What are the fees charged by freight forwarders? How to avoid being tricked?
Freight forwarder refers to an intermediary organization that provides transportation, customs clearance, insurance and other services for import and export trade, and is an important link in cross-border logistics. But do you know what the freight forwarder charges? What are the fees included in the freight forwarder quotation? How to avoid being overcharged or underreported by freight forwarders?
Firstly, let's take a look at what freight forwarders generally charge:
International transportation fee: This is the most important fee charged by freight forwarders, depending on factors such as transportation mode (sea, air, railway, etc.), transportation distance, weight and volume of goods. International transportation fees are generally determined through negotiation between freight forwarders and shipping or airline companies, and then passed on to customers.
Customs clearance fee: This is the fee charged by the freight forwarder for handling import and export customs clearance procedures for customers, including the cost of preparing customs clearance documents, customs inspection fees, tax payment fees, etc. The customs clearance fee is generally determined by the freight forwarder based on the quantity and complexity of the customs declaration form, and may also be affected by customs policies and regulations.
Insurance premium: This is the fee charged by the freight forwarder to purchase cargo transportation insurance for customers, based on the insurance terms of the insurance company and the value of the goods. Insurance premiums are generally chosen voluntarily by customers, or they can be insured by themselves.
Other miscellaneous fees: These are fees charged by freight forwarders for providing additional services to customers, such as storage fees, loading and unloading fees, trailer fees, port miscellaneous fees, document fees, express delivery fees, etc. These miscellaneous fees are generally determined by the freight forwarder based on the actual situation, and may also be affected by the regulations and requirements of the destination port or destination country.
So, how to avoid being overcharged or underreported by freight forwarders? Here are a few tips:
Choose a legitimate and reliable freight forwarder: When choosing a freight forwarder, try to choose one with qualifications, reputation, and experience, and avoid choosing some black intermediaries or unprofessional freight forwarders. Freight forwarders can be screened through online searches, peer recommendations, industry association certifications, and other methods.
Compare quotes from multiple freight forwarders: Before determining a freight forwarder, try to inquire with multiple freight forwarders and carefully check whether each charge is reasonable, transparent, and includes hidden or additional fees. If you find any significantly high or low quotes, you should inquire about the reasons in a timely manner and choose carefully.
Signing a formal contract: After determining the freight forwarder, it is necessary to sign a formal contract with the freight forwarder and carefully read the contract terms, especially regarding the charging standards, payment methods, responsibility sharing, dispute resolution, and other aspects. If there are any unclear or unsatisfactory aspects, it is necessary to communicate with the freight forwarder in a timely manner and make modifications.
Save relevant documents: When transporting goods, it is necessary to keep the relevant documents, such as bills of lading, invoices, customs declarations, insurance policies, etc., and promptly check whether the contents of the documents are consistent with the contract, whether there are errors or omissions. If any problems are found, it is necessary to contact the freight forwarder in a timely manner and resolve them.
The composition of freight forwarding fees is mainly divided into two parts: fixed fees and non fixed fees. Fixed costs are expenses unrelated to the quantity of goods, including customs clearance fees, storage fees, bill of lading fees, transportation insurance fees, document fees, agency service fees, etc. Non fixed costs are expenses that vary in price based on the quantity of goods, including transportation fees, fuel surcharges, tariffs, value-added tax, etc.
