Many people have been tricked by shippers and intermediaries, taken for a ride by forwarders, and so on and so forth. Here are six safeguards to avoid being victimized by shipping and freight fraud.
Here are 3 ways to reduce freight forwarding expenses. Start implementing the changes right away by following these steps.
Get familiar with all trading terms:
The current version of Incoterms® rules, Incoterms® Rules 2020, must be carefully studied and understood in order to avoid large volumes of shipping and freight fraud, duping, and mistakes. Because neither buyers nor sellers are aware of the Incoterms® rule that applies to a particular transaction, it happens frequently. Incoterms® is not a one-size-fits-all solution. Each sale must be treated differently.
You should trust a company only after you have run a background check. It is important to take certain precautions when you are dealing with a new company the first time. A buyer may accept a cash against delivery payment if you are selling to an overseas buyer. It is always a good idea to hold on to your bills of lading until you have received the money, in such cases – do not send out an OBL or a telex release to the buyer until you have received the money. There are many cases when a proof of payment turned out to be fraudulent. Wait until the money is in your account before you send it to the buyer. Banks can provide assistance in ensuring that you receive your money by using instruments such as a letter of credit. Once you have established a relationship and earned the trust of your customers, you may use your own discretion.
Take out time to verify the company:
Ensure that the supplier you are purchasing from is a legal entity and not a fly-by-night middleman. Many entities pretend to be suppliers, manufacturers, and sellers, and you’ll typically find out much sooner that they don’t exist. I would strongly advise that if a company is new, you visit the source and make sure that the seller and the product are authentic.
ProConnect Integrated Logistics – Your Freight Forwarding Partner
There are many freight brokers in the industry, you need to choose the right partner for your shipment. Your shipment is valuable, and we ensure we treat it like ours. ProConnect Integrated Logistics gets its expertise, experience, and value from working with its group company – Redington. Over the years, ProConnect has established itself as a preferred freight forwarder and logistics partner for many companies in the UAE and Saudi Arabia, catering to a variety of industries.
If you are looking for a partner to take care of all your logistics hassles, talk to us