FREIGHT FORWARDING
Freight forwarding is the process of organizing the shipment of goods from one location to another, typically across international borders, on behalf of shippers. Freight forwarders act as intermediaries between the shipper and various transportation services—including ocean shipping, air cargo, trucking, and rail freight—to ensure that goods are delivered efficiently, cost-effectively, and in compliance with regulations.
Core Functions of a Freight Forwarder
1. Transportation Arrangement
Freight forwarders coordinate the movement of goods via air, sea, road, or rail, selecting the best route and carrier based on cost, speed, and reliability.
2. Documentation Handling
They prepare and manage all required documents, including:
- Bill of Lading
- Commercial invoice
- Packing list
- Certificate of origin
- Export/import licenses (if needed)
3. Customs Clearance
Freight forwarders assist in clearing goods through customs by:
- Ensuring compliance with regulations
- Calculating and paying duties and taxes
- Submitting documentation to the appropriate authorities
4. Cargo Insurance
They arrange insurance coverage to protect shipments against damage, loss, or theft during transit.
5. Warehousing and Storage
They may offer or arrange warehousing services for short-term or long-term storage before, during, or after transport.
6. Cargo Consolidation
For small shipments, they consolidate goods from multiple shippers into a single container to reduce costs.
7. Tracking and Visibility
Freight forwarders provide shipment tracking and regular updates to customers, ensuring transparency and timely delivery.
8. Advisory Services
They offer expert advice on trade routes, shipping methods, import/export regulations, packaging, and cost optimization.
