Companies should also not be swayed by cheaper "headline" rates which start to become dearer when incidental costs are included. Don't be afraid to ask questions - a genuine company will explain these costs and also the "jargon" associated with the sector.

Companies should be wary of long-term volume-based contracts. Those who committed to 12-month contracts early this year are losing out as rates fall following the recent disbandment of the Far Eastern Freight Conference, an association of major shippers who until then set minimum container rates. Forwarders now negotiate rates every few weeks - once again, don't be afraid to ask how costs will be negotiated on your behalf.

Potential customers should ask which type of forwarder will "go the extra mile" and deliver a reliable, value-adding service - a bigger player for whom income from one company represents a drop in the ocean, or a smaller forwarder, which values your business and is genuinely interested in helping you achieve your goals.

For example, a complaint to a larger forwarder is often passed between departments, ending on the desk of someone whom the customer does not know. However, a smaller company will generally assign a dedicated account manager to each client as the first point of contact. They will also take time to develop a relationship, understanding the customer's needs, and adding value. After all, it is in the smaller forwarder's interest to help the customer grow through a solid, trusting long-term relationship.

Furthermore, with a smaller forwarder, the fact that directors are hands-on provides great reassurance. With a large forwarder the chances of dealing with a director on even a major issue are virtually nil.

Customers should avoid forwarders who "hide" behind technology. Online systems may be impressive, but the functionality is often way beyond the customer's needs. The question arises as to what happens when these systems fail, while technology is no substitute for the personal touch.

Cashflow is the bane of many companies' lives and smarter forwarders understand that customers need to use cash for product purchase - not transport costs. Customers no longer need to tie up capital in paying upfront for transport - some forwarders allow at least the cargo's transit time as credit, even for companies with limited trading history, freeing up cash, taking the worry of transport off your shoulders and allowing you to focus on running your business.

For further information telephone 0845 222 5555 or visit http://www.fcluk.com/

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