Freight forwarding is one of the most crucial components of the global supply chain. A good global forwarding company adds extraordinary value not only in moving goods for their clients, they facilitate bottom line revenue through cost savings throughout the business.
What Are Global Freight and Global Forwarding?
Global freight is the product of the global freight industry. This is the movement across the globe of materials and goods to facilitate trade; a key component of every business that uses or sells physical products. Global freight is a vital driver of economic growth and development, linking trading nations and consumer markets in increasing complexity. As we demand a wider variety of goods, so the global freight supply chain is responsible for co-ordinating the import and export of all the components that create those goods.
Global freight is supported by transportation networks consisting of road, rail, sea, and air freight solutions. The industry includes all the companies and government agencies that advance and enable the process.
Global forwarding is the process by which a forwarder uses their contracted relationships with multiple carriers and their expertise to create logistical solutions. The forwarder is the coordinator and manager of the movement of goods, between freight carriers, over land, air and sea.
These forwarding companies typically manage international shipments and the required customs documentation as well as other requirements such as the bill of landing, export declarations and commercial invoices. A strong forwarder can ensure that your goods arrive on time and within budget, mitigating risk through their knowledge and cost saving strategies.
Experience Is King
Moving goods in a reliable and timely manner is the core function of a reliable forwarder, and contingency plans are built-in as part of the expected service delivery. In the case of TGI, we have moved freight even during war time, so we know what it takes to think of every risk and ensure our clients are happy with their experience every time.
Engaging a good freight forwarder means that you have access to years of experience and expertise. Working with the support and advice of a provider who has researched the best possible logistical solution, especially one who quotes end to end, will make your business run smoothly.
Creating a solution that enables a quick and successful transaction saves every business hassle and stress. With the right global forwarder, the entire supply chain is freed up, so that goods flow freely as needed within the business and to their clients.
For example, we created a “world record” in terms of weight and distance travelled within a set space of time for one client, when a major shut down was causing huge delays within their timeline.
Economic and Trade Benefits
With a competent provider, freight forwarding should offer the most cost-efficient services from shipping methods. However, there is a further benefit to engaging with a global forwarding expert.
Through overseas sourcing and the economies of scale, we often see that the unit cost of goods and materials can be reduced, leading to a higher profit per unit sold. We also consider the cost of time versus money in freight.
For example, if your crew is waiting for goods via a slower (lower cost) carrier, it’s possible that the wages and project timeline costs are not worth the freight cost savings. That’s why we won a major Gas and Oil industry project with a timeline blow out of 3 months. Not only did we fulfill on the freight forwarding needs, we also caught up the timeline and saved millions for the business in other costs, such as wages.
Trade creates stronger international economies, which creates more potential for trade, which is the principle of ethical and efficient global trade: everyone wins!
Contact TGI Cargo for your global freight and global forwarding needs on +612 6198 3283.