How Does a Freight Forwarding Company Work?
Freight forwarders manage, schedule, supervise and coordinate the shipment of goods domestically and across international boundaries. In some cases, freight forwarders may be required to cross load or arrange warehousing services during transport. Freight forwarders are responsible for communicating with transportation companies to monitor the status of shipments so they can update their clients on a daily basis.
A non-vessel operating common carrier and a freight forwarder offer similar international shipping services, but play different roles during the movement of the cargo. As instructed by the shipper/customer, NVOCCs and freight forwarders may be responsible for booking space on the carrier, documenting exports, establishing cargo insurance, advising the shipper on foreign import regulations, providing guidance on proper packaging, marking and labeling of commodities, and arranging the packing and containerizing of goods.
Freight forwarders aren't shippers themselves, but work with the client and various shipping agencies to ensure freight's delivery. They cover all aspects of the shipping process, including insurance, taxes and fees, logistics, customs, and confirmation of delivery and receipt. Most often freight forwarders are used for large and complex shipments that need organization and execution. Companies and individuals use these companies as a means to save time, money and valuable resources during such a complicated process.
When you had to get a product from one place to another, it used to be that you'd call a shipper who would send a truck over, pick it up and take it to wherever it was supposed to go. Today, though, international trade, fuel prices and economic considerations have conspired to make that trip for one pallet of widgets increasingly more expensive. Container shipping has solved the problem of distance, allowing one or more companies to combine shipping to a single...
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