When budgets are tight and cost efficiencies are king, it’s tempting to pick the cheapest option – but all too often it’s an expensive mistake. When it comes to freight forwarding, going with the cheapest quote can lead to a whole raft of problems – not all of them minor. You’re about to ship your valuable cargo around the world, so the last thing you need is to find you’ve gone with a freight forwarder that has resulted in your goods being damaged, stuck in customs hell, or worse, simply lost along the way somewhere with no tracking and no one taking responsibility. It does happen!

At Millennium Cargo, we’ve seen it all. Thankfully, we’ve been able in some cases to step in and help the poor hapless businesses that have put cost above quality, but often there’s little that can be done except to chalk it up to experience and move on. Let us share some of that experience with you as we look at the smart way to compare freight quotes.

The Hidden Cost of Cheap Freight Quotes

Cost-effective doesn’t mean cheap. Price is important, of course it is – after all, if you can’t afford the service then no amount of wishing is going to make it happen. When you’re shipping cargo as part of your business model, every outgoing has to be considered and assigned to measure the true cost of doing business and, ultimately, your profit margin.

But there’s a huge hidden cost when you choose a freight quote based on price alone. Consider some of the following:

• Missed deadlines – Shaving a little off the cost often means accepting that things take a little longer in transit. If your freight company is transparent, that can be OK – after all, you just factor it in – but what about if they’ve exaggerated their efficiency a little to get the contract? You promise your customer that the goods will be with them on a specific day, and they’re waiting as days pass, a week… even longer… Is the amount you saved really worth upsetting a customer to the extent that they choose to never buy from you again?
• Damaged goods – They might get there on time, but if your cargo has been badly mistreated en route, then was it worthwhile? The cost of replacing or writing off damaged products can be considerable, but the cost of damage to your brand reputation may be worse. Why risk it?
• Administrative costs – How much does your time cost? When you choose the cheapest freight quote, you could end up paying for the ‘savings’ when problems surface and demand your attention. An email here, a phone call there, and soon you’re spending hours of your precious time, and that of your admin team, just trying to resolve the issues, apologise to those you’ve let down, and try to get some sort of resolution in place. It all adds up.
• Additional charges – Sometimes the reason the original freight quote is low is because a few little things are missed off, only to be presented to you once you’re already committed. A sudden bill for storage, or additional customs charge you didn’t expect, can turn that cheap freight quote into a costly mistake.
• Lost cargo – The big one is when it all goes wrong and for whatever reason you just never see your goods again – and neither do your customers. From freight companies doing a runner, through to ineffective apologies that also come with the admittance that there’s no insurance in place… It can be damaging enough to destroy businesses, especially in the early years of moving to international trade.

In freight, it is value that matters more than price.

What to Consider in Your Freight Quote (Besides Price)

At Millennium Cargo, we’ve been at this for years. Here’s some of the key things to look at when you’re comparing freight quotes:

• Reputation – We’re putting this first because really, it’s where you should start. There are younger freight companies who are perfectly reliable and keen to show their efficiency, but do you want to take the risk? Freight forwarders live and die by their reputation for good reason. Check independent reviews, ask around, and do your research to make sure that the company you’re choosing to partner with has the history to back up their claims.
• Speed – One of the most important factors when determining whether the freight forwarder is right for your business is whether they can get your goods to the destination in a decent amount of time. Discuss timelines with them to understand what’s realistic and reliable, and be cautious if it seems too optimistic. Comparing timelines between companies will help you gauge a reasonable baseline and dismiss both those that are too slow for your use, and those who present a near-mystical promise that cannot possibly be fulfilled. Of course, do check the transit method – comparing sea freight to air freight for timescales will lead to confusing results.
• Routes and networks – Ask about the route to gain an understanding on how your cargo is being transported. Good freight forwarders will be transparent and explain how choices are made and why they’re right for your shipment.

• Technology and tracking – Modern shipping is very technology-centric. A good freight forwarder will offer real-time shipment tracking, proactive notifications, and other integrated technologies that will help you gain peace of mind while your cargo is in transit.
• Customer service – If a freight forwarder doesn’t treat you with care and respect, how will they treat your cargo? Work with partners who are responsive, professional, and good with problem solving. Communication is everything, so a company that avoids contact should be equally avoided.

How to Compare Freight Quotes

Comparing freight quotes can be simple and doesn’t need hours. Prepare a checklist of things that are important considerations to you and make sure your proposals meet that criteria – perhaps score each item out of ten and assign an overall score to each company.

Remember that it’s important to compare apples with apples – as mentioned earlier, it does you no good to compare sea freight times with air freight estimates. Ask questions to make sure you understand what the quote entails and then you can go through it to make an informed decision.

Finally, if you are going to be shipping regularly, it’s important that you look for a partner and not just a one-off service. Over time, you will build a relationship with your freight forwarder that will go far beyond this first quote. 

Humans are wired to stick to what they know, even if it’s not quite right for them, so picking a substandard freight forwarder on your first try could result in you mistakenly remaining with them for quite a while – until something goes really wrong. Avoid that disaster by getting it right from the outset.

Choosing Millennium Cargo

We don’t expect you to choose to partner with us at Millennium Cargo without the right amount of consideration – in fact, we encourage you to check us out fully. We’ll be more than happy to provide you with a thorough freight quote to form part of your decision making process, and our outstanding customer service team will be on hand throughout to answer any questions you have and explain any detail.

We’re an experienced freight forwarder who never tries to grab the quick sale through low bids – our services cost the right amount for the value we offer. You can trust Millennium to provide:

• A reliable multi-modal service, tracked in real time from departure to destination
• Proactive customer support
• Specialists with the experience needed for smooth global transit
• Efficient administration and paperwork assistance
• Full transparency
• Comprehensive partnership for long-term relationships

Choose wisely – choose Millennium Cargo. Contact us today.