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5 questions to ask a freight forwarder before closing a business

Created on | Last updated on February 8, 2024 at 05:33 pm

Knowing the right questions to ask a freight forwarder can help you choose the most suitable partners for your business.

When it comes to international or domestic freight, selecting the right forwarder is crucial for a successful business partnership. 

Fortunately, there are a few questions to ask a freight forwarder before closing a business that can help you through this process.

With a large number of forwarders on the market, it is common to feel overwhelmed during the process of selecting a potential freight partner. 

However, it is still your responsibility to ask the right questions to make the best decision for your business.

But don’t get discouraged now! 

You are the person who best knows your forwarder and with our help, you will easily be able to choose the ideal freight partner… 

So let’s do it!

If you are a forwarder, you know how hard it is to find qualified forwarders to work with among the thousands of companies on the market. 

We know that one of the hardest parts of the forwarder’s job is: to find qualified freight forwarders to work with. 

For that reason, many forwarder companies resort to the traditional logistics network to make it easier to find qualified partners.

However, being in charge of deciding who you exchange business with, should be a decision you make.

But that’s not all, this decision should be based on the analysis that your company makes of the partner you intend to do business with.

For that reason, before partnering with a forwarder, it’s important to analyze the forwarder company. 

When you are the one analyzing a potential partner you know exactly what your company needs at that particular moment. 

Therefore, you know what to look for. 

Analyzing potential partners is an important step to make sure that you are choosing a partner that:

Do you know what are the criteria the traditional logistics network takes under consideration when qualifying a partner to join? 

When you have control of choosing your partners you can make sure that that freight partner is the best fit for your business. 

Why let the logistics network choose a partner for you when you can choose it yourself and analyze it from your perspective?

Take control of your decisions and make your partnership analysis.

Start by going to the forwarder’s website and checking everything on it.

Read about his company, the services he offers, what are the previous partners he has worked with, his certifications, the contact number, etc.

Get in touch with his previous or former partners, if you can.

Ask them if they had a good experience, and if they would recommend that forwarder as a partner.

You should also check if your potential forwarder partner has any certifications, and make sure they are validated. 

It seems easy saying it like that right? 

But we know how much time this takes, that’s why Parnity made it easier for you!

Make your analysis on Parnity – the evolution of Forwarder Networks in a matter of minutes: 

As mentioned previously, there is a high variety of forwarders available in the logistics and freight industry. 

This means that there is a wide range of forwarders with different levels of experience and capabilities that you can choose as a new partner. 

Therefore, it is often difficult to figure out which one is qualified to meet the needs of your business.

The final choice should result from an appropriate freight forwarder evaluation process. However, this process starts with you.

Although each company has its criteria when it comes to forwarder selection, there are certain questions to ask a freight forwarder before closing a business that everyone should consider.

Making the right choice the first time can simplify the way you do business and increase your results for years to come. 

So, when looking at different companies, make sure you ask about some important details to learn more about the company and how it operates.

To help you with this, we have prepared this guide with a few questions to ask a freight forwarder before closing a business.

Making sure that your forwarder is licensed should be the first step in deciding whether you should work with them.

This is because a licensed forwarder is required to follow the regulations set by the licensing agency.

Which can often mean rules and standards – that can help ensure that you have a channel for feedback and support.

You can find certified licenses, like FF, FMCSA, and NVOCC, among others.

Unless the company issues a certificate of insurance, your shipment is not insured by the carrier and will be under your responsibility.

So don’t make the mistake of assuming that the carrier automatically provides insurance that will cover the shipment. 

Ask your potential forwarder if they offer cargo insurance

There are many fees involved in a simple transaction that companies can present in their way. 

You must know exactly what you are paying for.

You should always know what is included in the total amount you will pay, especially if fees are included.

There are always some additional expenses when exporting a shipment, which can change depending on the carrier, the port, the country of destination, etc.

Forwarders usually have an idea of the estimated cost and can help you or the shipping company. 

Inquiring about costs will assist you in better preparing for them.

It seems obvious that each country has a specificity of how you transport cargo. 

Your logistics team or any forwarder you are considering should be able to inform you about them.

Some countries won’t accept your cargo unless the relevant entity in the country of origin issues the appropriate document.

Before you arrange a shipment to any country, find out if there are any specific regulations you need to know about.

Research is key when choosing any product or service, including freight forwarders.

Consider the questions you should ask your freight forwarder before closing a business listed above and take the time to “interview” several freight companies.

Ask lots of questions, and review your options to ensure that you choose a reliable, qualified, and experienced forwarder.