If you are a business owner and you are tapping into the booming e-commerce market, then a term that will have popped up in your research will be freight forwarding. What is this term and why does it apply to you? Is it something that you should be concerned with? Or can you continue to grow your business in e-commerce without it? There are a lot of questions that will come out of your mind. And this article aims to answer those questions. Take a closer look at freight forwarding and what it means for you and your business.
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Click on the topics that fit the information you need about freight forwarding service.
- What Is Freight Forwarding?
- What Do Freight Forwarding Companies Do?
- When Was Freight Forwarding First Established?
- Why Is Freight Forwarding so Strictly Regulated?
- Why Do I Need a Freight Forwarding Company?
- Are Freight Forwarders Responsible For Shipment Delays?
- Can a Freight Forwarder Advise Me on Which Goods Are Safe to Ship?
- How Many Stages Are Involved With the Freight Forwarding Process?
- What Are the Benefits of Working With a Freight Forwarding Company?
- Is It Advisable to Outsource Transport Services to a Freight Forwarding Company?
- Transportify Changing the Game of Freight Forwarding
- Advantages Of Technology-Driven Freight Forwarding Logistics Company In the Philippines
- Conclusion
- Frequently Asked Questions
What Does Freight Forwarding Mean?
Freight forwarding means moving goods in a supply chain or acting as an intermediary between you (the forwarding company with a shipment of goods) and the final destination for the said goods. While freight forwarding companies do not always necessarily carry the shipments themselves, they can provide different transport modes such as ocean freight, rail, road transport, and air freight shipments.
Above image is a percentage distribution of all establishments for transportation and storage by industry sub-class in the Philippines for the year 2016 where freight forwarding has the major share in it. Here’s a breakdown of the data:
- Freight forwarding services account for 21.0% of the establishments.
- Freight truck operation represents 20.3%.
- Customs brokerage (ship and aircraft) includes 8.8%.
- Local bus line operation covers 5.6%.
- Logistics services make up 5.2%.
- All other industries combined account for 39.1%.
The majority of freight forwarding companies are also Authorised Economic Operators (AEO’s), which allows them to take full advantage of simplified customs clearance, particularly when it comes to deferred payment of important duties and any other charges which might otherwise need to be paid in full before any foods are released.
What is an AEO?
An Authorised Economic Operator (AEO) is defined by the World Customs Organization Framework of Standards to Secure and Facilitate Trade (WCO SAFE), as the party involved with the movement of goods internationally. This is in whatever function that has been approved on behalf of—or by—a national customs administration. AEO’s are recognised as complying with WCO (or an equivalent supply chain security standard) and as such are afforded the appropriate trust and respect.
What Do Freight Forwarding Companies Do?
Most freight forwarding companies utilise their trusted contacts within their established network, with carriers and partners from air transport specialists, trucking companies, and transoceanic lines. It is usually a good result of doing freight bidding in the first place. They do this in order to negotiate the best possible price for moving your goods from point A to point B. This could be either using their established commercial routes with regular departures, or by charter.
In the Philippines, modern freight forwarding companies utilize the availability of technology to offer on-demand service using an application. One of the leading providers for this type of service is Transportify. Businesses and individuals can easily navigate the application and schedule deliveries going to leading destinations in the Philippines.
Valuing a variety of offers and opting for better routes that offer optimized speed, lower costs, and bolstered reliability are all things that freight forwarding companies should take into consideration when analyzing each new case in logistics.
Typically, a freight forwarding company will handle large volumes of shipments from one international destination to another. Thus, they are integral in triangular operations.
What are triangular operations?
Triangular operations contain at least three companies: the manufacturer, the intermediary/freight forwarder, and the final customer; each typically located in different countries. That said, there is a single delivery of goods, and a single transport.
This operation is complex from a documentation perspective, and of course, above all, tributary with any relevant value added tax (VAT) settlements.
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When Was Freight Forwarding First Established?
According to RedWood, one of the earliest ever freight forwarders recorded was Thomas Meadows and Company Limited of London. This was established in England, in 1836. Between then and now, the freight forwarding industry has come through leaps and bounds. In fact, the amount of parcels that are shipped globally each year is continuously increasing with high demand from different industries that adapt new practices in business.
In 2018 alone, 87 billion parcels were shipped worldwide. That was a 104% increase from 2014 and that number continues to grow year on year. I’m sure Thomas Meadows had no idea at the time, just how massive the freight forwarding industry would become 185 years later.
Why Is Freight Forwarding so Strictly Regulated?
When you consider how much freight moves globally each year, it’s no wonder why it has to be strictly regulated. First and foremost, the strict regulations serve to function as a means of keeping operations as smooth as possible.
With so many shipments coming in and out of each country on a daily basis, there can be no room for error. The slightest hold-up can cause a terrible knock-on effect, affecting numerous parties and causing substantial losses in time and money.
But these strict guidelines and regulations are not just about keeping the machine well-oiled and running smoothly. It is also important to ensure that only legal goods are moved. Naturally, where organised crime is concerned, the 17 million shipping containers in circulation globally, making up to 200 million trips a year, are a prime target for illegal activities in the world.
Just like other freight companies, Transportify also applies different regulations in making sure that no illegal items will be transported and fraudulent activities are being detected by both the driver and internal team. Through strict regulation, automation and application of technological innovations in freight delivery, such illegal activities will become extremely difficult to hide and companies can make sure that this will not impede movement of goods for other customers.
In any case, without focusing too much on the doom and gloom, strict guidelines and regulations within the freight forwarding industry are designed to protect the customer, the manufacturer and distributor of goods, and the customers’ investments.
Why Do I Need a Freight Forwarding Company?
Again, as mentioned above, if you are growing your business and looking to branch out into the e-commerce industry and would like to move your goods either nationally or internationally, then a freight forwarding company will be a helpful ally to have.
While you are well within your rights to arrange all of the freight forwarding activities unsupervised, it would be difficult and will take up a lot of your time. The complexities and intricacies of shipping freight globally isn’t something that one can simply tap into.
Instead, working with an established freight forwarding company who deals with this day-in-day-out, with a solid network in place, is the simplest option. You can leverage their relationships and secure the best deals for moving your products around the market.
For businesses in the Philippines, one of the leading choices in the market is Transportify. They offer a wide range of vehicles from small sedans and MPVs, L300/Van, to trucks like Closed Van and Open Truck (2000kg). There are also much bigger trucks like Open Truck (7000kg), 6w Fwd Truck, and Wing Van designed to transport large amounts of goods over long distances. Learn more about Transportify vehicles and freight delivery rates in the table below:
| Vehicle Type | Dimensions/ Weight Limits | Base Price (Metro Manila) | Base Price (Outside Metro Manila) | Base Price (Visayas/Mindanao) |
|---|---|---|---|---|
 Wing Van | 32 to 40 x 7.8 x 7.8 ft 12000kg to 28000kg | 7000 PHP | 6500 PHP | 6500 PHP |
 6w Fwd Truck | 18 x 6 x 7 ft 7000kg | 4850 PHP | 4850 PHP | 4850 PHP |
 Closed Van | 10 to 14 x 6 x 6 ft 2000kg to 4000kg | 1600 PHP | 1450 PHP | 1450 PHP |
 Open Truck | 10 to 21 x 6 ft x open 2000kg and 7000kg | 2300 PHP | 1950 PHP | 1950 PHP |
 L300/Van | 8 x 4.5 x 4.5 ft 1000kg | 415 PHP | 374 PHP | 335 PHP |
 Small Pickup | 5 x 5 ft x open 1000kg | 418 PHP | 338 PHP | 325 PHP |
 Light Van | 5.5 x 3.8 x 3.8 ft 600kg | 375 PHP | 292 PHP | 275 PHP |
 MPV/SUV | 5 x 3.2 x 2.8 ft 200kg | 240 PHP | 210 PHP | 160 PHP |
 Sedan | 3.5 x 2 x 2.5 ft 200kg | 220 PHP | 190 PHP | 140 PHP |
Hiring a freight forwarding company is no different than hiring an accountant to take care of the books for you or an international arbitrator to help you settle a legal dispute. These companies will also help your business secure a good customer impression and ultimately provide retention and repeat business orders.
Are Freight Forwarders Responsible For Shipment Delays?
No, freight forwarding companies are not solely responsible for any delays in shipping. Typically, when a delay occurs, it is due to bad weather, port delays, a breakdown, or certain unforeseen route changes. While we recognize how frustrating shipping delays can be, it is important to remember that your freight forwarding company is not responsible; however, they will do everything in their power to resolve the issue for you as quickly as humanly possible. There are modern freight forwarding companies that already offer real-time information on the status of their shipment with the use of GPS technology. This is something that customers would want for deliveries since it gives them increased visibility of their freight transportation request.
Don’t worry because any freight forwarder will plan accordingly so as to minimize the chances of delays. But of course, there is only so much that can be done to prevent delays. When they happen (which is rare), there is little that can be done to stop it.
Can a Freight Forwarder Advise Me on Which Goods Are Safe to Ship?
Absolutely, simply ask your freight forwarding company and they can offer any advice needed. All logistics and delivery companies must follow local rules and regulations to safeguard the goods, driver-partner’s lives and other valuable assets.
To give you an idea, here is a list of prohibited goods on a freight and cargo delivery company like Transportify:
- Live Animals
- Explosives
- Gases and Fuel
- Environmental and Human Waste
- Biological Substances
- Human Remains
- Prohibited Drugs
- Cash/Legal Tender
- Counterfeit Good and Merchandise
- Unregistered Medicine
- Precious Metals and Semi-precious Stones
- Protected Wildlife and Biodiversity
- Other Possible Contaminants
The majority of the prohibited items listed above are in line with the Philippines’ law and regulations. These rules and regulations are in place to ensure that customers receive quality service and care on deliveries.
How Many Stages Are Involved With the Freight Forwarding Process?
There are six stages involved with freight forwarding. These processes are as follows:
1. Export haulage: the transfer of goods from the original source to the freight forwarders warehouse.
2. Export customs clearance: said goods receiving the official clearance to leave the country
3. Origin handling: unloading, inspecting, and validating the goods in accordance with the relevant documentation provided.
4. Import customs clearance: the relevant authorities will check the customs paperwork that accompanies your cargo.
5. Destination handling: Handling of the cargo once it arrives at the destination office and is then passed on to the important warehouse.
6. Import haulage: Moving the cargo from the import warehouse on to its final destination (also known as – last mile delivery).
What Are the Benefits of Working With a Freight Forwarding Company?
There are many benefits to working with a freight forwarding company. For one thing, you don’t have to deal with the stress that comes with trying to navigate the complicated world of freight forwarding.
Here are some additional services that a freight forwarding company like Transportify can assist you with:
- A quality logistics and forwarding company can offer you industry expert advice on how best to optimise your transport costs (e.g., freight charges, marine transportation, and special documentation cost to name a few).
- In addition to that, a freight forwarding company can provide you with cargo insurance, including advantageous conditions with highly competitive premiums. Deliveries from Transportify are entitled to goods insurance coverage powered by OONA Insurance Philippines.
- Another great benefit is being advised on proper packaging, loading, and unloading of valuable merchandise. Depending on the vehicle that will be hired, freight deliveries from Transportify are entitled to a standard loading and unloading of goods from pickup point to destination.
- Help with reports, customer performance reports, and of course, your carbon footprint key performance indicators. Those businesses enrolled in the Corporate Account of Transportify may enjoy using dashboards that provide valuable data that can help with wise business decisions regarding their current logistics practices.
- The best freight forwarders can provide tailored solutions for your project and situation. Clients may request special handling of their goods, especially delicate ones that require extra care and attention.
- And finally, your freight forwarder can provide you with supply chain optimization advice regarding the best means of transportation, optimal routes according to the origin of the goods, the nature of your merchandise in question, the desired destinations, seasonality factors, potential dangers, and of course, the urgency of the merchandise.
Is It Advisable to Outsource Transport Services to a Freight Forwarding Company?
Sourcing and assessing the right transport service provider is a tough decision to make. It boils down to the needs of the customers whether a freight forwarding company works or a third party logistics will create a big difference. It is advisable to review the current status of the business, perform a cost benefit analysis, evaluate the quality of service needed and consider other aspects of the business in order to obtain the best choice in logistics.
Outsourcing transport services in the Philippines have a significant impact on the performance of the business which is why many companies choose to outsource their services to modern freight forwarding companies like Transportify. If you are a business interested in using Transportify as your transport service provider, then you may explore the table below which contains information about the features and benefits of the program under corporate accounts:
Make Transport Services Easier with a Freight Forwarding Company
Having an entire in-house fleet for logistics can be very costly and time consuming. Choosing to outsource transport services with a freight forwarding company will make a lot of impact to the company since it provides the capability to organize all the demands of the shipping process.
Since they are experts in the import and export services, clients will be sure that cargos are transported to their right destination and will save a lot of time and effort on the customer side in managing logistics. Get ready to list down these key points that makes freight forwarding a better choice for a growing business:
1. Freight Management
Outsourcing to a freight forwarder provides an unbeatable strategy to reduce carrying cost in handling inventories. Goods will flow in smoothly and have consistent time on deliveries. Freight management companies with efficient freight systems will result in lesser damage in handling cargo deliveries. Fewer damages translates to lesser errors and operational costs for the company.
By gaining these advantages in freight management, your business will be able to enhance all aspects of market performance and gain visibility over the whole picture of your business’ supply chain.
2. Efficient Cargo Space Handling
Freight forwarders have the best options when it comes to handling cargos from customers. If your business requires to transport a great volume of stocks on a regular basis, then it is best to resort to a full truckload service from a freight forwarding company in the Philippines. However, if you have lesser demand for goods transportation, then LTL might favor your needs. It is really important to identify and weigh all the pros and cons involved in each method of freight delivery.
A freight forwarding company in the Philippines may also extend a hand if you are really not quite sure on which cargo space suits the needs of your business. If you’d like to get a consultation from a modern freight forwarding company in the Philippines, then you may contact Transportify and assess which cargo space services can be of benefit for your company.
3. Interisland Trucking
Since our country is composed of more than 7,000 islands, it is a big challenge to bring goods to different places without spending more on costs. One way to combat this surge in cost is by hiring a freight forwarding company in the Philippines that is able to service to many island groups with low rates. Interisland trucking is effective in trading cost reduction suited to island groups in Visayas and Mindanao.
Transportify Changing the Game of Freight Forwarding
Special Program For Business
Transportify understand how each industry has a different set of logistics needs; that’s why our program offers tailor-suit benefits that will support all business to seamless productivity. You can check out the table below the full list of benefits that no other logistics company in the Philippines offers. Sign-up to Transportify’s Business Program for free now!
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Real-time Tracking Feature
Back then, traditional courier service providers define package “tracking” by sending their clients a simple text message when the package reached its destination. That was how people “tracked” their packages—without knowing where the delivery item exactly is during shipping.
With Transportify’s real-time tracking feature, package senders and recipients can track the location of delivery items as they move from the pick-up location to their assigned destination. You can monitor your packages’ exact location in real-time through our trusted mobile app. Download the app now and start tracking your packages conveniently.
User-Driver Chat Feature
Before smartphones and on-demand delivery apps, sending packages were very different. Package senders have no direct contact with the driver of the delivery vehicle carrying their items. Thus, senders and recipients often worried whenever there was a delay in the delivery, as they have no idea what was happening to their delivery items.
Fortunately, Transportify took advantage of modern-day technology to solve this problem. With the User-Driver Chat feature on the on-demand delivery app, customers can now directly message or call the driver handling their delivery item. Now you have the option to chat with the driver and address your concerns about the package. And since this is a two-way chat feature, the driver can also message you whenever he has some concerns himself.
AI Delia
People used to wait in line in courier and freight forwarding centers for hours only to have their delivery requests rejected because of different reasons. Customers were left with no choice but to look for other options or go home with all their efforts wasted. To avoid losing the customer’s time and effort, Transportify came up with its Artificial Intelligence Computer Bot Delia. Delia helps customers find and book a delivery after the app failed to do so after two succeeding attempts. There’s no more waiting in line, and no more effort wasted.
Truly, Transportify’s mobile app is revolutionizing the freight forwarding and logistics industry with its unique and helpful features. You can download the app and experience firsthand the one-of-a-kind technology Transportify is offering as the trusted freight logistics company in the Philippines.
Advantages Of Technology-Driven Freight Forwarding Logistics Company In the Philippines
Track and trace, two-way chat feature, A.I assistance, 24/7 customer service line, and extra services cover a lot of ground by way of logistic service and experience. Transportify is a freight logistics company in the Philippines that changed the game with their tech and approach. Here are ways you can use this freight forwarding service to your advantage.
You Can Change the Game Too (Business)
When we talk about living in a global age, it isn’t only about how products and services make their way here from overseas. While we can all appreciate the hottest products at the best prices, we cannot ignore the struggle local businesses have to go through to stay competitive in this newly expanded market. In order to stay in business, they need to maintain relevancy. They have to be interesting, accessible, convenient—everything that large brands have the budget to be, but small enterprises fight to accomplish. They can tick off all the boxes when they have the financial backing, the workforce, or the right partnership.
Given how expensive it is to establish a delivery system on top of their original work looking for another freight forwarding company in the Philippines to outsource the work, it can allow them to be on par with larger companies. Even if people are generally skeptical about freight forwarding services, when they are pressed with a need—good experience can easily change their minds. It is hard to break habits. Popular brands rely on this kind of brand loyalty. In order to catch the attention of the everyday consumer, young independent businesses need to present an image that promotes a feeling of trust and care, especially when they don’t have years of experience to back them.
Transportify, with all its features, can become your partner in standing equal with established enterprises and foreign brands. Bringing back the attention to Filipino products and services is how you can change the game.
You Can Change the Game Too (Individual)
Businesses aren’t the only ones who can change the game, but individuals as well though just not in the same way. The track and trace feature takes away any unnecessary waiting for the consumer, which means you have the time to go about your schedule without hanging around the house for the arrival of a package that may or may not come on that day. It may not seem like much, but the convenience of knowing where your package is and when it will arrive means you are not controlled by such a small thing. You can dedicate your time to the things you need to do. If you have a particularly busy schedule, it will seamlessly work with your lifestyle.
The two-way chat feature allows you to get real-time information about your or the driver’s concern. Immediate action is key in avoiding small mistakes that can otherwise color your delivery experience. It takes away the gap between the package being sent out and you receiving it. The clear transaction can renew your trust in the system and expect more in the future, which in turn can change other logistics companies in the Philippines.
Besides the changes you experience when you are receiving, you can also change the game on the giving end. No package is too small and no reach too hard to reach with Transportify. Small acts of love, care, and consideration can be sent via the freight forwarding service, and you can’t put a price on that.
Conclusion
Freight forwarding is a very delicate service to support. We have also covered proper freight forwarding packaging tips to help you manage your cargo within your hands. Businesses must make a wise choice in choosing the provider that will fulfill their logistics needs. We could harp on about freight forwarding all day, given the depth and complexity of the service. If you still have questions after reading this article, then please do not hesitate to contact us today. At Transportify, we take great pride in offering a simple, transparent, and efficient service.
Start using Transportify by downloading the application using the QR Code or buttons below:
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How do freight forwarding companies transform business operations?
🚚 Freight forwarding companies help many businesses to easily process and fulfill their delivery requests with smooth handling and flawless documentation. A major benefit of hiring a reliable freight delivery company is increased revenues due to improved productivity and operating margins.
Where can I avail freight forwarding services in the Philippines?
🚚 There are a lot of freight forwarding services available in the Philippine market. You may look for a service using online listing platforms like Carousell and Facebook Marketplace. But if you or your business is looking for the most trusted and affordable provider, try to schedule delivery services with Transportify. This company is one of the modern freight trucking companies that is very easy to use. You just need to download the application and start booking for small vehicles and big trucks for heavy loads.
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