Top Freight Forwarding Companies in Singapore

What is Freight Forwarding? 

Freight forwarding is the process of organising the shipment of goods and transporting them from the producer or originator to the distribution’s final point, such as customers or retail store. The person or business who sees through this entire process is a freight forwarder. They may not physically be involved with the transportation process. Still, they handle crucial documents, such as permits and insurance so that the goods will be safely transported to its intended destination. 

Top Freight Forwarding in Singapore

Benefits of Engaging a Freight Forwarder 

They Take Care of All Technical and Legal Complexities For You  

There are lots of administrative and compliance work needed to get your shipment to the distribution’s endpoint. Some of them include:

• Planning out the most convenient travel route for your shipment according to factors such as the nature of your goods, transit time, as well as various geopolitical impacts. 
• Preparing documents to meet both country’s legal and fiscal requirements 
• Helping you select the best insurance for your cargo’s journey, as well as preparing the necessary documentation for your insurance. 
• Negotiating with customs to ensure that the freight will enjoy a smooth transit into the country
• Negotiating with other transportation and carriers to safely deliver your goods 

Getting your items shipped to another country is not just a business; it’s also a science. A professional freight forwarding country will reduce the number of headaches you have while getting your cargo shipped to another country. You won’t have to worry about dealing with customs or miss out any critical document which may delay your shipment. 

Your Customer Service Will Improve

Lots of professional freight forwarders use modern technology and satellite systems to provide purchase order tracking and on-demand reporting. Such services provide transparency and build trust between you and your end-users. 

You Can Deliver Your Goods on a Tight Time Frame 

Freight forwarders are equipped with the most updated geopolitical knowledge to advise you on the quickest route to get your goods to the distribution’s final point. If you need express delivery, they can work out with various air carriers to get your cargo transported at the quickest and most cost-effective manner. 

They Can Manage Any Crisis For You 

Getting your items shipped across international waters is a complicated and sometimes risky process. Any delays or hazards that arise will pose a threat to your business. Regardless of the reasons for the delay, be it the weather or geopolitical tensions, freight forwarders will have the experience to mitigate the crisis and resolve them for you. 

It’s Cost-Effective 

A freight forwarding company that provides a complete end-to-end service not only improves your customer service, you can also save on the costs. Besides, freight forwarders are also experts at negotiating with various air and sea carriers to give you the best possible price for your bulk shipment. They can also provide you with the latest changes in the market so that you can make the necessary adjustments for your business budget and product pricing. 

The Freight Forwarding Process 

Export Haulage

Export haulage is the transportation of goods from the shipper to the forwarder’s premise, usually a Non-Vessel Operating Common Carrier (NVOCC) warehouse. The process, which is generally done by train or truck, usually takes around a few hours to weeks, depending on the distance between the consignee’s and the forwarder’s location. 

The responsibility of providing export haulage depends on the agreement between the shipper and consignee. If the shipper is responsible, they would have to arrange for transportation with a local haulage company. If the consignee is responsible, this is where engaging a freight forwarding company to handle the entire transportation process comes. 

Origin Handling

Once the cargo is received at the staging area, the freight forwarder or their appointed agent will inspect to ensure the booking details tally with the quality and quantity of goods. Following which, they will issue a forwarder’s cargo receipt to the shipper.   

Customs Clearance (Export)

Before the cargo is shipped off, it needs to receive clearance from its country of origin. The export customs clearance can be arranged either by the consignee or the shipper, though it is more common for the shipper to take charge for this stage of the process. The shipper or consignee will engage the freight forwarder’s in-house customs broker or a licensed third-party customs broker to prepare the necessary supporting documents for the cargo. 

Ocean Freight 

The freight forwarder will arrange with a shipping line to transport the cargo. During the transportation process, the load can be shipped on multiple vessels and make intermediate stops at other ports. The freight forwarder will also be responsible for negotiating and calculating the ocean freight and its surcharges. 

Do note that the freight forwarders are not responsible for any delays in shipping. 

Custom Clearance (Import)

Before the cargo arrives at its intended destination, the freight forwarder or customs broker will prepare the necessary documents to gain clearance. Unless the shipment has a Delivery Duty Paid (DDP) agreement, it is usually the consignee who will arrange and pay for the import customs clearance. 

Destination Handling 

The freight forwarder’s destination office will have all the documents, including bills for the cargo. When the shipment arrives at the warehouse, the freight forwarding staff will unload all the goods to conduct an inspection. Under Delivery Duty Paid/Unpaid (DDP/DDU) terms, the shipper will bear the cost of the destination handling. In contract, it is usually the consignee who would pay for the destination handling if the agreement comes under these few terms: 

• Ex Works (EXW)
• Free Carrier (FCA)
• Free on Board (FOB )
• Cost and Freight/Cost Insurance Freight (CNF/CIF)

Import Haulage 

Once the cargo has passed the inspection, the freight forwarder will send the goods to the consignee using their trucks or a third-party trucking company. At times, the items may also be transported by rail. To save cost, the consignee can also come by the warehouse to collect the goods if they are around the vicinity. 

Tips to Choose The Right Freight Forwarder in Singapore

Choosing the right freight forwarding company is essential as choosing the wrong one might result in a massive loss for you and your company. Here are some guidelines for you to consider when selecting the right freight forwarder. 

Do They Meet All Legal Requirements? 

All freight forwarding companies need to register with the Singapore Customs using their company’s Unique Entity Number (UEN). For freight forwarding by the sea, there are several licenses the freight forwarding company needs to apply from Maritime and Port Authority of Singapore (MPA).

According to CorporateRoom and GuideMeSingapore, here are some licenses freight forwarders need to apply:

• Harbour Craft Licence – To operate vessels from Singapore’s port
• Port Clearance Certificate – For vessels to depart from Singapore
• Ship Registration Certificate – For transporting passengers or cargo
• Port Limit Manning Licence – An essential license that allows crew members to work on-board
• Launch a New Vessel Permit – For launching any new vessel that surpasses 15 meters long in the port
• Ship Station Licence – To operate radio-communication equipment on the ship, which must be registered in Singapore
• Ship Sanitation Control Certificate – To certify that your vessel is in an excellent sanitary condition to transport goods

Your freight forwarder must have the necessary licenses to ship your items to or from Singapore. Otherwise, you need to find a new company. 

How Long Have They Been in Business? 

A hallmark of a trustworthy freight forwarder is that they have experience withstanding the ups and downs of the shipping industry. It’s a business where success is not solely dependent on hard work. It’s also dependent on several factors beyond their control It’s also dependent on several factors beyond their control such as stormy weathers, piracies, wars and port shutdowns. These factors can potentially wipe out their businesses. Hence, if freight forwarders have been around for many years, it’s a sign that they can rise and flourish beyond these crises. This can also give you peace of mind knowing that they can see your cargo through even in the toughest of times. 

Do They Have a Strong Network of Agents or Associates in the Your Cargo’s Final Destination? 

 Freight forwarders work with several parties, including customs broker and local trucking companies. Your freight forwarder needs to have a ready network of such local business associates. They will understand the regulations of that country and ensure that your goods will get to the distribution’s endpoint without much hassle. 

With a line of business connections within that country, your freight forwarder is also able to negotiate for a better price with these associates. In this aspect, you can also receive a more favourable deal for your entire package. 

Do They Have Experience Handling Your Type of Cargo?

Another consideration you have to factor in is your freight forwarder’s area of expertise, especially when you have cargo which needs an extra level of care. Some examples of shipments that require an extra level of care include monumental industrial parts and dangerous cargo, such as corrosive substances. Choose a freight forwarder who has the knowledge and experience in handling your type of load. 

What is the Scope of Services They Provide? 

Ideally, freight forwarders should cover all 7 steps of the shipping process. You can choose to work with third-party haulage companies or custom brokers, but that will result in some inconveniences and possibly extra costs.

Any professional freight forwarder should also include non-transportation and non-warehousing services, such as cargo insurance and cargo tracking. They should also have an air freight arm available for any express delivery. 

Are They Transparent About The Entire Shipment Process For Your Cargo? 

Any professional freight forwarder will walk through with you on the entire freight forwarding process. During this walk through, your freight forwarder needs to tell you: 

• The kind of paperwork or documents required, which usually consists of:
  • Bank Drafts 
  • Bill of Lading Contract
  • Certificate of Origin Statement
  • Commercial Invoice
  • Dangerous Goods Form
  • Export License
  • Export Packing List
  • Inspection Certificate
  • Proforma Invoice 
  • Shipper’s Export Declaration Document
• The kind of insurance that your type of shipping requires
• The third-party companies that they will be engaging to see your cargo through to the final point of distribution
• The estimated time for your goods to reach the final point of distribution 

Are They Transparent About the Costs Which Includes Surcharges?

When comparing prices between freight forwarding companies, do not be carried away by any company which offers a rate lower than the rest of their competitors. There could be several hidden costs. 

In general, your invoice should reflect the following fees:

• Pickup Charge
• Freight Forwarding Charges (May also consists of other costs, such as Fuel Surcharge, Cargo Screening or X-ray Fees, as well as Airline Security Fees)
• Document Handling Fees 
• Additional Security Charges (Usually imposed by the country your cargo is entering)
• Cargo Insurance
• Import Duty

Other fees, depending on the specifications of your freight order, may also include: 

• Automated Export System (AES. For US-bound goods)
• Exports Licenses Fees
• Certificates of Origin Fees
• Hazardous Material Charges
• Legalisation (Usually in Middle Eastern Countries) 
• General Rate Increase (GRI)
• Inland Delivery Charges
• Demurrage
• Pallet Fees
• Overweight Container Fees
• Container Management Fees
• Value-Added Tax (VAT. Very crucial for China-bound freights) 

It is essential to get your freight forwarder to prepare a list of chargeable services, as well as potential surcharges to prepare you mentally. You should do that before signing any documents. If you notice any unknown charges appearing on your invoice, address and clarify with your freight forwarder immediately.

Editor’s Note:

While every precaution has been made to ensure the accuracy and fairness of this listing, we acknowledge that they may be inaccuracies. Therefore, we urge you to contact the service provider above for the correct information and/or contact us with the correct information.

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