Overview

it is important to determine how to ship your goods to international customers in a competitive and efficient manner. It is advised to resort to the expertise of customs brokers and freight forwarders.

It is yet crucial to understand the basics of shipping and selecting the right freight forwarder and customs broker. As logistic companies are in charge of shipping your goods to your clients, your success is linked to their know-how, quality, and reliability in logistics. Take the below steps to get started with organizing your freight & logistics.

1. Understand Who is Who

• A freight forwarder acts as an intermediary between the exporting company and the final destination. It ships the cargo on behalf of the exporter and offers different transport modes: ocean freight, air freight, rail freight, and/or road transport.


• A customs broker is a person or company that can assist importers and exporters in handling customs formalities that arise from the import and export of goods.

2. Familiarize Yourself with INCOTERMS

In international trade, it is important to get familiar with the International Commercial Terms (INCOTERMS). These three-letter trade terms determine which parties (buyers and sellers) are responsible for various costs and details throughout the shipping process such as freight, insurance, duties and taxes, customs clearance, and documentation. These obligations can be summarized in the below diagram detailing the tasks, costs, and risks associated with the transportation and delivery of your goods across the various shipment terms.

Visit the International Chamber of Commerce to learn more about INCOTERMS rules.

3. Analyze your Company’s Storage and Transportation Needs

Before searching for a freight forwarder, you have to define your needs:

• what services do you need?
• What transportation modes do you need?
• What is the average volume of shipments?
• How does your product need to be transported?

This information will give you a clear direction on the type of freight forwarder to look for.

4. Conduct Research on Freight Forwarders and Custom Brokers

Once you have specified your needs, you have to carefully research the best freight forwarders and customs brokers. Check several international shipping companies and compare their services and costs. Make sure they can meet your basic requirements and provide you with the level of service and quality that you require.

5. Check Freight Forwarders and Custom Brokers Experience

If you have selected several freight forwarders that meet your basic requirements, get more in-depth insight by getting references to see if they have the know-how to handle your goods and are a trustworthy partner. Ask yourself the following questions to determine if they are suitable for you:

• Does the freight forwarder have experience in your industry?
  
• Does the freight forwarder have the appropriate certifications and licenses? You may resort to the Ministry of Public Works & Transportation for the full list of licensed freight forwarders in Lebanon.
• The freight forwarder a member of a professional network?

6. Select the Freight Forwarder with the Right Array of Services

The services per freight forwarder can differ significantly from one to another. Some only arrange transportation, while others take care of the full logistical process, including shipping documents from door to door. If your transportation requires several shipping modes and/or warehousing is needed, make sure that your freight forwarder offers multi-modal shipments and other logistical solutions.

Some of the services that they can provide include:

• Giving advice for proper packaging, labelling, loading, and storage of goods
• Recommending the best means of transport and best routes for a shipment
• Booking cargo space
• Negotiating freight charges
• Arranging and tracking international transportation
• Preparing shipping and export documents
• Warehousing, including fulfillment warehousing or 3rd party logistics warehousing
• Arranging cargo insurance
• Giving customs advice

7. Make Sure of your Freight Forwarder and Custom Broker Experience

Check if your potential freight forwarder is well-connected with other forwarders and transportation companies. Make sure that it has a wide network of partners within Lebanon but also internationally. Ask yourself the below questions:

• Are they located close to you and your customers?
• Can they grow with you as your business expands?

8. The Importance of Having Excellent Communication and Customer Service

International transportation and logistics is a complex business and hence good and prompt communication and customer service is key, especially when problems with your shipment occur. Hence, judge the customer service quality:

• Look for open communication and transparency.
• Does it offer a single point of contact and short waiting time in case you have questions?
• Does the forwarder offer online tracking and timely notifications?

9. Make Sure of Mitigation Risk

To conclude, international logistics is complex and involves many different procedures which can cause issues when the right knowledge and documentation is unavailable. Your freight forwarder should be able to mitigate the risk and handle issues when they arise and handle them timely and proactively. The price is hence not the only determinant that you should decide upon. You should select the service provider that can cover the entire process, and with which you can establish a long-term relationship.