5 Reasons to Use a Freight Agent Company and How to Find One
Quick answer: A freight agent company books and manages your shipments with sea, air and road carriers so you don’t have to. The five main reasons to use one are efficiency (you focus on your business), experience, scalability in peak and slow seasons, a strong carrier network for capacity and better rates, and a long-term partnership. To choose one, compare the transport modes they specialize in, insurance and cargo types, track record, size and references.
Freight forwarders play a very important role in managing your supply chain and you may already be using a freight broker or you may be on the fence about using one. In this article, we will explain why freight agents and brokers matter and how to find the right freight forwarding company.
What is a Freight Agent?
A freight agent, or freight forwarder, takes the goods a client entrusts to it and moves them from one place to another along an agreed transport route. Freight forwarders act as agents for transport companies (sea, land, and air): they collect and transport goods and book cargo space, and play an important role in completing the trade between the owner of the goods and the customer.
5 Reasons Why you Should be Using a Freight Agent Company
High efficiency
You should focus your limited time on what you do best, so why not let professionals handle cargo transportation for you? A freight broker will help you handle cargo transportation in an efficient and cost-effective manner.
Experienced
Shipping is what freight brokers do best, so use their knowledge to your advantage. Freight brokers also have the resources and technology necessary to provide you with visibility and reporting capabilities in the supply chain.
Scalable
A freight broker can handle the uncertainty and change in your business. If you experience seasonal, dry spells or explosive growth, a broker has the ability to work with you regardless of your transportation patterns. It’s their job to make sure you have capacity when you need it, so you don’t have to worry about any irregularities in your shipping volume.
A strong network of contacts
Freight brokers have a large network of carriers, which is beneficial to shippers. The number and quality of connections that freight brokers have will definitely give you buying power and lower your shipping costs. More connections also mean more capacity. At times, trucks are very hard to come by, so having someone with numerous connections in your transportation pool is a great and valuable asset.
Partnerships
This is really one of the most important reasons to use a freight broker. If they are a trustworthy broker, their goal is to work with you as a partner. The definition of a partnership is one in which both parties benefit from the partnership. A freight broker works for and on your behalf, so your success is important to them. As your business grows, you will have more business/product to pass on to your broker to ship, which is a win-win situation for both parties.
How to Find a Freight Agent Company?
The main types of freight forwarders are Consulting freight forwarders, Low-cost freight forwarding, Online freight forwarders, and Global freight forwarders.
Based on the main responsibilities of these four types of freight forwarders, find the best freight forwarder for your company.
A global freight forwarder usually has a strong team around the world, which immediately builds trust with shippers who need international coverage. If you find such a partner, you will have reliable international freight management.
Some freight forwarders are more specialized, while others offer everything. It is important for you to find out if they offer the type of transportation where your cargo moves most often. Some offer mainly the management of sea cargo, while others include air, road, etc.
In addition, you need to research other information about the freight forwarder. For example, whether they have international insurance, whether they handle the transportation of dangerous goods, non-perishable goods, etc. Describe the main criteria and check whether the chosen freight forwarder meets them.
The second thing you should do is analyze the whole experience of that freight forwarder. Find out which companies he has worked with, what he has achieved in the past, what his mission and values are, etc.
Find out the size of the company and whether you can rely on the services of that freight forwarder at any given time. There are some companies that are too busy and can cause interruptions in the shipment of goods.
Since you probably have a lot of relationships with logistics companies, you may want to ask them if they have gone through the process of finding a freight forwarder. Person-to-person recommendations are a fairly reliable way to find quality freight forwarding services. However, this is a very responsible activity and your freight forwarder must have the necessary experience and knowledge to properly handle any situation that arises.
Find out where and when logistics events are near you and are sure to visit them. Usually, these logistics companies involved in such projects are large specialists in the field and are ready to contact all interested parties. This is a great opportunity to meet face-to-face with different freight forwarders and to ask them all the questions you are interested in. Here you will find your future agent for managing international cargo.
Conclusion
In this article, I have described why and how to find a freight forwarder, and now you know the importance of freight forwarding. Honest FulPhilment offers 2PL and 3PL services with 30+ shipping lines, contact us now!
FAQ
What is a freight agent?
A freight agent (or freight forwarder) arranges the transport of your goods from one place to another on your behalf. They book space with sea, air, rail and road carriers, prepare documents and coordinate customs clearance, so you do not have to deal with each carrier yourself.
Why should I use a freight agent company?
A freight agent saves you time, brings shipping experience, scales with seasonal or fast growth, uses its carrier network to get capacity and better rates, and works as a long-term partner whose success depends on yours.
What is the difference between a freight broker and a freight agent?
A freight broker is a licensed company that matches shippers with carriers and takes responsibility for the shipment contract. A freight agent usually works under a broker or forwarder, finds customers and manages their shipments, but relies on the broker's license and carrier contracts.
How do I choose a freight forwarder?
Check which transport modes and routes they handle most, whether they offer insurance and can ship your type of goods, their experience and client references, their size and reliability in peak season, and how clearly they quote prices and timelines.