You are definitely not alone if you are in the market for freight forwarding services.
Every day, businesses of all sizes rely on freight forwarders to help them move their goods around the world.
But with so many freight forwarding companies to choose from, how do you know which one is right for your business?
In this article, we will define what a freight forwarder is, discuss the different roles they play, and teach you how to choose the right one for your needs.
We will also look at some of the top freight forwarding companies in the world.
What Is a Freight Forwarder?
Before we get into the nitty-gritty of choosing a freight forwarder, let's explain what a freight forwarder is.
Simply put, a freight forwarder is a business, company, or logistics company specializing in helping other businesses ship their products.
They may not have their own transportation set up, instead of acting as an intermediary between shippers and carriers or trucking companies to ensure that shipments are correctly routed, stored, and documented.
Because of their broad knowledge of supply chain and logistics management, companies trust freight forwarders to handle all logistics involved in getting a product from Point A to Point B.
This may involve different air, ship, and land transport.
What Are the Roles of Freight Forwarders?
Freight forwarders play a number of roles within the supply chain.
Helping businesses find the right carrier
One of the most critical roles of global freight forwarders is to help businesses find the right carrier for their needs.
There are many different types of carriers out there, each with strengths and weaknesses.
For example, some may specialize in airfreight while others focus on ocean freight.
Some may have a strong network in Europe, while others have a better network in Asia.
A good freight forwarder will take the time to learn about your business and your shipping needs to match you with the right carrier.
Negotiating rates on behalf of their clients
Another essential role of freight forwarders is to negotiate shipping rates on behalf of their clients.
Since they work with many different carriers, they have a good understanding of the market rates.
This puts them in an excellent position to negotiate lower rates than what you could get on your own.
Handling documentation
Another thing freight forwarders do is handle all the documentation involved in shipping goods.
This includes everything from the bill of lading to the commercial invoice.
They also take care of any required customs documentation.
Providing value-added services
In addition to the above roles, many freight forwarders also provide value-added services that save their clients time and money.
For example, they may offer warehousing and storage services.
They may also offer packaging and assembly services.
These value-added services can be a great way to save time and money, so be sure to ask about them when considering different freight forwarders.
Offering door-to-door service
Freight forwarders offer door-to-door service, which means that they will pick up your goods at your door and deliver them to your customer's door.
This is a great option for businesses that don't have their own shipping and logistics setup.
Supply chain consulting
Many freight forwarders also offer supply chain consulting services.
This is a great way to get expert advice on optimizing your supply chain or deciding which logistics services to use.
How to Choose the Right Freight Forwarder
There are many different factors to consider when choosing a freight forwarder.
Here are some of the most important:
Global reach
One of the first things to consider is the freight forwarder's location.
For example, you wouldn't want to use a freight forwarder in Europe if you are shipping goods to Asia.
Make sure that the freight forwarder you choose has a strong network in the region where you will be shipping your goods.
Services offered
As we mentioned earlier, many freight forwarders offer value-added services in addition to their core services.
When you are considering different freight forwarders, be sure to ask about any value-added services they offer.
You may be surprised at how much these services can save you time and money.
Pricing
Of course, you will also want to consider the pricing of the freight forwarder you are considering.
For the best price, get a quote from each of the freight forwarders you are considering.
Then compare each one against the global market rates to see who is offering the best deal.
Important note: Prices change yearly, based on the average annual exchange rate.
Customer service
Finally, you will want to consider the customer service of the freight forwarder you are considering.
You will want to make sure they are easy to get in touch with and that they are responsive to your needs.
The last thing you want is to work with a freight forwarder who is challenging to get ahold of when you have questions or problems.
Experience in supply chain solutions
Another thing to consider is the experience of the freight forwarder.
How long have they been in business? Do they have a good track record? Do they have experience shipping the type of goods that you need to send?
You can judge their experience by looking at their freight forwarding volume – the total amount of freight that they have shipped over the years – and their size.
Reputation
Reputation is important in the freight forwarding industry.
A company that has been around for a while and has a good reputation is usually a good choice.
To find out their reputation, you can ask for references from their past clients or read online reviews.
Accreditations
You will want to make sure that the freight forwarder you are considering has all of the necessary accreditations.
This includes things like a license to operate as a freight forwarder and insurance.
Delivery time
Finally, you will want to make sure that they can deliver your goods in a timely manner.
Be sure to get a written guarantee of their delivery times.
Top Freight Forwarding Companies in the World
These are the top global freight forwarders:
A-1 Auto Transport
A-1 Auto Transport is a worldwide car shipping company headquartered in the USA.
We started in 1988 in California and have since grown to cover over 190 countries across the Americas, Europe, Asia, and Africa.
A-1 Auto Transport is a licensed and insured freight forwarder, delivering on time, always.
DHL Supply Chain Global
DHL is a German logistics company that is headquartered in Bonn, Germany.
It was founded in 1969, and it is now the largest logistics company in the world. They have a worldwide network spanning 190 countries.
DHL offers a wide range of logistics services, including freight forwarding, warehousing, and transportation. They offer other value-add services, including supply chain consulting and e-commerce solutions.
Maersk
Maersk is a Danish shipping company that was founded in 1904. It is headquartered in Copenhagen, Denmark.
Until 2021, they reigned as the largest freight forwarding company before they were surpassed by DHL supply chain global.
Their services include ocean transport, inland shipping, intercontinental rail, ship freight, and air freight.
Kuehne + Nagel
Kuehne + Nagel is another leading global freight forwarding company, founded by two brothers in 1890.
The group provides comprehensive logistics solutions and intermodal transport but focuses mainly on sea and air freight.
They offer a wide range of services, including ocean and air freight, overland transportation, contract logistics, and warehousing. Unlike other freight forwarding companies, Kuehne + Nagel also offers e-commerce solutions and supply chain management services.
DB Schenker
DB Schenker is a leading global logistics provider headquartered in Essen, Germany.
The company was founded in 1872 by Adolf Schenker. It is a subsidiary of Deutsche Bahn, the German railway company.
DB Schenker offers land transport, worldwide air and ocean freight, contract logistics, and supply chain management.
UPS Supply Chain Solutions
UPS is an American multinational package delivery and supply chain management company.
It was founded in 1907 as a messenger service in Seattle, Washington, before transitioning into supply chain global forwarding.
One major distinction of UPS is its revolutionary introduction of real-time tracking and prioritization of on-time delivery.
DSV Panalpina
DSV Panalpina is a leading global freight forwarding company that was formed in 2019, following the merger of DSV and Panalpina.
The company is headquartered in Denmark and has a strong presence in Europe, Asia, Africa, Oceania, and the Americas.
They offer to include air, sea, road, and rail freight, along with some value-added services. Additionally, they harness their experience to aid companies who want to optimize their supply chains.
C. H. Robinson
This American freight forwarding company was founded in 1905 and is headquartered in Eden Prairie, Minnesota.
The company now employs over 17,000 people at more than 300 locations in North America, Europe, Asia, South America, and Australia.
They offer a wide range of services, including ocean and air freight, truckload, less than truckload, intermodal, and logistics. They also assist businesses in optimizing supply chains.
Expeditors International
This company was founded in 1979 and is headquartered in Seattle, Washington.
The company has a workforce of over 16000 people across more than 350 locations in over 100 countries.
Expeditors International offers ocean, air, and ground transportation, warehousing and distribution, and consulting services.
Conclusion
Finding the correct freight forwarder is a headache. But when you get the right one, it should be smooth sailing.
If you're looking for a reliable auto transport company, then A-1 Auto Transport is an excellent choice. We offer a comprehensive range of freight forwarding and other shipping services to meet both individual and business needs.
Please contact us anytime for more information or a free quote.