Freight Forwarder BCRAs more companies import and export to and from Sydney, Melbourne, Brisbane, Adelaide, Perth and other parts of Australia, the importance of freight forwarders has increased. Freight forwarders provide domestic and international industry transportation solutions to businesses wanting to ship cargo and goods from one location to another. While some freight forwarders have their own transport modes, many collaborate and use the service of specialist transportation providers such as shipping lines, airlines, rail and road carriers to ensure your goods reach their destination on time and in good condition.

With the movement of freight comes the threat of loss and damages, customs infringements, danger associated with unforeseeable events, questions of cargo insurance, and delays in delivery which challenge businesses in Australia. To overcome these risks, freight forwarders with substantial experience work on behalf of their customers to check the bills of carriage, arrange freight insurance, ensure customs compliance on both sides of borders, and provide visibility of goods-in-transit. By being the freight experts and taking care of these activities on behalf of their customers, freight forwarders can make life easy for their customers.

Read on to learn how an experienced freight forwarder can minimise freight forwarding risks for your business.

Loss or damage risk

When a business selects a freight forwarder to deliver their goods from one location to another, they want hassle-free operations and safe and on time delivery of their goods. Goods being shipped by air freight or sea freight are loaded and unloaded several times before they make it to their final destination and with each loading/unloading, the chances of loss or damage increase. An experienced freight forwarder will work with seasoned transport providers and take responsibility to deliver the consignment in a protected and preserved manner. Many freight forwarders will also go the extra step to arrange cargo insurance so that if something happens beyond anyone’s control or fault, no one will be out of pocket. Any damage or loss claims can be claimed from the insurance company thus reducing risk for customers of freight-forwarding companies.

Customs clearance risk

The customs clearance process includes preparing paperwork for the entry of goods into a customs territory, payment of taxes, duties, and refunds, if applicable. Non-compliance with customs legislation will slow the time it takes for you to receive your goods, create fines for your business and at worst, see your cargo be confiscated and your company blacklisted. An experienced freight forwarder with strong custom clearance knowledge can assist in preparing documentation and can advise you on the best way to comply with customs procedures. Through their strong global network, an experienced freight forwarder can ensure that your shipments comply with overseas customs rules so your cargo will be delivered as planned, anywhere in the world.

Financial risk

Freight forwarders play a vital role in transporting goods from source to destination. Any time goods are being bought and sold, there is a financial risk. As freight forwarders deal with this risk every day, experienced freight forwarders such as BCR have risk management processes in place for the protection of their customers and themselves. Freight forwarders can limit their liability and cover some risks with insurance policies. Some risks are uninsurable such as loss caused by terrorism and all risks cannot be completely eliminated. It is ideal to work with a freight forwarder that is experienced and has good processes to minimise risks to acceptable levels for both themselves and the customer. Experienced freight forwarders have good risk management practices and manuals, and ensure customers are educated about the risks associated with moving freight before they sign-up for their services.

Transparency risk

Freight forwarding is not just about transporting physical cargo. Much of freight forwarding is about moving information along with the physical freight. Customers in today’s highly competitive marketplace today demand transparency about their consignments. A trusted freight forwarder will gather and provide the complete information required to deliver the goods to its destination. In the process, freight forwarders reduce risks that may arise because of a lack of transparency on the goods in transit.

Unforeseeable risk

Not all transportation disruptions are predictable. Some disruptions can be caused without any pre-alarm such as by natural disasters, war, accidents and weather. These events can delay your shipments and it is advisable to have a risk management process to mitigate and minimize the impact of such events. Proactive freight forwarders can take a critical look at your business, identify and evaluate areas with risk exposure, prioritize potential risks and assist in estimating the impact of any such event. They can assist you in developing a well-documented contingency plans across the supply chain network.

For more than a century, BCR has continued to help small, medium and large businesses achieve an optimum logistics solution with warehousing and transportation, including air freight and sea freight services to and from the major ports including Brisbane, Sydney, Melbourne, Adelaide and Fremantle (Perth).