excelsior, Author at Excelsior Worldwide Logistics Corp.

Ideas for More Efficient & Productive Brokerage Operation

excelsior on April 19, 2017

Efficiency and productivity are two of the most important metrics that business owners are determined to achieve both on a short and long-term basis. And this is especially true in the brokerage industry. Because of the complexity of the international trade, along with other intricacies in the industry, managing a customs brokerage firm can be really challenging sometimes.

That said, in order to provide the maximum level of service quality, customs brokers must ensure a fast and efficient process. To help you with that, consider these tips that will help boost the efficiency and productivity of your brokerage operation today.

1. Take Advantage of Digital Tools

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We’re practically living in the future, so do not fail to take advantage of the technological tools that can help streamline your business’s operations.

New digital tools such as track and trace apps, web reporting, document imaging, electronic billing, etc., make it easier to submit documents to your clients, track the movements of goods, manage paperwork more efficiently, and stay up to date with the latest news in the international trade.

Though they require significant upfront investment, equipping your business with digital tools will surely pay off in the long run.

2. Find Ways to Lower Import Cost

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As a broker, it is not only your job to get the shipments on their final destination legally, but also give your clients more chance save significant money in the shipping process. You should always seek ways to legally reduce the import cost.

For example, you need to be aware of certain goods that may qualify for preferential access, granted under Preferential Trade Agreements. In this circumstance, import tariffs are significantly reduced, helping your client to reduce their importing expenses.

3. Keep Your Records Up-to-Date

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Brokerage companies must always keep a well-maintained record of all shipments, from procurement to payment for seven years. This includes documents such as invoices, shipping records, proof of origin, markings, value adjustments, and others.

4. Choose a Niche to Specialize In

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Selecting a niche to focus on will help you develop a specific domain expertise that your competitors won’t have. A niche can be a country or region, a specific industry like automotive or garment, a specific mode of transportation like ocean or trucking, or specific service levels like high interaction, high compliance or lowest cost. It could also be the size of clients you want to have business with.

5. Stop Working with Carriers that Under-Perform

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For sure, all brokerage company will encounter a few occasion problems on their operations, but it is when the failure of the service become chronic that you have to consider dropping the carrier from your timetable.

Carriers who don’t deliver on their promise will not only affect your reputation but will also keep you from having loyal customers. While it’s one thing to give them a second chance, you need to draw the line before the problems affect your own business.

6. Outline the Scope of Your Service

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To avoid disputes with your clients, you need to clearly outline your duties and responsibilities as a broker. In doing so, you also give them a clear idea of the scope of your service. For instance, when they ask for your expertise about a very specific case, you must tell them outright if the cost of such services (consulting) is already included in the regular brokerage fee or if they are charged additionally.

7. Stay Updated

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International trade is always changing. So, to avoid accidental non-compliance, you must keep up with the latest rulings, trade news, regulatory changes, and cross-border issues which can impact your and your client’s business. It is also advisable if you attend educational events such as compliance and risk management seminars regularly. These events will not only help you improve your knowledge but also give you the chance to expand your network.

8. Be Responsible and Trustworthy

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As a broker, you are tasked to represent your client to the best of your abilities – and this includes full adherence to applicable customs laws. If you fail to observe these laws while doing business on behalf of your clients, it can result in irreversible damages, delays and revenue losses. Worse, it can damage the reputation of your brokerage firm and of your client.

You must know your scope of authority, make effort to improve your skills and conduct internal audits to improve operational efficiency. An honest broker also provides accurate data and discloses any false or misleading information to their client.

These are just some of the ways to ensure that the productivity and efficiency of your brokerage firm are always at the optimum level. Need a helping hand on starting your import and export business today? Contact Excelsior Worldwide Freight Logistics Corp. and let us help you in your journey in the import-export industry this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Tips to Grow Your Import/Export Business

excelsior on April 12, 2017

Starting an import and export business is one thing, knowing how to grow it from the ground up is another. It is true that this line of business can be so rewarding. But just like any other ventures, import/export also requires you to effectively move within the intricacies of its internal and external environment.

For most enlightened part of import and export business, having the right idea, the right amount of capital, and right tools and knowledge are the three basic components of success. Given that you have already established an import-export business you wanted to pursue, the next thing that you should do next is to learn how to grow your business in a smart way.

In this post, we will discuss the top five tips to keep your import-export business running and thriving this 2017 and beyond.

1. Build Relationship

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Perhaps the most obvious one. While the success of a business relies on relationship – whether with suppliers or customers – not all business owner knows this. If you are just starting out in your import-export business, then you should make networking with people in the countries you wish to export to one of your top priorities.

You can make use of social networking sites such as LinkedIn to help you with this task. It is a great place where many business owners engage with each other these days, as it allows you to expand your network and build a reputable name for your brand.

Also, while it is important to build a relationship with your suppliers, clients, and your own employees, you must not forget about those helping you with the logistics of your import-export business – your freight forwarder. If you don’t have a freight forwarder you trust, Excelsior Worldwide Freight Logistics Corp. is ready to be your partner and use our years of experience in importing and exporting to help you.

2. Keep Your Business Organized

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In any kind of business, efficient and organization and management is a must to ensure that all the company’s resources are maximized and is helping you reach your desired goals. This is especially true in import and export industry, where you will most likely deal with different trading partners from different regions.

To keep your business organized and make sure you don’t get lost on track with your international dealings, make sure to use online tools to your advantage. This could range from to-do apps such as Trello, Evernote, and Wunderlist, to online invoicing platforms such as Due, Sighted and Invoicera. The advantage of using an online invoicing service over email is that it keeps all your payments administration and communication in one place, plus it allows you to work collaboratively with your clients despite geographical constraints.

3. But Keep It Flexible

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Dealing with different clients and suppliers around the world also mean encountering and managing different cultures and preferences in doing business and completing transactions. It is important to keep your business adaptable and to work with your clients regarding their preferred modes of delivery and payment options. Doing so will allow you to build a stronger relationship with your clients which is essential to your business’s success.

4. Ensure a Healthy Cash Flow

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Just as important as an organized business is an efficient cash flow. Even if you know to yourself that you are perfectly profitable and have a number of pending payments and potential clients in the pipeline, it is still good to have a solid pool of working capital at hand to help your business manage cost when payments get delayed for any reason.

If you are exporting, you may consider asking your clients to pay at least half of the payment first before sending a lot of high-value product. Remember: facilitating a payment of an invoice, we take on all the risk of late payment – or worst, non-payment of that transaction.

5. Consider Improving Instead of Expanding

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While most busin ess people would want to expand their business to different regions, this is not the smartest thing to do for most of the time. If you export to China, there is nothing wrong with wanting to export to New Zealand, Japan, and European countries too. But as you spread your operations to those other countries, you must consider if your current business model can provide the same service you were giving to your clients in China.

Focusing in on how you can further improve the services you provide to your current customers and how you can be more effective in a region to which you already export can be much more profitable than exporting to a new region. Focus on what you do best first in order to ensure that your business is standing on a very strong foundation. This will result in expanding your client base in a region which you currently serve, and makes exporting to other regions much easier.

As the old adage goes: “Growth is never by mere chance; it is the result of forces working together”. To ensure that all your efforts will come to fruition, you must know how to steer your organization – from the employees up to top-level executive – towards a common a goal. Make sure to consider these tips and you will surely propel your import and export business forward into success.

Need a helping hand on starting your import and export business today? Contact Excelsior Worldwide Freight Logistics Corp. and let us help you in your journey in the import-export industry this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph

10 Mind Blowing Facts About the Worldwide Shipping Industry

excelsior on April 5, 2017

One of the oldest industry in the world is the shipping industry. Though it is often unacknowledged by many of us, it plays a very crucial in today’s global economy. In fact, almost 90% of the things we purchase and use today – from smartphones and construction materials to toiletries and utilities like oil – arrives via ship, according to Rose George in his book Ninety Percent of Everything.

In this post, we will take you on a journey inside the little-known yet very interesting world of shipping and discuss the most amazing facts that surround it.

Guide to Starting an Import and Export Business in the Philippines

excelsior on March 27, 2017

In our recent blog, we have talked about the latest business ideas that you should consider if you are planning to start an import and export business in the Philippines this 2017. As we have discussed, establishing an international trading business in the Philippines is a good idea for it allows you to take advantage of the most in-demand products from all over the world and earn above-average profit from it.

Given that you already have a specific product in mind that you want to import or export, the next step you need to take is to learn how to set up an import and export business properly. In this post, we will discuss a simple guide that will help you jumpstart on your international trading business today.

1. Types of Import/Export Business

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There are different variations of this business, which includes the following:

• Export Management Company (EMC) – Handles export operations for a domestic company that wants to sell its product overseas but doesn’t have the technical know-how or doesn’t have the resources to conduct the operation in-house.

• Export Trading Company (ETC) – Identifies the in-demand products in a foreign market and then hunts down domestic sources willing to export such products.

• Import/Export Merchant – More of like a freelance agent who purchases goods directly from a domestic or foreign manufacturer and then packs, ships and resells the goods on his own.

2. Know the Top Trading Partners of the Philippines

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Below is a list of the top 5 countries with which Philippines trades (in order of largest import and export dollars to smallest) are:

• Japan

• United States

• China

• Hong Kong, China

• Singapore

You didn’t have to secure trade deals with importers and exporters in these countries since there are other emerging markets in other countries like in Europe and the Middle East. But as a beginner in the industry, you should familiarize yourself with the biggest trading partners and see what they have to offer.

3. Develop a Comprehensive Business Plan

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A comprehensive business plan is essential for every starting business. A business plan describes what you plan to do and how you plan to do it. It should include the following:

• Your business structure, industry, the product or service you specialize in.

• Start-up cost, income and billing, operations structure, budget forecast.

• Your target market; their demographics, buying motives and your plan to win them.

• Your projected income and cash flow statement, balance sheet and other financial ratios.

4. Make Your Business Legal

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After you developed a business plan, you will need to register your new business with the Department of Trade and Industry if it’s a sole proprietorship, and to Securities and Exchange Commission (SEC) if it is a partnership or corporation. You will also need various types of licenses depending on the types of products you will be importing and/or exporting. You will also need to register with the city or the municipality where you intend to operate the business as well as with the Bureau of Internal Revenue (BIR).

5. Coordinate with Other Local Start-ups

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As a beginner in the international trading scene, it is wise if you talk to other business owners who are already running a startup venture in the Philippines. They can give some useful advice on how to react to the challenges you will be facing as you take the first steps in your business, and even some practical tips on where to find a good source of suppliers for your products.

6. Find a Reliable and Trustworthy Freight Forwarding Firm

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One of the most crucial, yet often overlooked decision when it comes starting an import and export business is choosing the right freight forwarding partner. A reliable and honest freight forwarding company provide significant advantages that will not only help you gain a competitive edge but also ensures that all your import and export transactions are done legally, ethically, on budget and on time.

These are just some the basic steps that you should consider when starting an import and export business here in the Philippines. Follow these tips and you can certainly start your very own business that can literally take you all over the world today.

Need a helping hand on starting your import and export business today? Contact Excelsior Worldwide Freight Logistics Corp. today and let us help you in your journey in the import-export industry this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Top 10 Ports in the World (Infographic)

excelsior on March 15, 2017

For centuries, ports have played a critical role in global commerce, making it possible for different countries to acquire its much-needed resources and products that are impossible to transport through other means. For importers and exporters, ports provide them with benefits that come from foreign resources and investments, as well as the advantage of having access to larger and more open markets.

With such importance, there has been a steady support for constructing new ports around the world in the past recent years. According to World Port Source, there are more than 4,500 ports that are currently serving the global market.
That said, there are ports that are “busier” than others. In this post, we will present the top ten ports in the world in terms of container traffic passing through them.

Why Shipping FOB is Better Than CIF?

excelsior on February 17, 2017

Choosing the right Incoterms is a vital part of the shipping process. This ensures that both parties – the seller and the buyer – understands their responsibilities, and at the same time, streamlines the whole shipping process so that the freights are delivered efficiently and in a timely manner.

For shipments that are transported through the inland waterway transport, shippers have four Incoterms to choose from: Free Alongside Ship (FAS), Free on Board (FOB), Cost and Freight (CFR), and Cost, Insurance, Freight (CIF). A detailed explanation of these Incoterms is provided in our previous blog Importer Facts: Choosing Your Agreement Between Your Supplier – Incoterms 2010.
In this post, we will focus on the advantages of FOB over CIF, and why it is a more convenient option for shippers.

Free on Board

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The seller fulfills their obligation when the goods have been delivered on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. This Incoterms indicates that the seller has to shoulder all the costs and risks of loss and damage to the goods until the goods have finally arrived on board the vessel, and the buyer will bear all costs from that moment onwards.

Cost, Insurance, Freight

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The seller fulfills their obligation to deliver when the goods are already placed on board the vessel nominated by the seller or procure the goods already so delivered. The risks of loss and damage pass when the goods are on board the vessel. Aside from freight and clearance cost, the seller needs to procure and pay for a marine insurance against the buyer’s risks of loss of or damage to the goods while in transit.

Advantages of FOB

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One of the main reason why many shippers choose FOB than CIF as the term of sale is because it allows for greater control over the freight and the freight expenses. This greater control can help you have an upper hand in minimizing the overall import cost while providing you with maximum convenience as possible.

Most first-time importers usually use CIF to transport small quantities of goods because it also offers convenience by having the seller deal with all the shipping and freight details. However, choosing this agreement can only lead to higher freight cost at the end. This is because the seller can collaborate with their forwarder to increase the markup of the freight cost, allowing them to make a profit. As an importer, you can’t do anything to affect the invoice given to you by the forwarder.

When shipping FOB, you have the power to control the overall shipping process, allowing to make significant cost savings. You can select your own freight carrier, you can choose which route has to be taken, select your own agents to handle the shipments when it arrives, organize an insurance policy as well as set your own transit time.

Another benefit that FOB provides is the convenience and transparency of working with only one contact agency throughout the process. This means that whenever you have questions or issues regarding your freight, you don’t have to meddle with different entities just to get a clear answer and feedbacks. This also ensures that the carrier will be working with only your best interest in mind because their sole purpose is to deliver your goods to its destination.

Shipping CIF on the other hand, is more disadvantageous, especially if your goal is to save money from your shipping cost. It relinquishes you with any control over your shipments while also passing more responsibilities and risks to your part.
The seller can use their preferred shipper and their own transit times. Delayed shipments are also harder to resolve since transportation is beyond your control, and there are other parties that may be involved in different stages which make it harder to obtain information about the cargo. Another factor to consider is that since it was the seller who paid the carrier, there is no obligation to fulfill your needs.

From the buyer’s perspective, FOB offers greater control over the shipping process compared to what CIF does. Not only it provides greater flexibility, but also gives you control over the shipping cost, and subsequently, the overall cost of the cargos.

Contact Excelsior Worldwide Freight Logistics Corp. now and let us help you in your journey in the international trade this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Top Factors That Impacts Transportation Management

excelsior on February 10, 2017

Transportation management is a critical component for many importing/ exporting businesses. If planned carefully and properly, an effective transportation plan can be a potential area of significant savings. And with that, many are constantly trying to figure out the most cost-effective and efficient way to get their goods from one point to another.

That said, companies often consider multiple factors to achieve optimum cost in transportation. However, there are factors that can have the biggest impact on a company’s transportation management. These are:

1. Organization’s ability to negotiate for better rates from transportation carriers

2. Load Optimization

3. Proper selection of right carrier for each type of freights

Procurement of Carrier Contract

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One of the most daunting and time-consuming processes in shipping is managing the carrier bidding process. With tons of data to examine, companies must be able to identify which carrier offers the best service based on what is presented on their freight bill and internal systems. After that, they must also identify the trends and make forecasts for future business levels in various regions. The process is too complex and onerous that many companies do not execute this often, or just simply rely on spot rates.
After the bids are received, companies must compare them all and analyze which of them offers the most valuable on the table. However, with multiple bids at hand, it can be difficult for carriers to offer competitive price and discounts to the company. And when they offer special rates, companies must also weigh its advantages against other bids, which can take weeks or even months before a final decision can be made.

To address this issue, companies are now seeking the help of bid management tools. These tools are often embedded in their internal Transportation Management Software (TMS) system. The latest versions of this system have a web-based interface to make it easier for carriers to request and submit bids to companies. Many TMS providers also offer their solution “on-demand” format, allowing companies to have access to a rich database of freight rates. Some providers also offer “community benchmarking” services to help identify situations where carriers may have bid on some lanes.

Another way to expedite the complex bidding process is through the help of Online Procurement software. These are management tools often packaged in a web-based interface that allows carriers to submit conditional statements that related to specific conditions under which they can offer special discounts. These tools can analyze multiple bids at the same time. These helps both the carriers and the company to execute the whole bidding process more efficiently and effectively.

Load Optimization

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Load optimization is another process which is almost impossible to execute until when shipment volume is low enough for a shipping analyst to review each load on a case-to-case basis. For many companies, the complex analytical engine is important to manage high-volume shipments to maximize the space and achieve cost-efficiency.

Here are the four types of load optimization that most companies usually struggle with.

• Mode Optimization- While many companies often base their decisions on physical weights of multi-piece shipments to determine when their goods get shipped via a parcel, LTL, or truckload carrier, there are many instances where a sub-optimal gets selected.

• Consolidation Optimization- As shipment volume increases, it can become more difficult to identify and combine multiple loads that are scheduled to be shipped to the same location on the same day. This gets more challenging when shipments scheduled to be scheduled the next day are low in volume.

• Pool-point Optimization- Companies with multiple suppliers in distant locations often pool inbound shipments in a remote location before it is transported to its destination.

• Multi-stop Truckload Optimization- This form of optimization involves a single truck that can leave a distribution center full, and make multiple deliveries. Thought this is cost-effective, it can be difficult to create.

Carrier Selection and Load Tendering

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One of the factors that can affect the transportation management is selecting the best carrier for each shipment you have and tending the load to that carrier. But without the ability to rate-shop against multiple carriers, and to manage tiered tendering system, it can be very challenging for companies to select a carrier that can deliver the freight properly and in a timely manner.
Without the right tools to easily rate loads against electronic contracts, the transportation department will spend so much time calling carriers, getting quotes, and then calling back the selected carrier to tender the load- a process which can suck out all the time and focus of the team on improving efficiency.

This issue can be addressed by working with a freight forwarding agency that can help you handle your whole logistics operations more effectively and efficiently. With their large network of carriers, they can help you find the right carrier that is best suited to your business needs and budget and allows you to transport to its destination without the hassles of handling the whole operations in-house.

Some of the services offered by freight forwarders are:

• Inland Transportation Tracking

• Shipping and Export Documents Preparation

• Warehousing

• Booking Cargo Space

• Freight Consolidation

• Cargo Insurance/ Filing Insurance Claims

With the help of an efficient freight forwarding company, your freights will be transported to its destination at a much lower cost, allowing you to save significant amount of money which can be used to further enhance your logistics operations.

What to Expect in Shipping Industry This 2017? (Infographic)

excelsior on February 3, 2017

Last year was a ride of incredible ups and downs for the global shipping in the industry. From financial pressures to overcapacity and numerous consolidations, a lot of challenges and shifts has surfaced in the world of global transportation last 2016, which was topped by the bankruptcy of Hanjin Shipping, South Korea’s biggest container carrier, and the world’s seventh-largest.

That said, the financial crisis from the previous years has really impacted the shipping industry in a very big way. Faced with harsh headwinds, many shipping firms are now setting their sails for the incoming shifts and trends in the global shipping industry this year 2017. Check this infographic as we present to you where the shipping industry is heading to this 2017.

Things that You Should Know When Requesting Freight Rate Quote

excelsior on January 18, 2017

One of the first things that you should know when starting an importing and exporting business is how to get the right freight rate quote for your shipments. Referred to as the price at which a certain cargo is delivered from one point to another, getting the right freight rate quote is a critical step in achieving profitability in the shipping industry.

To maintain a relatively healthy cash flow, you have to make sure that the cost it takes to transport your goods from one point to other remains within your budget.

And to ensure that you get an accurate and affordable freight rate quote, there is information that you should collect and pass to your freight forwarder subsequently. To know the factors at play that can affect your freight rate quote, check our pointers below.

1. Mode of Transportation

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First and foremost, you have to consider the type of transportation required to transport your goods. For beginners, the most dominant type of transport in shipping process are aviation, ship transport, and land transport (rail, road, and off-road transport.). Each of these options has their own pros and cons. For instance, air is the fastest mode of transport, but also the most expensive, followed by ship transport, and then land transport.

2. Incoterms or Mode of Shipment

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Incoterms, which stands for International Commercial Terms, is a set of pre-determined commercial terms published by International Chamber of Commerce that serves as the basis of agreement between the buyer and the supplier. It details the risks, costs, and tasks that each party should assume with regards to the fulfillment of delivery and transportation of shipments.

If you are buying goods internationally, your best choices are Freight on Board, Ex Works, Cost and Freight, and Cost, Insurance, and Freight. These options offer the greatest control over shipping cost from your perspective as the buyer.

For instance, the FOB means that the seller leaves your shipments at the port of origin, all set-up for international transport. As a buyer, it gives you absolute control over all related expenses and coordination of delivery of your shipments to your warehouse or final area of destination. This option is the most recommended option for importers and buyers since it allows you to choose the shipping routes and times, as well as negotiate prices with the freight forwarder of your choosing.

3. Type of Goods You’re Shipping

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As obvious as it can be, knowing the specific type of goods is what many people forget to consider when requesting for a freight rate quote. This is critical because there are different pricing and handling rules that apply for each type of item you are shipping, so make sure to supply your freight forwarder with this information right away. For instance, how items such as raw pulp or lumber wood would be handled and stored inside the ship would be very much different for items like wooden furniture.

4. Details of Your Cargo

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Aside from the type of the cargo you’re shipping, your freight forwarder should also know the specific details about your shipment. This includes the following:

Dimensions – Typically observed in ocean freight shipping which utilizes containers. The usual sizes of containers are 40 ft. and 20 ft. As a rule of thumb, the larger the dimensions of your shipment, the higher the freight rate quote will be.

Weight – The weight of your shipments is important, especially if you plan to transport it via air. This because air freight prices are mostly based on weight, compared to ocean freight prices which depend mostly on size.

Hazard/ Toxic Cargo – Shipping hazardous items will require you to pass a Material Safety Data Sheet (MSDS) to avoid any issues while the container is being loaded. The MSDS entails all the data about your cargo such as the nature of toxicity, its chemical and physical properties, methods of storage and disposal, etc.

Pallet – If your shipments can be palletized, then it can be stored inside the container more efficiently and can reduce your transportation cost.

5. Delivery Options

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You have different options of how you want your shipments to be delivered. It’s best to choose the option that fits your budget can work well on the inland logistic network of your area and is in line with the needs of your business.

Door-to-Door – Offers the highest convenience to the buyer. In this option, the client is not involved with the sea freight container shipment as the shipper is tasked to handle everything.

Port-to-Port – The shipper handles the shipment from the port of origin to the port of destination.

Port-to-Door – Suitable for customers who have their own logistics networks, and can move their shipments from the port of origin to their warehouse.

6. Method of Loading

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There are several methods for loading your shipments in the container:

Live Load – In this option, an ocean freight container is loaded at your location. The trucker waits until you load, secure, and seal the container for the international shipment. There is a free loading time limit for live loads, which usually vary from one to two hours. Exceeding the free time limit means you have to pay a fee for every exceeding hour.

Drop and Pick – Like the live load, the ocean freight container is delivered to your place of load, but the trucker will leave the container for a few days. After it is loaded, it will be picked up and returned to your freight forwarder’s yard.

Commercial vs Residential – A surcharge is added to your quote when shipping to residence instead to a commercial place or location.

7. Cargo Ready Date

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The freight rate quote is volatile, meaning it is only available for a determined amount of time – usually about 30 days. Although planning ahead of time is good, you can never really get an actual quote for your shipments until your cargo is ready to be shipped. However, you can ask your freight forwarder an estimate to get an idea of what your shipment might cost.

8. Duty Rate

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Another factor that will impact your freight quote is the duty tax. This is a kind of tax imposed by the government on shipments and is determined by calculating a percentage of the value of the commodity. In the Philippines, the duty rates can vary from 0% to 65%, with an industry average of 10.5%. Related: Why Should You Pay the Correct Customs Duty and Tax?

These are the factors that can affect the final quote of your shipments. As much as possible, partner with an efficient and professional freight forwarder and communicate to them all the details so that you can get a quote that is accurate and fits your budget.

Contact Excelsior Worldwide Freight Logistics Corp. now and let us help you get an accurate and affordable freight quote today. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Import Facts: What Are the Benefits If Your Customs Broker and Forwarder is Efficient?

excelsior on January 11, 2017

Cost-efficiency is one of the primary goals of many businesses, and the same holds true in import and export business. As such, choosing the right customs broker and freight forwarder is extremely important to make this goal a reality.

In this infographic, we will discuss how an efficient customs brokerage and freight forwarder firm can help your import and export business grow and keep the cost low in the long run.

1. Your Business Will Reach New Markets

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A successful small business needs to put its product in front of customers, even if those customers are in the other countries. An efficient customs broker that provides intercontinental coverage is imperative to helping your goods reach those customers quickly and efficiently.

And if you’re importing parts and components, a broker with locations at all major ports and border crossings can help ensure your goods get to you in a timely manner. Ask your broker about their coverage and what services they can offer to help you reach new markets.

2. Your Business Process Will Improve

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While you keep your efforts focused on your business, you can look to your broker for expert advice on moving goods across the border. Your broker should be able to offer guidance on customs regulations, tariffs, valuation, classification and more – advice that can help you reduce shipping times and save money.

To provide this advice, your broker must have licensed or certified customs professionals available who can answer questions about the customs process – all you need to do is ask. Don’t hesitate to inquire and take advantage of any guidance or services your broker provides that can improve your processes, help with your record keeping and prepare you for customs audits.

3. Save Time and Money

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Technology and automation have had a huge impact on business in the 21st century. All brokers are required to have, at a minimum, automated systems that exchange shipment data with U.S. and Canada Customs.

Many brokers offer additional technology tools and/or use specific systems in-house that can help you increase your efficiency, control your costs, and reduce your risk of non-compliance. These include proprietary imaging solutions, Electronic Data Interchange (EDI) solutions, e-billing options, File Transfer Protocol (FTP) tools and more.

These solutions can reduce paperwork, simplify your accounting and help keep your business in good standing with Customs. Check with your broker about the technology offerings they have at hand and how they can help you improve efficiency and reduce costs.

4. Better Manageability

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Manageability and organization are incredibly important for businesses which need a sense of control over their supply chain and can recover quickly in the event of a loss. Many third-party logistics companies may be too bulky to offer the transparency and personal touch that international shippers need. If a shipment is lost it could take multiple departments, phone calls, and repeated questions to get the answers you need. On the other hand, freight forwarders utilize their wide-ranging networks to quickly trace the problem directly to its source, enacting immediate solutions.

5. Freedom from Contracts

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In our natural quest for reliability, we often insist on contracts and binding documentation that guarantees a certain level or quantity of service. But the shipping industry is full of moving parts (both literally and figuratively) and it could actually hurt your business to stay tied to one carrier for a year or more. Freight forwarders give you a lot more freedom to do what is best for your business, and the awareness that you could switch firms at any time drives them to keep you constantly satisfied.

6. Timely Arrival of Shipments

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Freight forwarders offer unique versatility which can come in handy for meeting tight deadlines or when dealing with unforeseen obstacles. A seasoned forwarder has the resources to handle unfortunate circumstances like rerouted shipments or delays at sea.

Imagine you’re shipping goods to Panama from China, Europe, and the United States, and one of your shipments is diverted to another port due to stormy seas. How prepared are you to react and handle that smoothly? To a freight forwarder, situations like this are just another day at the office.

As a business owner, having the right customs broker and freight forwarder to help you with your shipment is a wise business decision that will help you and your business remarkably. It is not only practical but also time and cost-efficient.

At Excelsior, we value your business and your time. This is why we want to offer you a customs brokerage service that is efficient, professional, and ethical. For more information about our customs brokerage services, call us at (+632) 525-9775 or email us at wecare@excelsior.ph.