A freight forwarder can be defined as a company or a person that engages in the arrangement of carriers and in the dispatch of shipments, on top of securing spaces for third parties to a contract. The third party could be an individual, a small-scaled business entity, or a large and established commercial establishment. The freight forwarders are the one that organizes transport and shipping of goods, within or outside the country. The shipment and transportation could also be for both outside and within the country.
Typical Role of a freight forwarding service or a freight forwarder:
Recommend the following to the exporter or to the customer of the auto transporting company:
-
The freight forwarding company should let the exporters or the auto transport service firms of their respective roles and obligations as provided by law.
-
They will also help the exporters when choosing the most cost-effective freight shipping option, aside from the best rates for inland cargo shipping.
-
Let the exporters select which would be the most suitable way for shipment of goods.
-
Make recommendations for both packaging and marking of shipments.
-
Explain the functionalities of ports
-
Clarify which tasks should be performed and what is required of the exporters during the shipment process.
-
If necessary, freight forwarders will also have to check the importer’s import license.
-
Solicit useful and appropriate advice as to the methods of receiving payments for exported commodities and effects.
-
Educate the exporter ahead of time as to the possible freight shipping problems that might be encountered along the way.
-
Advise on the export estimate.
-
Organization and understanding of the Letters of Credit
-
When needed, freight forwarders can also assist the exporters in contacting trade experts like international banking, financing, marketing, government export authorities, and even marine insurance.
-
Utilize the forwarders’ library to learn more on the different ports of every country.
Shipping Operation Role
-
Clarify the status of the freight while the same is in transit.
-
Hasten delivery and production
-
Identify the itinerary
-
Choose the right transporter and the transportation mode.
Aside from these, other roles of the freight shipping business include the following:
-
International Freight documentation
-
Notification of the shipper on the status of their freight.
-
Sending of collection documents to the shipper’s consignee, the consignee’s broker, international trade representative of the shipper, consignee or their broker, and to their banks.