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||10/13/17 2:58 GMT
How to choose a freight forwarder when you trade with China
When our international buyers purchase products from around the world, they have
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to choose a freight forwarder when it comes to transportation. Although it does
not seem very important, if handled properly, it will cause some problems, so we
have to be very careful. When we choose FOB, the transportation will be arranged
by us and the cargo rights are in our hands. In case of CIF, the transportation is
arranged by the factory, and the cargo rights are also in their hands. When there
is a dispute or some unexpected situation, the selection of freight forwarders
will be decisive.
Then how do we choose a freight forwarder?
1)If your supplier is relatively large in China, and you have worked with it for a
long time, you trust it for good cooperation, and your shipment is of a large
volume (100 HQ per month or more), then I suggest that you choose a large-scale
world-class freight forwarder, such as Panalpina（http://www.panalpina.com） they
have their advantages: Those company have very mature operation, a good brand and
they have rich resources. When you have a large number of goods and become their
key customer, you will get a good price and good service. The disadvantages are:
Because these companies have a certain size, when you do not have many goods, the
price is relatively high, and the service is streamlined and not customized for
you. The cooperation given by the Chinese side is relatively poor, and it is fully
process-oriented and not flexible. Especially when your goods are more complex or
need cooperation from the warehouse, their service is basically negligible.
2)If your supplier allows a long-term settlement period, you may simply ask your
suppliers to arrange for freight, so you save time and save energy since transport
problems will be handled by the suppliers. The disadvantage is that you lose
control of goods after they leave the port.
3)If you do not have a large-scale shipment, if you do not quite trust your
suppliers, you value pre-shipment services in China, especially when your goods
are from multiple suppliers, or you need warehouse distribution and special
handling for China's customs clearance, you can find some outstanding logistics
companies that provide specialized customized services. such as Fic
Logistics（www.fic-logistics.com）& Btyoce Logistics. In addition to their
logistics and transportation, they also provide QC and sampling, factory audits
and more value-added services, many of which are free of charge. There are a
number of free tools on their website that can query and follow up on real-time
dynamics of warehouses, tiers and customs. Disadvantages are: They do not have an
local office in your place, and everything communicated through telephone, mail,
Skype, so the convenience and communication cannot compare satisfactorily with
local freight forwarders.
4) If your shipment is not that many and relatively simple, you trust your
suppliers and do not need to have too many special handling and service before
departure from China, then you can choose your local freight forwarder to
facilitate smooth communication. Disadvantages are: those freight forwarders
generally do not have strong local resources in China, and their orders are passed
to their agents in China, so the flexibility, timeliness and price are inferior to
local freight forwarder in China.
SOURCE: Import-Export Bulletin Board (http://www.imexbb.com/)
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