What is a Freight Forwarder? | What do they do?

freight forwarder

To import or export goods and services from place to place or from one country to another involves a lot of paper works and documentation and as the owner of these goods, it can be difficult to track all the processes and locations of the goods and services. Most times, anxiety or fear arises with concerns of accidents happening occurring. Why not be at rest and order a Freight Forwarder today!

A Freight Forwarder is a company or organization that acts as an intermediary between your shipping company and the shipper. They are responsible for providing warehouses for the goods and services and keeping track of the shipments until it arrives at its final destination. A Freight Forwarder does not move the goods and services themselves but they are responsible for contracting a shipping company.

What does a Freight Forwarder do?

  • Responsible for providing storage facilities like warehouses for the goods and services before exporting or importing.
  • Responsible for all documentation and paperwork required for clearance of the goods and services
  • Responsible for packaging of the goods and services most securely and in the safest way necessary to ensure perfect delivery of the goods and services.
  • Responsible for picking the most effective means of transportation (air, water, or land) according to the time required for the delivery of the goods or services.
  • Responsible for contracting a shipping company and serving as an intermediary between the company and the shipper, tracking the goods and services until it is safely delivered to its owner.
  • Responsible for all negotiation relating to freight rate and charges

The Process involved in Freight Forwarding

  1. Transport of goods from the procurement point to the storage house
  2. Obtaining clearance for goods to leave the origin country
  3. Packaging and checking of documents relating to clearance of the goods
  4. Checking of custom documents by the authorities
  5. Keeping track of the goods on the road to its final destination country or location
  6. Transfer of the goods and services to the shipper’s location

List of goods that is restricted for a Freight Forwarder

  • Dangerous and explosive goods like flammable liquids and explosives
  • Alcohol
  • Batteries and Sharp objects
  • Perishable items unless those on express delivery
  • Drugs

Qualification requirement for a Freight Forwarder

  • A Freight Forwarder must be licensed under the necessary body responsible for registration, for example, in United State, a Freight Forwarder must be licensed under the National Customs Brokers and Forwarders Association of America (NCBFAA) while Canada is the Canadian International Freight Forwarders Association (CIFFA), to obtain a Freight Forwarder number before being allowed to operate.
  • A Freight Forwarder must have a wide range of contact and network with an organized team to ensure the effective delivery of the goods and services.
  • They must be with experience; they must be knowledgeable about everything relating to the service they are providing.
  • A Freight Forwarder must operate with high technology gadgets and the latest Logistic software to ensure easier tracking of the shipments due to the global world of today where almost everything is digitized.

There are a lot of benefits attached to using a Freight Forwarder, it is faster and cost-effective, they have experience in dealing with clearance and paperwork, and it takes the stress away from the owner of the goods and services.

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