As companies continue to seek out freight services providers in emerging markets for savings and efficiencies of ocean freight rates, they are faced with the prospect of having to meet additional regulatory compliance requirements. Partnering with a third-party logistics provider can help to mitigate compliance issues.

freight services compliance

Increased global sourcing has resulted in greater compliance risk factors for importers. As a result, jurisdictional and safety regulations are compelling companies to focus more on increasing visibility throughout their supply chain.

As companies depend on an increasing number of freight services providers, they also face challenges in monitoring performance without automated systems to analyze performance metrics.

Many companies are taking proactive measures to minimize compliance risks and increase supply chain visibility by partnering with a third-party logistics provider who can provide them with real-time status updates and effective monitoring and communication in response to any regulatory compliance issues that may arise. A 3PL can leverage the power of Internet Technology and GPS tracking as well as years of transportation industry experience across multiple shipping modalities to effectively monitor shipments in real-time for compliance risks. This applies particularly to international freight services where a shipment must be in compliance across multiple jurisdictions.

While some companies are inclined to partner with an international freight forwarder that can offer the most competitive ocean freight rates above all other considerations as an example, this philosophy is short-sighted in that it fails to account for potential shipping delays and fines or penalties that can ensue from a lack of vigilance in monitoring for compliance issues. Those same companies that secured lower ocean freight rates may come to realize that they get what they pay for in the long-term.

While freight forwarders are liable for violations of trade regulations such as Export Administration Regulations and International Traffic in Arms Regulations, the onus to comply with regulatory requirements lies mainly with the exporter and importer of goods.

It is important to establish and maintain standards of communication with your broker such as providing them with complete and accurate shipping information, License Authorization, U.S. Automated Export System (AES) Internal Transaction Number and by working together to determine correct freight classification.

Maintaining an ongoing dialogue with a logistics provider such as Skyfer Logistic can go a long way towards mitigating compliance issues and can facilitate internal audits of export transaction records to monitor for proper regulatory compliance.

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