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Freight forwarding  SOP (Standard Operating Procedure)

freight forwarding sop

What is SOP?

SOP stands for standard operating procedure. with related to freight forwarding SOP refers to a documented set of standardized guidelines, processes, procedures tasks, and operations related to freight forwarding services in a freight forwarding company.

if there is a well-fined SOP can minimize errors, enhance customer service, ensure freight and transport process security, and effectiveness of the process. With using

What is a 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.

further reading for freight forwarding you can read an article Freight Forwarder: Everything You Need To Know

What is the freight forwarding process?

client onboarding, cargo booking, documentation preparation, customs clearance, transportation, warehousing (if applicable), tracking, and more.

SOP for freight forwarding

Freight forwarding SOP stands for freight forwarding standard operating procedure. It includes a plan and all procedures should be followed in a freight forwarding company.

  1. pre-preparation of shipment

for the preparation of shipment, we need to collect all the documents that are essential for shipping. (Commercial invoices, packing lists, customs declaration form-CUSDEC, import and export licenses, and authorities, country of origin certificate)

Packaging and labeling with a standard method

ensure that packaging is safe

Labeling needs to do with correct details of shipment information, and shipper’s and consignee’s contact details.

After collecting shipment-related documents you can call a quotation from a freight forwarder.

If you haven’t packaging facilities you can hand over your shipment from your premises to the freight forwarder, then they will arrange the right method of packaging and labeling.

Every shipment needs to be insured due to unexpected situations of transportation. Such as damages and loss during the transit. With the insurance, you canncoveer the financial loss of shipment. It is necessary to do insurance.

2. shipment booking

Next, you can book your shipment with a freight forwarder. Freight forwarders book space for your shipment on a ship, plane, or truck.

shipment picking and delivery arranged by a freight forwarder.

3. shipping

Track the shipment and update the shipment status to the customer.

4. custom clearance

The freight forwarder at the port of destination does the Customs clearance process.

arrange all the documentation parts for customs clearance.

also freight forwarder appoints a customs house agent for the clearing process on behalf of the consignee or cargo owner so that cha member pays customs duties and other taxes relevant to shipment.

after the customs clearance freight forwarder is liable to arrange logistics and transportation to the consignee’s place.

5. payment

The consignee is liable to pay all the freight charges to the freight forwarder.

Most of the time freight chargers are paying at the moment of the shipment delivery to the consignee’s doorstep.

other required details list

  • Mode of transportation
  • Weight and dimensions of the goods
  • Destination
  • labeling and packaging
  • security
  • communication
  • Documentation part
  • Insurance
  • customs clearance
  • Tax and VAT

Freight Forwarding SOP template

What is the Freight forwarding SOP template?

This is a template that can be used in freight forwarding companies for planning and execution regarding standard operation procedures.

Benefits of freight forwarding SOP template

  • All operations in a freight forwarding company ensure operations accuracy and consistency.
  • Giving clear guidelines for freight forwarding company employees, then increasing the efficiency
  • Reduce errors and mistakes
  • streamline company processes
  • New members can easily facilitate the training programs
  • customer satisfaction increases by providing reliable and on-time service
  • easy and better handling of tracking and monitoring shipments

What are the main features or elements of the SOP template

Custom status

custom fields

Custom views

Project management

How to use SOP for a freight forwarding company?

need to identify the purpose and your company’s requirement for SOP

customize the template according to company requirement

clearly identify your company processes and tasks

identify that what are the documents and resources you need to handle

give instructions and train your company team with the SOP

Available freight forwarding company SOP templates

clickup.com

Related articles you may like to read,

Freight forwarder: Everything you need to know

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

Logistics and Shipping Terms: FCL and LCL

Notify party in Shipping documents: Everything you need to know

15 Essential shipping documents

Cargo Manifest and Main Types of cargo Manifest Use in Shipping

Incoterms : Essential terms for international trade

Is Electronic Bill of Lading (e B/L) a new trend?

Shipment Arrival Notice/notification

Proforma Invoice and Commercial invoice: Everything you need to know

Certificate of Origin: Everything you need to know

ETA and ETD in shipping: Everything you need to know

Importance of Packing Lists in Shipping

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