A conversation about international shipping fundamentals, common mistakes shippers make, and what the 2026 logistics landscape means for businesses moving cargo globally.
Welcome to the Logistics Breakdown. I'm your host, and today we're talking about something that affects every business moving products across borders: freight forwarding. Most companies don't think about freight forwarding until something goes wrong. A container gets stuck at port. Customs holds a shipment. Fees pile up with no explanation. Then it's crisis mode. The truth is, understanding freight forwarding before something breaks saves thousands in delays, penalties, and unexpected costs. Let's start with the basics. What does a freight forwarder actually do? A freight forwarder coordinates international shipping. They don't own ships or planes or trucks. What they do is arrange transportation, handle paperwork, clear customs, and fix problems when shipments go sideways. Think about this scenario. Forty pallets are sitting in a factory in Guadalajara. They need to reach a warehouse in Michigan by next Friday. Between those two points, you've got trucks, a border crossing, customs clearance, maybe rail, another truck. Four or five different companies involved. Any one of them can drop the ball. The freight forwarder makes sure they don't. Or when they do, the forwarder fixes it before you even know there was a problem. Here's what stands out: the freight forwarding industry hit two hundred sixteen point four seven billion dollars globally in twenty twenty-four. And that number keeps climbing. Supply chains keep getting messier. More regulations. More countries involved. More places where things break down. Now, a lot of shippers confuse freight forwarders with carriers. Here's the difference. Carriers own equipment. Shipping lines own vessels. Airlines own planes. Trucking companies own trucks. Freight forwarders don't own any of that. They book space on carrier equipment. They negotiate rates. They handle documentation. They coordinate handoffs between carriers. Most international shipments touch multiple carriers. Truck to port. Ship across the ocean. Rail inland. Another truck to the final destination. Each handoff creates risk. Forwarders manage that chain. For ocean freight specifically, you might hear the term NVOCC. That's Non-Vessel Operating Common Carrier. It's an ocean freight forwarder with authority to issue their own bills of lading and take direct responsibility for cargo during ocean transit. The Federal Maritime Commission licenses NVOCCs. They require a seventy-five thousand dollar surety bond. That bond protects you if something goes wrong. Not every forwarder holds NVOCC status. For ocean shipments, the distinction matters. Now, let's talk about what mistakes shippers make. The biggest one? Assuming all forwarders are the same. Relevant experience matters more than anything else. A forwarder moving auto parts daily might struggle with pharmaceuticals. Different regulations. Different handling requirements. Different carrier relationships. Before signing with anyone, ask this specifically: What experience do you have with this product type on this exact route? Who actually handles my account? Can you provide references from similar recent shipments? Vague answers are warning signs. Here's another big mistake. Not checking if customs capability is in-house. When customs clearance and transportation happen at the same company, fewer places exist for problems to slip through. When separate vendors handle each piece, finger-pointing happens. Things fall through cracks. Ask directly. Is customs capability in-house or subcontracted? If subcontracted, who handles it? Can I get direct contact information? This single question often reveals how mature a company is. Documentation is another huge area where shippers get it wrong. Wrong paperwork halts shipments faster than anything else. Bills of lading serve as contracts with carriers. Commercial invoices describe transactions—customs uses these to calculate duties. Undervalue goods intentionally or accidentally and you've created legal exposure. Packing lists itemize container contents. Count five hundred pieces but an inspector counts four hundred eighty-five and problems follow. Certificates of origin document where goods were manufactured. Missing certificate of origin documentation means paying full duties even when goods qualify for reduced rates under trade agreements like USMCA. Incoterms determine responsibility at each stage. FOB, CIF, DDP, EXW—these terms define who handles what. Incorrect Incoterm selection creates liability. Let's talk about the twenty twenty-six shipping landscape because it matters. Red Sea disruptions from Houthi attacks started late twenty twenty-three and pushed carriers around the Cape of Good Hope, adding ten to fourteen days to Asia-Europe routes. Port labor uncertainties remain. New vessel deliveries are adding capacity while rates stay elevated compared to pre-COVID levels. U.S.-Mexico trade reached six hundred fifty-three billion dollars through September twenty twenty-five. Mexico is now the United States' largest trading partner. Nearshoring drives growth. Companies relocate production from Asia to Mexico, creating shorter supply chains and faster turnaround. The USMCA trade agreement faces its first mandatory review in twenty twenty-six. Rules of origin and automotive content requirements could all change. That introduces uncertainty. Here's what to ask before signing with anyone. What experience do you have with this product on this specific route? Who handles the account day-to-day? Is customs handled in-house? Which carriers get used? What does the quote include? What costs extra? How do delays get handled? Can current clients provide references? What licenses and bonds are in place? Vague or evasive answers tell their own story. The bottom line? Freight forwarding expertise prevents thousands in delays, penalties, and unexpected costs. Experience with your specific cargo type and route counts. In-house customs capability reduces problems. Transparent pricing and willingness to answer hard questions separate good partners from mediocre ones. Thanks for listening to the Logistics Breakdown. For more details on freight forwarding fundamentals, visit astoundz dot com. Posey International City: Houston Address: 110 Cypress Station Dr. Suite 108 Houston, TX 77090 Website: https://posey-intl.com/