Who is Freight Forwarder (FF)?
Freight forwarder is an authorized person who works for exporters to carry out all the formalities into the port like verifying necessary documents and provide other logistical support. Freight forwarders help exporter or exporting companies to clear the Bangladesh customs (exporting country’s customs).
What Are the Duties of Freight Forwarder?
How to Choose a Good Freight Forwarder?
Based on following criteria, exporters choose a good freight forwarder for their business.
Capable of conduct large volume of goods
If your business requires multi-model shipments, or if you need to keep your goods in a warehouse for a specified period of time, choose a freight forwarder who can help by air, sea, land and provide logistics solutions. In that case, first of all, let the freight forwarder know about all the issues in your supply chain. By doing this, it will be possible to understand how much he can help you in your work.
Good network with foreign agent or agency
Appropriate amount of logistics is required for international trade. In that case you need to choose a freight forwarder for your company who has a good relationship with the global agent level. Before hiring a freight forwarder in a particular trade, make sure that the freight forwarder has network and contacts in the country. This will make it easier for you to get all the business information. It will be possible to know whether the product has reached the destination on time and correctly.
Effective Logistics Services Selection
Each industry has different needs in international trade. When hiring a freight forwarder, make sure that he can provide the services you need. This will allow all your international shipments to move easily. Because, normal shipment depends a lot on the logistics skills of the FF.
Even if you are paying, find out about the freight forwarder’s financial capabilities. It may be that you have paid the forwarder for freight. But even then, the export product did not start its journey just because the forward could not pay the ocean/air carrier. In that case it may be too late to leave your cargo and for various reasons your costs may increase later.
A quality freight forwarder needs to have technical skills through which you can enjoy additional benefits. There is product tracking, and there are constantly new technological developments in the supply chain. You need to know those things too.
Appropriate communication and tracking
A freight forwarder is responsible for tracking every move in international trade, tracking shipments and reporting. This makes it possible to know if the shipment is going on time and according to the plan. If for any reason the shipment does not follow the plan, it is possible to get it on the right track through this report.
Dependable Cargo insurance policy
Freight forwarders need to have a reliable cargo insurance policy. It covers all legal and contractual aspects related to any loss of cargo, third party liability and unaccounted cargo cost.
Capable of negotiating
It is important to compare prices when buying a service for business. However, in the case of freight forwarders, it is not as easy as buying a product. When comparing freight forwards on the basis of price, those who do not provide all the necessary services are excluded first. Maybe a freight forwarder is offering lower cost, but if you can’t get all the work you need through it, then it is advisable to omit that FF.
As a New Exporter You Must Remember
As a new exporter, it will be a difficult task to choose a good (FF). Exporters need to check their service records. You need to find out whether the FF has good command over negotiation. The most common practice of choosing a FF in Bangladesh based on checking its reputation and reviews.
Renowned FF Companies in Bangladesh
- Maritime Services Limited
- Green Bangla Shipping Limited
- Samadsons Group
- Apex Unimarine Ltd
- Awards Transportation Ltd
- Benison International
- CDN (BD) Ltd.
- D.S. Line Limited
- Fast Freight Services etc.
A proper FF works a lot behind the success of the trade. So, choose a freight forwarder without taking a quick decision.