Many people are unsure about what freight forwarders do, even though they have heard the term. Many people confuse the title with other roles in the import and export industry, such as distribution manager or transport manager.
Global freight forwarders take on some of these responsibilities by overseeing international transport at every stage. The role of a global freight forwarder involves many aspects, so read on to learn more.
How Does A Global Freight Forwarder Work?
The purpose of a global freight forwarder is to arrange cargo on behalf of shippers.
By bridging the gap between shipping customers and transportation services, they facilitate cargo transportation. Transporting the cargo is not something they do themselves. Rather, they facilitate the flow of goods between two global destinations within a specified time frame.
A global freight forwarder negotiates prices and determines the most reliable, economical, and fastest route based on existing relationships. It is their responsibility to communicate with all parties involved the majority of the time. To resolve any issues quickly, they work together with the customer while keeping them updated.
Ocean freight and air freight are among the supply chain services offered by a global freight forwarder.
Describing The Steps Involved In Global Freight
There are usually seven phases involved in international forwarding. In the next section, we’ll explain what a global freight forwarder does at every stage:
- Cargo Haulage For Export
In the first step of the process, goods are moved to the freight forwarder’s processing warehouse. A forwarder would usually arrange for warehouse solution providers and transportation companies to handle this step if it is agreed that they are responsible for it.
If the forwarding company included export haulage, it would be easier for the consignee (the person financially responsible for receiving the shipment).
- Clearance Of Export Customs
A freight forwarder ensures that the goods are approved to leave the country of origin at this stage. Before reaching the port grounds, flammable liquids and other prohibited items should be excluded from the shipment. For the cargo to leave the country, the freight forwarder must have a valid customs licence enabling them to declare and submit the required documents.
- Handling Of Sources
During source handling, goods are inspected and physically handled from the warehouse to the shipper. Several parties are involved in this process, and once the cargo has been received and inspected, it is packed into containers and taken to a port for loading.
- Freight By Sea
Global freight forwarders then utilise the best shipping lines to transport sea freight within a particular timeframe from origin to destination. For the shipment of the container, a contract will be signed between the forwarder and a shipping line company.
- Clearance Of Imports By Customs
Before the freight arrives at the destination country, this stage usually begins. This stage must be completed before the load leaves the warehouse.
To ensure that the customs documentation is in order, the port authorities will examine it. In this case, either the freight forwarder, the agent, or the consignee’s customs house adviser will take care of this task.
- Handling Of Destinations
There will be more handling of the cargo before the goods can be released. It involves transferring goods from the ship to the shore and then from the sea harbour to the distribution warehouse of the freight forwarder. Upon unpacking the container and scanning the goods, the goods will be prepared for collection by the consignee.
Payment of multiple destination charges, which must be paid to release the cargo, will be handled by the freight forwarder.
- Haulage Services For Imports
It is during the last stage of the process that goods are transported from the import warehouse to their final destination. A forwarder or a local transportation agency that is prearranged by the consignee performs this stage. It is the consignee’s responsibility to unload the goods from the transport after they have been delivered to the agreed-upon address.
Freight Forwarders Play A Key Role In Global Trade
Your goods will be transported by ocean or air from their source destination to the desired international destination when you use a global freight forwarder. By acting as an intermediary between shippers, carriers, and every entity in between, they save companies time, money, and stress. Over time, they developed knowledge, experience, and close relationships that allowed them to negotiate better deals and make the whole operation more efficient.
The growth of e-commerce has led to an increase in businesses utilising international freight forwarding services. Having a basic understanding of what global freight forwarders do will help you make informed decisions the day you need them. The best way to avoid struggling through the process on your own is to work with a reputable and established freight forwarder.
