You may say, why should I call you professionals when I can contact the logistics myself?
- Going it alone
For most shipments, it is simply not possible to arrange international shipping online with a sea or ocean freight forwarder.
It can be done even without a freight forwarder, but for the layman it is a dangerous game. When it comes to freight, there are many things that can go wrong, and often do. You need to cover your bases with freight insurance.
- Your supplier arranges for the shipment to be located furthest away within the United States
This is a classic trap that often sees inexperienced importers fall into. Many suppliers offer to arrange shipments as far as the US ports. This may seem like a good deal if you only add in the cost of local trucking. But there are other costs involved.
Such shipping arrangements often use one of the “C” Incoterms, particularly the CIF Incoterms. These Incoterms have several disadvantages for the importer, including the common situation where the importer is held hostage by inflated costs.
- Your supplier arranges the entire shipping process
Your supplier may be an expert in manufacturing or trading, but they will not be an expert in shipping.
If they have an arrangement with a local freight forwarder that can manage the entire shipping process, it is unlikely to be any better than what you have arranged. At the end of the day, the supplier will be looking to recover their costs.
If they cost account for freight costs, they have no incentive to secure a good price. This means you could be paying inflated shipping costs.
If they offer a sales/freight package, they are likely to jack up the price.
This will result in you walking out the door with high logistics costs and no insurance. We all know that reaching the exporter’s warehouse requires customs clearance, tax payment and customs brokerage……. Anything that goes wrong at any point in the process will not guarantee the timeliness of your shipment.
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