Don’t be a victim of freight forwarding scams. Be alert and knowledgeable. In this article, I will explain more about the various frauds surrounding the shipping and freight forwarding and how to avoid it!
Bill on lading held for ransom
In this scenario, a scammer will pose as a freight forwarder on popular online shopping websites. How do you spot them? They offer a ridiculously low rate compared to legitimate freight forwarders.
When does the freight forwarding scam happen?
It happens after the goods are packed and shipped from the port of loading. It is expected for the freight forwarder to issue a bill of lading because this is a mandatory legal document. Without this, the port of destination will not allow you to take possession of your shipment.
Cargo theft
High-value cargo has become the target of some fraudulent freight forwarders and hauliers. They may pose as freight forwarder with very cheap rates with only one goal in mind – steal your shipment. Thus it is always best to move your valuable goods via reputable forwarder, if possible via air freight.
Change of bank details
This is one of the latest scams victimizing DIY importers. It comes in a form of an email from a supplier asking for payment for a shipment where they advise of new bank details to deposit payment.
You’ll think that this is legitimate, since they know everything about your shipment. But don’t be deceived that easily. It is best to confirm any changes of address and billing information with your freight forwarding.
Remember, it is very possible for these scammers to hack your supplier’s account. Thus the reason they have your shipment’s information.
How to avoid these scams?
There are many ways to avoid being a victim of freight forwarding service scams.
Know your trading terms
Knowledge is power and as a first time or DIY importer, knowing your INCOTERMS is one thing you should know. This will protect you from fraudulent companies who start charging you with illegitimate fees such as:
- FOB Origin
- Freight prepaid and charged back
- FOB Origin, freight prepaid and Add
All these terms are not defined in any manner with the Uniform Commercial Code (UCC) or the National Motor Freight Classification (NMFC).
Know the normal shipping costs
It matters very much to know the normal shipping costs of your shipment. This gives you an idea if the amount offered by the freight forwarder is legitimate or not. Of course, if it goes too low then you have to investigate further if they do have the capacity to deliver such a service. The next best thing is to check for online reviews about this company.
Always perform due diligence
Most of the times DIY importers are also first time importers who have limited resources. Due to this, they can get easily attracted with super low and discounted offers.
True, these discounts can be deceiving but a responsible business owner should never ever forget to perform due diligence, especially for first-time transactions.
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