Top Mistakes Exporters Make When Dealing with Brokers or Freight Forwarders

In global trade, a reliable broker or freight forwarder can be your strongest ally — or your biggest liability. Whether you’re exporting petrochemicals, industrial equipment, or consumer goods, one misstep in communication or documentation can lead to delays, fines, or even lost shipments.

In this guide, we’ll break down the most common mistakes exporters make when dealing with brokers and freight forwarders, and show you how to avoid them.

1. Failing to Vet Your Broker or Freight Forwarder

Many exporters choose a broker based on price alone. This can be risky.
What to do instead:

• Verify licenses with official registries (FMC’s Licensed Ocean Transportation Intermediaries List).

• Check customer reviews and trade references.

• Confirm experience in your specific commodity (e.g., hazardous petrochemicals).

2. Incomplete or Inaccurate Documentation

Documentation errors are a leading cause of shipment delays.
Examples:

• Wrong HS code for a petrochemical product.

• Missing certificate of origin.

• Incorrect consignee details.
  Pro Tip: Use a document checklist and have it reviewed by your broker before shipment.

3. Ignoring Incoterms

Misunderstanding Incoterms can lead to disputes over cost and risk responsibilities.
Example: Under CIF, the exporter covers insurance — but under FOB, the buyer does.
Resource: ICC Incoterms 2020 Official Guide

4. Not Clarifying Service Scope

Some exporters assume freight forwarders handle everything — from customs clearance to last-mile delivery.
Solution: Clearly define:

• Who books insurance

• Who arranges inland transport

• Who handles customs brokerage

5. Poor Communication

Not updating your broker about changes in product specs, packaging, or delivery timelines can cause missed sailings.
Best Practice: Maintain a single point of contact and set weekly status updates.

6. Not Understanding Hidden Costs

Some freight forwarders quote low rates but add surprise fees (terminal handling, documentation, or demurrage).
Tip: Ask for an all-in quote with a breakdown of every charge.

7. Lack of Compliance Knowledge

Especially for petrochemical exports, failure to comply with dangerous goods regulations (IMDG Code, IATA DGR) can lead to legal trouble.
External Resource: IMO IMDG Code Overview

8. Relying on One Forwarder or Route

Putting all your shipments through one forwarder can be risky if they face operational issues.
Diversify partners and routes for resilience.

9. Ignoring Cargo Insurance

Some exporters skip insurance to save costs — until they face a damaged cargo claim.
Recommendation: Always opt for cargo insurance, especially for high-value exports like petrochemicals.

10. Not Tracking Shipments Proactively

Relying solely on your broker’s updates can leave you in the dark.
Use independent tracking tools (MarineTraffic or CargoTracking) to monitor movements.