowledge about the best freight forwarders who organize for shipment of goods.

Here is table that details all the best freight forwarders you can hire when shipping to any place in the world.

RANK	Name of Company	Headquarters	Quantity of Containers
1	JMS Freight Forwarders	China	5,000,00
2	Kuehne + Nagel	Switzerland	4,690,000
3	Sinotrans Limited	China	3,360,300
4	DHL Group Forwarding	Germany	3,225,000
5	DB Schenker USA	Germany	2,219,000
6	Panalpina Incorporation	Switzerland	1,484.100
7	DSV Panalpina A/S	Denmark	1,442,348

What is the Complete Process of Freight Forwarding?

As a freight forwarder, there is a process that you have to follow when shipping cargo to different destinations.

Here are the main steps that you will follow to successfully move cargo to different destinations.

Step One: Collecting Cargo from Warehouse or Export Haulage

First, you will have to organize the collection of the cargo from the manufacturer or the floor of the factory.

You will have a much easier time with the process if your client informs the manufacturer in time.

The manufacturer may also send the goods straight to the house you will hire thus making work easy.

Step Two: Inspection of the Goods

Secondly, you will receive the goods from the manufacturer at the destination you will agree upon.

As soon as you get the goods, you must inspect the goods in the presence of the manufacturer.

The goods must be in perfect condition and in case of damages, the manufacturer will take full responsibility.

Step Three: Dealing with Customs Specifications

Here, you will submit every document that your customs broker will request and ensure that they sign off.

Apart from that, you will pay every fee that the customs department will request from them.

It is important to get a good freight forwarder who will ensure that the process is complete to your knowledge.

Step Four: Reception of the Goods

You will ensure that the destination country has information about the arrival of the cargo.

As soon as the information is with the customs in the destination country, you will submit the documents to them.

After that, you will book spaces on the freight and then ensure proper loading after paying the fees.

You will also organize how your agents will receive the cargo in the destination country.

Your agent will also inspect the goods on arrival after clearance and then transport it to the client.

Which Documents Do You Require for Freight Forwarding?

You will provide all the export and import documentation to the customs department according to trade rules.

It is important to note that the freight forwarder will come in handy during the shipping process.

In other words, you will be dealing with the documents that are necessary for the rtation and reception of goods.

Here are the main documents that you must have in your possession when transporting cargo to or from your client.

 Shipping documents

Shipping Process Documents

The main shipping process documents that you will receive from the manufacturer include:

i. Shipper Letter of Instructions

ii. Verified Gross mass

iii. Bill of Lading Document

iv. Commercial Invoice Documents

v. Packing List Documents

vi. Packing Declaration Documents

vii. Certificate of Origin Documents

You will present these documents to the customs department in the country of origin for clearance.

Depending on the country of destination, you may have to send part of or all of the following documents.

Apart from the above documents, here are other documents that you should send to the destination country.

i. Customs Clearance Documents

ii. Arrival Notices

iii. Invoices for local handling charges and sea freights

Do Freight Forwarders Conduct Clearing and Forwarding?

Absolutely YES, freight forwarders conduct clearing and forwarding process on the imports and exports.

The process of clearing and forwarding of the cargo on arrival will depend on the mode of shipment or freight.

You may use the ocean freight which will have a different clearing and forwarding process to the air freight.

What are the Main Quality Certifications to Adhere to During Clearing and Forwarding?

You must also ensure that the goods you are handling have quality certification clearance.

Here are the main quality certifications that you will adhere to depending on your country of origin.

• Food & Drug Administration (FDA) Quality Certification
• Federal Communications Commission (FCC) Quality Certification
• Fish & Wildlife Services (FWS) Quality Certifications
• Department of Transportation (DOT) Quality Certifications
• Alcohol, Tobacco and Firearms (ATF) Quality Certifications
• US Department of Agriculture (USDA) Quality Certifications
• Consumer Product Safety Commission (CPSC) Quality Certifications

How Do You Clear and Forward Cargo on Arrival at the Destination Port?

The process of clearing and forwarding of cargo on arrival at destination is quite involving.

Here is a procedure that you will follow when clearing and forwarding your cargo.

Step One: Clearance of Goods

First, you will have to provide the relevant documents to the right authorities who will clear the goods.

Some of the documents that you will provides are bill of lading, commercial invoice, and certificate of origin among others.

Step Two: Customs Clearance

After that, you will receive the goods and pass them on to the customs department for clearance.

Here are some of the steps that the cargo will pass through in the customs clearance department.

i. Advance screening of air cargo

ii. Collection and preloading of advanced information

iii. Enhancement of risk-based targets

iv. Streamlining of the customs entry requirements

v. Harmonizing the security standards

After that, the customs department will clear and then forward the goods to the client through freight forwarders.

What are the Roles of handling Agents During Freight Forwarding Processes?

Handling agents are the people who will physically take care of the cargo to ensure that they are safe.

Here are the main roles that your handling agents will perform as soon as the goods are in their hand.

• Checking the load sheet in a bid to control the overall balance and weight of the cargo.
• Preparation of cargo manifest in a bid to clear the cargo through customs
• Notifying the relevant authorities about the condition of your cargo for further processing
• Controlling and planning of the booking process and flow desires within the stick house.
• Controlling and planning the unit load device

What are Some of the Checks to Perform on the Cargo During Freight Forwarding Services?

Your handling agents also have the responsibility of preparing various checks on the cargo before the clearance.

Here are the main checks that you will have to prepare before allowing the goods through clearance.

Commercial Checks

You must ensure that everything is in order by calculating and booking all the details on your cargo.

Here, the main checks that you will perform on the goods include volume and number of cargoes.

Logistics Checks

You will also ensure that all the documents are in place in readiness for the carriage.

Flight Safety Checks

It is also important that you carry out the following flight safety checks before the flight leaves:

i. Proper Packaging of Cargo

ii. Proper Labeling of cargo especially the hazardous materials

iii. Cargo Documents

Security Checks

As a security procedure, you must also declare the freight forwarder and the owner of the goods.

This involves double-checking the documents to ensure that they have all the relevant details.

What is Demurrage in Freight Forwarding Services?

Demurrage is the situation where the cargo stalls for a very long time at the port of arrival.

It also includes the cost that the cargo will accrue when on the port as it awaits collection or clearance.

Can You Complete B2B Shipping Using a Freight Forwarder?

Absolutely, your freight forwarder has the capacity of conducting the business-to-business process.

With a B2B company, you can easily ship your goods to your business partner using freight forwarders.

Do You Need an Operating License to Offer Freight Forwarding Services?

Yes, you must have an operating license to offer freight forwarding services.

In a business full of scam artists, you need to distinguish yourself as being a legal entity.

It is the reason why you need to have a license that will prove that you are operating a legal business.

It will act as proof to potential customers who might conduct a background check on your business existence.

How Do Freight Forwarding Services Compare to Broker Services?

When conducting your shipment business, you might use the words freight broker and freight forwarder interchangeably.

Well, you must note that these words have totally different meanings in your conversations.

A freight broker will connect carriers and shippers as well as overseeing the movement of the freight.

It is important for the freight broker to get the right authority from the brokerage authority.

Apart from that, the freight broker will not have direct handling or possession of the cargo.

On the other hand, freight forwarders go the extra mile to handle the goods for the customers.

Apart from that, they have the jurisdiction of going an extra mile of storage of goods and do foreign commerce.

In addition to that, they have the authority to handle the documents for clearance of the goods.

What Does the “Changing Role of Freight Forwarders” Mean?

A freight forwarder is responsible for taking care of the cargo from the manufacturer to the client or buyer.

As you move the cargo from the manufacturers, you will go through many steps and roles.

Implying that you will be changing your roles and handling different process as you move the cargo.

Are the Freight Forwarders Responsible for the Delays in Shipping?

No, the freight forwarders are not responsible for the delays that may arise when dealing with a shipment.

In most cases, the delays are often as a result of factors beyond the control of your freight forwarder.

Here are the main factors that affect the delays:

• Bad Weather
• Breakdown of the facilities
• Unforeseen route changes
• Port Delays

Do Freight Forwarders Have Restrictions of Certain Products?

Yes, freight forwarders may have the authority to handle numerous products but not all the products.

As a freight forwarder, here are some of the goods that you should not consider shipping.

• Dangerous Goods such as flammable liquid and toxic goods
• Drugs such as prescription and recreational drugs
• Alcohol
• Batteries
• Perishable items apart from those that are on express movement
• Sharp Objects

How does NVOCC and Freight Forwarding Service Compare?

You will need the services of both NVOCC and the freight forwarders to ship your cargo.

NVOCC is the middleman who will take care of the shipping of the goods to different destinations.

On the other hand, freight forwarders act as agents who will organize shipping of the cargo for shippers.

At JMS, we help you import effortlessly from China to any destination.

You don’t have to worry about China warehousing services, shipping container, labelling, loading or custom clearance, JMS will handle everything.

Contact us today for all your freight forwarding needs.