What is a freight forwarder and what are the advantages of working with a freight forwarder in Mexico?
What is a freight forwarder?
A freight forwarder in Mexico, or an international freight agent, is a business that works on behalf of exporters and importers to organize the shipment or transport of goods in a cost-effective, reliable, and efficient manner. The freight forwarder is a key actor in international trade operations, as it is responsible for managing the shipment of goods globally. Freight forwarders are specialized in reducing costs and facilitating and optimizing transport logistics. The Tecma Group of Companies Logistics Services performs many of the tasks typically performed by freight forwarders in Mexico.
What does a freight forwarder in Mexico do?
A freight forwarding company plays to the role of an intermediary between the sender of goods and their distribution endpoint. Although freight forwarders in Mexico do not carry out the shipment of goods by themselves, they have access to different modes of transportation such as road transport, air shipment, rail, and maritime transport.
A freight forwarder collaborates with its trusted contacts, with carriers, partners or collaborators, from trucking lines and air transport specialists to transoceanic lines, to negotiate the best possible price to carry goods through established trade routes. Such a company also evaluates several offers to choose the best route that optimizes speed, costs, and reliability. A freight forwarder in Mexico considers all the variables necessary for the analysis of each goods transportation case.
Normally, a freight forwarder handles a large volume of shipments that transits from one international destination to another. They are a part of what is established as a “triangular operation.” Triangular operations involve at least three parties. They are manufacturers, intermediary/s, and end customers. Although each can be located in different countries, there can be a single transport and a single delivery of goods. Such an operation can be complex from a documentation point of view and may involve that payment of duties and taxes.
Many freight forwarders in Mexico are Authorized Economic Operators that participate in CTPAT. CTPAT is the US Custom’s Trade Partnership Against Terrorism program. Among the benefits of gaining CTPAT certification from US Customs are:
- The prevention of drug trafficking and terrorism, as well as the reduced possibility of a loss of goods and from theft;
- The reduction of chances of undergoing inspections by US Customs;
- The strengthening of organizational security processes and procedures;
- The economic benefit that results from better delivery times;
- The enhancement of public image that comes with the participation in a US Customs program that enhances trade safety and security.
Freight forwarders in Mexico provide a wide range of value-added services
In the process of organizing shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution freight forwarders provide many value-added services. These include:
- Advice on matters of international trade;
- Advice on transport cost optimization: freight costs, special documentation costs, and customs charges;
- Insurance of goods: some freight forwarders in Mexico offer very advantageous conditions for transport insurance at competitive premiums that protect shippers’ goods throughout all stages of the transportation process;
- Advice for proper packaging, labeling, loading, and storage of goods;
- Preparation and presentation of documentation for the correct management of international trade transactions;
- Reports and custom performance KPI reports;
- Tailor-made solutions for specific shipping and transport needs;
- Advice on the best means of transport and the best route for shipment according to the origin, the character of goods, the destination, the seasonality, danger, and the urgency of goods (truck, plane, train or ship).
- Advice at the customs level from the appropriate tariff classification of goods to the necessary documents for customs clearance;
Advantages of a freight forwarder in Mexico
Freight forwarders offer unique benefits for businesses that are involved in international trade that seek optimized transparency and flexibility. What sets companies that provide these or similar services such as the Tecma Group of Companies apart is their ability to deliver customer service that is tailored to the needs of each company with which they do business. Already in place is their network of global agents that prioritize accuracy, speed, and efficiency for all parties that are involved in international trade transactions.
The advantages of using a freight forwarder in Mexico include:
- Cost Savings – Freight forwarders act as purchasing managers. They can negotiate good prices for all of the services that their customers require;
- Freedom from Multiple Contracts – When moving goods from their source to their destination freight forwarders in Mexico enable companies to go from the start of transport to its finish under a single contract;
- Tranquility – Freight forwarders offer reliability in the shipping process which translates into greater tranquility. Hiring an expert organization in this area allows companies to avoid having to attend to many of the complex administrative issues that have to be addressed in an international trade transaction. The freight forwarder in Mexico acts as a single supplier for handling all aspects of the shipping process.
- Flexibility – Freight forwarders offer unique opportunities that can be useful in meeting rigorous deadlines or in facing unforeseen obstacles. An experienced freight forwarder in Mexico has dedicated resources that are needed to manage circumstances that result in shipments