Freight Forwarding
Definition

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Freight Forwarding

Freight forwarding involves the planning and organizing for the international movement of commodities on behalf of shipping companies. A freight forwarder or agent is the company or individual responsible for coordinating the movement of these goods to their different destinations. Their services include but are not limited to; warehousing, insurance services, cargo distribution, and brokerage.

Freight forwarding is a complex process requiring meticulous logistics planning to facilitate international freight transportation.

All You Need to Know About Freight Forwarding

Creative problem-solving skills – A freight forwarding company should go over and beyond to provide agile solutions to various problems that might interfere with the shipping process. This might be climatic, mechanical, technological, or human mistakes.

Proactive in networking building- A supply chain is as powerful as the parties driving it. A forwarding company should strive to create powerful business relationships with the producers, shippers, distributors, and customers.

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The Roles of Freight Forwarding Companies Explained

Freight Tracking - Freight forwarders employ a Transportation Management System to enhance transparency, communication, and visibility throughout the cargo transportation process.

Customer Brokerage - A freight forwarder will require special licensing to provide this type of forwarding services. It involves the management, preparation, and submitting all the documentation necessary to complete the hauling process.

Warehouse Management - Established freight forwarding companies have invested in their own warehouses, which they harbor shippers' cargo before and after transportation.

Freight Roles Continued:

Negotiating - Freight forwarders negotiate with their carriers better shipping rates and great deals on behalf of the shippers.

Freight Consolidation - Sometimes, freight forwarding companies might have numerous clients with small shipments that might not fill up a container. In such a case, these companies combine several other small shipments, heading to a similar destination and handle the cargo as one entity. This reduces the ultimate freight cost as the pricing is distributed amongst all parties.

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