Views: 70 Author: Site Editor Publish Time: 2022-03-22 Origin: Site
Freight forwarding is a cost-effective role of transporting goods from one place to another via sea, air or land. While the process may sound simple, it requires a great deal of coordination and cumbersome work to get the cargo safely to its designated destination.Freight forwarders use a variety of carriers, including sea freight, road and air freight, to efficiently organize the entire transportation process.
Essentially, they offer a wide range of services, from preparing shipments to liaising with various carriers and freight forwarders, consolidating shipments, negotiating costs, and developing the fastest and most economical routes. They handle a lot of logistics on behalf of their clients, which would otherwise become a very challenging task for them. Here we discuss in detail 11 interesting things about freight forwarding that you must know.
Table of contents:
What is Freight Forwarding?
Freight forwarder is responsible for transporting cargo between one destination and another. Freight forwarders specialize in arranging the entire process for shippers, from storage to transportation of cargo. They act as an intermediary between the shipper and the transport service, liaising with various carriers to negotiate prices and determine the most economical, reliable and fastest route.
NVOCC stands for "Non-vessel Owning Common Carrier". NVOCC and freight forwarder are very similar and their activities are so vague that many shippers think they are the same. However, in the United States, the FMC (Federal Maritime Commission) does classify the two entities differently. The two entities are separated as follows.
Ocean Freight Forwarder：
Arranges the international transportation of cargo
Organizing cargo from the U.S. through common carriers and booking cargo space for shippers
Managing and preparing documentation
Providing 3PL services to shippers
Please note that freight forwarders are not responsible for shipment delays
NVOCC：
Negotiating space with common carriers and outsourcing contracts to freight forwarders and shippers
Holding master bills of lading
Internationally, however, NVOCCs and freight forwarders are often considered the same entity. This is because many freight forwarders act as NVOCCs, and many NVOCCs act as freight forwarders. As noted above, the two entities are legally distinct in the United States, but this is not always the case depending on the country or region.
For more details about NVOCC VS FREIGHT FORWARDER
By using the reliable services of a freight forwarder, they provide you with quality services for the import and export of your goods. But sometimes the import and export of goods can make the whole process very stressful. By understanding the elements of the supply chain, a reliable freight forwarder can often help at all levels, which includes everything from the packing and warehouse stages to the customs process.
Professional freight forwarders are responsible for providing the best services in the supply chain process. Some notable services are:
· Customs Clearance
· International import and export documentation
· Insurance
· Packaging
· Storage
· Inventory Management
Using a freight forwarder to conveniently transport your goods can bring many benefits to your business in a variety of ways. Through expertise and knowledge, these freight forwarders will even ensure that all your shipments arrive at the right destination on time and even save you money throughout the process.
If you think that freight forwarders are also responsible for shipping delays, you're dead wrong on that concept! Delays can occur due to breakdowns, bad weather or unforeseen route changes. But sometimes delays can be very frustrating for companies dealing with consumers.
If you want to be successful in the freight forwarding business, it is important to maintain a healthy and good relationship with your customers. You should assure them that their product or shipment will arrive at the shipment destination on time and safely.
Freight forwarders even adhere to some strict rules and will not carry certain goods, especially in sea or air freight. Some of them are:
· Dangerous goods (including flammable liquids and toxic items)
· Medications (prescription and recreational)
· Alcohol
· Batteries
· Perishable items (except express delivery)
· Sharp objects
Many exporters and importers are unlikely to have a direct relationship with NVOCC or carriers. In fact, while you use the services of a freight forwarding to streamline your shipments, you also have access to their vast network. Here are some of the many logistics challenges you can outsource to a freight forwarding:
1. Negotiate shipments with:
· NVOCCs
· Carriers
· Truckers
· Railroads
2. Provide import/export quotes to shippers
3. Provide air, ocean and road consolidation services
4. Finding suitable shipping routes for shipments
5. Procure freight insurance
6. Arranging packing and loading
7. Delivery and storage of cargo
8. Assisting clients in the event of a claim
9. Arranging payment of charges on behalf of the client
10. Tracking of goods in transit
Freight forwarding requires a lot of paperwork, especially when shipping overseas. Your freight forwarder should provide you with all relevant documents, including:
· Commercial invoice
· Bill of lading contract
· Certificate of origin declaration
· Certificate of inspection
· Export license
· Export packing list
· Shipper's export declaration
· Providing all of these documents is vital to ensure that your goods arrive to your customers without any problems.
Some freight forwarders specialize in specific types of shipments, while others accept a variety of shipments. It is beneficial to find a freight forwarder that specializes in freight. Not only do they have a team of experts, but they also have extensive experience handling shipments similar to yours. Researching before choosing a logistics company will ensure that your shipment reaches its final destination in a timely and economical manner.
An established freight forwarder will have an incredibly strong network of contacts and experience in the business. This will not only help you get the best price for your cargo, but also ensure that your goods arrive on time. Experienced freight forwarders have many problems in the process, so they will be able to quickly and efficiently handle any problems that may arise during the transportation of your cargo.
STU Supply Chain, as an experienced freight forwarding with a broad portfolio of freight services, will help you sort out the pros and cons of FCL and LCL to find the right solution. To partner with freight forwarding, which offers all the logistics services needed for successful door-to-door shipping, you can contact us if you need.
