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What is a Freight Forwarder? Freight forwards is an individual or company that arranges to pick up or deliver good via asset based carriers and books or otherwise arranges space for those shipments. Common carrier types are ships, trains, planes and lorries. Just think of it as “travel agents for freight.” A freight forwarder would typically arrange the movement of cargo between international destinations; generally they do not ship the cargo themselves, although many of the large shipping companies will provide this service. In place, they have the expertise to prepare and process all documentation and perform other additional services pertaining to international shipments, such as the following: Ø customs clearance - forwarders will complete customs paperwork on your behalf, and pay any taxes or duties owed Ø insurance - many forwarders will be registered with the Financial Services Authority and be able to supply insurance services Ø inventory management Ø logistics and supply-chain management of value-added activities 
They will also prove to be an invaluable source of information and will provide all manner of advice about the international trading process. This can be particularly useful for businesses that are new to international trade. By choosing to use a freight forwarder you can cut your costs, as they have a massive number of consignments, loads traveling to a single destination can be consolidated. This keeps the cost down for individual traders. Why choose a Freight Forwarder? Simply you need to weigh up the costs and benefits of using a freight forwarder. The areas where a freight forwarder would have an impact; Ø Cost – they would be able to offer lower rates than a carrier, but will all the cost of the value added services will add up. Ø Skills and resources- does you company have the manpower and people in place who could otherwise manage the process. Ø The sheer convenience, as they will handle most or all of our trade related services and correlating multiple service providers. What is the cost of a Freight Forwarder? The main factors that influence cost are: Ø Distance – like transport anywhere, the further you go the higher the price. Ø Location – expect to pay more for “exotic” locations Ø Type of transportation – air transport is always the quickest, but most expensive. Ø Weight – all transport cost are based on weight Ø Frequency – you need to consider one contract per shipment or an annual contract, involving a set weight per year. Additional costs will be expected for specialist shipping requiring a refrigerated, insulated, ventilated and tank containers. There may not be an additional charge if the freight forwarder is considered a specialist freight forwarder.
What will a Freight Forwarder provide? As close co-operation is needed in and between every mode of transport - road, rail, sea and air. Freight forwarders constantly negotiate freight rates with transport companies, comparing the costs of moving cargo along different routes via different modes and then designing logistics infrastructures which provide the best compromise between cost, speed and reliability. When you decide to accept a forwarder’s recommendations, concerning the transportation of goods, it then becomes the responsibility of the forwarder to ensure that the goods are transported and delivered as planned. They can be thought as an "Architect of Transport". As part of international trading on the world markets it is vital to that every transaction must comply with countless statutory measures and their related procedures, especially those associated with Customs. In this are where the specialised skills and knowledge of the freight forwarder come to the fore. There is the possibility that you are not known to your buyer or seller, therefore you are entrusting your forwarder to get the goods delivered. Under these circumstances the forwarder must scrupulously ensure that all requirements of the door to door operation are complied with to the letter, especially as far as the accurate and timely production of documentation is concerned – excellence in this field leads to prompt settlement for goods purchased and your increased satisfaction. An A -Z of freight forwarders can be found here. TL Share this Article:                        Advertisement |
