Freight forwarding is the entire process of logistics planning and execution for the international movement of goods, on behalf of shippers.

Freight forwarders are known to handle freight rate negotiations, container tracking, customs documentation, freight consolidation, among other tasks.

Note that Freight Forwarding revolves around contracts with carriers and helping every party involved with crucial details and information for a trouble-free business operation.

Comparing the role of freight forwarders today with those in the past shows no difference.

The most notable change witnessed in this industry has to do with the mode of operation, rather than the process.

From the pen and paper era, the industry has moved to the use of printed documents, and now digital technology has revolutionized almost every shipping operation.

However, the principles of freight forwarding still remain the same. The principles of freight forwarding center around the smooth and cost-effective transfer of goods.

To effectively achieve this, freight forwarders become experts in handling the logistics necessary to ensure that goods arrive on time.

In this industry, having the right knowledge and skills to handle freight forwarding is vital to ensuring the efficient shipment and delivery of goods.

Even as the knowledge of customs regulations is a crucial aspect of everything, the successful movement of goods through freight forwarding tends to depend primarily on its service industry.

Owing to that, freight forwarding relies on ensuring you have the right people whose commitment to excellence and customer satisfaction will make sure that goods reach their final destination in a prompt and efficient manner.

A good number of customs brokerage firms understand this and ensure that their most qualified personnel are available to acknowledge and develop a comfortable shipping experience for their clients.

What is a Freight Forwarding Company?

A freight forwarding company is a firm that employs agents that can take care of paperwork and documentation for shipping and receiving logistics.

Note that the primary aim of these businesses is to ensure a company’s goods are efficiently delivered by the specified date.

They will take care of everything, right from cargo manifests to insurance claims and even ship items on internal bills of lading.

Have it in mind that the process of international shipping requires clear communication between different transportation companies in the supply chain.

Shipments can get delayed if a vehicle breaks down, if a port is backed up, or if there is bad weather at the port of origin or destination port.

A setback at any point in the supply chain entails that the goods or shipment could be in limbo, while everything else stays on as normal.

Note that the ability to find the most efficient route of transportation is just one aspect of the services offered by freight forwarding companies.

When it involves international import and export, customs documentation can be very daunting.

Indeed, customs documentation is very vital, as one small mistake or error can institute issues at the port and also warrant customs officials to delay shipments.

Freight forwarders are experts in taking care of everything to ensure customs clearance by organizing all required documents.

Other things like bills of lading, insurance certificates, packing lists, certificates of origin, and commercial invoices are all part of what a freight forwarding company handles.

Have it in mind that a good freight forwarding company can take care of a business’s goods throughout the entire shipment process.

They will more or less make sure goods and shipment get from the warehouse to the customer’s choice of location. Small businesses can’t always afford to handle all the logistics involved in shipments, so they need freight forwarding companies.

How Does Freight Forwarding Work?

Just like it was stated above, the process of shipping goods and merchandise requires a huge amount of paperwork, regulations, and processes.

Note that all these things can be very challenging for people new to international trade and shipping.

However, today, it is very possible to move goods internationally without having to deal with the stress and troubles associated with importing and exporting goods.

Freight forwarding companies are known to take care of the numerous responsibilities on behalf of their clients. and their business.

Although it may seem like an unnecessary additional cost to pay a freight forwarding company for efficient and reliable service, but these experts offer a vast range of services and can indeed help you save more money.

1. Export Haulage

The movement of shipments from a shipper’s location to the freight forwarders’ warehouse is what is more commonly referred to as export haulage.

This requires the help of a truck or train to move the shipment. However, note that the time it will take will also depend on the distance, geographical location, and what the shipment is. This first stage will take anywhere from a few hours to a few weeks.

2. Items Checkpoint

Immediately following the export haulage stage, have it in mind that Freight forwarders receiving the goods will check to make sure and also verify everything was transported without incidents.

3. Export Customs Clearance

Note that before shipment will be moved, it always goes through clearance processes from the country of origin. All these processes are carried out by customs brokers.

These experts are expected to submit details about the cargo and any supporting documents that are required.

Most often, an agreement is established between the shipper and consignee who are tasked with this process.

If a freight forwarding company does not offer this service, it is expected to find a third-party customs broker service.

4. Import Customs Clearance

You will have to understand that once the shipment arrives, authorities in the destination country will also have to check import customs documents.

The secret to this stage is that it can even start right before the cargo even arrives.

Note that it is the job of the freight forwarder or nominated customs broker to see to this clearance by the time the cargo arrives.

5. Destination Arrival and Handling

Note that this stage involves a number of different processes immediately after the cargo arrives.

Have it in mind that this is when freight forwarders receive all documents for the cargo, including outstanding documentation, carrier bills, and more. This stage of freight forwarding is handled of by the freight forwarder.

6. Import Haulage

This stage of freight forwarding is also like the very first stage in the process.

It involves the transportation of the cargo from the warehouse to the final destination of the final receiver. Note that this process can be handled by freight forwarders or the consignee.

Conclusion

The primary aim of freight forwarding has remained more or less the same throughout the centuries.

Freight forwarders are known to aid get customers goods shipped safely to their preferred destination.

However, the means leveraged by freight forwarders have evolved over time to take advantage of the current technology to meet the demands of more complex shipping routes.

As the global economy continues to expand, experts expect the need for freight forwarders to only become more necessary to the world’s commerce.