Freight forwarding in Nigeria is not a new thing, but it's becoming more popular by the day. If you have ever thought about getting into or require the service of freight forwarders, this article has some useful tips for you.
If you are a start-up, small business, or even a large enterprise, there is a high likelihood that you will have to use freight services at some point in time. Whether it is to ship your product, ship an item that you have bought, or coordinate the shipment of goods; thus having knowledge of freight forwarding services is necessary.
What is Freight Forwarding?
Freight forwarding is the process of organizing and managing the shipment of goods from one place to another. It's a vital part of the supply chain and helps businesses move their products around the world quickly and efficiently. It is the process by which goods are transported from one location to another, usually overseas, by a carrier.
Carriers are responsible for the execution of the process, and the most common model is FOB, which stands for “Free on Board” or “Freight on Board”. It is a term used to indicate when the ownership of goods transfers from buyer to seller and who is liable for goods damaged or destroyed during shipping.
The freight forwarder is an individual or company that is responsible for the movement of goods from one destination to another. They'll also help you with the paperwork and customs clearance, making the process a lot easier for you.
However, there are different types of freight forwarding arrangements, depending on the type of goods being shipped, the destination, and the mode of transportation.
What Are the Benefits of Freight Forwarding?
There are many benefits of freight forwarding, and that's why it's such an important process for businesses. Here are a few of the most important benefits:
1. Freight forwarding helps businesses save money on shipping costs.
2. It helps businesses stay organized and efficient when shipping goods overseas.
3. Freight forwarding makes it easier for businesses to comply with import and export regulations.
4. It helps businesses track their shipments more easily.
How Does Freight Forwarding Works in Nigeria?
As a business, you will want to know how the process of freight forwarding works in Nigeria. In a nutshell, goods need to be shipped from the warehouse to the airline or seaport. They are then shipped to the country where they are to be delivered. Once they arrive, the goods are delivered to the customer.
This process is a lot easier than it sounds, and once you know how to do it, it can be a great option for your business. Freight forwarding can be a great option for businesses in Nigeria, but it can also be a hassle if you don't know how it works.
Freight Forwarders work with a broker to make the process and logistics of the goods easier. The broker is the middleman who arranges to have the shipment picked up and transported to the intended destination.
It involves the transportation of goods and items. You need to find a trucking company that offers both transport and clearance services. You will then need to find a freight forwarder to board and transport your goods to its preferred destination.
The process starts with the trucking company that you find. They will take your goods and transport them to the freight forwarder. The freight forwarder will have the freight cleared and transport it to the final destination.
Choosing the Right Freight Forwarder in Nigeria
When it comes to freight forwarding, there are a few things you need to keep in mind. First, you need to find a freight forwarder you can trust. This is someone who is going to be handling your goods, so you need to make sure you're working with a reputable company.
Next, you need to find a freight forwarder who has the experience and knowledge of handling your specific shipment. Not all freight forwarders are the same. Then you'll want to do your research and make sure you're working with the right company.
Finally, you'll need to decide what kind of services you need from your freight forwarder. Do you need them to handle customs paperwork? Do you need them to help arrange transport? Make sure you know what services they offer so you can choose the right one for your needs.
What Processes are Involved in Freight Forwarding in Nigeria
Freight forwarding may seem like a daunting process to understand, but once you understand some of these basics, it's easy to see why it's such an important part of the shipping industry.
There are a few key steps that are involved in freight forwarding. These key steps are booking, collection, transportation, and delivery. Let's take a closer look at each one.
Booking is when you contact a freight forwarder to let them know when and what you need to be shipped and what your requirements are.
Collection is when the freight forwarder picks up your shipment from the origin point and transports it to the designated destination.
Transportation is the process of getting your shipment from one place to another, while delivery is when the freight forwarder delivers your shipment to the designated destination.
What are The Risks of Freight Forwarding in Nigeria?
The first risk you may experience is delay and damage risks on goods. The risks of freight forwarding can be higher when shipping larger and breakable items than smaller or unbreakable goods. This is because most freight forwarders will handle large consignments, which means they are more likely to get into accidents and delays.
However, if you are shipping a cargo of small or unbreakable consignments, they may not have any other items to add to the container or truck, so they can focus on your shipment alone which will be safer for your goods.
Also, the risks of freight forwarding in Nigeria are not as high as the ones in some other countries. In Nigeria, you can be sure that your goods will arrive at their destination, even if they have been damaged in transit. The main risk is that the consignment may be delayed due to unforeseen circumstances at the receiving end.
To avoid this, you need to ensure that you don’t take on too much freight for your shipment. This will help to reduce the risk of damage or loss of your cargo during transit. You should also use a reputable freight forwarding company with years of experience in dealing with international shipments and customs clearance procedures.
Conclusion
If you have decided to venture into the business of freight forwarding in Nigeria. This is a very good decision because freight forwarding is a multi-billion dollar business. However, before you can actualize your plans, there are some things you need to know. This guide must have provided you with the basic knowledge you need to start your freight forwarding business in Nigeria.
