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Key Questions to Ask Before Choosing a Freight Forwarder

Learn what to ask potential freight forwarders about their experience, services, and capabilities. Make informed decisions to protect your supply chain and budget.

Ian Kaneshiro

Omri Katz

November 6, 2024

In today's complex global supply chain landscape, selecting the right freight forwarder can mean the difference between smooth operations and costly disruptions. With challenges like the recent US East Coast port strikes and evolving trade routes between China and Mexico, asking the right questions during your initial conversations is more crucial than ever.


Core Capabilities and Experience


Start your evaluation by understanding the freight forwarder's foundation. Ask about their years in business, industry credentials, and specific experience with your type of cargo and trade lanes.


Key questions should cover:

  • Length of time in business and industry certifications

  • Experience with your specific industry and cargo type

  • Global network reach and local presence in your key markets

  • Technology systems for tracking and documentation

  • References from clients with similar shipping needs


Operational Excellence and Service Delivery


Understanding how a freight forwarder handles day-to-day operations is crucial. Their responses about technology, customer service, and problem resolution will reveal their operational sophistication and commitment to client success.


Focus your discussion on:


Technology and Communication


Inquire about their digital capabilities, including real-time tracking systems, documentation processes, and integration possibilities with your own systems. Today's global shipping environment demands sophisticated digital systems to deliver the transparency and operational efficiency that shippers expect.


Service Level Expectations


Understand their approach to:


  • Response time guarantees

  • After-hours support availability

  • Dedicated account management

  • Problem resolution protocols

  • Performance measurement and reporting


Risk Management and Compliance


The best freight forwarders excel at managing risks while ensuring regulatory compliance. Combine questions about insurance, security, and customs expertise to understand their risk management approach.

Ask about:

  • Insurance coverage and liability policies

  • Customs clearance capabilities and compliance track record

  • Financial stability and business continuity plans


Pricing and Value-Added Services


Understanding the complete cost structure is essential. Modern freight forwarders often provide value-added services that can significantly impact your supply chain efficiency.


Discuss:

  • Base rate components and additional surcharges

  • Payment terms and credit facilities

  • Additional services like warehousing or customs brokerage

  • Cost savings initiatives and efficiency programs


Making Your Decision


After gathering this information, evaluate potential partners based on:


  1. Alignment with Your Needs: Does their service offering match your requirements?

  2. Value Proposition: Are their rates competitive while providing necessary services?

  3. Cultural Fit: Do their communication style and business approach match yours?

  4. Future Capability: Can they support your growth and adapt to changing needs?


Red Flags to Watch For


Be cautious if you encounter:


  • Reluctance to provide references

  • Vague answers about technology capabilities

  • Unclear pricing structures

  • Limited knowledge of your industry

  • Poor communication during the evaluation process


Next Steps


Before finalizing your decision:


  1. Request and thoroughly review formal proposals

  2. Check multiple client references

  3. Conduct a detailed cost comparison

  4. Discuss implementation and transition plans


Remember, the right freight forwarder should feel like a true partner in your supply chain success. Take time to evaluate their responses thoroughly, and don't hesitate to ask follow-up questions for clarity.

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Try Your Next Shipment With Cubic - It's Free

It takes a minute, costs nothing, and can save you time, money, and headaches.

Try Your Next Shipment With Cubic - It's Free

It takes a minute, costs nothing, and can save you time, money, and headaches.

Try Your Next Shipment With Cubic - It's Free

It takes a minute, costs nothing, and can save you time, money, and headaches.

Professional, transparent, and simple - it's the freight forwarding solution you were looking for.

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Copyright © 2024 Cubic SCT Inc.
All Rights Reserved

Professional, transparent, and simple - it's the freight forwarding solution you were looking for.

Subscribe to Our Newsletter!

Stay Informed with The Latest Supply Chain Insights - Subscribe to Our Newsletter!

Copyright © 2024 Cubic SCT Inc.
All Rights Reserved

Professional, transparent, and simple - it's the freight forwarding solution you were looking for.

Subscribe to Our Newsletter!

Stay Informed with The Latest Supply Chain Insights - Subscribe to Our Newsletter!

Copyright © 2024 Cubic SCT Inc.
All Rights Reserved

Professional, transparent, and simple - it's the freight forwarding solution you were looking for.

Subscribe to Our Newsletter!

Stay Informed with The Latest Supply Chain Insights - Subscribe to Our Newsletter!

Copyright © 2024 Cubic SCT Inc.
All Rights Reserved