Questions
for a Freight Forwarder
These are
questions that you as an
exporter should consider in
either the selection of a
freight forwarder or assessing
your current business
relationship.
- Customs
Clearance
- Export
Packing
- Freight
Rate Quotations to
Companies
- General
- How
do I Find a Forwarder
- Marine
Insurance
- Modes
of Transport
- Shipping
Documentation
- Other
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- Are all forwarders able
to clear goods through
foreign customs?
- Do they normally have a
customs broker?
- What do customs brokers
do and how are they paid?
- Who pays duties and
taxes and when are they
due?
- How do foreign customs
officials assess a duty
rate?
- What does in-bond mean?
- What is the significance
of your "limited
power of attorney"?
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- What are the different
types of export packing?
- What is done to keep
moisture from the product?
- What kinds of packing
are used to protect
shipments from damage?
- When are these types of
export packing used?
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- What is the process that
the forwarder goes through
to get a freight rate and
shipping dates for a
customer?
- Can you explain the
difference between LCL,
FCL, RoRo, break bulk,
etc.?
- How long is a rate good
for?
- What is the rate based
on (i.e. volume, weight,
commodity)?
- Are there formulas used
to quote rates?
- When a forwarder’s
sales representative goes
to call on a client, what
normally happens?
- When is it advantageous
for an exporter to go
direct to a carrier? What
kinds of skills would the
export shipping specialist
need in order to do that?
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- What are the different
divisions of your company?
- How do forwarders make
their money (i.e.
percentage of shipments,
documentation, packing,
revenue from carriers,
etc.)?
- Do all forwarders
provide the same services?
- What questions should an
exporter ask a forwarder
to understand what
services they provide and
the costs?
- In which countries do
you maintain correspondent
/ affiliate relationships
and with whom?
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Freight
forwarders are numerous in
most major markets. All
freight forwarders are
licensed by the Federal
Maritime Commission and
bonded. If you feel that
your forwarder has made a
major mistake, you may seek
reimbursement through their
bond. Here are some
suggestions on how to find a
forwarder:
-
Ask other
exporters
-
Attend
international business
functions
-
Check in
the Yellow Pages under
freight forwarding or
foreign freight
forwarding.
-
Ask your
local office of the US
Department of Commerce.
The following
are several search engines to
help you find a freight
forwarder in your area:
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- What are the different
types of marine insurance?
- What type do most
customers use?
- When is contingency
insurance worthwhile?
- What do the different
types of insurance cost?
- How is the client billed
for insurance?
- How does the client
track insurance policies
and claims?
- What is the process for
claiming lost or damaged
cargo?
- When a party receives a
shipment do they have a
period of time in which to
inspect it? What do they
need to note on
documentation if they have
to inspect it later? If
they identify damage or
loss right away?
- On which document do
they note these things?
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- What are the differences
between conference,
non-conference, NVOCC,
tramp vessel, etc.?
- How do you determine
what stops will be made to
a destination? How do you
determine when
transshipment is required?
- When a customer is doing
a quotation to a foreign
buyer what should they be
asking the forwarder to
avoid problems down the
line?
- What are the advantages
of shipping via air,
ocean, truck, rail?
- Is there a point of
volume or weight when air
or ocean is preferential?
- What kinds of products
normally never go by
ocean?
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- What kinds of documents
are done by a forwarder?
- How do you check to see
that the documents are
consistent with the letter
of credit or order?
- Should the customer
provide a copy of the
letter of credit to the
forwarder in advance?
- Are customers billed per
document? What is the
normal cost for various
documents?
- Do you have any
customers that transfer
their documents to you
electronically?
- What is the relationship
between the document
processing by the
customer, forwarder and
bank?
- Are you familiar with
the US Export
Administration
Regulations, the
International Traffic in
Armaments Regulations and
the Office of Foreign
Assets Controls?
- Do you have a current
edition of each of the
following publications:
- "US Export
Administration
Regulations?"
- "Statistical
Classification of
Domestic and Foreign
Commodities Exported
From the United
States", a.k.a.
"HS" or
"Schedule
B"?
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- What is the status of
Harbor Maintenance Fees?
- What new trends are you
seeing in the industry?
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Date Updated: March 20, 2007
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