The freight industry is a competitive one and there are many players in the domestic market. This makes it important for all the major players to maintain competitive pricing. The freight forwarding companies can only survive in the market if they offer low cost rates to their customers.
They do this by calculating the most economical route of transport for any given lot of goods from one destination to the other. Several different bids are worked out and a final arrangement (which meets specifications of time, expense and reliability) is settled on.
Now the forwarding company will present the client with multiple options with their pros and cons. The client chooses one option according to the price factor and the time schedule. There might be special conditions like refrigeration of goods, delicate handling of certain items etc. and these might influence the price factors.
Finally a specific bid is settled and the freight forwarder takes the responsibility of transporting the clients’ goods from origin to the destination.
What’s the advantage of using a freight forwarder?
There are several benefits of freight forwarding for its clients and this is the reason why the freight industry is doing so well. Clients can literally take the load off their shoulders by entrusting the bundle of their goods to the shipping, air, truck networks employed by the freight forwarder. The organisations are assured that all ancillary work of documentation, checking, legalities and delivery will be dutifully handled by the carrier.
If an organisation deals regularly with international transport then having a permanent freight forwarder as a strategic partner will serve rich dividends in the future.