由 caicai8478 In the complex web of international supply chains, logistics providers (freight forwarders) are the key pillars that hold everything together. Choosing a partner is like choosing a “safeguard” for your goods. However, many companies, especially startups and small and medium-sized foreign trade enterprises, often fall into the first and most tempting trap: blindly pursuing the lowest price. Little do they realize that seemingly low prices often hide significant costs and risks, ultimately leading to “lack of service” and causing companies to pay far more than the freight cost.
- Why is the “Low Price Trap” so tempting?
Direct Cost Pressure: The foreign trade industry is highly competitive, and profit margins are constantly shrinking. Companies naturally tend to reduce costs in all aspects, with logistics, as an explicit cost, bearing the brunt.
Simplifying Decisions: In the absence of professional judgment criteria, “price comparison” is the simplest and most intuitive method. When receiving ten quotes, the lowest number always stands out.
Taking chances: They believe that “logistics is simply transportation,” and since routes and shipping companies/airlines are similar, the service shouldn’t differ significantly. So, if they’re the same, why not choose the cheaper option?
II. What exactly is sacrificed behind “low prices”?
A freight forwarder needs a reasonable profit to maintain operations and provide high-quality service. When their quotes are significantly below market levels, they will inevitably seek other ways to make up for the difference, or simply lower their service standards.
Switching costs
Voyage distance and transit: A low price may mean choosing a “slow ship” with a longer voyage and more transit times, significantly extending shipping time and hindering capital expenditures.
Shipping companies/airlines: They abandon reputable, reliable first-tier carriers (such as Maersk, COSCO, UPS, and DHL) in favor of smaller carriers with unstable service and a tendency to drop containers.
Hidden surcharges (all-in prices that aren’t all-in): This is the most common tactic. The initial quote only includes basic costs like ocean freight. The endless stream of additional surcharges (such as the bunker surcharge (BAF), currency adjustment fee (CAF), port congestion charge, peak season surcharge (PSS), overweight and overlength charges, and change of destination port charges) can leave you stunned. The final settlement price can be far higher than the initial quote, even higher than other suppliers’ all-inclusive prices.
“Ineffective” service and responsiveness
Extremely high communication costs: After receiving a quote, no one can reach you, questions go unanswered, emails go unanswered, and phone calls go unanswered. Your shipment feels like it’s entering a “black hole.”
Rich document errors: To save labor costs, unprofessional or irresponsible operators frequently include errors in key documents like bills of lading (B/Ls), hindering customs clearance and delivery. Modifications incur additional costs and time.
No emergency response capabilities: Unexpected situations are inevitable during transportation (such as customs inspections, port strikes, and flight delays). Low-cost freight forwarders lack the resources and capabilities to urgently coordinate and prioritize your needs. They often simply respond with a “please be patient” response, allowing the situation to escalate.
“Risk Shifting” and Lack of Security
Insurance Loopholes: They strongly recommend purchasing cheap insurance or offer vague terms, making claims difficult in the event of an accident. They may even falsely claim insurance to save money.
Ambiguous Liability Definitions: They exploit complex terms to minimize liability in the event of cargo damage, loss, or delay.
Financial Risks: Freight forwarders offering extremely low prices may be operating poorly, absconding with funds or suddenly going bankrupt, leaving you with nothing but lost cargo and prepaid freight.
III. How to Avoid Traps and Choose the True “Value” Option?
Choosing a logistics provider isn’t about buying a standard product; it’s about choosing security and reliability for your supply chain.
Abandon “price-first” thinking and embrace a “total cost” approach.
When comparing quotes, always request a clear “all-in” price breakdown that lists all potential costs.
Take into account time, capital, risk, and communication costs. A 30-day delay in shipping a low-priced shipment can lead to customer claims and production line downtime, far outweighing the hundreds of dollars saved in freight costs.
In-depth evaluation of service capabilities and professionalism
Core channels: Inquire about their preferred shipping routes and which Tier 1 shipowners/airlines they work with.
Operational procedures: Understand whether their operational procedures are standardized and whether they can provide dedicated personnel for liaison.
Reference cases: Request shipping examples for similar products, and even ask for one or two previous clients as references (reputable companies will usually provide these with the client’s consent).
Contingency plan: Directly ask, “What if my shipment encounters customs inspection at the port of destination? How will you assist?”
Request quotes from multiple sources to identify anomalies
Request quotes from 3-5 freight forwarders. If one quote is significantly lower than the others (e.g., by more than 20%), this is usually not good news but a red flag. Instead of being overjoyed, delve deeper into the reasons.
Prioritize communication experience and response speed.
During the inquiry stage, assess the other party’s timely response, smooth communication, and professional answers. A team that’s slow and unprofessional during the sales phase will never be efficient and reliable in subsequent service.
Small-Batch Trial Order
Before establishing a long-term relationship, conduct a “trial order” with one or two unimportant, non-urgent shipments. This is a touchstone for evaluating the quality of a freight forwarder’s service, providing the truest indication of their operational proficiency, communication efficiency, and problem-solving skills.
Conclusion
Logistics is the lifeblood of international trade, and its smooth operation is directly linked to the lifeblood of any business. The simple truth that you get what you pay for holds true even in the logistics industry. What may seem like savings on freight costs often pays off in the form of higher costs, longer delivery times, and greater risks.
Choices are essentially about trade-offs. Don’t haggle over price; instead, carefully consider the value. A reliable, professional, and responsive logistics partner ensures not only the safe arrival of your goods but also the efficiency, stability, and peace of mind of the entire supply chain. This is the core value that cannot be measured by low price.