Your company has just completed the construction of the costly piece of equipment and is now ready to ship it to the customer. You spent ten weeks building it, so the last thing you need is to deal with damaged or missing freight. If you want to keep your costs down while minimising issues, choosing the right shipping method is important. Spending a little time researching and comparing options will help you save both time and money. Do you want to learn more? view more
You have the following options when searching for a shipping solution:
Business specialising in international shipping
Carrier in Common
Local Trucking Firm
Broker of Freight
Forwarder of Freight
Each of the options above has benefits and drawbacks:
The international shipping corporation has ports both in the United States and abroad. They have the choice of shipping by truck, ferry, or plane. Because of their global network of resources and machine monitoring, they are able to make timely and reliable deliveries all over the world. Another downside of this form of service is that shipments are routed through a network of terminals, so loads are handled regularly. The more often a load is moved, the greater the chance of it being damaged or lost.
Common Carriers have a nationwide or regional network of terminals. They are solely trucking businesses. Small businesses and entrepreneurs would pay a higher rate than Fortune 500 firms because of volume discounts. Costs can become prohibitive if the shipment exceeds 1000 pounds. The common carrier will hire a local driver to pick up your freight and transport it to the nearest airport, where it will be unloaded from one truck and reloaded into another truck for transport to the final destination in the nearest major city. Cross docking is the term for this procedure. Before the cargo reaches its final destination, it can be cross docked many times. This extra handling raises the risk of cargo loss, as well as the possibility of goods being lost or delayed. The more occasions a load is handled, the higher the chances of anything going wrong.
Freight brokers do not own trucks; instead, they coordinate shipments with a number of different trucking companies. Since they manage a large number of shipments, they may use their buying power to get cheaper rates from common carriers. As a result, the customer pays lower prices. Although the freight broker can arrange and monitor shipments on your behalf, they are not legally responsible for the cargo, which is left to the carrier. This legal arrangement will place the customer in double jeopardy for shipping expenses because they pay the freight broker, but if the broker and carrier have a disagreement, the carrier can go back and claim payment directly from the customer.
A freight forwarder is similar to a freight broker in that they negotiate with a number of carriers to obtain favourable rates while still handling logistics and tracking. The main distinction is that the freight forwarder assumes legal responsibility for the shipment and provides shipment aggregation. That means the freight forwarder, who manages the claim on behalf of the shipper, is responsible for any harm or other liability. Both the freight broker and the freight forwarder have relationships that will get the small business better shipping rates than a common carrier will.
A city or a slightly larger area is covered by a local trucking company. Local trucking companies may be your best choice for transporting heavy loads around town because they can often offer reasonable rates; however, some of these companies are small, and you may have to wait longer for your freight to be picked up.