The primary benefit for a global freight shipping company will come down to flexibility. Freight shipping services aren’t tied down to a certain carrier for their most popular paths, which means if the marketplace changes and an additional carrier provides a better package for a consumer, the shipper has the ability to take full advantage of the rate. Additionally, as there’s a hold at the port or a delay, the shipper has the ability to reroute goods a lot easier through additional ports of loadings, as well as other carriers.
An ocean freight carrier has been operating within a volatile and unstable rate market. An ocean freight rate, in particular, may vary on a weekly basis, if not daily. As forecasting becomes simpler with a set rate for the carrier contract duration, a shipper can’t take advantage of a deep dive in price as a carrier’s capacity is low.
Without carrier contracts, shippers aren’t obligated to offer carriers a set amount of containers. With a massive international freight forwarder, a shipper may take advantage of high volume agreements with several carriers, and keep the competitive cost yet gain flexibility. As the shipper’s cargo is paired with the whole freight forwarder’s cargo pool, extra cost savings may be accomplished.
While dealing with international freight forwarders, shippers may deal with a single point of contact in order to ship goods door-to-door, rather than merely port-to-port. A high quantity of cargo insurance cases and Customs holds will take place while out of the possession of an ocean carrier, and make it necessary for a talented logistics expert to deal with the FOB shipment. Also, businesses enjoy dealing with a less amount of vendors in order to gain operational efficiency. Every operation question is directed to a single point of contact, every bit of billing is centralized and every bit of cargo tracking is performed with an international freight forwarder door-to-door.
Which companies within the present marketplace possess the budget to employ and train a new department, particularly for businesses that deal with seasonal commodities? While employing international freight forwarders, shippers are able to rely upon the team and industry know-how from field experts. Carrier agreements place a greater burden on a shipper’s team to be aware of all filing requirements and regulations, as well as dealing with all contingency plans which are necessary.
Value-added services that international freight forwarders provide peace of mind for shippers, namely a purchase order tracking mechanism from port-to-door, as well as credit terms.