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For New-To-Export Business Entrepreneurs

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… details that would be necessary to export. This presents an ideal opportunity for the new-to-export entrepreneur who is seeking to expand the business. Does a need exist overseas or across the border for your product?

Lack of export experience at the beginning can be somewhat offset by product and market knowledge, willingness to study, and an eagerness to learn. And we are here to assist! So let’s start class…

The Freight Forwarder

FREIGHT FORWARDERS ARE AN INTEGRAL PART OF THE EXPORTING BUSINESS. AS A liaison between the exporter, the transportation company, the banker, and an assortment of parties in between, freight forwarders can do much to smooth the path of exporting. However, an inefficient or careless forwarder can create major problems. Virtually all shippers depend on forwarders in varying degrees. Your dependence on the forwarder will be determined by the size and experience of your export staff, as well as on the level of control you wish to retain over the shipping and documentary side of your export operations. In theory, you would not need a forwarder at all, but very few firms would consider this possibility. A good forwarder employs a number of highly skilled people, who in a sense work for you. Therefore, it is wiser to let your staff, at least in part, double-check and support the forwarder’s efforts rather than rely entirely on your own.

The Functions of a Forwarder

Forwarders can act as your agent or representative, and can provide many valuable services, starting when you receive your first order and need help in making your quotation, to preparing the documents necessary for collecting the payment for your export sale. To be of maximum assistance, the forwarder should receive a copy of the letter of credit, if one is involved, together with your shipper’s letter of instruction (SLI). The forwarder can perform the following services, listed more or less in the chronological course of the export transaction: Click here!

Working With Your Forwarder

Exporters should not rely solely on the forwarder for freight quotations. Because of deregulation, stiff competition, constant changes in conference statuses, and frequent changes in rates both for air or ocean shipments, it is an extremely time-consuming task to get the best rates. Even though forwarders will offer to find the best freight rates available, and must try do so to remain competitive themselves, remember that even though the new computer programs help, their employees are under time pressures just as yours are, and that the forwarder has economic limitations to staff research time. It is in your own interest to check with the carriers directly, especially in the case of large shipments or new situations. It is wise to keep informed of any changes in the industry through trade papers and shipping magazines, since it is an area that can mean the difference between being fully competitive and something less. The prime publications for tracking ocean vessels are the Pacific Shipper and the Journal of Commerce, as well as the Shippers Digest, to some extent, for the East Coast (see Appendix L).

Finding the Right Forwarder

others, and some are to your advantage by being small, while other shippers will need the worldwide network of the very large concerns. Reliability is a key. There are many forwarders, so it is best to ask for recommendations and go to their place of business for an interview. Explain your needs and ask questions because this is one more support area that will determine your success. Once you have found a good forwarder for your purposes, or a set of forwarders if necessary, work with them closely and give them enough business so that it is a valuable partnership for both parties.

If you are in Canada, and looking for a Toronto freight forwarding company, we can recommend Alcon Logistics. Alcon Logistics is a member of the Canadian International Freight Forwarders Association and they adhere to the association’s rigid code of ethics.