coping with unforseen challenges

How Freight Forwarders Can Help Companies Cope With Unforeseen Challenges and Stay Competitive

Freight forwarders create supply chain resiliency with core benefits to help you stay competitive. Learn how today.
GEODIS Logo by US Marketing 02/03/2023
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Effective freight forwarding and network partnerships provide a protective effect against disruption. The level of outsourcing within the logistics industry is also anticipated to climb.  Global logistics outsourcing will grow at a CAGR of 4.77% through 2027, according to data cited by Business Wire. Global crises continue to evolve, and as shared by DC Velocity, 76.6% experienced external disruptions in 2022. Preparing for risk is crucial in foreign trade, and the time to build supply chain resilience is now. The data also supports that fact; 70.1% of companies took measures to achieve resiliency in 2022. One core way to build supply chain resilience comes from the benefits of working with freight forwarding companies.


Freight Forwarding & Route Optimization

Route optimization is among the most considerable benefits and opportunities of working with a forwarder. Ocean freight forwarders will work

with you to ensure the best terminal is used for each load, considering all factors beyond the shortest route. Meanwhile, full-service transportation services and supply chain optimization make it easier to visualize overall costs and opportunities for savings. Of course, this includes access to intermodal solutions, including air freight, rail, ocean, and barge, that consider all possible routes to create the right mix of solutions to reduce costs without sacrificing quality or speed of service.

Freight Forwarder route optimization


Customs Clearance and Document Management

Customs clearance forms another core benefit of working with freight forwarding companies. These entities are well-versed in the requirements for pre-checks and inspections to reduce costs and delays. That also includes assisting in setting up free trade zones (FTZ) or evaluating your loads for savings through different freeports around the globe. Forwarders will understand the unique nuances of imports and exports in the US, the requirements for Customs and Border Protection (CBP), and what’s needed to reduce delays.

Customs clearance further includes document management capabilities, such as serving as the importer or the exporter of record. This reduces your liability and risk in paying all appropriate duties, taxes, or fees associated with global transport. And in global trade, forwarders may also serve as the merchant of record (MOR) for e-commerce fulfillment. These roles help to speed time to market for products and reduce overall snags.


Compliance With Varying Laws and Regulations

Differences in regulations and laws are rampant in global trade. Each country may have varying rules and requirements for cross-border shipments, and that variability is an inherent risk.

For example, the German Supply Chain Law is perhaps the most recent notable risk in regulations in the industry. The law requires that any large company, according to defined criteria, must report ESG data to their German customers. Yet, fines can be as high as 2% of global turnover, reports Juliette Roswell via CIPS.

Working with expert freight forwarding companies will ensure your operations comply with all such laws. And in this example, that would include tracking ESG data for any shipments a forwarder handles that are subject to the reporting requirements. Ergo, your responsibilities as the shipper are easier to track and maintain.

The law is also expected to be the foundation of international freight sustainability laws. Specifically, the German Supply Chain Law is a precursor to an EU-geared version that will inevitably make international trade more complex. Still, your partners should have the resources and understanding to take these regulations and ensure your compliance.


Scalability With Increased On-Time Deliveries

Many organizations work with freight forwarders simply for their ability to scale operations. Since forwarders’ whole businesses are based on serving the needs of both carriers and shippers, their talent is highly vested in ensuring on-time deliveries. Ergo, companies get a higher service tier and can rest assured that forwarders are using the latest technologies and resources. Also, forwarders may have different technologies and solutions to streamline communications and reduce confusion. These tools create a highly scalable solution that grows with your company and empowers your downstream network. And since their work occurs behind the scenes, your customers experience a disruption-free and on-time delivery, which supports your business goals.

Freight forwarder scalability


A Diverse Suite of Value-Added Freight Forwarder Services

The traditional definition of a customs broker versus a freight forwarder has also evolved. Rather than forwarders sticking solely to managing the process, many have embraced a more hands-on approach and taken on brokers' characteristics. These combined customs broker and freight forwarder companies may now offer multiple value-added forwarding services, including but not limited to:

  • Cargo insurance selection, services, and claims filling. 
  • On-demand reporting and forecasting that considers data from both internal and external sources. 


Reap the Benefits of Freight Forwarding With GEODIS

From international shipping through import and export considerations, as well as value-added services, a global freight forwarder is essential to modern business. The top freight forwarders also recognize the value of networking and continuously work to build other service offerings to support your brand. Connect with the experts at GEODIS to streamline your freight forwarding and customs management processes today.

US Marketing
Freight Forwarding
GEODIS Freight Forwarding US Marketing Team is dedicated to providing relevant content to keep you informed. In collaboration with our product experts, you will find articles and insights regarding solutions and expertise for your Supply Chain. To discuss requests specific to your organization's needs, please click the link below to be connected with a GEODIS representative.