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Q: Who is a freight
forwarder?
A:
Freight forwarding is a service used by companies that deal
in international or multi-national import and export. While
the freight forwarder doesn't actually move the freight
himself, he/she acts as an intermediary between the client
and various transportation services. Sending products from
one international destination to another can involve a
multitude of carriers, requirements and legalities. A
freight forwarding service handles the considerable
logistics of this task for the client, relieving what would
otherwise be a formidable burden.
Freight
forwarding services guarantee that products will get to the
proper destination by an agreed upon date, and in good
condition. The freight forwarding service utilizes
established relationships with carriers of all kinds, from
air freighters and trucking companies, to rail freighters
and ocean liners. Freight forwarding services negotiate the
best possible price to move the product along the most
economical route by working out various bids and choosing
the one that best balances speed, cost and reliability.
A freight
forwarding service generally provides one or more estimates
to the client along with advisement, when necessary.
Considerations that effect price will range from origin and
destination to special requirements, such as refrigeration
or, for example, transport of potentially hazardous
materials. Assuming the client accepts the forwarder's bid,
the freight is readied for shipping. The freight forwarding
service then undertakes the responsibility of arranging the
transport from point of origin to destination.
One of the
many advantages of using freight forwarding is that it
handles ancillary services that are a part of the
international shipping business. Insurance and customs
documentation and clearance are some examples. As a
consolidator, a freight forwarding service might also
provide Non-Vessel Operating Common Carrier (NVOCC)
documentation, or bills of lading. Warehousing, risk
assessment and management, and methods of international
payment are also commonly provided to the client by the
freight forwarding service.
A good
freight forwarding service can save the client untold time
and potential headaches while providing reliable
transportation of products at competitive rates. A freight
forwarding service is an asset to almost any company dealing
in international transportation of goods, and is especially
helpful when in-house resources are not versed in
international shipping procedures. See our services page for
services provided by GIFF members
Q: What are the
usual methods of freight payment ?
A:
Most freight payments are done with a Company check.
However you can also pay with wire transfer or credit card
(subject to administrative fee). Payment is sent right
around the time the freight is due to arrive, clear customs
and be released.
Q: Can I get payment
terms?
A:
Yes. This depends however on the arrangement the particular
GIFF member has put in place. You would fill out a credit
application that the company will send you ahead of time,
with all necessary banking information and references. Once
your credit is approved, you would be granted the
appropriate credit amount and length of time. GIFF usually
allows the forwarder to charge for the credit offered but
this depends on the member. Be sure to check with the member
Q: What can I do to
prevent delays and ensure a smooth process of the shipment?
A:
Firstly, make sure your supplier overseas (on imports) or if
you are the supplier for an export shipment, creates all of
the necessary documents correctly (packing lists, commercial
invoice, original bill of lading-OB/L) and in a timely
fashion, so that all documents are provided with the
necessary banks and sent to you (the importer) or your
buyer-consignee on the B/L (if you are the exporter) at
least 1 week before cargo arrives the destination so that
everything can be processed through customs ahead of
schedule and freight can be paid along with presentation of
the original B/L. One factor that usually slows this
process down is when there is discrepencies between the
buyer and supplier and since the goods are not paid for, the
OB/L has not been surrendered by the Supplier to the
Consignee (buyer)
Q: Can I get cargo
released without presentation of the OB/L?
A:
This can be a touchy subject,
as you may be a long time importer with a long time
relationship with a particular supplier overseas, however a
situation arises and for whatever reason you have not paid
your supplier because they were supposed to give you credit,
but there was a misunderstanding, they are not honoring the
agreement, the next thing you know the cargo arrives and if
you don't get it released it goes into demurrage and or you
may lose your customer because they have a deadline, and so
on. So you desperately need that cargo released. So the
ONLY way this can happen WITHOUT the OB/L is to somehow
settle the matter with the supplier, get them to authorize
the release in writing to the shipping agent in the port of
origin, or direct to the U.S. Office that is holding the
cargo. This can act in Lieu of an OB/L. This is no other
legal way or one that doesn't jeapordize the liability of
the shipping company to be sued by the supplier if they
release without their written consent.
Q: What are your Terms
and Conditions?
A:
GIFF has a Standard Trading
Condition which all members ascribe to. Ask for a copy from
the secretariat, your agent or see the copy on this site
Q: Do your members handle
international household moves?
A: Yes.
Some of our members can do
this. Check with the secretariat or from the members
directory
Q: Can you ship my vehicle
internationally?
A: Yes, with conditions. Check with the
particular member regarding household moving.
Q: Any advice for a first time shipper?
A:
We have 5 tips for you.
Tip #1: Save container transport cost by
preparing to load your container in less less than 2 hrs.
When the driver shows up to your site, the first 2 hours are
included in your fees. We recommend staffing up and
preparing in advance to load the container as quickly as
possible to avoid overtime charges.
Tip #2: Prepare Shipping Container Contents
for Extremes
Containers are subject to extreme conditions. There are wild
swings in temperature and humidity inside the container -
they go through the Panama Canal and sometimes around the
Cape. Containers are subjected to triple digit heat and
humidity to sub-zero temperatures while in storage or in
transport.
Tip #3: Carefully Declare ANY Organic Cargo
Plants, Edible Plants, Vegetables and Fruit are all treated
differently depending on the origin and destination of the
shipment. If customs finds any undeclared organic cargo, the
can quarantine your container and charge you daily holding
fees.
Tip #4: Properly Insure Your Cargo
Plan for “attrition”. All of the contents don’t always make
it all of the time.
There will be some "attrition" - containers get inspected,
sometimes by unscrupulous dock/deck hands...this isn't
REALLY considered stealing, as the items in transit,
technically are the property of the shipping company*. See
our blog entry on securing, insuring and properly declaring
your container contents to manage risk of inspection,
suspicion, mistakes and "attrition".
Tip #5: Understand that Freight Forwarding
is both an art and a science.
Many companies and handlers are involved in moving your
container, here are just a few possible examples: Trucking
company(ies) outbound (your door to the port of origin or
train yard), Crane Operations transferring container from
truck to train, and train to ship. That's just to get the
container to the ship, then the reverse happens on the other
side...it's a REALLY rough ride, even in good weather. |
