How to choose a freight forwarder: 7 questions before you sign
Seven questions that separate a good freight forwarder from one that costs you margin: real capacity, all-in quotes, free time, insurance and data.
By Choosing a freight forwarder is closer to hiring a partner than buying a service. I have sat on both sides of the table: buying capacity for corporations and selling it to importers. These are the seven questions I would ask before signing.
1. Who actually moves my cargo?
Ask whether they hold direct contracts with carriers or airlines on your lane or buy the space from another intermediary. Subcontracting isn’t wrong, but every link adds cost and removes control when something goes wrong in peak season.
2. Is the quote all-in, and how long is it valid?
Ask for the door-to-door cost: base rate, surcharges (fuel, peak season, general rate increases), origin and destination charges under your Incoterm, and validity. Two quotes with the same base rate can end up very different on the invoice.
3. How much free time will they negotiate for me?
Free time before demurrage and detention is worth as much as the rate. A few days’ customs delay can cost more than the difference between two providers. Get it in writing.
4. What happens if something is lost or damaged?
Carrier liability is limited by international conventions and rarely covers the real value of your goods. Ask whether they offer cargo insurance, with what coverage, and how claims work.
5. How do they handle customs at destination?
In Mexico, customs entries are signed by a licensed customs broker. Ask who they work with, who checks classification and value, and who is accountable if customs raises an issue. Most cost surprises show up in this leg.
6. What visibility do I get?
Ask how they will keep you informed: tracking, departure and arrival notices, alerts when something slips. And who your contact is when things go wrong, not only when they are selling.
7. Which KPIs will they accept?
Propose three or four written metrics: on-time performance, invoice accuracy, response time and claims. Review them every quarter. A provider confident in its service accepts being measured.
The best signal isn’t the rate. It’s how they answer these seven questions before they have your contract.
Key takeaways
- The lowest rate is rarely the lowest cost: compare all-in, door-to-door cost.
- Ask whether they hold direct carrier contracts or buy space from another intermediary.
- Cargo insurance is rarely included, and carrier liability is limited.
- A forwarder that won’t accept written performance KPIs is telling you something.
FAQ
What is the difference between a freight forwarder and a carrier?
The carrier operates the vessels or aircraft. A freight forwarder arranges transport on the shipper’s behalf: it buys space from carriers, airlines or truckers and coordinates documents, legs and providers.
Should I work with a single forwarder?
It depends on volume. With meaningful volume, two providers per lane give you leverage and backup. With low volume, one well-chosen and well-measured provider is usually more efficient.
Can a forwarder clear customs in Mexico?
Customs entries in Mexico are signed by a licensed customs broker (agente aduanal). Many forwarders work with partner brokers and coordinate the process, but you should know who signs and who is accountable.
This article is for information only and reflects my personal view; it is not legal, tax or customs advice.
VP of Global 99 at 99minutos. 13+ years in international trade, freight and cross-border across Asia, Latin America and the United States.