Why do some companies decide to deal with one firm for customs brokerage and another for freight forwarding?
They believe they will pay less.
It could appear preferable to bargain prices with two different providers. Any savings, however, might be swiftly lost due to unanticipated expenses, delays, or misunderstandings between the various parties.
For offering customs brokerage, many freight forwarders rely on relations they have built with other businesses.
It might be challenging to choose between two organizations that have quite diverse responsibilities to perform in customs brokerage and freight forwarding. For instance, if there are problems with communication or operational coordination, the shipment may be delayed in leaving the container port and may then be charged demurrage costs, which makes it simple for the two businesses to blame one another rather than working to resolve the issue.
Knowing who to blame in such circumstances is less important than knowing who will make things right. Accountability will rise if you use a full-service Customs broker for your freight forwarding.
Have you ever had personal interactions with a huge company’s customer service division? Being transferred from one person to another without getting a definitive response to your inquiry might be annoying.
You may save yourself a lot of hassles when importing by having a reliable point of contact who is familiar with your account, your goods, and your company. The situation that has the lowest likelihood of fostering effective communication with your freight forwarding partner is one where customer reps change often.
It might not be the ideal long-term plan to select a freight forwarder or customs broker based only on price. It can sound shrewd to have two businesses engage in a bidding war, but you risk getting a price that is far more optimistic than it is feasible.
Strategic margins and fixed expenses are the foundation of the shipping sector. It is uncommon to find a large cost discrepancy between two businesses that are upfront with their prices. When you don’t properly study your quote, there is a lot of opportunity for extra costs. Any very favourable price should be transparent if you probe the right questions.
You must make look-alike comparisons when assessing your freight forwarding partner’s performance.
Without a predetermined baseline, it might be difficult to pinpoint flaws when dealing with numerous organizations. Working with a single firm allows you to control performance in accordance with a set method and increases experience predictability.
In the long run, you can lose money on a quote that appears to be reasonably priced since lower-cost solutions might offer less service than the somewhat more expensive ones.
Utilizing a single competent provider for both customs brokerage and freight forwarding streamlines the customer’s logistical efforts, facilitates Customs compliance, and ensures the best possible experience from pick-up to delivery.
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