Questions To Ask A Freight Forwarder

Is the freight forwarder licensed or approved by the appropriate entities?
- In the United States, ocean freight forwarders must be licensed by the Federal Maritime Commission to handle ocean cargo.
- Although not legally required, the International Air Transport Association (IATA) registers freight forwarders to deal with international air cargo shipments.
  - Freight forwarders must meet the IATA criteria regarding financial and credit standing, physical facilities, professional qualifications, and ethical practice.

Is the freight forwarder big enough to handle your business when the forwarder is away from the office?
- Consider whether there is sufficient staff to answer questions or handle shipping instructions for your product at all times.

Is the freight forwarder financially sound?
- Commercial banks and trade references can help answer this question.

Can the freight forwarder handle whatever product you want to ship, whether you want to ship it by air or sea?
- The shipping needs of your product should be clearly spelled out in writing.
- The freight forwarder should be an import broker to handle customs for you, in case you need to import something or have goods returned from overseas.

Does the freight forwarder have a good network of agents overseas in your target market?
- A good network of overseas agents ensures a smooth path for your product with a minimum of delay.
  - This is vital for perishable products or ones that need special handling.
  - It can ruin your product’s reputation overseas.