Freight Forwarding Companies and Their Role in Importing Products from Mexico

Freight Forwarding is a term that we see commonly associated with trade, but many don’t know what it really means. In this article, we will help you understand everything you need to know about Freight forwarding and the role they play in importing from Mexico.

But before we talk about Freight Forwarding, lets briefly look at the people who make it possible – Fright Forwarders.

Who is a Freight Forwarder? What is Freight Forwarding?

A Freight Forwarder is a firm that facilitates the movement of goods from the clients (who can be an individual or a company) to the target destination. Hence, Freight Forwarders can be defined as trade facilitators.

They do not partake the actual process of transporting the goods, but they play an active part in facilitating everything from gaining approval from the authorities to scheduling pick and delivery with transport agencies.

Global trade has seen significant growth in recent years and this trend is only expected to grow as the ties between countries strengthen. In many countries, global trade determines their gross GDP which is calculated from the overall exports and imports. We can see Freight Forwarders working behind the scenes helping businesses to get their goods from one country to another.

What does a Freight Forwarder do?

A common misconception among many who wants to get into the trade is the notion that Freight Forwarders will do the actual shipping of goods. This is false, Freight Forwarders do not partake in cross country goods movement.

Freight forwarders entrust the job of moving the goods to carriers who specialize in cross country goods transportation. The carriers will take the goods and ship it via road, water or air, whichever suits best.

Every country has a unique set of laws pertaining to trade and these are normally called customs law. And having knowledge of these are critical to trade because customs govern both import and export to or from the country. The goods that you plan to export or import must have approval from the customs to avoid discrepancies at the border. Freight Forwarders ensure that your shipments receive approval from the authorities, and they are transported to the target location undamaged by a reliable carrier.

Why do I need A Freight Forwarder?

Now, why would you need a freight forwarder when you can do these process by yourself, which you can certainly do, right?

Trade involves a lot of paperwork, and if you were to do it alone, then you will be bogged down with all the forms and applications which will take you days or weeks to clear. During this time, you won’t be able to tend to business matters, and may very well just give up due to the tedious processes involved.

Freight Forwarders are well adept in the rules and regulations of the respective country. They will take care of all the paperwork and leg work so that you can have peace of mind. You will be promptly notified of the progress of each step so that you are always updated on what’s happening with your goods.

Also, having connections with reliable carriers is crucial to the security of your goods that leave the border. Without Freight Forwarders, you will have to put in the research to find the best carrier who will meet your requirements, again a tedious process that is going to burn a lot of your time.

 

 

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Making logistics easy

Logistics is a big part of trade and this is where all the paperwork comes in effect. The Freight Forwarders are the intermediary between the individual/company and the government. The various tasks that are overseen by a Freight Forwarder are;

  • Tracking inland transportation
  • Preparation of export and import documents
  • Booking cargo space
  • Warehousing
  • Negotiating freight charges
  • Cargo insurance
  • Freight Consolidation
  • Filing of insurance if required

Think about doing all these procedures by yourself, and this paints a clear picture of why Freight Forwarders are important to trade.

Keeping the costs low

Since Freight Forwarders have contacts with multiple carriers and freight handlers, they will help you get the best deal for your shipments. Seeking the help of a freight forwarder will help you lower the shipping costs and other travel related expenditures.

Spending a lot of capital on shipping is not a sustainable model of business. For any trade, the goal of the businessperson is to keep the expenditures low to increase the overall profit. Freight Forwarders streamline the whole trade process so that you don’t have to get into the nitty-gritty of things.

Be Regulations ready

Like we discussed, regulations are of significant importance if you want to get your goods from one place to another. Successfully navigating these regulations are easier said than done.

Freight Forwarders are up-to-date with the rules of the different countries as their business depends on it. By offsetting the legal parts to them, you are saving on both time and effort.

How do Freight Forwarders help in importing from Mexico?

The US and Mexico share a very healthy trade relation and as of 2019, the total trade value between the countries passed $150.58 billion. Exports from the US clocked $63.96 billion while the imports from Mexico stood strong at $86.63 billion.

The rules that pertain to imports from Mexico to the US is largely based on the NAFTA agreement. If you are planning on importing from Mexico, then having a Freight Forwarder on your side is of critical importance. The US customs follow a very stringent security check for all products entering the US soil. The following documents are essential for getting approval from the CBP.

  • Shipment Invoice
  • Verification documents
  • Origin certificate from NAFTA
  • Identification details of the shipment
  • Documents stating the weight and volume of the shipment
  • Bill of Lading

A Freight Forwarder will ensure that each and every document is ready for submission. They will do all the work from filling out the forms to gaining approval from the authorities.

Bottom line…

International trade is one of the best ways in which you can grow your business quickly and effectively. Find a reliable Freight Forwarder so that you can have your goods moved cross country without any hassle.

Pedraza customhouse brokers have more than 15 years of experience in global trade. We can help you build your business through international connections. Contact us today and get a no-obligation consultation for your trade requirements.

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