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FAQ
Below are some
typical questions you should think about before choosing a company for your
freight forwarder.
How do
you Measure Performance?
DARTRANS
would suggest you measure the selection and performance of your
broker/forwarder minimally as follows:
A.
Owner & Staff Experience-
.....as traditional Brokers and Forwarders
.....in complimentary allied disciplines
.....in years of industry experience
B. Customer Base and Mix
.....representing small and medium sized firms
.....representing Fortune 500 firms
.....representing a variety of product lines
.....representing clients both as importers and exporters
C.
Cost Effectiveness
.....simplified billing, no surprises
.....balancing available resources with shipment exigencies
.....additional charges only as authorized
D.
Flexibility
.....responsiveness to clients needs
.....offer solutions for problems, not excuses
.....a "will do", not simply a "can do" attitude
.....proactive approach to business evolution
E.
Reputation
.....with customers
.....with competitors
.....with vendors
.....with employees
"How
do I find a forwarder to meet my needs?"
Many
ingredients are involved in finding the right forwarder to meet your goals.
Here are some things to think about...
As the architect of transport for your company, your prospective forwarder
should be capable of providing various options for your decision on
routing, pricing and timing of delivery. The cost of transportation is
always important, but you need to be informed of the risks involved in
"cheap" rates. Will you be sacrificing reliability of the
carriers or cargo security and finding out about it later?
Does
your forwarder have the resources to provide a full transport service?
After
the booking is made your vendor calls and informs you they cannot load a
container. Or your client in Europe needs duty and tax rates before he
commits to buying the merchandise. Without having a full service forwarder,
you may find yourself unable to adapt to the constantly changing world of
international trade.
Is
your forwarder a licensed customs broker?
Your
trading activity may, now or in the future, involve the importing of goods.
They should hold a valid license, issued by the Department of the Treasury.
In order to obtain a broker’s license, a rigorous background investigation
is conducted, a test on classification, valuation and regulation must be
passed and continued compliance must be maintained. All this brings an
additional level of professionalism to your forwarder.
Is your
forwarder/customs broker connected?
Does
a strong partnership exists with forwarders around the world to keep
control of your merchandise? The best forwarders have established private
networks to track and deliver your merchandise.
Is
your forwarder trained in international banking? In other words, will you
get paid??
Shipping
under a letter or credit does not guarantee payment; you have documentary
obligations and your forwarder is your biggest asset or liability in this
regard. Banking rules are dynamic and forwarders must be up to the job of
finding potential problems with your letters of credit before you ship
anything (whether your selling or buying).
Can
your forwarder offer solutions to collection outside of letters of credit?
The
documentary credit is an excellent method of transacting business with
companies you don’t know, but with existing relationships, do you really
need the high cost of a letter of credit? Your forwarder should have
alternatives for you.
What
about insurance?
Although
your terms of purchase or sale require another entity to provide cargo insurance,
you still have risk. A required function of your forwarder must be the
ability to explain these risks and to provide appropriate coverage for you.
Cargo insurance is just a minute percentage of your transaction, and your
forwarder must be prepared to provide a complete insurance product.
Duty
Drawbacks?
As
an international trader, you must be well informed about duty drawback. Can
your forwarder provide you with information and establish a program to
allow you to participate the refund of customs duties?
Does
your forwarder belong to, and actively participate in trade organizations?
The
National Freight Forwarders and Customs Brokers Association is dedicated to
educating the industry on new issues.
Does
your forwarder have the electronic resources to maintain tracing of your
merchandise and report to you quickly and inexpensively?
Especially
important in this day of high speed transport, is high speed, electronic
communication. EDI is a buzzword and has several definitions, but can your
forwarder even discuss this, or better, can they implement a EC (electronic
commerce) product for you?
Why
Choose Dartrans?
Many
ingredients are involved in finding the right forwarder to meet your
shipping requirements. At Dartrans we are confident that we have the
expertise to get the job done.
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