Exporting to the United States – A Team Canada Inc Publication

8.7 Using freight forwarders

Dealing with shipping and customs can be very complicated and time-consuming in the early stages of the export experience, when you're learning your way around. An alternative to managing everything yourself is to use a freight forwarder.

Using a freight forwarder can have many advantages. A forwarder who specializes in moving goods to the United States will be familiar with U.S. import regulations, with the shipping methods that best suit your product and with the documentation and procedures needed to move it to its destination. A forwarder can also give you quotations on insurance, freight and other shipping services.

Forwarders normally offer these services for a stated fee plus documentation charges. Don't forget to factor these costs into the price you charge for your product!

When you're selecting a freight forwarder, you should:

• Request the forwarder's credit references and check them out.
• Request a list of customers and find out if they're happy with the forwarder.
• Find out if the forwarder has experience in handling your type of product.
• If you want air shipment, make sure the forwarder is registered with the International Air Transport Association (IATA) to deal with international air cargo.
• Determine whether the forwarder has the capacity to handle the volume of shipping you expect.

In Canada, many freight forwarders belong to the Canadian International Freight Forwarders Association (CIFFA). You'll find a list of more than 150 forwarders in their members directory.