How To Avoid The 3 Most Common Freight Forwarder Scams

If there’s one component of the supply chain that any import and export business owners would be thankful for that would be the freight forwarders.

freight forwarders

Freight forwarders are the ones who handle cargos being shipped to and from overseas. Their ability when it comes in logistics and knowledge on their field of work has proved how highly beneficial they can be, providing a much easier way to manage all the demands associated in the shipment of the products from its location to its destination.

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However, the increase in demand among every freight forwarding firms brought an encouraging chance for some counterfeit individuals.

So if you are one of those business persons who're looking forward to loading your goods from a freight forwarder, well think twice before you hire one to avoid these fraudulent persons.

Fraudulent freight forwarders can come in various strategies to hook you and be their victims. One can be that scammer who asks for ransom as they already have in hand your goods. They will work on earning your trust by giving you information about their services to one of those well-known shopping sites. You’ll never notice their real intention until the negotiation starts, as they will renounce the release of your documents known as Bill Of Lading, which will serve as your criterion of contract.

The other one is those who copy the company name of the legitimate ones. You won’t doubt to see one as it is possible for some companies to bear similar names. Lastly, those that steals their client’s cargo. This kind of scammers are much like the BOL scammer; however, these persons work on targeting the cargos with higher values of goods. They’ll get your attention as they will offer you that uncertain low rate service and as they got to handle your products, you’ll end up waiting for nothing. They will vanish together with your cargos.

As an importer or exporter, your products are the most important part of your business, so before trusting a freight forwarder to be in charge of your goods, make sure to check on their credibility and reliability. Don’t fall for their flowery words and low rates or discounts; search for the essential information and client reviews before handing over your goods.

To know more of the essential information and how you can avoid a fake Freight Forwarder, check out the full infographics below from Excelsior Worldwide Freight Logistics.

Scams




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver