10 IMPORTANT QUESTIONS TO ASK YOUR SHIPPING COMPANY
With the growing demand for export and import, the numbers of shipping companies are tremendously growing with several new companies competing for business alongside established names like LOTUS Containers. Just like every other industry, shipping industries are also found with some cut-and-run operators who may offer you a generic price quotation and then disappear with your goods. Hiring a genuine company for your freight transportation becomes a bit challenging and troublesome because picking the right freight forwarding company is akin to picking the right accountant, counselor or a life partner. It is because the quality and standard of your freight partner will either make or break your business deal. If you are at the stage of finding a good forwarder then playing a Question-Answer round would be a good idea to know the A to Z of your freight forwarder. Though it sounds a bit sarcastic it gives a better insight to decide and finalize your deal. You must ask-
Are you Certified? You must find out whether a valid licensing agency has certified the shipping company you are interviewing. Some of the quality standards like FIDA (Freight Innovation Density Analytics), FMC (Freight Maritime Commission), CBP (Customs and Border Protection), CIFF (Certified International Freight Forwarder), TSA (Transportation Security Agency), etc are designed specifically to show their authorization. These license somewhat helps you to validate that they have been screened properly and meet all the necessary licensing credentials. Once you achieve the certification you should proceed with other questions given below.
Do you help with Custom Clearance? You must clarify with the party that whether their policy includes custom clearance or not. Most of the companies fulfill this requirement but some may just be only transportation oriented. In that case, you will need to hire a broker or an agent to get your customs cleared. Since custom clearance is an integral part of the logistic and might be complicated and confusing. Thus it’s wise to hire a party that also assists with custom services.
Do you Provide Cargo insurance? Many of the times people make a major mistake by assuming on their own that the carrier will automatically assist with insurance facility. But this is not true information. Unless they don’t provide you with insurance certification, your cargo is not at all insured and no compensation will be provided to you in case of loss, theft or damage. Although every freight forwarding services are stipulated to provide cargo insurance but the policy may vary from company to company. If you don’t find their offer satisfactory, you may ask them to provide additional coverage by paying a little extra amount.
How Extensive is your Network? The network becomes an important aspect of any business for multiple purposes. A reliable and established global network facilitates the transportation process to be a more streamlined end-toend process. Inconveniences regarding customs, transportation, shortage, port strikes, or delayed deliveries can be resolved using a strong network connection across the globe. The bigger the network, the more likely the shippers can meet expectations and requirements. It becomes of an ultimate advantage if you have a powerful network in both importing and exporting countries. And if you don’t comply with this, you must ensure that the party you are consulting with has reputable agents to rely on.
Are you a BAR (British Association of Removers) Overseas member? The British Association Removers was formed in the year 1901 to protect consumer interest. It is the only trade association in the removal sectors who sets professional standards for the moving and warehouse industries through its various codes of practice. Their overseas members also offer a guarantee to the advance payment, which means in case of any contingencies or if the companies go out during the movement of your goods you won’t face any financial loss if you have already made an advance payment. According to their policy, in such cases, either another BAR mover will handle it or the money will be refunded to you. So, it adds up to your benefit if your forwarder is a BAR Overseas member.
Do you have a TMS (Transportation Management System)?
Transportation Management System is one of the core technologies used by freight forwarding companies these days. It is an integrated combination of specialized software embedded with radar sensors, wireless connection, auto-monitoring devices and chips that provides the real-time information of your shipment. Many companies use powerful TMS to provide complete transparency and access to various documents, billing invoices, packing lists, and even pictures of the cargo. A tracking service can help you plan both existing and upcoming logistic needs more efficiently and also gives a heads up for an alternative plan. Hence, while hiring a party, you must confirm that do they have TMS service installed or not.
Do you provide Warehousing? You must clarify with your freight company that whether they provide a warehouse facility or not because many freight forwarders have their warehousing department outsourced to the third party. They might be operating under their guise that it is completely under their direct control and supervision, but this may not be true. Though outsourcing is a legal practice you must be aware of who is handling your cargoes. Hiring a freight forwarder who managed their warehouse would be a safer choice for you because it allows you more flexibility and supervision of your goods.
Do you have a good experience holding? ‘ Perfection comes with experiences and experience comes with time’ . Generally, anyone can set up like a freight forwarder but not every company is proficient in handling and reducing the issues that germinate at every step in logistics. But a company with many years in service will have previously encountered various issues you can think of and will be able to avoid and solve it. So it’s your right to ask them about their experience holdings in logistic. Besides, you should also confirm the type of cargo they are dealing with. A forwarder with few years of experience in a niche would be better for you than one with more years of general experience. If you want to transport your consignment properly, on a particular date & time to its right location then hiring an experience freight partner becomes an uttermost importance.
Does my shipment require any special packaging? It is wise enough if you verify the packaging needs and requirements for your shipment. Generally, the answer to this question would be a No from their side. But products like, chemicals, food materials, animals, cigars, organic products, etc requires special packaging to ensure its safety from dispatch till the time of delivery. They have to inform you about these criteria, whether be logistical limitations, trade restrictions, tax policies or custom duties. In case they do not provide you with the information, you should confirm this from your hand. Apart from this, you should also make sure that whether they offer their packaging service, or they have outsourced it to the third party.
What are your charges/rates? Though the companies nowadays like LOTUS Containers have started to display and provide an instant quote digitally through its GO LOTUS smart calculator to predict your capital requirement. There are still many of them who remain opaque to disclose their price quotation. But being a customer, it’s your right to know the exact amount you will be liable to pay for your consignment movement. And apart from just movement cost, they should also ensure you with every other additional charge like handling and storage charges, custom clearance, taxes and duties, warehouse rent, etc. Hence, in the absence of price transparency, be rigid to inquire them about every single charge.