Freight forwarding companies organize the transportation of cargo from the point of origin to the point of destination. When choosing which freight forwarding services you require, it’s vital to understand the difference between companies that work with international shipments and those dealing with domestic shipping.
There can be differences in the pricing, the supply chain, and the services they offer. Nearly every company that deals with physical products require.
Local and International Freight Forwarding
A local freight forwarder transports goods within the boundary of a single country. The transport service typically uses one mode of transport, although, on occasion, multimodal transportation is necessary to access remote or distant areas.
In contrast, an international freight forwarder is involved in importing and exporting cargo around the globe. These companies are familiar with international logistics and work with multiple contractors to fulfill a delivery contract.
Supply Chain Management
Domestic shipping forwarders deal with contractors who operate within one border. The documentation requirements are straightforward, and the journey times are usually short.
Local freight forwarders have strong relationships with contractors, often independent self-employed truck drivers. Because all parties are local, they usually have met face-to-face and developed a professional bond that may not be possible in international companies.
As domestic freight forwarders are usually relatively small operations, the same staff deal with their suppliers and their customers daily. These relationships mean the forwarder gets to know your business and can offer suggestions to help you reduce costs and schedule efficient deliveries.
International freight forwarders have more challenging responsibilities. They deal with import and export documents, such as bills of lading, and consider many transportation options. Often goods change modes of transport, and several shipping companies are involved in a single journey.
Because they work with goods that cross international borders, they work with customs brokers to ensure the importing and exporting processes adhere to all legal regulations and that the payments of taxes and duties are up-to-date.
An international freight forwarder has a network of agents to reallocate cargo deliveries if there are unexpected problems. They have custom departments that deal with separate elements of international shipping. Their processes are streamlined and smooth, and each department is an expert in their specialty.
Mode of Transportation
Many modes of transport can carry out local freight forwarding, but the most popular is trucking. Relatively inexpensive and fast, trucks are a safe transportation method, and tightly packed goods are unlikely to suffer damage.
International freight forwarders usually ship through multiple carriers. Cargo can leave the point of origin on a truck, transfer to a ship to cross the ocean, and finish their journey with a different trucking company.
Because it is cost-effective for large or heavy cargo, ocean freight is one of the most popular forms of international transportation.
Cost of Transportation
Freight charges can vary in a short timeframe. Market demand and the carrier’s availability of space can quickly change the price for the same journey. While this applies to local and international freight forwarders, distributors who have to cross borders incur additional fees.
Import and export tariffs, taxes, and currency fluctuations can contribute to the final price in international freight forwarding.
Understanding the differences between local and international freight forwarding is vital to getting the best service for your needs. The critical element with any form of logistics is to partner with a reliable and trustworthy freight forwarder.
It’s crucial to ensure they are experienced and use the latest technology, so your deliveries arrive on time and at the best rate.
At Asiana USA, our staff has the knowledge and expertise to deliver your cargo internationally. For a free consultation and quote, contact us at (855) 500-1808.