8:00 AM - 5:00 PM CST

Monday- Friday

admin@premierglobalconnections.com

407-337-6038

The Top 5 Most Common Questions About Freight Forwarders

Freight forwarding is quickly becoming a game-changer in global trade. Before diving into the world of exporting goods, it's essential to get a solid understanding of freight forwarders and their role in the logistics industry.

As globalization continues to reshape the world, logistics companies are racing to enhance their services and meet the increasing demand for seamless shipping solutions. One effective response to this demand has been the rise of freight forwarders, and PGC is here to guide you through this transformative process.

If you’ve been wondering about freight forwarders, you’re not alone. Let’s address some of the most common questions and help you better understand what freight forwarding entails.

QUESTION #1 – What’s the Difference Between Freight Forwarders and Shipping Companies?

Freight forwarders and shipping companies play related but distinct roles in the shipping process. Freight forwarders, like PGC Logistics, facilitate the entire supply chain by coordinating the transportation, storage, and handling of goods. They work with various carriers, such as truckers, shipping lines, and air freight services, to move cargo from its origin to its destination. Freight forwarders are involved in arranging all aspects of the shipment, including managing customs, warehousing, and providing tracking updates.

Shipping companies, on the other hand, focus specifically on the transportation of goods. They own and operate vessels, trucks, or aircraft that physically move cargo from one port to another. Shipping lines manage the actual transportation of goods across regions or countries, but they do not typically handle the complete logistics that a freight forwarder would. In summary, while all freight forwarders utilize shipping companies for transportation, not all shipping companies act as freight forwarders, as they do not offer the comprehensive services that freight forwarders do.

QUESTION #2 – What Do I Need to Get a Quote from a Freight Forwarder?

To receive an accurate quote from a freight forwarder, you’ll need to gather key information about your shipment. Here’s a step-by-step guide:

1. Know Your Cargo Destination

The first piece of information you need is the destination address. This helps the freight forwarder determine the shipping distance and the logistics involved. If you don’t have the full address yet, providing the city, state, and postal code is sufficient for an initial quote. The destination affects both cost and delivery time, though long distances don’t always lead to higher prices, thanks to established commercial shipping routes.

2. Specify Your Commodity

You’ll need to clearly define what you’re shipping, as the type of goods influences how the shipment is handled. Whether you’re sending electronics, raw materials, or perishable goods, freight forwarders will need this information to properly categorize your shipment. They use a classification system known as National Motor Freight Classification (NMFC) codes to determine how your goods should be transported. The NMFC code is based on factors like weight, density, and the potential for damage, and it plays a significant role in the cost of shipping. Special handling items, such as fragile goods or hazardous materials, require a unique NMFC code.

3. Understand Your Shipment’s Weight

To provide an accurate quote, you must know the weight of your shipment. Weigh each individual item in your shipment and then add up the total weight. If you’re shipping multiples of the same item, simply measure one unit and multiply it by the total number of items. A basic postal scale can help you with this step.

4. Know the Dimensions of Your Shipment

Understanding the size of your shipment helps determine whether your cargo will be categorized as Less-than-Truckload (LTL) or Full-Truckload (FTL) for land transport or Less-than-Container Load (LCL) or Full Container Load (FCL) for sea transport.

LTL (Less-than-Truckload): If your shipment is small (typically fewer than six pallets) and doesn’t fill up an entire truck, it will likely be shipped along with goods from other businesses. This is cost-effective for smaller shipments.
FTL (Full-Truckload): If your shipment is large enough to fill an entire truck (around seven or more pallets), it will be categorized as FTL. This often results in a quicker, more direct delivery, as your shipment won’t share space with other goods.

To measure the size of your shipment, you’ll need to know the length, width, and height of your packages. If shipping in a container, simply measure the dimensions of the container.

By having these details on hand—destination, commodity, weight, and dimensions—you can receive a precise quote from a freight forwarder, ensuring that you understand the costs and logistics involved before shipping your goods.

QUESTION #3 – Which Freight Service Provider is Right for Me?

Choosing the best freight service provider depends on your specific needs, the type of goods you're shipping, and how involved you want to be in the process. Here's a breakdown of different options:

Freight Forwarders

Freight forwarders, like PGC Logistics, handle the entire shipping process, from arranging transportation to managing documentation and warehousing. They act as intermediaries between the shipper and various carriers, providing a complete logistics solution. Freight forwarders are particularly valuable for industries like construction, aerospace, and pharmaceuticals, where specialized cargo handling is often required. They take care of everything from pickup to delivery, streamlining the entire supply chain for you.

Freight Brokers

Freight brokers connect shippers with carriers, facilitating the shipping process but not taking control of the goods themselves. While brokers handle the logistics and pricing negotiation, they don’t offer the same level of service as freight forwarders since they don’t provide warehousing or a full supply chain solution. However, brokers can offer cost-effective options, especially for smaller shipments, due to their relationships with a range of carriers.

Online Freight Exchanges

An online freight exchange is a digital platform that allows shippers to book, track, and manage their shipments, typically for less-than-truckload (LTL) shipments. This option is ideal for experienced business owners or individuals who want full control over their shipments. It’s a more hands-on approach, where shippers can manage the entire shipping process themselves, without relying on a third-party provider.

Independent Carriers

If you're a frequent shipper or have specific routes in mind, working directly with national or regional carriers can be an option. This can be advantageous for companies that need to move large volumes or consistently ship goods along specific routes. However, it may not be cost-effective for smaller shipments, as individual carriers tend to charge higher rates for smaller loads. This method works best for those who regularly ship large quantities and can negotiate better rates with the carrier.

QUESTION #4 – How Can I Transition from a Shipping Company to a Freight Forwarder?

Switching from a traditional shipping company to a freight forwarder can offer numerous benefits. Freight forwarders manage the full scope of logistics, from arranging transportation to handling customs clearance and documentation. They typically have strong partnerships with warehouses, truckers, and customs brokers, ensuring that all aspects of the supply chain are covered.

In contrast, shipping companies focus mainly on transporting goods from point A to point B, and often don’t provide additional services such as warehousing or customs support. If you’re currently working with a shipping company and want to transition to a freight forwarder, the first step is to inquire whether your existing provider offers freight forwarding services. If they do, ask about pricing and delivery timelines.

Freight forwarders often operate specialized facilities known as Container Freight Stations (CFS), where they consolidate goods for shipment. These stations are used for both export and import goods, allowing multiple businesses to share containers and reduce costs. Shipping companies, however, typically do not offer these kinds of value-added services.

QUESTION #5 – Do I Really Need to Switch to a Freight Forwarder?

If you’re planning to ship large, heavy, or complex goods—such as machinery, vehicles, or oversized equipment—then working with a freight forwarder is highly recommended. Freight forwarders specialize in handling bulky or specialized shipments, and they ensure that all logistics, including customs clearance and handling, are properly managed.

For smaller, more standard goods—like clothing, electronics, or skincare products—you may be able to continue working with a traditional shipping company, especially if the shipment volume is low or the goods are not too complex to manage.

In general, if your business requires regular shipments of large or specialized cargo, or if you want a more comprehensive solution for handling the logistics from start to finish, transitioning to a freight forwarder can be more convenient and cost-effective. Freight forwarders offer specialized expertise and can manage the heavy lifting for you, which can save you time and reduce the complexity of your shipping needs.