You’ve been in the industry long enough to see freight forwarder quotes all over the board. And we’re assuming you’ve always aimed to pick somewhere in the middle – the low priced are ‘too good to be true’ and the high-end vendors must be ‘out of their mind’.
But aside from the occasional dishonest vendor (who’s just trying to hose you on pricing), have you ever paid due-diligence to why a freight forwarder might be offering higher pricing on a quote?
High-Priced Freight Forwarders: Are They Worth It?
In order to understand whether a high-priced freight forwarder is worth it, let’s first look at why they would charge a higher price in the first place:
This is particularly relevant in RFQs, but you should be mindful of it any time you request a quote from a freight forwarder.
Do they truly know exactly what they are quoting? Factors such as incoterms, method of shipping, transit time, schedule, routing, and many others can all affect pricing a ton.
If you send out an RFQ to freight forwarders and they are not crystal clear on every single detail regarding what you need pricing for, you are bound to get quote responses all over the board. RFQs often leave out crucial details in the quoting stage.
Value Beyond Shipping
A freight forwarder shouldn’t just be a tool to move your product – they should be a source of value and institutional knowledge. You hire a freight forwarder for their expertise. While you may have your own ideas on how to move your product, a freight forwarder should provide additional insights into how you could better manage your logistics.
These are often the conversations and service offerings you will find with higher-priced freight forwarders.
Is it worth it? We suppose that’s up to you, but often the higher quote for an initial move ends up paying itself off in the long-run through safe shipments, faster transit times, and better trade agreements.
Unless you know for certain that the price you received is for the exact details of the shipment, you can’t really predict what it will end up costing in the long-run. Aside from shipment-specific details, the sheer annual volume you ship will affect your future shipping rates, as contracts with freight forwarders can be negotiated.
Not every highly-priced freight forwarder is trying to hose you on pricing. Often, you’ll end up paying more for a well-thought-out, secure logistics process that saves you company money and time in the long run.
If you are hesitant to switch, or are just wondering if you’re company is correctly comparing rates from RFQ responses, reach out to one of our team members! We are happy to help you interpret the information you’re receiving.