nataleejons-blog

[nataleejons-blog]

What is a Freight Forwarder? Types and Functions

Have you ever heard the term freight forwarder before? In a logistics and supply chain management industry a freight forwarder is a company or an individual that is responsible for overlooking the freight management services. He is an indispensable member of the international trade and transport community. A freight forwarder functions just like a travel agent but instead of dealing with passengers, he deals with cargo. 

Here’s something you really need to know about using freight international services for your B2B import-export services so that you can easily outsource one to fulfill your logistical needs. A freight forwarder or a freight forwarding agent encompasses a variety of specialized functions. Some forwarders offer a variety of these functions, whereas others confine themselves to a single specialty or particular geographical area. Some of these functions are summarized below: Functions:

Taking into account the nature of goods making a reservation and contracting the necessary cargo space on a truck, train, ship or aircraft.

Acting as an intermediary in customs negotiations around the world to guide the cargo efficiently.

He handles customs agents and acts as an intermediary in customs negotiations and at the same time ensures that goods and documents comply with customs regulations around the world.

Preparation and submission of transport and trade documents that are needed for export and import, such as the CMR, Bill of Lading, Airway Bill, etc.

Types: Customs Broker: A customs broker is a service provider that is commonly known as CHA (Customs House Agent). A Customs Broker is liable for hefty duties or fines, a customs broker is usually bonded by insurance companies or banks.

Port (Sea/Air Port) Agent: This agent represents the shipper at the point where the goods are transferred from one mode of transport (usually from a truck or lorry) to another (in case of a seagoing vessel or aircraft).

Multimodal Transport Operators: A multi-modal transport operator is an all-inclusive store that offers a one-stop-shop to all the importers/exporters. A multi-modal transporter covers all the associated functions such as insurance, customs brokering or warehousing.

NVOCC (Non-Vessel Operating Common Carrier): This one particularly involves grouping and assembling of various shipments so as to obtain Full Container Loads (FCL) and get lower freight rates. Hiring an NVOCC can literally prove to be a cost-effective solution. A consolidator that offers regular shipments on seafaring vessels that are not owned by them; are referred to as NVOCCs.

A freight forwarder is not required for exporting/importing goods. However, it is recommended to use one because importing and exporting of goods involves soo many documentations and regulations that vary from country to country. However, the main question that pops up into your mind is where to find one? This is exactly where we come into the picture. If you are a consumer (importer/exporter) then you just Log on to LogiSWOT and get in touch with various service providers such as (Consol Agent, Freight Forwarder, IATA Agent, Customs Broker) to get cost-effective price quotes from any freight forwarder from all over the country.