Career
The world of trade relies heavily on the smooth movement of goods, and that's where freight forwarding comes in. These logistics experts play a crucial role in ensuring your shipment reaches its final destination, be it across town or across the globe.
Definition of freight forwarding
A freight forwarder is an agent that works on behalf of shippers – businesses that own the goods that are being shipped. Freight forwarders organize the shipments, working with shipping carriers, intermodal providers, and ports to ensure that shipments move smoothly through the logistics network.
They act like a travel agent for your shipments, helping to reassure that transportation will be an efficient process. Freight forwarders try to find the most cost-effective way to transport cargo, including selecting optimum routes, times and costs.
Many freight forwarders started out as customs brokerage experts. They have a wealth of experience in the procedures, legislation, customs tariffs and rules around import and export duties, all of which helps ensure that the administrative aspect of organizing international shipping run smoothly.
What does a freight forwarder do?
The services provided by freight forwarders include:
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Planning and organization of the necessary means of transport so that the goods reach the destination in the shortest possible time
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Handling of goods that require special storage conditions, e.g., low temperature
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Packing the goods
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Storage of goods
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Completing the necessary documents
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Contracting of cargo insurance
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Carrying out customs clearance
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Product tracking and other tasks.
Note that some freight forwarders will not transport products such as dangerous goods, perishable goods, medicines, alcohol, or batteries. It may be due to the forwarder’s inexperience with such products or the carrier’s decision.
Key services offered by freight forwarders
Freight forwarders act as your one-stop shop for all things international (or even domestic) freight.
They navigate the complexities of international movement, advising on the most efficient and cost-effective mode of transport (air, sea, etc.) for your specific needs, whether it's a single shipment or a full container load. They can also manage transportation using multiple carriers if necessary.
Dealing with customs regulations can be a labyrinth. Freight forwarders act as your guide, ensuring all documentation is in order and handling the entire customs clearance process (18) to avoid delays or penalties.
Freight forwarders take care of the entire end-to-end process, from selecting the best route and carrier to arranging pick-up and delivery. They can even manage warehouse planning and distribution if needed.
For smaller shipments, freight forwarders can consolidate your cargo with others heading to the same destination. This reduces costs by maximizing container space.
Freight forwarders leverage their established relationships with carriers to negotiate competitive freight charges on your behalf.
Why use a freight forwarder for your shipments?
International trade carries inherent risks. Freight forwarders can help you navigate these by limiting their liability and offering insurance options. Their expertise goes beyond just transport, encompassing everything from documentation to customs compliance, making them your trusted partner in the global marketplace.
Expertise and experience
Freight forwarders are seasoned professionals with deep knowledge of international regulations, shipping modes like air transport, rail transport, road transport or sea transport by ocean freight forwarders, and customs clearance. They can guide you through the entire process, ensuring your shipment reaches its final destination efficiently and compliantly.
Many freight forwarders have established relationships with carriers worldwide, allowing them to negotiate competitive rates and find the most suitable transport options for your specific needs. This can be invaluable for companies unfamiliar with international shipping.
Cost savings and time efficiency
Use of a freight forwarders can help you save time and money, which is one of the main advantages. Freight forwarders can assist you in selecting the most effective and economical mode of transportation because they have in-depth knowledge and experience in foreign logistics. Additionally, they can guide you through customs laws and processes, saving you time and lowering your risk of penalties or delays.
Risk management
Cargo being shipped by road freight, rail freight, air freight or sea freight are loaded and unloaded several times before they make it to their final destination and with each loading/unloading, the chances of loss or damage increase. An experienced freight forwarder will work with seasoned transport providers and take responsibility to deliver the consignment in a protected and preserved manner. Most freight forwarders will also go the extra step to arrange cargo insurance so that if something happens beyond anyone’s control or fault, no one will be out of pocket. Any damage or loss claims can be claimed from the insurance company thus reducing risk for customers of freight-forwarding companies.
The customs clearance process includes preparing paperwork for the entry of goods into a customs territory, payment of taxes, duties, and refunds, if applicable. Non-compliance with customs legislation will slow the time it takes for you to receive your goods, create fines for your business and at worst, see your cargo be confiscated and your company blacklisted. An experienced freight forwarder with strong custom clearance knowledge can assist in preparing documentation and can advise you on the best way to comply with customs procedures.
Any time goods are being bought and sold, there is a financial risk. As freight forwarders deal with this risk every day, experienced freight forwarders such as British International Freight Association specialists have risk management processes in place for the protection of their customers and themselves. Freight forwarders can limit their liability and cover some risks with insurance policies. Some risks are uninsurable.
Who usually pays the freight forwarder?
In the world of freight forwarding, the parties responsible for paying the forwarder's fees is typically the shippers, the companies sending the goods. The shipper benefits from the forwarder's expertise in navigating complex logistics, including (but not limited to):
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Negotiate rates with carriers like air lines or shipping companies.
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Handling customs clearance and import duties.
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Coordinating transport across different countries using various modes for road freight, rail freight, air freight or sea freight.
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Arranging warehousing if needed.
So, while the shipper pays the freight forwarders, they gain a valuable partner in ensuring their shipment reaches its destination smoothly and efficiently.
Looking for international freight forwarders? Contact AsstrA experts
Confused by international shipping? AsstrA can help! Freight forwarding simplifies the complexities of moving goods internationally. We act as your trusted contacts, managing the entire process – from finding the most efficient route to navigating customs regulations.
Think of your supply chain as a journey. International freight forwarders like AsstrA are your travel agents, ensuring your international freight gets from one country to another seamlessly. We don't just carry your goods; we manage the entire transportation process, including ocean freight, trucking, and potentially using multiple carriers to optimize costs and speed. This can involve freight consolidation, combining smaller shipments for cost savings.
AsstrA isn't just a company, we're your partner in global trade. We understand the intricacies of customs regulations across the globe, ensuring your shipment complies and avoids delays. Unlike common carriers, who operate under their own rules and pricing, we work with a network of partners to offer you the best options. We issue our own bill of lading, a critical document for international trade.
Ready to simplify your international trade? Contact AsstrA's freight forwarding experts today! We offer a comprehensive suite of forwarding services to meet your specific needs, allowing you to focus on what matters most – your business.