Air Freight To Middle East: Avoid Pitfalls! Two Real Cases & Tips For Factories
A few days ago, I had some barbecue skewers with a friend in foreign trade downstairs. He said, "You forwarders are so unreliable. Now when I ship air freight to the Middle East, I feel uncertain. New forwarders' quotes differ by a few RMB. Who should I trust? I don't know."
I said, "That's nothing. Let me tell you a true story from our circle, about shipping from China to UAE. Old Huang had a batch of precision ceramic bearings for high-speed centrifugal compressors, 20 items to send to Dubai. The goods arrived, but the consignee changed their mind and refused delivery. Refusal sounds unreasonable, but it does happen. In this situation, the forwarder's first reaction should be to contact Old Huang and give him options: destroy locally, return the goods, or find a new buyer. Right?"
But this forwarder's move was shocking. Without a word, they returned the goods, shipping them all the way back from Dubai airport to China. By the time Manager Huang found out, it was too late. Return shipping costs are very high, with fees at every step. If they had chosen local destruction, at most they'd lose the freight and a small part of the cargo value. But now, they had to pay huge storage and air freight fees to get it back. In the end, they were so angry they went to court. It dragged on for half a year. What was the point? This is what small forwarders do: they act randomly, without following standard procedures.
I told him there's even more ridiculous. A-Chun, who deals in industrial consumables, had a batch of silicon carbide grinding discs to air freight to Saudi Arabia. He searched and searched and found a forwarder with rock-bottom prices. The first three shipments went smoothly, arrived on time, no issues. A-Chun thought he was lucky. The fourth shipment was worth over 300,000 yuan. But after this shipment, everything changed. The forwarder's tone changed too. One day they said the destination port needed extra handling fees, the next day fuel surcharges, etc. A-Chun felt something was wrong and said, "Wasn't it a fixed price before?" The forwarder ignored him. Later, the forwarder directly notified that the goods were seized by local customs due to product type mismatch. A-Chun wasn't easily fooled. He asked for an official seizure certificate. They couldn't provide one. Then they blocked him on phone and WeChat, and disappeared.
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This is the usual trick of some small forwarders. They attract customers with low prices, handle a few shipments smoothly to give you a sweet taste, then when the big shipment comes, they take your money, dissolve the company, and you can't find them anywhere. You simply can't.
So why do these forwarders target industrial goods? Because for shipping from China to UAE, industrial goods usually come from factories. Factories aren't very familiar with the freight forwarding industry; they focus on manufacturing and only use forwarders when they need shipping.
So, when choosing a forwarder, I told my friend, first check their hardware qualifications: business license, office space, warehouse. These are real and can't be faked. If possible, visit their office; if not, at least have a video call to see.
Also, when you ask for a quote, check their response speed. If they can give you a full detailed cost breakdown quickly, they're probably a direct operator. Otherwise, they'll ask their agent for prices and you'll wait a long time for a reply.
Comparing prices among several forwarders is normal; we all do it. But if a quote is below market price, you should definitely pass. Nowadays forwarders are clever: they make your first three shipments go smoothly to lower your guard, then they fish for the big one. They don't care about your sample shipments; they bet on your big shipment.
Also, you should look at the forwarder's scale. This isn't snobbish. It's like depositing money in a bank; we choose big banks. A large forwarder must have standardized quotes and formal procedures. They won't raise prices midway. And with a big operation, it's unrealistic for them to disappear overnight.