Is it better to use the seller’s freight forwarder? Or is it better to use the buyer’s freight forwarder?

If the buyer’s company has a large multinational freight forwarder with whom it has a stable relationship, it may use the buyer’s freight forwarder; Conversely, it is recommended to use a seller’s forwarder .

Today, I am going to elaborate on this issue with some practical problems encountered in reality.

When it comes to international shipping, one crucial decision businesses face is whether to utilize the seller’s freight forwarder or opt for the buyer’s own forwarder. This article delves into the factors to consider when making this choice, examining the advantages and disadvantages of both approaches.

1. Benefits of Using the Seller’s Freight Forwarder：
2. Seamless coordination and integrated services from a single source；
3. Reduced administrative burden for the buyer；
4. Potential cost savings through consolidated shipments and negotiated rates；
5. Increased control over the shipping process；
6. Flexibility in selecting preferred carriers and routes；
7. Sellers may have easier access to information on the reality of local freight forwarders, transport prices, etc.;
8. The freight forwarder will provide a better service in order to get the order, which will make the whole logistics process smoother.

• Challenges in Using a Buyer’s Forwarder

2.1 Misrepresentation of Freight Costs

• Risk of higher transportation costs due to inaccurate quotes
• Importance of verifying and confirming freight rates

• Potential Conflicts and Demands
• Instances where the buyer’s forwarder may threaten the seller; Failure to cooperate with the seller in the shipment of goods.
• claiming commission from the seller; Impact on the purchase price of goods.

• Advantages of Using a Seller’s Forwarder

• Convenience and reduced responsibility for the buyer
• Simplifying logistics coordination time;
• The seller will certainly ask for prices from several forwarders to obtain the cheapest freight rates before obtaining an order in order to show a more competitive price advantage, which is undoubtedly beneficial for the buyer.

• Disadvantages of Using a Seller’s Forwarder
• Limited control by the buyer over the entire shipping process

• Freight rates may lack transparency as the overall freight rate is made up of several relevant factors and some sellers may not be able to provide a specific list of freight rates.

• The buyer is totally dependent on the efficiency and reliability of the seller’s chosen freight forwarder.

• Conclusion
• Evaluating factors such as cost, control, transparency, and convenience;

• Weighing the benefits and challenges of each approach based on specific needs;

• Considering the importance of effective communication and mutual trust;

• Emphasizing the significance of making an informed decision based on individual circumstances;