Freight forwarders or freight agencies are the companies that provide logistics services to businesses to transport their goods and raw materials from one place to another. These companies act as a very valuable part of the business growth process by providing all the services from packing the goods, documentation, getting custom clearance to getting the goods delivered safely at their destination. You can check out the varied services provided by a transport and logistics freight & services marketplace here: https://www.cogoport.com/fcl-freight to book containers, track your shipments & search freight rates instantly, all in one place. You can also visit for sea freight customs clearance.

Now with this article let’s read on to understand whether selecting the cheapest freight forwarder or freight service agency will be beneficial for your business.

Importance of a Freight Service Provider

In the world of globalization, businesses function across geographies. This process of shipping goods across states and countries requires a broad network of FCL shipment service providers. Freight service providers have years of experience and a wide network that facilitates the smooth running of the supply chain. They have good professional relationships with port services, customs agents, insurance brokers and transportation companies worldwide. Freight service providers should be such that it provides all the services that a business might require. These freight providers that also work with FCL shipments can help a business significantly in the long run by helping them in all their logistics processes. Therefore businesses should treat freight service providers as business partners. 

Now, a very important question arises as to how should a company choose a suitable freight service provider? While comparing the various service providers, businesses should majorly look into these parameters:

1. Experience: Businesses should go for freight service providers that have a good amount of experience in the industry. New and amateur service providers would not only have a very restricted network but would also be found unaware as to how to deal with issues such as cargo reroutes, customs, dockworker strikes, etc. Therefore, choosing a freight provider with years of experience can smoothen up the process very effectively
2. Services: To ensure that the FCL shipment process goes seamlessly, businesses should opt for a freight service provider who has all the possible services that the business might need. This will save time and cost a business might have to waste later on for certain services. Some of the basic services which a freight agency should provide are tracking transportation, preparation of the documents, packing and storage, inventory management, customs clearance, negotiating freight charges, insurance, and freight cancellation.
3. Credentials: While selecting a suitable freight service provider, businesses should make it a point to have a close look at the certifications and credentials of the service provider. This will enable the business to ascertain whether it has the expertise and security requirements to handle the type of goods the business deals with
4. Customer Service: A good freight service provider should have an exceptionally great customer service. Such type of freight provider acts as excellent support for the businesses and helps them grow across geographies. Also, such types of service providers are always available should the businesses have any query and they also send timely alerts in case the cargo faces any issues on the way or in the warehouse 
5. Global References: The freight agency carries the onus of picking up the goods and delivering them safely at their destinations globally. This process involves a huge amount of physical and paperwork which can only be done smoothly if the forwarder has a good network of agents globally. Businesses should ensure that they choose a forwarder/ provider who has agents in the location the goods are to be shipped. This will again facilitate the smooth flow of information and timely delivery of products

Moving cargo from one location to another is a complex process. Therefore the parameters mentioned above are undoubtedly some of the most important ones that a business should examine before selecting a freight service provider. However businesses many a time face a dilemma as to whether they should select the cheapest freight service to save on the costs or not.

Is selecting the cheapest freight service for your FCL shipments always the best option?

Transporting goods across locations requires numerous processes such as documentation, customs clearance, packing, etc. A freight service provider is the one who looks into these processes for the businesses and helps them in smoothly managing their logistics-related activities. A freight forwarder should have a complete understanding of the business of its clients and should be able to deal with all the FCL shipment related issues that the cargo may face anywhere in the cycle. 

Many freight service providers in the industry offer cheap price packages that look quite attractive on the face but fail to deliver quality assistance to the businesses. In case a business chooses the cheapest freight service provider, it may save on its costs in the short run but it would not get all the services that may be essential for the proper functioning of the business. Also, it is impossible to get an experienced freight service provider at dirt cheap prices.

Therefore choosing a cheap freight service provider would prove detrimental to the business due to its lack of global agents, and inability in dealing with unusual circumstances. Hence, firms must always strive to build a strong relationship with their freight service providers and pay the standard industry price. Firms must remember that they should make quality their highest priority and not select freight forwarding companies based on their prices.