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Why a freight forwarder is a crucial link in your supply chain

In Freight Forwarding Posted March 21, 2023 at 7:09 pm
By David Thatcher


Freight forwarders are an importer or exporter’s secret weapon. A good one creates value throughout the supply chain. They bring a wealth of experience and a network of international relationships to give importers and exporters a competitive edge.

They are an essential ingredient of all global supply chains, yet many people are unaware of their importance. These professionals handle the logistics of transporting goods from one location to another, taking on various tasks to ensure that everything runs smoothly. Finding the best customer value is a big part of a freight forwarder’s job. Here are just a few reasons why they are crucial to your supply chain.


First and foremost, forwarders can help you save money. They have the expertise and resources to find the most cost-effective shipping options, whether by air, sea, or land. They also have established relationships with carriers, allowing them to negotiate lower rates on your behalf. Additionally, they can consolidate shipments to reduce costs and offer specialised services like temperature-controlled shipping for perishable items.

Freight safety

Safety is another critical benefit of using a freight forwarder. These professionals are well-versed in the regulations and requirements for transporting goods and can ensure that everything is properly packaged and labelled. This protects your goods from damage and prevents delays caused by mistakes like incorrect documentation.

Efficiency & network

Efficiency is another area where forwarders shine. They handle all the shipping details, from booking the transport to tracking the shipment and providing updates, freeing up your time and resources and freeing up your time to focus on your core business. Freight forwarders also have a network of partners around the globe, making it easier to move goods between countries and across borders.


Insurance is another essential aspect of shipping; a forwarder can help you navigate this complex area. They can advise you on the type and amount of insurance you need and assist with claims if something goes wrong. This peace of mind is invaluable, especially when you’re transporting valuable or high-risk goods.

Value-added services

But a freight forwarder offers much more than just the basics. Many also provide value-added services like customs clearance, warehousing, and distribution. They can assist with importing and exporting, ensuring all the necessary paperwork is in order. They can also provide storage solutions if you need to hold onto goods for some time.

Expertise & resources to specialised freight

No matter your needs, a forwarder can help you find a solution. They also have the expertise and resources to handle any special requirements or challenges that may arise. This could include shipping oversized or overweight items, handling hazardous materials, or coordinating multi-modal transport. For example, during the first years of the Covid pandemic, Magellan Logistics developed an Air/Sea solution for freight to and from Europe, allowing customers to reduce costs by as much as 50% and speed up transit times.

Adaptability and expertise

Another advantage of using a freight forwarder is their ability to adapt to changing circumstances. The shipping industry constantly evolves, with new regulations, emerging technologies, and fluctuating market conditions. Freight forwarders are well-equipped to stay on top of these changes and adjust their strategies accordingly – giving you confidence that your shipments will be handled with the most up-to-date and effective methods.

Handling complex logistics

One of the most profound benefits of using a freight forwarder is their ability to handle complex logistics. This can include coordinating multiple modes of transport, triangles and cross-trades, navigating the different regulations and requirements in other countries, and dealing with unexpected challenges that may arise. Forwarders have the expertise and resources to handle all these details and ensure your goods reach their destination as smoothly as possible. Experienced forwarders have seen it all.

Industry trends & insights

In addition to handling shipping logistics, freight forwarders can provide valuable insight into market conditions and trends. They will work with you to determine the best routes to take, the most appropriate and competitive carriers, and the most cost-effective options to meet your needs. Their deep knowledge of the shipping industry allows them to guide you on matters such as choosing the most appropriate mode of transport for your goods. There are many options to consider, including air, sea, and land, and each has its own advantages and disadvantages. A freight forwarder will help you weigh the factors like cost, transit times, and reliability, to help you make an informed decision.

This kind of expertise is invaluable for businesses looking to optimise their supply chain.

Finally, it’s worth noting that forwarders can provide a degree of flexibility that may not be possible when dealing with carriers directly. Many forwarders offer a range of services customisable to meet your specific needs. This means you can choose the level of support you need, whether it’s just basic logistics support or a full-service solution.

In short, freight forwarders are vital partners in the supply chain process, providing benefits that can help your business save time, money, and resources. From handling complex logistics to providing market insight and offering flexibility, these professionals play a crucial role in ensuring your goods reach their destination safely and efficiently.

Overall, the benefits of using a freight forwarder are numerous. From cost savings to safety and efficiency, these professionals play a vital role in ensuring your supply chain runs smoothly.

So, the next time you plan a shipment, partner with a freight forwarder, take the uncertainty out of the process and ensure your goods reach their destination safely and on time.

Magellan Logistics provides freight and logistics services to all industries, including sea freight, air freight, customs clearance and the all-important digital freight portal providing 24/7 visibility of all your shipments. Get in touch with one of our freight specialists on 1300 651 888.

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