Freight Forwarders

There are freight forwarders that are giant enterprises—usually offering more than just freight forwarding—and there are freight forwarders that are mom-and-pop operations. Some freight forwarders, including some of the bigger ones, have been taken over even bigger transportation companies. FedEx and UPS, for example, have acquired freight forwarders in recent years. Ocean carriers like APL have their forwarding arms. The value proposition represented by the integrated offerings is to streamline the freight management process.

Smaller shippers often need someone to guide them through the maze of international shipping. That’s where the smaller freight forwarders shine. They pride themselves on providing individualized and cusomized services, person-to-person. And they are expert at the transportation services available for particular shipments and can advise on the best way to go about shipping, taking both costs and time into consideration. Freight forwarders can also obtain cargo insurance on behalf of their smaller customers.

Thanks to these old school characterisitics that have been preserved by many in the freight forwarding industry, ocean carriers, especially, have come to increasingly rely on intermediaries to perform critical customer service functions. The customer service operations of many ocean carriers have deteriorated because they have cut back severely on their costs. All of their bookings are done online and there is little left for the personal attention that freight forwarders still pay to their customers.