An international freight forwarder facilitates the transport of cargo from various points around the globe to a final destination. Sometimes referred to as ‘travel agents for cargo’ they take care of managing freight forwarding schedules, coordinate connections for cargo trips, manage the documentation required in different jurisdictions and generally ensure that cargo reaches its destination as quickly and efficiently as possible.
They perform the vital function of plotting connections between various transit points in complex global supply chains and manage scheduling, coordination and documentation required to complete intermodal cargo transportation on behalf of their clients.
Following are some of the functions that they perform:
• Customs Brokerage – managing customs brokerage can be a highly complex undertaking. The broker needs to have a wide knowledge of customs requirements in different countries and the specific laws that apply in each. A freight forwarder will often provide strategic advice to exporters about compliance requirements for different types of cargo.
• Route Networks – freight forwarders do not simply engage flight and ocean shipping companies but maintain relationships with different carriers and shipping agents so that they can facilitate the most expeditious and inexpensive route for a given shipment. Maintaining a network of preferred and trusted partners is one of the most valuable services that they provide.
• Negotiations – negotiating the best rate for shipping can be likened to an art form – the best freight forwarders seek to find the middle ground between using trusted agents and negotiating the best prices from them while also being open to better prices from other agents.
• Scheduling – freight forwarders must take into account all possible contingencies that can occur when booking space for shipments using various modes of transport. This involves coordination between all the parties that are involved in a given supply chain such as manufacturers, carriers and storage providers among others to ensure that the customer receives their shipment within the agreed timeframe.
• Documentation Management – the administrative requirements in modern shipping are substantial and managing documentation correctly is one of the most valuable services that a freight forwarder provides. These can include bills of lading, letters of credit, receipt reports, inventory reports, customs invoices, permits and so on. International freight forwarder must ensure that all necessary documentation is provided for each part of the shipping process that composes the supply chain as a whole and that it is correct in each jurisdiction in which it is required.
