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Understanding the Difference Between a Freight Forwarder and a 3PL

In the complex world of logistics and supply chain management, two key players often come up: freight forwarders and third-party logistics providers (3PLs). While they might seem similar at first glance, they serve distinct roles and offer different services that cater to various needs within the supply chain. Understanding the differences between these two can help businesses make informed decisions about their logistics strategies.

What is a Freight Forwarder?

A freight forwarder is an intermediary that arranges the transportation of goods on behalf of shippers. They do not typically own transportation assets, such as trucks or ships, but they leverage their expertise and networks to manage the shipping process efficiently. Here are some key functions of a freight forwarder:

  1. Carrier Coordination: Freight forwarders arrange the transportation of goods through various carriers (air, sea, road, or rail) and ensure that the cargo reaches its destination on time.
  2. Documentation: They handle all the necessary documentation required for international shipping, including bills of lading, customs paperwork, and insurance documents.
  3. Customs Clearance: Freight forwarders assist in clearing goods through customs, ensuring compliance with all regulations and minimizing delays.
  4. Consolidation Services: They often consolidate smaller shipments from multiple clients into one large shipment to reduce costs.
  5. Cargo Insurance: Freight forwarders offer cargo insurance to protect goods against potential risks during transit.
  6. Cross Dock

What is a 3PL (Third-Party Logistics Provider)?

A third-party logistics provider (3PL) is a company that offers a broader range of logistics services beyond just transportation. They manage various aspects of the supply chain, providing more comprehensive solutions to their clients. Here are some primary functions of a 3PL:

  1. Warehousing and Distribution: 3PLs provide storage solutions, inventory management, and distribution services to ensure that products are stored safely and delivered efficiently.
  2. Transportation Management: Similar to freight forwarders, 3PLs arrange transportation but often with a more integrated approach, utilizing their own or third-party assets.
  3. Order Fulfillment : They handle order processing, picking, packing, and shipping, ensuring that customers receive their orders accurately and on time.
  4. Supply Chain Consulting : 3PLs offer strategic advice to optimize supply chain operations, helping businesses reduce costs and improve efficiency.
  5. Technology Integration: They use advanced technologies like Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to streamline operations and provide real-time visibility into the supply chain.

Key Differences Between a Freight Forwarder and a 3PL

  1. Scope of Services:
    • Freight Forwarder: Primarily focuses on transportation and logistics coordination.
    • 3PL: Offers a comprehensive suite of services that cover multiple aspects of the supply chain, including warehousing, distribution, and order fulfillment.
  2. Ownership of Assets:
    • Freight Forwarder: Typically does not own transportation assets but works with carriers to move goods.
    • 3PL: May own warehouses, trucks, and other logistics infrastructure or partner with asset-based companies to provide services.
  3. Level of Integration:
    • Freight Forwarder: Acts as an intermediary, facilitating the movement of goods between different points.
    • 3PL: Provides a more integrated approach, managing end-to-end logistics operations for clients.
  4. Strategic Involvement:
    • Freight Forwarder: Focuses on the tactical aspects of moving goods from one place to another.
    • 3PL: Involves strategic planning and consulting to optimize overall supply chain performance.

Choosing Between a Freight Forwarder and a 3PL

The choice between a freight forwarder and a 3PL depends on the specific needs of your business. If your primary requirement is to manage international shipments efficiently, a freight forwarder may be the right choice. They can leverage their expertise in documentation, customs clearance, and carrier coordination to ensure smooth transportation.

On the other hand, if you need a more comprehensive solution that covers warehousing, distribution, and order fulfillment, partnering with a 3PL could be more beneficial. They offer end-to-end logistics management, allowing you to focus on your core business activities while they handle the complexities of the supply chain.

Conclusion

Both freight forwarders and 3PLs play crucial roles in the logistics industry, but they cater to different aspects of the supply chain. Understanding the key differences between them can help businesses make informed decisions and choose the right partner to meet their logistics needs. Whether you require specialized transportation services or comprehensive supply chain management, knowing when to use a freight forwarder versus a 3PL can significantly impact your operational efficiency and customer satisfaction.

Additional Resources

3pl companies in Miami
Freight Forwarders Miami
Cross dock services
Fulfillment services

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Cross Dock Miami

Cross docking is a practice in logistics of unloading materials from an incoming truck or shipping container and loading these materials in outbound trucks, trailers or shipping containers, usually the process is completed in a short period of time and sometimes instantly. As the cargo is off loaded form one truck, it loaded into a waiting truck or container. This also may be done to change type of conveyance, to sort material intended for different destinations, or to combine material from different origins. This process is also used to consolidate shipments from multiple vendors to a single customer.

Looking to off load cargo quickly to have it picked up later or you want us to deliver? we can help you. Do you need Saturday or Sunday service, we are here too to help. Our warehousing and distribution services are here to give a lending hand when you need to re-palletize or re stack pallets that have shifted during transport. We off load the pallets, make sure they are in perfect condition, and re-road them again.

Cross Docking

Benefits of Cross Docking

As cross-docking does not require the inventory to be stored at the warehouse.

  • Operational Efficiency: As the material does not have to be stored at the warehouse, and directly moves from the receiving docks to the shipping docks or staging areas, the warehouse operations are more efficient.
  • Inventory Efficiency: As the inventory moves directly from the receiving to shipping docks, there is no storage at the warehouses for the cross-docked items and that reduces the total system inventory in the supply chain.

Usually many companies that are involved in distribution and order fulfillment, offer cross docking services to facilitate the quick and effective transport of cargo. Miami happens to be at the core of such activities being the gateway to South America. Many of the freight forwarders Miami hosts offer such services with efficiency.

International 3PL works with several customers by receiving their international shipping containers, staging the merchandise, crating it and shipping to the final consumer.

Contact us for quote

Resources:

Cross Dock Miami

Cross Dock warehouse in Miami

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Warehouses in Miami

Warehousing and fulfillment designed to help you focus on your key competencies. Other providers force your business into their own fulfillment practices, International 3PL designs a unique plan based on your needs to increase speed, lower costs, and improve customer experiences.

Warehouses are designed to tackle any product. We have areas for micro fulfillment products and areas for the big and bulky. Accurate and fast inventory information.

Whatever type of warehousing and distribution services you need, we’re up to the task. From small orders to large pallets, we can fulfill orders to your customers on time and within budget. Our services include crating, repacking, rail transportation, pick and pack, assembly and rework, reverse distribution, cross dock, inventory control and much more.

Warehousing Services offered

Pick and pack is a straightforward approach to filling customer orders that utilizes a minimum number of steps in order to expedite the order fulfillment process. Essentially, this strategy calls for receiving a customer order at the warehouse level, selecting or picking the items required to fill the order, and immediately packing those items and scheduling the shipment. In order to make the process as efficient as possible, many companies make use of warehouse management systems that can readily identify the location of specific goods within the warehouses and allow the order pickers to quickly collect the items needed to fill an order.

The success of the pick and pack approach depends heavily on the organization of the warehouse space and observance of specific procedures that are designed to expedite the order fulfillment process. To this end, both small and large companies typically make use of technology to manage the process. This includes the use of software programs to track inventory, prepare shipping lists, and create invoices for the filled orders. In some cases, automated systems also handle the process of interacting with shippers to schedule pickups as soon as the order is ready, a feature that can often help to reduce the lag time between the preparation of the package and getting the order on the way to the customer.

Some of the services that fall under our distribution services:

The variety of services we offer include:

Resources

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Miami Warehouses

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The Power of Contract Logistics

The Power of Contract Logistics: Streamlining Your Supply Chain for Success

In the fast-paced world of global trade and commerce, businesses are continually seeking ways to enhance efficiency, reduce costs, and improve customer satisfaction. One of the most effective strategies to achieve these goals is through contract logistics. This comprehensive approach to supply chain management allows companies to outsource logistics and warehousing operations to specialized providers, enabling them to focus on their core competencies. Let’s explore the benefits and workings of contract logistics in today’s competitive marketplace.

What is Contract Logistics?

Contract logistics involves the outsourcing of logistics and supply chain management functions to third-party providers, known as 3PL (third-party logistics) companies. These providers manage various aspects of the supply chain, including transportation, warehousing, distribution, inventory management, and more. By partnering with a 3PL provider, businesses can leverage specialized expertise, technology, and infrastructure to optimize their supply chain operations.

Key Benefits of Contract Logistics

1. Cost Efficiency

One of the primary advantages of contract logistics is cost savings. By outsourcing logistics functions, businesses can reduce the need for capital investment in warehouses, transportation fleets, and technology. Additionally, 3PL providers often have economies of scale, allowing them to offer competitive pricing for their services.

2. Focus on Core Competencies

Outsourcing logistics operations allows businesses to focus on their core competencies, such as product development, marketing, and customer service. This strategic focus can lead to improved business performance and a stronger competitive advantage.

3. Access to Expertise and Technology

3PL providers bring specialized knowledge and experience to the table. They utilize advanced technology and best practices to optimize supply chain processes, ensuring efficient and reliable operations. This expertise can be particularly valuable for businesses looking to enter new markets or expand their global reach.

4. Scalability and Flexibility

Contract logistics offers scalability and flexibility, enabling businesses to adjust their logistics operations based on demand fluctuations. Whether experiencing seasonal peaks or expanding into new regions, 3PL providers can adapt their services to meet changing business needs.

5. Improved Customer Satisfaction

Efficient logistics operations are crucial for meeting customer expectations. Contract logistics providers ensure timely and accurate delivery of goods, leading to improved customer satisfaction and loyalty. This reliability is especially important in today’s e-commerce-driven market.

Contract Logistics Key components

Transportation Management

3PL providers manage transportation networks, ensuring efficient movement of goods from suppliers to customers. This includes route optimization, carrier selection, freight auditing, and more.

Warehousing and Distribution

Contract logistics providers operate state-of-the-art warehousing facilities to store and manage inventory. They handle order fulfillment, picking, packing, and shipping, ensuring timely delivery to end customers.

Inventory Management

Effective inventory management is critical for minimizing costs and meeting customer demands. 3PL providers utilize advanced inventory tracking systems to monitor stock levels, forecast demand, and optimize replenishment processes.

Value-Added Services

In addition to core logistics functions, 3PL providers often offer value-added services such as kitting, assembly, labeling, and reverse logistics. These services enhance the overall efficiency and effectiveness of the supply chain.

Choosing the Right Logistics Provider

Selecting the right 3PL partner is crucial for maximizing the benefits of contract logistics. Here are some factors to consider when choosing a provider:

  • Experience and Expertise: Look for a provider with a proven track record in your industry and expertise in managing similar supply chain operations.
  • Technology and Infrastructure: Ensure the provider utilizes advanced technology and has the necessary infrastructure to support your logistics needs.
  • Scalability and Flexibility: Choose a provider that can scale their services and adapt to your changing business requirements.
  • Customer Service: Excellent customer service is essential for a successful partnership. Ensure the provider has a dedicated support team and effective communication channels.
  • Reputation and References: Research the provider’s reputation and seek references from other businesses to gauge their reliability and performance.

Conclusion

Contract logistics is a powerful strategy for businesses looking to optimize their supply chain operations, reduce costs, and enhance customer satisfaction. By partnering with a reputable 3PL provider, companies can leverage specialized expertise, advanced technology, and scalable solutions to stay competitive in today’s dynamic market. As the logistics landscape continues to evolve, contract logistics will play an increasingly vital role in driving business success.

Looking for Contract Logistics Solutions? Contact us today to learn how our contract logistics services can transform your supply chain operations and propel your business to new heights.

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Logistics Consulting

Logistics Consulting Firms or 5PL Companies are companies that help small and medium size companies cut costs in various areas of business. Here is a list of activities that a 5PL can help you with:

  1. Reduce shipping costs by specifying the right shipping company. Whether it is a freight forwarder or an inland transportation company, your logistics consultant can help.
  2. Reduce Warehousing costs by providing a very efficient warehouse design so that you can accommodate more pallets while improving accessibility to inventory.
  3. Stream Line the fulfillment process making sure that the maximum number of orders are shipped with the most accuracy and the fasted way.
  4. Inventory Control: having too much inventory is costly and so is not having enough inventory. a 5PL company can help you control the inventory levels by using various techniques one of them is using cross Dock Services

So what is logistics Consulting?

In this world of turmoil and supply chain challenges, you might wonder if there is an end in sight, or how to keep your costs down. That is what we are here for, to make sure you are able to navigate through all the changes. We are International 5PL , Fifth party Logistics’ providers. Working with your company as your supply chain partners to help achieve your goals. We work with your 3PL providers, not replace them to achieve maximum efficiency

What is a 5PL ?

5PL is a relatively new term in the logistics industry and reflects the development of full logistic integration through many outsourced providers. 5PL involves a fully integrated logistics solution to encompass the whole supply chain from beginning to end through multiple outsourced service providers. Critical to success in achieving this is the effective integration of IT and computer systems to ensure real-time visibility and control of the entire supply chain no matter how many different suppliers are involved

a 5PL or fifth party logistics provider handles all the logistics needs of your company. The line between who is a partner and who is just a service provider almost disappears. Whereas a service provider handles specific pre-defined tasks, partners have a lot more responsibility. A 5PL acts is a strategic partner to its clients and works closely with the client’s employees.

What do Fifth party Logistics Providers have to offer?

Manage Multiple 3PL and 4PL Networks

Negotiate Shipping Rates on Your Behalf

Leverages the Latest Technologies

Resources:
5PL Companies in Miami
Freight Forwarders in Miami
Shipping Companies in Miami

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Shipping Industry Challenges

Biggest Challenges facing the Shipping Industry Today.


The shipping industry has had with its fair share of challenges during the past few years and is expected to face even more in the near future

Here are a few of the biggest challenges today’s shipping industry is expected to experience.

Employee Shortages

There seems to be less and less people interested in this industry, add to that the retirement of many truck drivers during COVID 19

New Environmental Regulations
Stricter environmental emissions regulations help to deliver great benefits in the long run, but these could cost a series of short-term challenges for the shipping industry. According to a recent article, these new regulations depend heavily on certain technologies. The government may require companies to implement them to ensure that they meet the new regiments, but doing so will come at a cost.

Security Risks
Shipping IndustrySecurity risks have always been a challenge for the shipping industry, but today, they’re providing more issues to overcome. For example, pirates pose a bigger threat for shipping, especially since the number maritime piracy and armed robberies on ships in Southeast Asia and West Africa has increased.

Rising Costs
The rising costs of necessary materials could negatively affect industry competitiveness. The increasing prices may lead to higher costs of operation. Higher prices of fuel and parts as well as poor market conditions could cause serious issues in many global shipping companies. The Malaysian domestic shipping industry is already experiencing difficulties because of these higher costs.


What is causing the shipping Industry crisis?

After a fall in shipping demand during the early days of the pandemic in 2020, a surge at the end of that year led to delays, port traffic jams, and blockages across the world. Now, containers are jammed up in ports due to rising demand and a continuing shortage of dockworkers and truckers.

The supply chain crisis could last into 2023 unless governments boost spending in ports, railways, and warehouse.
The global supply chain network is on its knees. After a fall in shipping demand during the early days of the pandemic in 2020, a surge at the end of that year led to delays, port traffic jams, and blockages across the world. Now, containers are jammed up in ports due to rising demand and a continuing shortage of dockworkers and truckers.

As shippers, you are facing many problems such as lack of resilience in supply chains, late shipments, High freight rates and lack of visibility. All of these contribute to higher cost being passed on to the end user.

Challenges facing Freight Forwarders

  • Increased Cost.
  • Container Capacity Remains a Problem.
  • Commoditization of Freight Forwarding Makes It Hard to Stand Apart From Other Forwarders.
  • Unforeseen Disruptions to Trade Cause New Challenges.
  • Staffing Shortages and Retention Continue to Undermine Performance

Resources

Miami Freight Forwarders

Supply Chain Disruptions and Inflation

Logistics Companies

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What is Order Fulfillment

In simple terms, Order fulfillment, also known as inventory fulfillment, and sometimes called E commerce Fulfillment or E Fulfillment ( when an ecommorce portal is used such as woocommrce or Shopify ) is the steps between taking new orders , processing orders, warehousing, packing, and shipping products.

Why hire a 3PL for order Fulfillment

Busnisses are resorting to outsourcing their fulfillment services to third party logistic providers . In a competitive environment, choosing the right 3PL company can be a game changer . Utilizing a Fulfillment Center provides businesses with a logistics advantage.

Third-Party Logistics offers an all-in-one solution for assembly, packaging, warehousing, distribution, inventory control and shipping..

Some of the reasons for hiring a 3PL Company are:

  • The cost effectiveness. The cost of having your own warehouse and hiring warehouse workers could be too high
  • 3PL companies have connected networks that provides significant savings.
  • 3PLs have the know how. Thye can offer solutions that are more economical.
  • A benefit of using a 3PL provider is the ability scale space, technology without adding more costs.

Advance Shipping Notice

  • The first step is to provider and ASN or Advance shippingnotice to the fulfillment center letteing them know what product is coming in and when.

Receiving

  • Once a packinglist or ASN id provided, the inventory if received by offloading from a truck or receve from a courier. The inventory could have originated over seas and might have been shipped via Ocean Freight or Air Freight.

Storing Inventory

  • Inventory is counted and stored based on assigned locations in the warehouse.

Order Processing

  • Order processing starts once the order is placed. The requested items are picked and packed according to each individual order.

Item Packing

  • Items are packed with the appropriate packing materials to ensure the safety of all items shipped. Shipping labels are then placed on each package for shipping.

Delivery of Products

  • Most fulfillment companies will offer shipping through FedEx, UPS or USPS. Tracking information for all shipments is provided. In the case of Amazon Fulfillment, Amazon could provide the shipping labels.

Kitting

  • In some cases, building product from components might be needed to make up a product tobe sold.

Resources

Order Fuflillment Companies in Miami

Miami Shipping Companies

Order Fuflimmnet Companies in Miami

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Shipping to Bolivia

If you are plannning on shipping to Bolivia , you need to get some facts first.

Bolivia is land locked with no direct port of entry. All Ocean shipments enter through Port of Arica, Chile. This complicates matters for many importers and exporters. Bolivia Export, through its alliances with many partners can provide you the perfect solution for the movement of your cargo no matter where it originates from.
No matter what your needs are, we are here to help

We provide the most reliable air freight services to Bolivia, not to mention the most competitive. Shipping to Bolivia is now much easier . Whether you are shipping document, samples, or personnel effects you are at the right place. We can offer the best available rates on cargo shipping to Bolivia.

International Ocean Shipping to Bolivia

Together, we’ll work with you to determine the right solutions to meet your international ocean freight needs. In addition, we will oversee customs clearance, all risk marine insurance placement, information technology services, local dray and customs classifications, then file the export declarations and arrange pick-up and delivery at in-land points.

shipping to Bolivia

Our ocean freight shipping services include:

  • Import and export
  • Full container load
  • Licensed NVOCC
  • Refrigerated containerized
  • Ocean freight forwarding
  • Over-dimensional break bulk
  • Less–than-container load

We have over 50 origin ports and rail ramps that service BOLIVIA. Ocean Containers are brought to the loading address you provide.    

Let our ocean freight agent experts provide you with superior service to meet your company’s ocean shipping needs. For more information about our Ocean Freight Services.

Bolivia Export  Ocean shipping to Bolivia service is feasible for industrial goods, vehicles, House hold goods, personnel effects and such items weighs more than 150lbs. We provide two types of Ocean shipping services to Bolivia, Full Container Load (FCL) and Partial Load (LCL).

Full Container load shipping to Bolivia.

Door to door or port to port services are available. There are 3 different sizes of containers available to ship Bolivia, 20’ Standard, 40’ Standard and 40’ High Cube.

Less than container load shipping to Bolivia.

Door to door or port to port services are available.

We also Offer the following services :

International Package delivery to Bolivia
International Luggage Shipping to Bolivia
Ocean Freight to Bolivia
Air freight to Bolivia
International Vehicle transport to Bolivia
International House Moving to Bolivia

International Ocean Freight to Bolivia

By offering cost effective, cheap, competitive sea freight rates to our customers we get the business and a happy customer best of both worlds. Our experienced export team can assist with your export sea freight / air cargo to Bolivia from Great Britain. If you are thinking about sea shipping overseas or exporting goods from UK then please contact our customer services for your ocean freight shipping, sea freight quote to Bolivia.

If you want more from international freight forwarding , International 3PL Logistics provides the customer service, shipment visibility and control

  • Global air freight solution that is timely and reliable to increase your speed to market
  • Charter services with experienced freight forwarder staff and service to all regions
  • Maintain relationships with core carriers in all key global trade lanes on your behalf

WANT TO LEARN MORE ABOUT OUR FREIGHT FORWARDING? or you want to learn more about shipping to Bolivia

CALL US AT 800-326-8024 or E-mail us

Resources
E-commerce Fulfillment
3PL Companies in Miami
Miami Freight Forwarders
Importing from Bolivia
Exporting to Bolivia

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Logistics Companies in Miami

What do logistics companies offer

Some might wonder what are logistics companies. Until this day the definition is not very well understood. In the beginning the term was used to describe the process of moving  goods from point A to Point B which in most cases involved shipping of goods from point of origin to destination by means of Ocean, air or inland or a combination.

The process involved picking up the cargo transporting to the port, shipping to destination, clearing customs and delivering to final destination.
Those were the old days. The process has evolved to include other activities such as compliance, distribution of the product and even handling some of the services such as customer services.
Many retailers and distributors started using these available sources to augment their own shipping department services in order to focus on their core activities, this gave rise to 3PL Companies.

Logistics is not what it was before, it is not only shipping, it is an integral part of the supply chain. Logistics providers add more and more services to their arsenal of services in order to be able to compete in a tough business. You can call it value added services.
Some Logistics companies have embraced technology where they are able to offer their customers the means to be able to track their shipments, monitor their inventory levels at the warehouse, and give total visibility as the movement of items minute by minute. In essence logistics companies have become  to many importers, distributors and retailers.

Over the years we have seen many large freight forwarding companies evolve into Third party logistics companies which compete for business aggressively. They are able to handle the needs of very large retailers and distributors however; they are still struggling in gaining the trust on smaller businesses. The cost of outsourcing logistics to such large companies is too high for smaller distributors and that gave rise to smaller 3pl’s who can offer better rates and a more personalized service.

The decision to go with one logistics company or another depends on need, services and rate.

Sources

Miami Freight Forwarders

Miami Logistics Companies

3PL Companies in Miami

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Miami Shipping Companies

If you are in search of Miami Shipping Companies, you will be surprised by the number of companies showing up under that category. Miami, Being the gateway to the Caribbean, Central and South America has amassed a huge number of Freight Forwarders who made Miami their home. There are always new companies coming into the scene all the time and many companies disappearing just as fast. This is a changing business and continuously evolving. Offering shipping services alone will not create a viable business.

Exports to South America and imports from the far east have increased exponentially especially with more and more Online order fulfillment companies coming into the picture.

Miami Shipping companies offering more logistics services

Logistics Services such as cargo consolidation are in demand as importers from South America purchase products from various suppliers in the USA to be consolidated and shipped by Ocean Services to their Country.

Miami freight Forwarders are a dime a dozen with the good, bad and the ugly. New Forwarders appear every year on the scene and just as many close down. This has given freight forwarders in Miami. The other effect of having too many forwarders in Miami is the price war that exists among forwarders. try to get the business at any cost has compromised the service level. Customers want the best rate forgoing the service. This has added to the bad reputation of freight forwarders.

In spite of the competition and the price wars, some International Freight Forwarders maintained their service level and their rates managing to set themselves apart from the crowd. One of such Companies id ” Global Contract Logistics

3PL Companies in Florida.

We must not forget about 3PL Companies in Florida as more companies in the U.S use order fulfillment Companies in Miami to handle their Online Fulfillment since it is cheaper and more efficient.

Florida offers one of the lowest rates when it comes to warehousing and storage.

We should also note that international companies needed access to the U.S. market without the high cost of operating a warehouse, this lead to these companies retaining the services of 7Pl companies in Miami who provided the services needed.

As the the economy slows down in some of the markets in South America, freight forwarders start disappearing from the Miami map especially the one who focused solely on export services to South America.

Resources:

Freight Forwarders in Doral;

Fulfillment Centers in Doral

Doral Shipping Companies

Shipping to Bolivia

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