Table of Contents

Freight forwarder: Everything you need to know

Who is Freight Forwarder

A freight forwarder acts as an intermediary party between exporters, importers and carriers, and other stakeholders such as customs, port, and cargo handling agencies. A freight forwarder is an agent of the shipper/exporter/importer or consignee.

What is freight forwarding?

Freight forwarding is providing guidance and facilities for goods transported internationally. Freight forwarders can arrange shipment door to doorstep.

It means all the facilities and tasks from the origin point of goods releasing place to the destination point of goods receiving process, every part of the process freight forwarder can arrange on behalf of the shipment owner.

who is the freight forwarder?

Acting as an intermediary party between exporter, importer and carrier, and other stakeholders such as customs, port, cargo handling agencies

A freight forwarder is an agent of the shipper/exporter/importer or consignee.

What is freight forwarding? How does it work?

Freight forwarders make partnerships with logistics-related companies.

Find trucks near the pickup location and arrange to pick up the shipment

Transportation route planning-avoid traffic congestion. weather forecasting and factors considering

Find alternative transport services in an unexpected situation

Prepare documents for shipping, customs clearance,

Tracking shipments using tracking systems

Any emergency situation response immediately

What services do freight forwarders offer?

Freight forwarders can arrange s shipment door to doorstep. It means all the facilities and tasks from the origin point of goods releasing place to the destination point of goods releasing process every part of the process freight forwarder can arrange on behalf of the shipment owner.

  1. Customs clearance
  2. Freight quotations offered internationally
  3. Packaging for exports
  4. Booking freight for inland and internationally
  5. Scheduling of carriers
  6. Containerization of freight
  7. Value-added service providing- transshipment, consolidation,
  8. Supervising cargo loading and unloading
  9. Tracking shipments
  10. Import and export documentation.
  11. Applying for import and exports licenses
  12. Coordination of carriers and other parties which provide logistics and transport services
  13. warehouse facilities planning
  14. Customs Brokerage
  15. Instructions were given on the cargo insurance procedure
  16. Freight rate negotiations
  17. Container tracking
  18. Cargo scheduling
  19. consolidating shipments

How can I choose a freight forwarder? step by step

  1. First, you need to analyze your transportation needs and requirement.
  2. How many containers do you need to transport or how many shipments
  3. Extaclty you need to know the exact space you need to reserve.
  4. With the packing dimensions and weight, you can calculate the space.
  5. And also you need to think about kind of the cargo type which is required to transport. It is perishable, dangerous cargo, reefer cargo or etc.
  6. When identifying a cargo type you can analyze the requirements needed to be your cargo. For example, if you want to transport special cargo types such as perishable cargo you need special temperature control and refer containers facilities.
  7. According to your cargo type and transport, requirements need to know exactly when choosing a freight forwarder.
  8. Then you need to identify when and where your shipment should send.
  9. After that, you need to check the availability of freight forwarders who can full fill your requirements for the shipment.
  10. Check the industry experience and reviews and rankings.
  11. Then you can search for forwarding companies near you. By internet and by asking from related state holders of the shipping you can reach them and you need to check reviews and recommendations, rankings of the forwarders.
  12. Ensure risk management
  13. Knowledge to handle unexpected situations. one of the risk mitigation strategies is cargo insurance.
  14. Confirming freight forwarder’s network related to logistics and transport services. such as warehousing
  15. Finding details about communications and customer services-tracking system
  16. Check license and certification or permits – should have to handle your cargo
  17. Selected freight forwarding, requesting quotations for your shipments.
  18. Then you can check quotations at a lower rate. you can give your shipment to that freight forwarder.
  19. Please note that in this situation it is essential to look at the details of at right time you can send your shipment. If there is no available carrier for sending at the right time it would be an issue. though freight rate is low cannot shipment send at the right time. You should use that freight forwarding company. it would be best if you allocated another freight forwarder.

Factors need to choose a freight forwarder

  • Creditability and experience
  • Technology-track and trace software, WMS/ERP
  • Strong communication Services and value offer

Freight forwarder advantages and disadvantages?

Advantages: once you contact your freight forwarder you can arrange all your transportation needs

Cost saving when have to transport more amount of containers. A freight forwarder can give a lower rate for your shipment by negotiating with carriers.

Disadv: additional chargers need to pay for freight forwarder services

Essential questions to ask freight forwarders when selecting your shipment?

about the network coverage of the freight forwarder

can I track and race my shipment?

do you use a tracking system, can I get notifications

do you provide customs clearance?

How long do I have to wait for a quotation getting

Regarding rate: what are the including for the rate?

If door-to-door shipment, what is the cost needed to barre at the destination s additional chargers?

Are you having a license and bonded?

Do you offer a packaging service or not?

Difference between freight forwarder and customs house agent/CHA/customs broker

What is the difference between NVOCC and Freight Forwarders?

NVOCC and freight forwarders both are intermediary parties of ocean shipping.

Freight forwarder provides advice and consulting services for cargo transportation internationally

NVOCC is lease the space from the main shipping lines at a lower rate. They resell container space for different LCL shipment owners and consolidate the shipments.

NVOCC acts as a shipping line and issues a bill of lading called a house bill of lading. And also NVOCC has its own shipping containers or leased containers. So they can offer containers for exporting goods.

Freight forwarder who has license A also can do the tasks that NVOCC does. Such as issuing bills of lading and providing containers.

a freight forwarder can arrange the all the things related to import and export, such as packaging, transport, distribution, documentation process, customs clearance, helping to get import and export licenses, country of origin certificates, warehouse facilities and so.

But only the License A holder can act as a NVOCC task, such as container sending and space booking on the vessel and issuing house bill of lading. But all the freight forwarders can be advised and do needful for NVOCC services on behalf of their customer, exporter, or importer.

Is the Freight forwarder issued a House Bill of Lading?

Freight forwarder license A holder can issue a House bill of lading. Other license holders can’t issue a bill of lading.

what is the main difference between freight forwarder license A and License B in Sri Lanka?

The main difference between licenses A and B is as below,

License A- freight forwarder can issue their own bill of lading

License B-license B holder can not issue a bill of lading.

How can I learn freight forwarding?

The best way to learn freight forwarding is through job training at a freight forwarding agency or company.

You can follow courses regarding to freight forwarding

You may also like to read,

How can I get Freight forwarding professional qualifications in Sri Lanka?

How to become a Customs House Agent:CHA:Wharf: Customs Broker

Customs House Agent(CHA)/Customs Broker: Everything you need to know

Free Re-Import Certificate(FRIC)-Everything you need to know

What are the import licenses and approvals required in Sri Lanka?

Customs Declaration (CusDec) & ASYCUDA system

What is (NVOCC) Non-Vessel Operating Common Carrier/Co loader?

6 thoughts on “Freight forwarder: Everything you need to know”

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