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Shipping Terms Every International Importer and Exporter Should Know

excelsior on July 15, 2019

Shipping Terms Every International Importer and Exporter Should Know

If you’ve been managing a business for quite some time now, you might’ve experienced some difficulties when it comes shipping your goods from one place to another. Aside from ensuring the safety and timely arrival of your cargo, you also need to familiarize yourself to several jargons associated with the shipping industry. Most business owners nowadays ended up getting confused about some of the technical terms used in shipping. While you don’t really have to be a pure expert when it comes in dealing with these terms, your knowledge about them could prove to be pretty handy in the future indeed.

So, to help you avoid unnecessary misunderstandings and minimize errors while you communicate with your shipping company, here are some of the most common terminology used in international shipping:

Bill of Lading (BoL)

Bill of Lading, also known as BoL is a document given by a carrier to a shipper. This document is issued on a receipt form with the sign of the vessel’s representative and acts as a written proof of contract that a transportation has been made. 

This document is very important as many ports do not allow anyone to claim their goods without presenting their BoL. Unfortunately, some notorious freight forwarding scammers use BoL as a way to steal money from the others. Know more about the other freight forwarding scams through this infographic here.

Carrier

Carriers can be an individual or legal entity that offers transporting services for passengers and goods. Examples of carriers are airlines, shipping lines, railroad and trucking companies.

Backhaul

If a driver takes a cargo during the return trip of a commercial vehicle, it’s technically referred to as a backhaul. Cargo vehicles do this practice as a way to maximize the productivity of their trips.

Customs Broker

Customs Brokers are private individual or firms that works as a guide for both importers and exporters in meeting the necessary requirements given by the customs authorities. Many people usually mistook customs brokers to freight forwarders, but both professions have several distinctions with each other.

Freight Forwarder

These are persons or company that specializes in logistics and organizing shipping processes in place of an individual or company to transport their goods.

Hazmat

A shortened term for “hazardous materials,” hazmat is a material that could pose safety risks to anyone that it comes in contact with. Unlike other forms of cargo, shipping hazmat requires special endorsements from all involved parties.

Intermodal

Cargo can be considered as an intermodal once it was shipped using multiple forms of transportation, like a cargo truck and rail transport.

Less Than Truckload (LTL)

When the weight of a shipment ended up being less than the required weight of the truckload rate, that is described as Less Than Truckload or LTL.

Tender

Tender is a fixed cost to move a cargo.

Transportation Management System (TMS)

Transportation Management Systems or TMS is a software designed to help businesses and even some freight forwarding companies to optimize their planning and execution in the physical movement of the goods. There are several benefits that can be obtained by investing in this kind of system.

 

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4 Tips to Keep your Supply Chain in Good Condition – Infographic

excelsior on June 30, 2019

The supply chain is defined as a congregation of all the resources of an organization, including its members, activities, and technology that operates solely for the purpose of creating and selling a particular product. Managing your supply chain is an integral step towards building a reputable business brand. A highly efficient supply chain strategy can optimize your profits by reducing the operating costs as well as increment customer satisfaction.

One crucial factor in maintaining a healthy supply chain is through the integration of effective logistics especially when your company is just starting out. Amp up your competition to the global market with these four tips in keeping your supply chain in tip-top condition!

4 Tips to Keep your Supply Chain in Good Condition - Infographic

Tip #1: Optimize your transport system

Optimizing your transport system can minimize most of your financial expenditures as well as boost your productivity. By investing in TMS (Transportation Management system), you can easily record all of your progress in transporting goods real-time so that you can have a detailed record of what’s currently going on. TMS can also provide information on the latest costs of shipping so that you can identify which carrier offers the most affordable price.

Tip #2: Take advantage of modern software used for warehouse management

While managing your warehouse is highly important, doing it manually could take a significant amount of your time. Time is a precious resource in business, so you might want to find a way to use it as wisely as possible. Why not take advantage of the era that we live in? There’s several computer software out there that can automatically help you in organizing your warehouse and make it even more productive. 

There are available management systems today designed to fill out your orders right away and take a detailed record of your resource allocation.

Tip #3: Formulate your initial inventory requirements

In case you’re working with an established brand, you can analyze at past inventory performance and see if it can be compared to the latest industry trends. The information that you can retrieve will serve as your reference for knowing which product can give you the most profit. It’s highly recommended to focus on selling a carefully curated assortment of products rather than a diverse product range. You have to choose a product that people truly want.

Tip #4: Track your POs and inventory to prevent stock-outs

You may already have some reliable suppliers for your business, but it’s always better to be safe than sorry. Keep an eye on the current condition of your inventory at all times and stay updated if there are any delays. You will also need to have a backup plan if the products that arrived from your warehouse have damage. 

On the other hand, monitoring your Pos (Purchase Orders) enables you to immediately detect and deal with any customer inquiry and complaints.

Final thoughts

When it comes in keeping your business up and running your supply chain definitely plays a big part. You might spend some of your resources, but keeping a tab on these four tips will ensure that you will have no problems in perfecting your supply chain so that you can eventually reach the top of your industry!

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Reasons Why You Should Invest in a Transportation Management System (TMS)

excelsior on June 15, 2019

Reasons Why You Should Invest in a Transportation Management System (TMS)

As a business owner, it is your duty to maintain the stability of your supply chain in order to ensure that your company is steadily growing on its way to success. Most distribution companies today implement a so-called Transportation Management System or TMS to accomplish such a goal.

What is a Transportation Management System?

Transportation Management System is defined as a subset of supply chain management that involves efficient planning, execution, and optimization of the physical movement of goods. This logistics platform can basically give you information that allows you to lower your expenses on shipping, saving you a lot of time and money in the long run. But the benefits don’t end there, though.

Here are five other reasons why you should invest in a Transport Management System or TMS:

  • It improves your cash flow

Your cash flow is an important factor that keeps your business up and running. Without it, you will find yourself unable to buy inventory or even pay your employees. In fact, studies have shown that 82% of businesses today fail due to poor cash flow management. Fortunately enough, a transportation management system can help you improve your cash flow. Through centralized billing support and freight bill audit and payment features, you can save more money and keep it flowing in your business without experiencing too much difficulty. You can also standardize your payment terms for your shipments so you can easily budget and manage your cash flow since you have a more accurate picture of all those payables, receivables, and freight invoices.

  • Better warehouse management

Maximizing your warehouse duties is very important. With a transportation management system, you don’t have to spend a lot of time on managing freight tasks as you already have a thorough and optimized plan to do that. This way, you can focus more on other important aspects of the business because you have a greater overall supply chain visibility that helps you to make better decisions when dealing with any financial issues.

  • It improves customer service

Investing in a transportation management system enables you to have access to analytics and reports that show how your decisions affect customer service. These reports can make you aware of what carriers you use to ship your goods, how much their service costs, and if whether they often deliver on time or not. This way, you can improve your customer service by determining the best carrier for your business. TMS can also make you inform your customers about the current state of their order, giving them adequate tracking information and experience.

  • Better inventory management

TMS can also provide you some updates about the condition of orders and shipments in real time. By monitoring each step of the process, you can be aware of how much inventory you left and therefore, identify your future needs.

  • It can reduce invoice errors

Errors in invoices, particularly on freight payment and audit processes, can be quite common on manual procedures. TMS can negate these errors by using computerized or automated procedures.

 

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3 Most Common Freight Forwarding Scams And How To Avoid Them – Infographic

excelsior on May 30, 2019

Hiring freight forwarders is definitely one of the most needed essentials of any business owners looking to ship their products abroad. Their skills and expertise in logistics are proven to be extremely useful in making all of the requirements involved with transporting goods from one place to another much easier to bear.

However, the rise of competition amongst freight forwarding companies also gave emergence to fraudulent individuals who would take advantage of the situation. And as the client, it is highly vital for you to be aware of certain acts of deceptions used by scammers in the shipping industry, as well as how you can avoid them.

3 Most Common Freight Forwarding Scams And How To Avoid Them - Infographic

Scam #1: Holding your good’s Bill of Lading (BOL) for ransom

This kind of scam usually happens online. The scammer will pose as a freight forwarder on some popular shopping sites. They can be fairly easy to identify because they offer their “services” on a ridiculously low rate.

Once they found an unwitting client, negotiations will take place, and once the goods are packed from the port of loading, the scammers will deny the release of an important legal document called the Bill of Lading or BOL. This document serves as the proof of contract of carriage and receipt of the client’s goods. And without the BOL the port of destination will not allow anyone to claim their shipment. The client will then receive an email demanding for a specific amount of money, or hence, they will not receive their goods at all.

How to Avoid This Scam

Before contacting any freight forwarding company, be sure to know the normal cost of your shipment. Many new importers nowadays lack some diligence when it comes in the current costs of their shipment, and that’s why they easily get attracted by any low or discounted offers on the net. Be sure to look for a company that manages their own official website and try to find any client’s reviews and testimonies about them.

Scam #2: The Duplicate Name Scam

Another common example of freight forwarding scam is by making a fake site with a name similar from a legitimate company site. While it’s possible for companies to have identical names, some of these sites are designed to steal money from clients who don’t know how to distinguish a legit site from the bogus ones.

How to Avoid This Scam

You must know how to identify a legitimate site properly. First is by looking at the site’s URL. If you know the exact spelling of the company’s name, head over to the URL and see if there are any misspelled letters around. Also, pay attention to the site’s domain name. If the URL has a free hosting website on it like .wix, .homestead, or .hubspot, there is a very good chance that the site is fake.

Scam #3: Cargo Theft

Scammers doing this act of theft tend to target clients with high-valued cargos. Same with the BOL scam, they will pretend as freight forwarders offering you with suspicious discounted rates and then seemingly vanish into the thin air once they got hold of your shipment.

How to Avoid This Scam

Vigilance will always be the key. Aside from knowing whether their company website is real, you must also be curious about how they do their work as well as their terms and conditions. Ask them everything that you wanted to know and be sure that you have their respective contact numbers, including their shipping and billing address.

Finding a reliable freight forwarding company for your shipping needs is a big step towards success. You just have to practice vigilance at all times to ensure that you will not be a victim to certain scams that can cost you a lot of money before you can even start your business.

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

5 Important Tips for New Importers

excelsior on May 16, 2019

5 Important Tips for New Importers

Importing basically refers to the act of buying goods and services from abroad in order for it to be sold for the customers of the home country. Many business owners nowadays prefer to sell imported products due to its ability to increase profit margins. Moreover, an importer can provide higher quality goods that can potentially surpass those produced by local competitors. If done in moderation, importing can help bolster the national economy as well as widen up the global market.

Despite the benefits of this practice, importing can be a pretty risky option especially for those who are still establishing their foothold in the world of commerce. Purchasing goods from a foreign land requires a specific set of knowledge and skills and a deeper understanding of complex processes of importation.

If you’re starting to think that importing is the next big step for your business, here are some of the most important tips you should be aware of before making any move:

  • Make sure you are legible to do the importing

Speaking about legibility, it means that you have to be legally allowed to bring those imported goods to your home country. Before you can spend any time, money, and effort into something such as importing, you’ll need thorough research about the laws especially the restrictions of items that you are going to import. Some chemicals and medicines, in particular, are examples of products that could have certain restrictions. Check the legality of the products that you wanted to import first.

  • Assess all the possible expenses

Planning your budget ahead of time is very important if you wanted to be a successful importer. Be mindful of all the possible expenses before you can place an order to a company abroad. These charges can range from the transport and insurance costs, as well as other legal documents that you need to go through. A good way to limit or minimize these expenses is by hiring freight forwarders and customs brokers since they have the expertise to guide you through the process and find all the best deals for shipping available.

  • Pay attention to sudden exchange rate fluctuations

One notable example of risks that every importer should know is sudden fluctuations in the exchange rate. Remember that you are buying goods from another country with prices that are not the same as your local currency. So be mindful of the current exchange rate as it greatly affects the final amount that you will need to pay. The rate could either become beneficial or detrimental to your success.

  • Learn to interact with your foreign suppliers

It’s not easy to deal with suppliers from another country. Language and culture barriers are some of the challenges an importer has to face. Miscommunication could become pretty common in these areas, so better study a lot about the business industry of their country as much as possible.

  • Determine if there is a local market for the goods you wanted to import

It is your responsibility as the importer to know if there is a growing demand for the goods that you are opting to resale. Determining your potential customers in the local market can help you identify the profitability of that imported product. Conducting some surveys is also a good way for you to come up with a decision on whether importation is definitely the right choice or not.

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4 Common Traits of the Best Freight Forwarders – Infographic

excelsior on April 29, 2019

Freight forwarders can be a firm or a company that specializes in services that make your shipping needs much easier to handle. People that engage competitively in the business industry today usually require the help of freight forwarders so that they can free themselves up from the complicated nuts and bolts of the processes involved with both importation and exportation.

With the growing number of freight forwarding companies always available to render their services to any willing client, picking the best one might prove to be very tricky. However, some characteristics can easily distinguish an excellent freight forwarder from the rest.

By knowing these four traits, you’ll be able to narrow down your choices in case you’re stuck with a list of freight forwarders that you can potentially hire in the future:

4 Common Traits of the Best Freight Forwarders - Infographic

Trait #1: Has a Good Track Record

A good freight forwarder will be much more obliged and willing to share some of their history and past achievements with potential clients such as you. Do not hesitate to ask questions about the age of their company, the number of their staff, and other relevant questions that makes them pretty reliable.

Also, be sure to visit their official website to see if they received any awards or recognition as well as testimonies from former clients.

Trait #2: Has a Reliable Network

Having a wide network of contacts from different carriers and customs officials on an international scale is a true mark of a competitive freight forwarding company. If they can communicate with people involved with the shipping process, then you don’t have to worry about the current status of your shipment which can also prevent problems like late arrivals and damages.

Trait #3: Can Establish Effective Communication with the Client

One way of knowing whether a freight forwarder you’re contacting with is definitely one of the best is the way of how they establish communication with you. If they are successful in making a friendly relationship with you right from the start to the point that you don’t have to ask them questions any further, then congratulations, you just found the one!

Trait #4: Services that Suits Your Needs

The best freight forwarders usually offer a wide range of services that are highly compatible with any kind of client. This trait makes them a very versatile partner that ensures the stability of your supply chain. So, it is highly recommended to ask them questions about all of their available services.

Take heed of these four traits, and you’re now several steps ahead of finding the best freight forwarder that can help you succeed with your business!

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

The Impact of Natural Disasters on Freight Shipping

excelsior on April 15, 2019

The Impact of Natural Disasters on Freight Shipping

In terms of economy, any country will always rely on the continuous transportation of goods and materials that keeps the relationship between suppliers and manufacturers in harmony. This process is very critical for maintaining economic growth because any moment of disruption could bring serious adverse effects. Some of these disruptions are caused by certain deregulations in the financial industry that are to some extent, quite avoidable. However, another thing that can affect a country’s economy is freight shipping, which can sometimes depend on several factors that unfortunately are beyond our control: natural disasters.

Speaking about natural disasters in the Philippines, the likes of floods, typhoons, and earthquakes, are quite common. These calamities typically leave most of the routes that are essential for freight shipping operations unsafe such as roads and seas. This reason is also why you should also be aware of the following ways of how nature can make a significant impact on freight shipping:

The Price of Fuel

One of the most critical prices to look out for when there’s a natural calamity going on is the price of fuel in the world market. Since the cost of most goods and other services are very much dependent on the value of fuel as the source of transportation, your chosen carrier can charge you more than usual. The worst-case scenario in this situation is when there’s a typhoon going on oil refineries strong enough to make it temporarily shut down due to damages.

The Expected Arrival of your Goods

Time is more than just gold in the world of business. Importing your goods in a faraway place requires a definite amount of time to keep up against competitors that are nearer than your target customer. Moreover, if you sell something that thrives on punctuality to retain its usefulness such as food, you should know by now that delayed delivery can ruin its condition. So, if you just shipped your goods during a storm, you better expect for the worse. Carriers tend to choose longer routes over the shorter ones if they find the latter impassable due to the dangers involved.

Refusal of Carriers to take your Cargo

Natural disasters will always make most carriers to be more vigilant to take anyone’s goods. Denial of your goods directly gives detrimental effects on your supply chain, eventually losing considerable revenues in the long run. Just imagine all of your business operations being halted in such a significant amount of time.

Freight Shipping Rates

Rates for freight shipping is always flexible especially on the event of calamities. A domino-effect will most likely happen until it makes its way for you. From the impassable roads making the fuel much more expensive to the delayed accomplishment of shipping service, most financial burdens will be passed into you.

Conclusion

As a business owner looking to ship your goods, anticipating natural disasters is a key for preventing any financial loses that can delay your company’s growth. Always take heed of the weather updates and recent news before making any move.

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5 Questions to Ask your Freight Forwarder – Infographic

excelsior on March 31, 2019

One of the true marks of a successful and competent business owner is how to make the best out of a freight forwarding service. In the world of commerce, freight forwarders are usually the one in charge of facilitating all the transfer and shipping process of certain goods from one place to another.

If you’ve never tried affording a freight forwarding service before, you should be aware that there are several questions that you should ask while contacting a freight forwarder company. Here are five of the most important ones:

5 Questions to Ask your Freight Forwarder - Infographic

Question #1: Do you have any packing services?

Packing services will always depend on the freight forwarding company you hired. Some may offer to seal up your goods as they guide you through the process, while others might not. So, it may not hurt to ask the company first in case you don’t have much time to pack up everything you’ll need for shipping.

Bonus tip: If you’re planning to pack them your own, be sure to do some research on properly packing your specific cargo as it might affect its condition while on board.

Question #2: How extensive is your network?

This is where the competition among freight forwarders comes in: who has the most comprehensive network of connection? Having an extensive network of shipping lines enables a freight forwarding company to give you the best options available as well as providing you the best shipping rates you can surely afford.

Additionally, it also helps with speeding up all of the other client’s requirements and demands.

Question #3: Will I be able to track my shipments?

Once your cargo is currently on its way to the target destination, it is very important to track its condition, location, and the expected time of arrival. In other words, telling this question to your chosen company beforehand gives you the assurance that your goods will always be in good hands.

You can now focus more on planning your other business schedule.

Question #4: What are the specific requirements for the shipping process?

One crucial job of freight forwarders is to make sure that you can complete all of the requirements of shipping as fast as possible. But it might also help a lot if the client is also pretty curious on all of the paperwork that must be taken care of. In fact, it’s more of a self-responsibility than a favor, since import requirements will always vary from country to country.

Question #5: Can I see any of your accreditations?

If you wanted to take a peek on the company’s history, credibility, and reliability, it is your right as the client to be informed about all of the accreditations that company already have. This question is especially useful when you’re still looking on the list of potential freight forwarding companies that you are opting to hire. You can also look at their official website and see all the testimonies and comments from former clients.

Having a freight forwarder’s expertise in keeping your business up and running is definitely a convenient way to avoid all the hassles associated with requirements in both importation and exportation.

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Current State of Port Congestion in the Philippines

excelsior on March 18, 2019

Current State of Port Congestion in the Philippines

Basically speaking, port congestion refers to the situation wherein a growing number of vessels are starting to queue up outside the port in order to wait for any available space where they can load or offload their cargo. And speaking of the Philippines, maritime-related problems such as port congestion can be quite inevitable, considering the fact that vast oceans and seas geographically surround the country.

Before the advent of their colonizers, the settlers of the Philippines once created wide trading networks within every island that stretches as far as to other neighboring countries like China, Japan, Cambodia, India, Borneo, and the Moluccas.

During the Spanish rule, the trading relations with the said countries continued to flourish, only this time the Philippine capital of Manila has been turned into the center of commerce in the east closing its ports to any countries except Mexico, establishing the what was known as the Manila-Acapulco Trade or the Galleon Trade.

But enough with the history, for this article, will be discussing all about what’s the current situation of the ports here in the Philippines. Intense congestions concerning our harbors can bring detrimental effects for the overall economy of the country in the long run. This is because time is extremely precious for importers, exporters, freight forwarders and other logistics services provider. And with the long delays brought by the port congestion, their operations will surely be disrupted indeed.

How’s the port congestion in the Philippines nowadays?

Based on the most recent news published on various trusted news sites, it seems like there’s some occasional fiasco going on with the government and the Local Truckers Association of the Philippines. This implies that the problem does not lie on the number of the vessels, but on the long queue of trucks waiting inside the terminals. According to PortCalls Asia, the government denied the allegations of any cases of port congestions, for this issue’s roots, can be traced back to a separate problem about by “the high number of empty containers clogging the  terminals and this gave the impression of port congestion by the policy of port operators to limit the entry of empty container vans.”

Lest according to the government, the flow of operations within the Philippine ports especially Manila is still within the threshold of being manageable under international standards. As recent as the previous years, they stated that the average dwell time of the ports are seven days, and the utilization level of yards goes in for over 85%. Meanwhile, the quay crane production rate still holds on to 24.84 moves per hour even bearing the international standard of 25.

How this “empty containers” type of port congestion affects the economy?

While there it can be implied that there is nothing to worry about, the congestion of the empty containers in some ports in the Philippines can pose problems like late deliveries of several kinds of goods. It seemed clear that limited space for container yards somehow affects the cost of trucking in the country.

The Conclusion

It can be true that port congestion in the Philippines does exist in a way or two.

However, as stated in the book “Easing Port Congestion and Other Transport and Logistics Issues,” the best way to deal with it is to accept the fact that in most cities like Manila, factors such as port traffic, economy, and human population far outgrows the infrastructures that help connect the ports to nearby provinces that host industrial and commercial estates.

As of now, what we can do now is to trust the government’s figures and hope for the best.

 

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6 Basic Stages of the Freight Forwarding Process – Infographic

excelsior on February 28, 2019

In the world of commerce, transporting goods or products from one place to another is one of the most efficient methods in maintaining the flow of profits at a desirable rate. This is where freight forwarders really shine when it comes in providing such services.

Freight forwarders is a person or firm that specializes in facilitating shipments for clients such as private individuals or corporations. While freight forwarding can be a pretty complicated topic to talk about, having some fundamental knowledge about its process is a true mark of a successful business owner. Not only it will give you the edge over your competitors, but it also protects you against freight forwarding scams.

Here are the six basic stages of the freight forwarding process:

6 Basic Stages of the Freight Forwarding Process - Infographic

Stage 1 – Export Haulage

The first stage is called export haulage. This is where the goods to be shipped by the client are brought to the freight forwarder’s warehouse. Depending on the geographical location, type of goods, and the travel distance, this stage usually takes around several hours to a few days.

Stage 2 – Items Checkpoint

Upon the arrival of the goods, the freight forwarders will then thoroughly check everything to see if there are any problems or is it illegible to be shipped to the target location.

Stage 3 – Export Customs Clearance

Once the freight forwarders approved the shipment, it’s time to clear the requirements. Before putting them inside the carrier, some important details about the goods must be validated by the customs authorities of the exporting country.

This is also the stage where freight forwarders work together with customs brokers since they have the required expertise in this kind of legal activity. They can as well submit appropriate payments on behalf of the client.

Stage 4 – Import Customs Clearance

This stage is basically the same with export customs clearance; only this time the goods must adhere to the legal requirements imposed by the receiving country. It can be performed either by the freight forwarder or the nominated customs broker.

Stage 5 – Destination Arrival and Handling

After clearing all the necessary requirements, the freight forwarder shall now take all the important forms for the shipment. These forms may include documentation, carrier bills, among others. This is the penultimate stage of freight forwarding.

Stage 6 – Import Haulage

The final stage of the whole process where the goods are transported from the receiving warehouse to the main recipient. Bringing the goods to the intended destination can still be performed by the freight forwarder or the consignee by simply hauling it themselves.

These stages may prove that freight forwarding isn’t too complicated as it supposed to be. As long as you have your trusty freight forwarder with you, exporting and importing will always be hassle-free as ever.

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

 

Excelsior Worldwide Logistics Corp.