One practice that has come to light is Freight Forwarding companies offering cheap freight rates to the exporter and then getting a backhander (secret commission) from the import agent on the receiving end.  Often you will have no control over the local receiving agent who the overseas shipper specifies.

To receive the goods you have no option but to pay whatever charges they tell you.  Usually it will be disguised as “Port Handling Fees” or some other name they dream up.

So what sounded like a cheap freight rate ends up being VERY expensive by the time you get your goods.  We have even heard of some exporters (not of EWPS’s) offering free freight – but then you pay heavily on the receiving end.

We have been victim of these scams ourselves on Imports -  paying as much or more to receive the goods as the exporter paid in freight to send them.

At Action Equipment we only use Freight Forwarders who can confirm to us that they do not participate in this practice.  While we cannot control the local charges in your receiving port we can assure our customers that there are no kickbacks being paid to our forwarders.

Next time you arrange a consignment be sure to ask the freight forwarder whether  they will be loading up the charges at the receiving end.  If they cannot simply and clearly assure you that they do not do this then you will probably save yourself a lot of money by shopping around until you find someone that can.  The cheapest quote is not always the best in the long run.

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September 29, 2013