Freight forwarders operate on a fee basis paid by the exporter. The forwarders' fees consist of an agreed-upon amount, plus documentation charges. The cost for their services should be figured into the price charged to the customer. Freight forwarders also collect a percentage of the freight costs from the carrier.

Every company has its own needs to consider when selecting a freight forwarder. The following list includes a few suggestions of criteria to consider when selecting a freight forwarder:

Q: Is the freight forwarder licensed by the Federal Maritime Commission (FMC) to handle ocean cargo?

A: Currently, all ocean freight forwarders in the United States must be licensed by the FMC.

Q: Is the freight forwarder registered with the International Air Transport Association (IATA) to deal with international air cargo?

A: Being registered with IATA is not a requirement to handle air freight. However, to register, freight forwarders must meet IATA criteria regarding financial and credit standing, physical facilities, professional qualifications, and ethical practice.

Q: Is the freight forwarder financially stable?

A: Ask for credit references, and check them. Check with carriers to see that the freight forwarder has a good payment record. Review a copy of their annual report. If it's a larger company you can check them on the New York Stock Exchange, NASDAQ, or Dun and Bradstreet.

Q: Does the freight forwarder have a record of customer satisfaction?

A: Ask the freight forwarder for a list of satisfied customers, and call them.

Q: Does the freight forwarder have knowledge of and experience with your product, desired shipment method, and destination country?

A: Product information was collected in the questionnaire, and included in this directory, because many of the calls received from agricultural shippers ask for it. Many companies feel that a freight forwarder experienced with moving their product, shipment method, and destination market will make a better partner. However, responses to the freight forwarder survey indicated that freight forwarders felt that although they did not have prior experience shipping a given product or shipping to a specific destination, they could handle any move, anywhere.

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