Freight forwarding business, also referred to as the third-party logistics providers is a business which concentrates on the importing and exporting of goods and products in large quantities. Considering the many businesses throughout the world, surely, many of them have to ship items here and there. This fact makes freight forwarders very helpful. Without them, business transactions which involve shipping goods locally or internationally could be crippled. Since the demand for importing and exporting is significantly high, anyone who is interested in putting up such kind of business could be thrilled. But just like entering any kind of business, there are some canons a person should be knowledgeable about before officially starting this kind of endeavor. Here are some of them.
1. Study the laws and regulations. Since this business entails shipping goods from one place to another and each place or country has set specific and different requirements regarding importing and exporting, it is basic to know and study the decrees. This will minimize or even eliminate any problems or errors during and after delivery.
2. Be sufficiently knowledgeable about taxes and insurances. Shipping, especially international freight forwarding will always include taxes and insurances. Basically, you should know how much amount of tax you should pay in a certain place. There are obviously different tax rates in different places.
3. Establish a good business relationship with carrier companies. This business involves many different kinds of carriers – ocean liners, air liners, trucking companies, and rail freights. Since you are only starting your freight forwarding business, you are not instantly expected to have a huge network of business contacts from different countries or states. But before getting yourself into this kind of business, you need to have at least a significant number partnerships with other business owners or companies. Those relationships which you have built may not be directly connected to freight forwarders or carriers, but they could be of great help if you know how to make the most out of them. Other companies could be an excellent source of referrals. You could ask recommendations from those business establishments.
4. As the saying goes, “start small, think big.” This is also applicable to aspiring freight forwarding agents. Since you are only beginning, you could start shipping goods from state to state or from one place to another within the same country or state. But you should not stop there; you should have a bigger vision at the back of your mind that someday your business will grow into an international freight forwarding company. All you need is the right knowledge and skills, the right people, and determination.