All Brokers Are Not Created Equal: The Advantages of an Experienced Commodity Based Customs Brokerage Firm
It should come as no surprise that information technology is changing the way commodity based customs brokers operate. As software improves brokers can now easily track data and make connections to optimize logistical pricing and services. However, this rise in digitization has promoted a ‘race to the bottom’ mentality, which lowers the quality standard for service providers. Without an in-depth understanding of tariffs and attentiveness to the ever-changing compliance and tax laws, most customs brokers are not properly equipped to meet the needs of a very diverse clientele.
The allure of cost effective pop-up brokers fronted by fully or semi-automated systems that file imports for pennies on the dollar might seem worthwhile at first glance. But what is the real cost?
Unfortunately, many compliance requirements and potential savings through duty drawback are all too often overlooked entirely. It has become common practice for startups to rely primarily on new software, hoping that the added efficiency will make up for their lack of knowledge and expertise. Success requires more than a simple algorithm to define and address a client’s needs. Young technophiles must work together with long-time experienced brokers if the industry is to move forward, taking advantage of the latest advancements without sacrificing thorough, quality services.
According to Etienne Amic, veteran energy trader and founding partner of CommodiTech Ventures, “Young entrepreneurs are better served by reinforcing their advanced technological know-how with solid industry expertise by partnering with experienced commodity traders or managers and, similarly, forging partnerships with industry leaders…”
Charter Brokerage is a high quality customs broker, that specializes in commodities and that utilizes the latest digital tools and technology, not in lieu of, but in conjunction with, time-tested experience and expertise. Their fully vetted staff and team of brokers is knowledgeable about U.S. and Canadian customs regulations for high-value and highly regulated cargo and closely monitor updates to the latest laws, regulations, administrative rulings, and practices that could potentially impact your business.
At Charter Brokerage, we do everything possible to protect our clients from any penalties and guarantee our work to ensure your cargo enters the US or Canada timely and compliantly. We understand the commodity physicals trading space and can advise you in terms of importation and exportation, petroleum, chemicals, agriculture, metals, natural gas, and much more.
1) Amic, Etienne (2018, January 25) The Coming of Commodities 2.0, Retrieved from http://www.commodities-now.com/reports/technology/23952-the-coming-of-commodities-2-0.html