What is a freight forwarder and what do they do

People are not generally aware of what a freight forwarder is and what a freight forwarder does. Freight forwarders are, however, the largest users of the global freight network, and responsible for most international cargo shipping.

What is a freight forwarder?

Freight forwarders are responsible for the international transportation of goods between origin and destination, both of which are in different countries. They act as an intermediary between the carriers and transportation services, liaising with various shipping and air lines to negotiate on price and decide on the most economical, reliable and fastest routes.

What does a freight forwarder do?

Freight forwarding is the arrangement, organisation and monitoring of logistics used to ship goods internationally from supplier to buyer. A freight forwarder is someone who facilitates this complex and dynamic task.

Freight forwarder are international shipping experts

Freight forwarders are international shipping experts who execute specialist tasks when transporting goods. They negotiate international freight rates, schedule cargo space on carriers, supply cargo insurance, consolidate freight, and track shipments. They also organise customs clearance and warehousing.

Freight forwarder are customs brokerage experts

Seamless importing and exporting of goods across international borders requires refined industry knowhow. International forwarders possess the necessary expertise to prepare and process customs documents. Forwarders are typically tasked with collating and reviewing commercial invoices, export declarations, Bills of Lading, carrier and transport documents, and export and import documentation.

Freight forwarder are agile planners

Overseas trade normally uses at least two transportation modes to move cargo between different countries. Generally, a mix of road, rail, sea and air is combined to create the route. Forwarders book the necessary cargo space on every leg of the journey, and organise all aspects of the consignment for the purchaser.

Freight forwarder are top negotiators

Freight forwarders understand the importance of a good shipper. They put a lot of effort into developing and nurturing a select network of respected carriers. Through this network they seek the best shipping rates for their clients’ freight.

What is a forwarder and what do they do

What is a freight forwarder responsible for?

A freight forwarder is responsible for all aspects of the international shipping of goods from a supplier to buyer. This responsibility can be broken into three major grouping of freight forwarder tasks.

Preparation

The forwarder researches any labour issues at ports involved with transportation. They plan for extreme weather that could result in delays. They calculate estimated delivery times at each shipping stage, and they share pertinent information regarding hazardous materials.

Monitoring

Shipping and airline notices are monitored for any disruptions. Holidays and government actions relating to countries on the route are tracked. Any changes in delivery requirements are communicated, and notification of any production or travel delays is sourced and communicated to affected parties.

Organising

Warehousing is provided both domestically and abroad. Shipments from multiple suppliers are consolidated. Any required insurance coverage is prepared, and any damaged goods are inspected at the point of loading.

What is a freight forwarder responsible for?

What is a freight forwarder service?

A freight forwarder service is the international shipping of goods from an origin and destination. There are twelve notable steps in a typical freight forwarder service.

Step 1 – Goods are sourced

The buyer finds a suitable international supplier for the goods. Transaction and payment terms are negotiated, using a Letter of Credit or other instruments. Buyer and supplier agree terms of sale for the goods.

Step 2 – Goods are ordered

The buyer confirms the order of the goods. Confirmation is initiated via purchase order to the supplier.

Step 3 – Confirming order readiness

The buyer and supplier determine and agree an anticipated date of when the goods will be ready for shipment. This is then confirmed as the shipping date.

Step 4 – Goods are purchased

The goods are manufactured in a factory or picked and packed from a warehouse. The supplier drafts a packing list for the shipment.

Step 5 – Shipment prepared for departure

The supplier creates a commercial invoice for the goods to be shipped. They also prepare export documents required by the origin country. These documents include the export declaration, commercial invoice, Certificate of Insurance and any permits.

Step 6 – Freight Forwarder contacted

The supplier or buyer contacts the freight forwarder or vice versa. Details are provided so shipping of the goods can be arranged.

Step 7 – Carrier is arranged

Freight forwarders arrange cargo transportation with one or more sea or air carriers. Sometimes several carriers are needed to cover the international journey from origin to destination. The freight forwarder often needs to organise transport to and from the air or sea port.

Step 8 – Cargo is loaded

The goods are loaded onto a cargo ship or aircraft and begin the journey to the destination country. A carrier transportation waybill is attached to the shipment.

Step 9 – Customs broker document submission

The customs broker submits all necessary customs documents. These include the commercial invoice, customs invoice, copy of carrier waybill and Certificate of Origin. Also included are the permits.

Step 10 – Customs broker arrival notification

Customs broker Is notified as to when the shipment is expected to arrive at the destination port.

Step 11 – Submitted for final delivery

The receiving report and inventory report are submitted for final delivery: The shipping payment is issued and the shipment is entered in the general ledger. The customs compliance check is conducted.

Step 12 – Clearance and government payments

The shipment is cleared of customs. Import duties and taxes are paid.

A simple overview of the regular freight forwarding process in our blog on how to avoid being a victim of freight forwarding.

What is in a forwarder service?

Need help from an trusted freight forwarder

If you are looking for a trusted freight forwarder, contact Freight Forwarder Quote Online Australia for assistance. We provide competitive Australian air and sea freight services to all major overseas locations. Try using our online instant shipping quote tool.

Find out more about us on social media and follow us on our LinkedIn or Facebook page. You are welcome to call us about your shipping requirements on 1300651233.