Freight Forwarding Process Explained

If you think compliance is simply a cost center, look no further than what’s happening with Temu and Shein. A Congressional oversight committee report called out the Chinese behemoth marketplaces in 2023 for failing “to maintain even the facade of a meaningful compliance program.” The result? Scrutiny, legal risk, and reputational damage. But let’s be clear—this isn’t just about two companies. For importers, customs brokers, and marketplaces alike, compliance isn’t optional. Compliance is not only the backbone of any company with an international supply chain, but it actually can be the difference between going big and going home. Why do compliance programs matter? 👉 For Importers: - Forced labor bans, de minimis restrictions, and tariff changes are evolving - Compliance programs allow you to implement agility quickly, and be ready to pivot alongside fast-changing changing regulations - Without a compliance program, you could be shipping goods that violate U.S. or other laws—leading to seizures, fines, and loss of supplier relationships Temu’s risk? It could be yours. If your supply chain isn’t fully traceable, how do you know your goods are compliant? The answer: prioritizing master data and proactive screening 👉 For Customs Brokers: - If your clients get hit with compliance violations, you do too (it's your license on the line after all) - You’re expected to be the expert in regulatory shifts like Uyghur Forced Labor Prevention Act (UFLPA), tariff exclusions, and de minimis eligibility changes - A strong compliance program ensures you’re not just processing entries—you’re protecting your clients and your business 👉 For Marketplaces: - Your entire platform is at risk if you don’t enforce compliance on sellers - Temu’s “we’re not the importer of record” argument is falling apart—lawmakers are making it clear that marketplaces facilitating noncompliant imports will face consequences - If you aren’t vetting suppliers and enforcing compliance rules, your marketplace could be next in the crosshairs The bottom line? Compliance can't be an afterthought. Temu and Shein have been getting their act together since this report. Their situation is a warning: If you don’t build a strong compliance program proactively, it will be forced upon you reactively. I help companies secure their transactions at origin, validate supplier compliance, and ensure smooth customs clearance—companies have launched my program as quickly as 60 days. #customscompliance #tariffs #ecommerce

Most logistics issues don't show up in slow months.  They show up when it matters most: Q4. If your logistics partner can’t hold up when demand spikes, that’s a clear sign they’re not built for scale and it’s exactly why so many brands rethink their logistics contracts in Q1. Now’s the time to run the numbers and decide if you’re renewing or moving on. Before committing to another year, use your Q4 data to audit these KPIs: • Order-to-ship time: Track by hour, not days. Benchmark is 24 hours; top performers ship in under 12. • Order accuracy rate: Even 1% errors add up. Best-in-class sits at 99.5%+. Below 98.5%? You’re bleeding money. • On-time delivery rate: Track carrier performance by zone. Switching carriers regionally can lift your on-time rate. • Cost per order: Include warehousing, picking, packing, shipping. If you're paying more than $7 per order for non-fragile, standard items, you're overpaying. • Inventory turnover: Track by category. Target 8–12 turns annually. Under 6 means cash is trapped in storage. Use ABC analysis: top 20% of SKUs should turn 12+ times; bottom 20% should be cleared. What metrics are you focusing on as you close out the year? Save this post to audit your logistics performance.

Hello #datafam I'm glad to share my latest project, I built a comprehensive analytics report for a third-party logistics (3PL) company to help them track performance, optimize delivery processes, and identify inefficiencies. The report provides actionable insights across compliance, delivery operations, and order management—key areas that impact customer satisfaction and operational efficiency. Key Features of the Report 1. Compliance Breakdown: The Compliance Dashboard highlights critical metrics that determine whether the ordering company or the delivery partner causes delays. Key sections include: 🟢 Checkout to Delivery Time Compliance – Measures adherence to SLA agreements, with a percentage breakdown of on-time vs. delayed deliveries. 🟢 On-Time Delivery Compliance tracks delivery punctuality, helping identify trends in delays. 🟢 Checkout to Assignment Compliance monitors how quickly orders are assigned to drivers, ensuring efficiency in the initial stages. 🟢 Pickup & Pack Compliance evaluates warehouse performance in preparing orders for dispatch. By isolating where delays occur (e.g., during order assignment, pickup, or last-mile delivery), 3PL companies can hold the right stakeholders accountable—whether it’s the retailer, warehouse, or courier service. 2. Delivery Performance: The Delivery Dashboard provides granular insights into driver performance, including: 🟢 Total Trips vs. Deliveries Completed measures productivity. 🟢 Online Delivery Rate tracks digital vs. manual delivery confirmations. 🟢 Distance Covered helps optimize route planning. By analyzing driver metrics, 3PL companies can reward high-performing couriers, retrain underperforming ones, and optimize delivery routes to reduce costs and improve speed. 3. Order Report: The Order Report gives a detailed breakdown of each item’s status, including: 🟢 Delivery Status (Pending, Shipped, Delivered) 🟢 Product Category & Quantity helps in inventory forecasting. 🟢 Customer & Courier Details ensures accountability at every stage. Retailers and logistics managers can quickly identify stuck orders, predict delays, and proactively communicate with customers, enhancing transparency and trust. How This Report Will Help 3PL Companies 🔶 Reduces Delivery Delays pinpointing bottlenecks in real time. 🔶 Improves SLA Compliance tracking which partners (retailers or couriers) are causing delays. 🔶 Optimizes Workforce Efficiency by identifying top-performing drivers and warehouse staff. 🔶 Enhances Customer Experience with real-time order tracking and proactive issue resolution. Explore the live report here: https://lnkd.in/deB-x7S5 Data-driven logistics is the future. With the right analytics, 3PL companies can minimize costs, maximize efficiency, and keep customers happy. #DataAnalytics #BusinessIntelligence #Logistics #3PL #SupplyChain #BI #GoBolt

Ever wondered why customs processes sometimes hit roadblocks? Importers/Exporters and brokers have very different responsibilities, and understanding these distinctions could save you from costly delays and penalties.  Importers/Exporters and brokers have different responsibilities. Here's what every importer/exporter must master and what NOT to expect from your broker Here’s a breakdown: → Correct Classification: Importers/Exporters ensure goods are classified correctly per the Harmonized Tariff Schedule. Misclassification can lead to penalties and delays. → Accurate Valuation: Importers/Exporters must verify the declared value of goods, including freight and insurance. All valuation adjustments need documentation. → Correct Currency: Importers/Exporters confirm the value declared is in the correct currency, following customs exchange rate guidelines. → Supplier Documentation: Importers/Exporters ensure suppliers provide complete and accurate documentation like commercial invoices and packing lists to avoid delays. → Incoterms: Importers/Exporters understand Incoterms, especially in the EU. For instance, CIF includes freight and insurance in customs value. → Compliance with Origin Rules: Importers/Exporters make sure suppliers comply with origin rules and have proof for Free Trade Agreement benefits. → Recordkeeping: Importers/Exporters maintain all import/export documentation for the required period, usually 5-7 years. → Monitoring and Auditing: Importers/Exporters regularly audit customs entries and broker activities to ensure compliance and fix discrepancies. → Licenses and Permits: Importers/Exporters obtain necessary licenses or permits for controlled or restricted items. Responsibilities NOT of the Broker: → Customs Classification: Brokers assist with classification, but importers ensure accuracy based on the Harmonized System. → Inclusion/Exclusion of Freight: Importers decide if freight costs are included in customs value based on Incoterms, not brokers.  CIF (Cost, Insurance, Freight) → Compliance Strategy: Importers/Exporters establish and enforce internal compliance policies, not brokers. → Origin Determination: Importers/Exporters determine the origin of goods, especially complex products, even if brokers facilitate certificates. → Documentation Accuracy: Importers/Exporters verify supplier-provided information, like value and quantity, not brokers. → Customs Valuation Decisions: Importers/Exporters make decisions on valuation adjustments, not brokers. Additional Considerations: → Importer/Exporter of Record (IOR/EOR): Importers/Exporters are legally responsible for compliance with all laws and regulations, including paying duties and taxes. → Duty Optimization: Importers implement duty-saving strategies, though brokers can advise. → Regulatory Compliance: Importers/Exporters ensure compliance with non-tariff regulations, while brokers facilitate customs clearance. Know your role

If I had to start from zero, here’s my exact roadmap to $100k/month in freight. No team. No book of business. Pure hustle. Start with trust. Freight forwarders win long term by building proof-not by racing to the bottom for rates. I don’t work for free. But I will take thinner margins at the start. (You get your foot in the door, not on your own throat.) Here’s my freight-forwarder playbook: 1️⃣ Deliver service first. You’re selling peace of mind. On-time shipments. Clear updates. The kind of reliability that lets your client sleep at night. I make every first client feel like my only client. 2️⃣ Turn small wins into stories. One customs hold? I solve it before lunchtime. Cargo stuck? I stay late for every update. (True story-my first two clients still refer me years later.) Case studies don’t need to show profits to clients. They show you handle chaos better than the next forwarder. • Did you save a client’s shipment before a holiday? • Did you reroute when a port strike hit? • Did you stay up calling three truckers to find a solution? Write it down. Share those stories. Trust builds from details. 3️⃣ Price for partnership. I never stay cheap. First job, I take a thinner margin. Second job, I show results. Third job, I raise my rate. (If they want cheapest, I’m not the guy.) 4️⃣ Outwork the competition. Most forwarders are gone after the first problem. I call. I message. I follow up. I don’t let a gap appear in communication-not once. 5️⃣ Systematize everything. I use templates for updates, track every milestone, and review feedback after every job. Process is what keeps service strong-through chaos, through growth. Go slow to go fast. Freight is a people business. At $100k/month, every dollar still starts with trust. Ready to build your story? Your move.

Stop firing people for mistakes. You're firing your best data. In logistics and freight, complexity is not an exception. It is the operating environment. Delays happen. Markets shift.  Costs rise without warning. If a leader runs the organisation through fear, blame, or silence, the business will fail long before the market causes any damage. After many years in this industry, I’ve learned that long-term success is built on three pillars: 1. Transparent Communication Clients do not expect perfection. They expect honesty. Stop hiding surcharges or hoping a difficult update “won’t be noticed.” Share the full, itemized breakdown upfront—every fee, every variable. And when a delay or disruption occurs, communicate immediately. Deliver the bad news first, then share your plan to stabilise the situation. Clear communication does not lose clients. It earns multi-year partnerships. 2. Leading with Integrity Integrity is the strongest margin protector in a volatile market. When clients trust that your pricing is fair—even when costs rise—they do not assume you are taking advantage of the situation. They understand the necessity and support the decision. Your credibility is your most valuable commercial asset. 3. Building a Learning Culture This is where most leaders fail. When a salesperson underquotes, or an operational handover breaks, you have two choices: Option A: Blame the person, create fear, and guarantee the mistake gets hidden next time. Option B: Ask the only question that matters: “What in our system allowed this to happen?” A blame culture buries information. A learning culture exposes failure early—so you can fix it permanently. The best organisations do not punish errors. They eliminate their root causes. If you build around these three principles: - Transparency - Integrity - Learning You stop chasing short-term wins and start building a resilient, profitable operation. What is the biggest lesson your team learned last month? #Logistics #SalesLeadership #Trust #SupplyChain #FreightForwarding #OperationalExcellence

Importers: Are You Unknowingly Violating CBP Regulations? Many importers aren’t aware that a Power of Attorney (POA) for customs clearance must be executed directly with the licensed customs broker — not through a freight forwarder (unless they are a broker) or any third party. This is a strict requirement under 19 CFR § 111.36(c)(3). IF YOU ARE BUYING LDP, DO NOT PROVIDE A POWER OF ATTORNEY TO THE SELLER'S THIRD PARTY OR HAVE SHIPMENTS CLEARED IN YOUR NAME SINCE YOU WILL BE RESPONSIBLE FOR ALL DECLARATIONS TO CBP AS IMPORTER OF RECORD. Let’s break this down: 📌 What the Regulation Says: Customs brokers are prohibited from accepting a POA that was obtained by a third party, such as a non-customs broker licensed freight forwarder. The customs broker must have a direct POA with the importer of record. 📌 Why This Matters: If a freight forwarder (that is not a licensed broker) — let’s say “Rain Forest Forwarder” — presents you with a POA for their in-house broker, such as “SOSO Brokers,” and you sign it, you are not in compliance with CBP regulations. The POA must be directly between you and the broker. Often, importers assume the forwarder is the customs broker, leading to confusion and lack of reasonable care in CBP’s eyes. If CBP pulls your entry and asks who your broker is — and you reply “Rain Forest” — but SOSO Brokers filed the entry, that could demonstrate a compliance failure on your part. ⚠️ The Risk to You: Violating 19 CFR § 111.36(c)(3) Failure to exercise “reasonable care” as required under 19 U.S.C. § 1484 Potential audits, penalties, or delays in cargo clearance Being misled into authorizing a broker relationship you never intended 💡 Best Practice: Always execute a POA directly with your licensed customs broker. Ask them to confirm their license and maintain open communication. No third party should interfere with or act as a conduit for that relationship. At the end of the day, compliance is your responsibility as the importer. Make sure you’re protected — and adequately aligned with CBP regulations. #LDP #importer #Duty #customs #CBP #powerofattorney #customscompliance #importcompliance #reasonablecare.

9 questions your 3PL hopes you never ask. After 27 years in freight, I've learned that most 3PLs are vendors pretending to be partners. Here's how to expose them: 𝟭. 𝗗𝗼 𝘆𝗼𝘂 𝗼𝗳𝗳𝗲𝗿 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗺𝗶𝘅 𝗼𝗳 𝗟𝗧𝗟 𝗰𝗮𝗽𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀? Can they handle standard, expedited, and specialized shipments? If their carrier network is limited, so are your options. 𝟮. 𝗖𝗮𝗻 𝘆𝗼𝘂 𝗽𝗿𝗼𝘃𝗲 𝘆𝗼𝘂𝗿 𝗼𝗻-𝘁𝗶𝗺𝗲 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆 𝗿𝗮𝘁𝗲𝘀? Speed means nothing without consistency. Demand trackable results or case studies. If they can't provide them, move on. 𝟯. 𝗗𝗼 𝘆𝗼𝘂 𝗵𝗮𝘃𝗲 𝗮 𝘀𝘁𝗿𝗲𝗮𝗺𝗹𝗶𝗻𝗲𝗱 𝗽𝗿𝗼𝗰𝗲𝘀𝘀 𝗳𝗼𝗿 𝗶𝗻𝘃𝗼𝗶𝗰𝗶𝗻𝗴 𝗮𝗻𝗱 𝗿𝗲𝘀𝗼𝗹𝘃𝗶𝗻𝗴 𝗱𝗶𝘀𝗽𝘂𝘁𝗲𝘀? Billing issues drain time and trust. If disputes take weeks to resolve or invoices don't match quotes, that's a red flag. 𝟰. 𝗔𝗿𝗲 𝘆𝗼𝘂𝗿 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗮𝗻𝗱 𝗳𝗲𝗲𝘀 𝘁𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝘁? Ask how they structure rates and negotiate with carriers. Look for consolidation strategies, volume discounts, and clear billing with no surprises. Increase your bottom line by signing a LOA to negotiate your entire LTL spend on your behalf to further value your bottom line. 𝟱. 𝗗𝗼 𝘆𝗼𝘂 𝗽𝗿𝗼𝘃𝗶𝗱𝗲 𝗿𝗲𝗮𝗹-𝘁𝗶𝗺𝗲 𝘃𝗶𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝘁𝗲𝗰𝗵 𝗶𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻? A 3PL without tech is a liability. Their TMS 𝘮𝘶𝘴𝘵 integrate with your ERP or WMS and provide proactive alerts — not excuses. 𝟲. 𝗖𝗮𝗻 𝘆𝗼𝘂 𝘁𝗮𝗶𝗹𝗼𝗿 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀 𝘁𝗼 𝗺𝘆 𝗳𝗿𝗲𝗶𝗴𝗵𝘁 𝗻𝗲𝗲𝗱𝘀? Your freight isn't one-size-fits-all. They need to flex for temp-sensitive, white-glove, or job-site delivery. 𝟳. 𝗪𝗵𝗮𝘁 𝘃𝗮𝗹𝘂𝗲 𝗱𝗼 𝘆𝗼𝘂 𝗯𝗿𝗶𝗻𝗴 𝗯𝗲𝘆𝗼𝗻𝗱 𝗺𝗼𝘃𝗶𝗻𝗴 𝗳𝗿𝗲𝗶𝗴𝗵𝘁? Consolidation, claims management, route optimization, analytics. A 3PL that finds hidden efficiencies is a strategic asset — not just another vendor. 𝟴. 𝗔𝗿𝗲 𝘆𝗼𝘂 𝗮 𝘁𝗿𝘂𝗲 𝗽𝗮𝗿𝘁𝗻𝗲𝗿 — 𝗼𝗿 𝗷𝘂𝘀𝘁 𝗮𝗻𝗼𝘁𝗵𝗲𝗿 𝘃𝗲𝗻𝗱𝗼𝗿? Demand a dedicated rep. Ask how they handle escalations and if they can scale with you. Great partnerships are built on communication and aligned expectations. 𝟵. 𝗗𝗼𝗲𝘀 𝘆𝗼𝘂𝗿 𝟯𝗣𝗟 𝗼𝗳𝗳𝗲𝗿 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗰𝗼𝘃𝗲𝗿𝗮𝗴𝗲 𝗳𝗼𝗿 𝗵𝗶𝗴𝗵𝗲𝗿-𝘃𝗮𝗹𝘂𝗲 𝗳𝗿𝗲𝗶𝗴𝗵𝘁 𝘄𝗶𝘁𝗵𝗶𝗻 𝘁𝗵𝗲𝗶𝗿 𝗧𝗠𝗦? Standard carrier liability won't cover your $50K shipment. If they can't offer additional coverage options at the point of booking, you're carrying risk they should be managing. 💡 Professional insight: The 3PLs who get nervous when you ask these questions are telling you everything you need to know. The ones who welcome them? Those are the partners worth keeping. What's the one question you wish you'd asked your 3PL sooner? #TheTrustedFreightGuy

🚛 📊 Carrier scorecards are the cornerstone of measuring and improving transportation performance. They provide shippers and brokers with the data they need to make informed decisions about carrier partnerships and ensure reliable service. A Carrier Scorecard evaluates a carrier's performance based on key metrics such as On-Time Delivery (OTD), On-Time Invoicing (OTI), responsiveness, and claims ratios. This data helps freight brokers and shippers assess how well their carriers are meeting expectations, identify areas for improvement, and make decisions on which carriers to work with. How scorecards help brokers: 1. Build Trust: Clear, measurable data fosters transparency, helping brokers, shippers, and carriers build trust and strengthen their relationships. Sharing performance data allows carriers to see where they’re excelling and where they need to improve, which drives better performance on both sides. 2. Optimize Cost vs. Service: Brokerages often have to balance cost constraints with service expectations. Carrier scorecards help brokers evaluate whether it’s worth spending a little extra to work with a high-performing carrier who consistently meets deadlines or if they need to address poor performance to avoid delays. 3. Increase ROI: By identifying top-performing carriers, brokers can direct more loads their way, maximizing efficiency and reducing disruptions. When brokers have accurate performance data, they can make smarter decisions about who to partner with—ultimately leading to better service and greater profitability. 4. Gain Visibility: The deeper insights provided by carrier scorecards allow brokers to understand their supply chain’s weak spots. They can identify where delays or inefficiencies are occurring—whether it's on-time delivery issues, poor communication, or tender rejections—and take action to correct them. Current Challenges with Carrier Scorecards While carrier scorecards can unlock tremendous value, they are not without their challenges. The process is often manual, time-consuming, and prone to inconsistency. Here are some common pitfalls: 1. Data Silos: Freight brokers often work with multiple systems and spreadsheets to gather carrier data, leading to incomplete or inconsistent information. This fragmented data can make it difficult to accurately assess carrier performance. 2. Inconsistent Criteria: Scorecard criteria can vary from carrier to carrier, and shipper to shipper, which makes it hard to maintain a standardized process across the board. This can also make it challenging for brokers to compare performance consistently. 3. Limited Automation: Many brokers still rely on manual processes to track and calculate scorecard metrics, which can lead to delays in data reporting and slower decision-making. What changes do you want to see in scorecards?👇

It blows my mind how many carriers and even brokers still don’t understand US–Canada cabotage laws. This is not complicated, yet I see it ignored constantly.   This is not my opinion, it is the LAW.   A US driver can pick up a shipment in the US and deliver it to Canada, then return empty or load a shipment in Canada only if it goes back to the US. Likewise, a Canadian driver can transport freight into the US and then return empty, or pick up a US load heading back to Canada. That is it.   What they absolutely cannot do is CABOTAGE, which is transporting freight entirely within the other country.   A Canadian driver cannot haul within the US, and a US driver cannot haul within Canada.   It is black and white. Every week, I see carriers and brokers who clearly don’t know this, asking drivers to perform illegal moves, and it is the driver who ends up on the hook for violating federal immigration and customs laws.   These regulations come directly from U.S. Customs and Border Protection and CBP’s guidelines for cabotage (see 19 CFR § 123.14(c)) , along with broader cross-border movement rules codified under Treasury Decision 99‑10 and sections of U.S. Customs law like 19 USC § 1592. On the Canadian side, the CBSA clearly prohibits foreign-based vehicles from performing point-to-point domestic movements unless it is immediately before or after an international shipment (see CBSA Memorandum D3‑1‑5 and Customs Tariff 9801.10)   So here the thing: If you do not know these laws—DO NOT TOUCH cross-border freight. You are not acting like a professional, you are acting like a liability. You are risking your driver’s legal status and your company’s compliance, and worse, your negligence will end up hurting your clients. Cross-border logistics is not a beginner sandbox. It is regulated, specialized and unforgiving. Learn the rules or get out of the way.