UK Businesses Save Money With Shipping Intermediates
An analysis of how and why freight forwarding services are able to help UK businesses save money when they wish to ship goods to Europe.
Research by fact-checking charity, Full Fact suggests that approximately half of UK’s exports go to Europe each year. As a continent filled with over 500 million consumers, it is easy to see that the mainland represents excellent exportation opportunities for the growth of UK businesses. However, exporting can come with logistical challenges in the form of regulatory procedures, packaging, and transportation. Luckily, one solution is to use a freight forwarding service to save your business money and to assist you with the exporting process.
How Can Freight Forwarders Help You?
European freight forwarders work as intermediates between selling businesses and their buyers on the continent. Exported goods between two countries could often go on a journey of thousands of miles, and it is the job of freight forwarders to organise the transportation of your goods along this route. This will involve booking cargo with carriers, airlines and shipping lines, dealing with customs checks and regulations as well as other administrative duties such as purchasing insurance to protect your quantity of freight.
UK businesses can save money by using freight forwarders. In a scenario where the exporter only has enough goods to make up part of a load, it is possible for a freight forwarder to consolidate produce from several consigners in a process known as groupage. Each business would then be charged a proportion of the load that they’ve used, rather than having to shell out the full price for a half-empty container.
Freight forwarding companies rely heavily on their close relationships with third-party carriers. By being able to offer large volumes of exported goods to ship with each of their preferred transportation companies, they are in a position to negotiate the best deals for their customers. Individual companies who approach shippers directly, are highly unlikely to benefit from the same level of attractive deal that would be available to a freight forwarding service.
Even UK companies who export to Europe on a regular basis, will be aware of the administration and logistics that are involved with getting the correct paperwork for your shipments. Rather than having an employee carry out this work for you, which will cost your company both time and money, it is usually more cost-effective to outsource your exportation needs to a freight forwarding company. This allows your employees to get back to more efficient tasks which can add profits to your company.
Depending on the type of industry you operate in, and your specific exportation needs, it can sometimes be possible for a freight forwarding company to pick up your goods from their warehouse source and ship them directly to your customer. In this convenient situation, freight forwarders can save you money by negating the need for you to store any goods at your own premises.
If you have decided that freight forwarding would be an efficient solution for your European export needs, then it is important that you choose a company that offers a quality service. Whilst no official licensing regulation authority currently exists in the UK, most reputable freight forwarding firms belong to the British International Freight Association.