How To Avoid The 3 Most Common Freight Forwarder Scams

Updated on

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 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.

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q2 hedge fund letters, conference, scoops etc

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.

Do you know which under-the-radar stocks the top hedge funds and institutional investors are investing in right now? Click here to find out.

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.


Signup to ValueWalk!

Get the latest posts on what's happening in the hedge fund and investing world sent straight to your inbox! 
This is information you won't get anywhere else!