Costs and efficiency of road transport – is it better to work with one freight forwarder or find several subcontractors?

For many shippers, transportation costs seem to be an enigma. Cost calculation is far more complex than the cost of transport from point A to point B, because it includes additional elements, too. Most carriers will only offer you the price of transport, which does not mean that your goods will be delivered to the final destination. For this, you will have to choose other subcontractors. Additionally you will need adequate support for customs services, accompanying documentation, insurance of goods … All this means that in addition to the basic service (transport), you will pay for at least a few other additional services provided by various subcontractors.

Actually, if price is a decisive factor and transit time and quality of delivery are flexible, then you can look for different offers with regard to financial and organizational terms and invest time and energy in reducing costs. On the other hand, you should keep in mind that hiring more subcontractors usually prolongs transit times (time from sending to the arrival of goods) with one interesting question: have you included your own work and time spent in your calculation? This option is not the worst if efficiency and transport time are not a priority, but you should be aware that the more subcontractors are involved, accountability becomes more complexshould something go wrong during the transport process.

To make their clients’ business easier, many freight forwarders have introduced a door-to-door service. Owners of goods can get detailed consultations and personalized solutions. The door-to-door service (first and last mile delivery) usually includes proposing the best route and adequate means of transport, finding and reserving cargo space (truck, plane, ship, train), preparing all necessary documentation and permits for international transport of goods, solving all customs procedures, loading, transport and unloading of goods with constant monitoring of the movement of the shipment.

There are also additional services offered by freight forwarders – insurance of goods in transport (basic or All Risk), as well as storage of goods in customs bonded or commercial warehouses.

If you are delivering or importing goods from distant destinations, check the size of the international network and the coverage of the potential logistics partner offices. Having a representative of the chosen company in a port or airport can make your plans a lot easier.

For more information, visit the cargo-partner web site or contact us for a detailed consultation!

Best regards,

cargo partner | transport + iLogistics