Freight Forwarding 101: Everything You Need To Know

Importing and exporting are important for many businesses. International shipping offers multiple opportunities for companies to expand. But who would want to deal with complex legalities, tracking and documentation? Do not worry; freight forwarders have you covered. 

They are a one-stop shop that handles everything for you, from packing and moving to transportation and delivery. It is all about making shipping goods easy and hassle-free. In this blog, we will talk about freight forwarding and how you can benefit from it.

What is Freight Forwarding? 

Freight forwarding is like a travel agent for cargo. It’s a service that organises the shipment of goods from one place to another, just like packers and movers. Freight forwarders handle everything from booking transport to dealing with customs clearance and documentation. They work with various carriers, including trucks, ships, planes, and trains, to find the best route and price for shipping. 

In short, they simplify the logistics of moving goods globally, ensuring they reach their destination safely and on time. 

What Does A Freight Forwarder Do?  

Freight forwarding companies offer services related to organising your shipment, including:

1. Shipment Tracking

They coordinate the entire process, from the initial booking to the final delivery, ensuring everything runs smoothly and efficiently. This includes scheduling pickup and delivery times, arranging transportation, and managing any special requirements or requests from the shipper.

2. Customs Broker

 They manage and submit all the documentation necessary for import and export processes according to customs compliance. It includes legal documents with details of the goods, customs clearance, and commercial invoices. 

3. Warehousing

Like packers and movers provide storage services, freight forwarders offer storage units to store your shipment. They provide secure storage facilities and manage inventory to ensure the goods are safe and accessible.

4. Negotiation

Freight forwarders are responsible for negotiating prices and arranging the best mode of transport to get the shipment delivered on time.  

Types Of Freight Forwarding Services 

Below are some modes of transport that freight forwarding services  can use: 

1. Rail

Rail is one of the most efficient forms of transportation. They allow cargo to be transported across massive distances. One of this service’s biggest advantages is that it is rarely interrupted, providing an operation that can travel for multiple hours.

2. Ocean

Freight forwarding involving the ocean uses cargo ships. Millions of cargo travel through oceans and seas daily to reach their destination. This service is the most cost-efficient method for transporting bulk goods and supplies across regions and countries.

3. Air

Freight forwarding by air transport is the fastest way. Sometimes they are more expensive than others but provide quick deliveries when needed.

4. Road 

Road freight services are done through delivery trucks and vans. It is mainly used at the start and end points for many supplies. Moreover, road freights are not dependent on logistical hubs like ports, airports, or train stations, and there are hardly any destinations for goods inaccessible by road. 

Stages of Freight Forwarding 

Stage 1: Export Haulage 

In this stage, goods are transferred from the shipper’s premises to the freight forwarder’s warehouse. It involves packing, booking and preparing cargo to be shipped domestically and internationally.

Stage 2: Items Checkpoint

At the items checkpoint, the freight forwarders receive the shipment from the shipper to inspect the products and determine whether they have arrived in good condition. They also ensure that the items match the booking documents. 

During this stage, the freight forwarders also ensure that the final destination of the items will accept the shipment. This matters because some items are restricted overseas.

Stage 3: Export Customs Clearance 

Before the shipment can enter another country, freight forwarders must bring the items to the customs broker to be approved for departure. 

In this stage, freight forwarders ensure that the goods meet the legal requirements to enter the destination country; they may require specific licences to ensure no issues when importing the goods.

Stage 4: Import Customs Clearance 

At this point, the goods have arrived in the destination country. Local authorities will check whether the imported customs documents match the order and whether the goods have been damaged.

Stage 5: Destination Arrival and Handling 

Freight forwarders receive and manage all the relevant documentation upon the arrival of the cargo. From there, either the freight forwarding company or an individual they have appointed will prepare the newly arrived product for shipping to its final destination.

Stage 6: Import Haulage 

In the final stage of the process, the shipment arrives at its destination. The responsibility is to ensure the shipment and its components arrive safely. 

Benefits Of Using Freight Forwarding 

1. Cost efficient 

Freight forwarders leverage their expansive partnership globally, allowing them to negotiate competitive rates for their clients. They optimise the routes and select the most cost-efficient option. By doing so, companies can reduce their transportation expenses while having the same quality and efficiency.

2. Saves Time 

One of the benefits of working with freight forwarders is their ability to ensure timely pickup and delivery of goods. They have a deep understanding of transportation networks, logistics, and operations management, allowing them to control freight movement precisely. The reliability in pickup and delivery enhances customer satisfaction and will enable businesses to have efficient supply chains and meet critical deadlines.

3. Tracking System 

If you use ocean or rail services, your package might take time to reach its destination. Companies always worry whether their package is misplaced during the shipping process. However, companies do not have to worry much when the cargo has an in-built tracking device. Freight forwarding companies constantly track the location of your cargo and help businesses know when the shipment will reach its destination.

4. Customs Clearance

Foreign trades are risky due to customs delays, regulatory compliance issues, and unpredictable supply chain disruptions. Freight forwarders are well aware of this and help businesses minimise risk and maintain seamless operations. 

Conclusion 

The demand for international shipping is growing due to the increasing need for cross-border shipping by businesses dealing with international trade. Shipping internationally is no easy task because of constant changes in mandates, customs regulations, and cost-heavy shipping routes. Freight forwarders help you optimise your entire supply chain. They do everything from minimising transportation costs to handling customs and finding cost-efficient shipping routes.