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What is a Freight Forwarder and when to choose one?

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There are several ways to ship items from one place to another. Both Freight Forwarders and couriers can provide delivery solutions for these items. However, depending on what you want to ship, the quantity and the distance, there may be a preference as to which method is best for each user.

The formalities involved in international business may seem cumbersome and daunting if you are not an expert in the field of logistics. Well, that is precisely the purpose of companies known worldwide as Freight Forwarders (FF), Freight Forwarders or Cargo Agents, which are responsible for vital functions in the logistics chain, facilitating the movement of goods that gives life to international trade.

In short, FFs act as intermediaries between the client who hires them and the various transportation and logistics services that are involved in the arrival of the cargo at destination. They are in charge of researching and planning the best route, travel times and costs, and depending on the type of goods to be transported, they are in charge of negotiating transportation contracts, preparing the necessary documentation, as well as payments and cargo release procedures. 

One of the qualities of FFs is that they are able to establish relationships with service providers that allow them to negotiate better prices and routes, which translates into greater profitability for their users, who are able to optimize time and costs. Also, thanks to the existence of full digital platforms, users can track processes online, without losing sight of their merchandise at any time. 

Couriers, on the other hand, are focused on speed, usually use their own means of transport, such as airplanes and fleets of vehicles of all sizes, to move loads and provide "door-to-door" service. Here the loads are limited in size and weight, and due to the ISO standard, Couriers have several restrictions for transporting different goods such as products with batteries, liquids, etc.

Also, Courier services usually have offices at national and international level, which must have human capital available to assist any emergency of the user, which generates little flexibility when having to resolve situations "out of office hours", which is what usually happens when negotiating with suppliers who are on the other side of the world, in a time zone completely different from the local one.

Another major difference between the two services is that FFs do not limit the coverage of shipments, as they are in charge of reviewing different options available and involve different actors to create solutions tailored to the user's needs. Couriers, on the other hand, have specific coverage without flexibility. Likewise, when it comes to clearing complex products through customs, such as those requiring ISP approval, FFs have the power to speed up the process, making them the best allies for documentation and customs procedures.

The movement of global cargo on a large scale is another advantage of FFs versus courier services. Freight forwarders, for example, are essential when it comes to users who do not completely fill a container with their cargo, since their work is focused on grouping several exporters in a container in order to make those exports possible.

Finally, the customization of the service offered by FFs is key for some businesses. The existence of digital platforms such as those of KLog.co, which allow access to the information of the transport process, online and at all times, generate great capacity to react to problems and services immediately. Delivering a much more complete and closer service, even for those less knowledgeable in logistics.

In practice, both couriers and Freight Forwarders perform similar functions, but it is these small contrasts that make the big difference when facing the last mile of international transportation.

Introducing the new way to experience international freight forwarding

KLog.co is the leading technology company for international freight forwarding in Latin America, which through its digital platform has managed to deliver complete visibility and control of the import and export process for companies of all sizes and industries.

Through its innovative software it is possible to merge all the steps of the supply chain, having full management capacity and visibility of the transportation of goods, even if you have movements with other freight forwarders. Due to these technological solutions you can have a fully customized control center, centralizing all shipments and optimizing the supply chain. 

Today, KLog.co supports customers with operations throughout the region, with hundreds of agents around the world. Currently, its offices are located in Chile, Peru, Bolivia and Mexico, and are constantly working to continue expanding.

Learn more at
 KLog.co

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