Advantages And Disadvantages Of Using Freight Forwarders
When shipping to FBA, the question is what does a freight forwarder do? A freight forwarder, just like any other shipping company, helps move your merchandise from point A to point B. A freight forwarder: possesses expertise in all types of shipping transportation; namely ocean, air, road, and railway. This agent undertakes your shipment from the importer to the ultimate warehouse or distribution facility.
This procedure entails a number of working components. It includes: scheduling, sending, receiving, distributing, packing, repacking, loading, and secure transportation. Some freight forwarders have combined these functions into one. For example, some may provide air freight services while others exclusively provide ocean freight services. These combine services enable you to send large loads of freight or merchandise to various points around the globe.
A large number of importers choose to use air freight services when sending goods overseas because it is the cheapest mode. But while using air freight, it is important to note that there are pros and cons associated with this option. So, the first thing you should do is to understand the pros and cons of using air freight. Then you should find out which among these advantages are most desirable for your business, so that you can make the most of using air freight.
The most important benefit of using air freight is that your products reach their final destination safely. There is also minimal damage or delays to your goods when using air freight compared to shipping by sea or land. Moreover, you can save a great deal of money if you purchase your goods from reputable freight forwarder. For example, if you purchase goods from a reputable manufacturer overseas, you will enjoy tax benefits. On top of these benefits, if the product manufacturer is located in your country, you will be entitled to local consumption tax rebates as well.
Another benefit of utilizing a freight forwarder service is that it eliminates the need for an international shipping company. You simply list the items you want to send and the service provider will locate the best carrier to ship the items to your final destination. Once the shipment is made, the service provider will then pay the carrier for the shipment. All you need to do is provide the service provider with the details about the shipment and payment and you will be able to know the exact amount that needs to be paid.
As you can see, there are several advantages associated with employing a freight forwarder. However, it is also important for you to consider some possible disadvantages as well. One disadvantage of using this service is that it may not be ideal for large scale shipments. It may also take a longer time for your goods to reach their destination as compared to what it takes when you ship with a freight forwarding company. Also, when you use a freight forwarding company, you have to pay an initial deposit which may be between $100 and $1000. If you have lots of goods to ship, it would be best for you to use an independent shipping company so that you don’t need to pay an additional deposit.
