A freight forwarder is basically a firm that is adept at arranging storage and shipping of merchandise on behalf of its shippers. In general, it provides comprehensive services, such as tracking inland transportation, preparation of shipping and export documents, warehousing, booking cargo space, negotiating freight charges, freight consolidation, cargo insurance, and filing of insurance claims. To put it simply, a freight forwarder is a company that meticulously organizes your import and export of goods.
Responsibilities of a freight forwarder
Usually, a lot of activity is involved in shipping, so it is important to know what a freight forwarder does.
An intermediary
It is to be remembered that a freight forwarder does not actually move your freight. In fact, the freight forwarder acts as an intermediary between a shipper and various transportation services, such as ocean shipping on cargo ships, trucking, etc. Apart from this, freight forwarders also deal with the logistics of shipping goods from one international destination to another, a task that would otherwise be a daunting one for their clients.
A negotiator
A freight forwarding service has good ties with carriers, air freighters, and trucking companies. And it negotiates to get the best possible price to move shippers’ goods along the most economically viable routes. For the same, a freight forwarder looks at various bids and selects the one that strikes a good balance between speed, cost, and reliability.
Why do people need a freight Forwarder?
A good freight forwarding service can easily spare customers or businesses from several worries by offering reliable transportation of products at competitive rates. Apart from this, it also saves a lot of their time as well. It is an ideal scenario for any company dealing in international transportation of goods as they are well versed in international shipping procedures.
Advantages of using a freight forwarder:
1. A Freight Forwarder handles ancillary services that are part of the international shipping business, such as insurance, customs documentation, etc.
2. A Freight Forwarder provides, to consolidators as well as individual shippers:
· Non-Vessel Operating Common Carrier documentation
· Bills of Lading
· Warehousing
· Risk Assessment and Management
· Methods of International Payment
So, the services of a freight forwarder are very crucial, as they can guide and help clients in moving goods smoothly from one destination to another. A forwarder’s sound understanding of documentation procedures, transportation costs, and banking practices can make the exporting process for many companies very convenient.
