Freight Forwarder

Shipping freight is major business throughout the world. Along with freight brokers, freight forwarders help arrange shipments and help arrange for carriers to have full loads of freight to transport. Freight forwarders are an integral part of the logistics process handling many steps of the freight shipping process from before the products are shipped and until arriving at their final destination.

Saying that freight forwarders arrange a shipment of freight is a very simplistic way to explain a freight forwarder’s job description. Actually, freight forwarders can have a very complicated job. One of their main functions is to arrange the international documentation needed so that freight can leave one country and enter another. Because different countries have different laws and regulations a freight forwarder must make sure that each batch of cargo he/she handles meets the correct requirements. One of the most important and well-known documents is a bill of lading. A bill of lading is essentially a contract which explains the terms of shipping. It also confirms that the goods have been shipped and arrived and that the products are in the condition promised. To help with international shipping regulations, freight forwarders and freight brokers are able to rely on Incoterms set by the International Chamber of Commerce. These are laws and regulations that were developed to be a standard among several countries to make trade easier.

Financial consultation is another job of a freight forwarder. Because of their experience in the industry, freight forwarders typically have a good handle on the appropriate costs for different types of freight. There are several type of costs associated with shipping freight. First there are the general shipping costs – size and weight may be taken into to account when determining these costs. The type of freight and any special care may also be considered when determining freight cost. Another type of cost is port cost, which can include unloading cargo, duties, taxes and more. A business will most likely insure its freight, and this will add additional cost to shipping. With all of the different costs that are associated with shipping freight, it’s important that a freight forwarder be aware of all these costs and what fees are reasonable and which are not.

A freight forwarder may also help a company determine which mode of transportation is best. For shorter distances by land, trucking is most likely the best way to ship goods. But if the distance is long enough and by land, rail may be more economical. However, even after shipping by rail, trucking will most likely be needed to get the products to a final arrival point. If shipment is going to go by air or ship overseas, then the freight forwarder will help find the best prices among the companies available. Once the best mode of transportation is determined a freight forwarder can also reserve the space needed on a truck, train, ship or plane.