Grow Your Business - Preventing Shipping Fraud (Part 2)
Posted on Tuesday, August 26th
Unfortunately, shipping fraud is a commonly encountered problem these days, but there are a few very easy ways to prevent it or rather protect yourself against it. So you have learned the trading terms, you have learned not to be too trusting and you have checked whether your trading business partner is a genuine one or not. Here are a few additional tips for you to remember in your future trading collaborations.
Choose your trading business partner carefully
As an importer or exporter, you will always be on the safe side if you choose to partner up with a reputed freight forwarders or customs brokers. Not only will you probably save some money, but you will have the guarantee that your cargo will be delivered on time. Unfortunately, this is not always the case with common agents, who often charge extra or even blackmail their clients but fail to provide high-quality services. You can start by checking out the profile associations in your area of residence. The Port or Customs authorities should also be able to provide you with a few recommendations. In fact, they are always more than happy to be of assistance. However, remember that you prefer to carry out the product analyses and inspections yourself rather than trust a shipper's agent with this task for they may provide you with false information, thus causing you to lose money. As a forwarder, you want to partner up with similar reliable forwarders in your country of destination. Thus, you will not find yourself obliged to pay any unnecessary commissions or destination fees.
Understand the business
In addition to this, you should remember at all times that knowledge is essential in the trading business. You should fully understand not only the trading terms, but the trading process as well. You should know how the process works both in your area and anywhere else in order to be able to handle any situation you may encounter. This kind of knowledge will help you contact the right people and handle any situation wisely and efficiently. The shipping line, the Chamber of Commerce, the Port or Customs authorities, they can all help you understand what role each entity plays in the whole trading business mechanism. There are also numerous websites and logs that can provide you with answers to various trading related questions. However, should you not find the exact answers you are looking for there, you can always contact the author and ask them your questions.
Learn the costs
Finally, you should familiarize yourself with the costs associated with your particular type of activity, whether an FOB one, a DAP one or any other kind, both in the country of origin and the country of destination. It often happens that buyers are asked to pay costs associated with a different type of activity than their own.
In the end, all these tips are just simple ways to prevent various activities that classify as shipping fraud, so you should keep them in mind when engaging in any future trading activities. Indeed, they may be just a few, but they can make all the difference in the world.
