UAE Businesses Directory

How to Choose a Freight Forwarder or Logistics Company in the UAE

Updated By the UAE Businesses Directory editorial team3 min read

Short answer: to choose a freight forwarder or logistics company in the UAE, check its licence and customs experience, ask for an itemised quote that states the Incoterms and what is included, confirm cargo insurance, and make sure you understand the documents needed for customs clearance.

Key takeaways

  • Ask for an itemised quote covering freight, handling, customs clearance, delivery and any storage.
  • Agree the Incoterms, which say who pays for what and who carries the risk at each stage.
  • Prepare the commercial invoice, packing list and transport document before shipping, and check the product classification code.
  • Insure valuable cargo and confirm what the forwarder’s liability covers.

What does a freight forwarder do?

A freight forwarder arranges the movement of goods by air, sea or road, books space with carriers, prepares documents and often handles customs clearance. A logistics company may also provide warehousing, last-mile delivery and distribution. Decide whether you need a single shipment handled or an ongoing supply-chain partner.

What should you check before choosing?

  1. A valid trade licence for freight forwarding or logistics, and a local office.
  2. Experience with your type of cargo and the routes you use.
  3. Customs clearance capability and how they handle duties, VAT and holds.
  4. Network of carriers and agents at the destination.
  5. References from similar importers or exporters.

What should an itemised quote include?

Charge What to confirm
Main freight Airline, shipping line or trucking rate and the validity date
Origin and destination handling Terminal, port and documentation fees
Customs clearance Agent fees, duties and 5% VAT if applicable
Delivery and storage Last-mile charges and free storage days
Insurance Cover amount and exclusions

Which documents are usually needed?

  • Commercial invoice and packing list.
  • Bill of lading (sea) or air waybill (air).
  • Certificate of origin where required.
  • Import permits for restricted goods.
  • Product classification (HS) code for each item.

What are the red flags?

  • A quote with only one total and no breakdown.
  • No clear answer about who is responsible for customs and delays.
  • A very low rate that leaves out destination charges.
  • No cargo insurance option.
  • Requests to pay into a personal account.

How do you find a forwarder in the directory?

Browse logistics and freight forwarding companies in the UAE, then request the same itemised quote from two or three providers.

Related guides: How to Choose a Building Materials Supplier in the UAE · How to Choose an IT Services or Software Company in the UAE

Frequently asked questions

What are Incoterms?

Standard trade terms that set who arranges and pays for transport, insurance and customs, and where the risk passes from seller to buyer.

Do I need cargo insurance?

It is strongly advised for valuable goods. Check what the forwarder’s own liability covers, which is often limited.

Who clears goods through customs?

Often the forwarder or a customs broker, using documents you supply. Agree this in the quote.

What is an HS code?

A standard code that classifies goods for customs duties. Using the right one avoids delays and penalties.

Sources

This guide is general information. Customs and import rules change, so confirm requirements with the customs authority of your emirate or a licensed customs broker.

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