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Freight Forwarder:The Ultimate Guide

Views: 397     Author: Site Editor     Publish Time: 2024-06-14      Origin: Site

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  • What is freight forwarder meaing?

  • Why freight forwarder is important?

  • How freight forwarder works?



  • What is freight forwarder meaing?

Back in the Days

The history of freight forwarding dates back to 18th century England. Imagine top-hatted travelers looking for someone to look after their belongings before hopping on the next ship to Antwerp. A friendly innkeeper comes by and offers to look after the luggage that needs to be shipped elsewhere. And just like that, a whole new profession is born: freight forwarder! With the advent of the Industrial Revolution, more trains and more ships meant more complicated itineraries, and more "freight forwarders" were needed. Not only did travelers need help, but merchants and manufacturers also needed help understanding customs regulations and shipping products to an ever-expanding network of international shipping destinations.

飞机

The Role of Freight Forwarders in the 21st Century

A freight forwarder is an intermediary between the owner of the goods and the international carriers (airlines, shipping lines, trucking companies). Their main responsibility is to ensure that the goods are transported quickly and safely, and that all the necessary documentation is in place.



  • Why freight forwarder is important?


International freight forwarding companies are familiar with international trade links, proficient in various transportation businesses, familiar with relevant laws and regulations, have extensive business relationships, accurate and timely information sources, and have close business relationships with various carriers, warehouse operators, insurers, ports, airports, stations, yards, banks and other related companies, customs, commodity inspection, health inspection, animal and plant inspection, import and export control and other relevant government departments. They play an important role as a bridge and link for both the consignor and consignee of imported and exported goods, as well as for carriers and port, airport, station, warehouse operators. Not only can it promote the development of international trade and international transportation, but it can also create foreign exchange sources for the country, and play an important role in promoting the development of the national economy and the globalization of the world economy. For the client alone, at least the following roles can be played:



1.Organizational coordination role

International freight forwarders have always been called "designers of transportation" and organizers and coordinators of "door-to-door" transportation. With the transportation knowledge and other related knowledge, they organize transportation activities, design transportation routes, select transportation methods and carriers (or cargo owners), coordinate cargo owners, carriers and their relationships with warehouse custodians, insurers, banks, ports, airports, stations, yard operators and customs, commodity inspection, health inspection, animal and plant quarantine, import and export control and other relevant authorities, which can save the client's time, reduce many unnecessary troubles, and concentrate on the main business.


2. Professional service role

The main job of an international freight forwarder is to use its own professional knowledge and experience to provide the client with cargo contracting, transportation, assembly, consolidation, loading and unloading, and delivery services, accept the client's entrustment, handle cargo insurance, customs, commodity inspection, health inspection, animal and plant quarantine, import and export control and other procedures, and sometimes even pay and collect freiht on behalf of the client, and advance taxes and government fees. By providing various professional services to the client, the international freight forwarder can save the client from spending more time and energy on business areas that he is not familiar with, so that the client can get appropriate and effective handling of matters that are inconvenient or difficult to handle on his own, which helps to improve the client's work efficiency.


3. Communication and control function

International freight forwarders have extensive business relationships, developed service networks, and advanced information technology means. They can maintain effective communication between cargo transportation parties and between cargo transportation parties and other relevant enterprises and departments at any time, accurately track and control the entire process of cargo transportation, ensure that the cargo arrives at the destination safely and in time, smoothly handle relevant procedures, and accurately deliver to the consignee, and provide information services and other related services throughout the process at the request of the client.



4.Consulting role

International freight forwarders are familiar with international trade links, proficient in various transportation businesses, familiar with relevant laws and regulations, and understand relevant situations around the world. The information source is accurate and timely. They can provide clear and specific consulting opinions to the client on the packaging, storage, loading and unloading and care of goods, the transportation method, transportation route and transportation costs of goods, insurance of goods, import and export documents and settlement of prices, and the requirements of relevant authorities such as consulates, customs, commodity inspection, health inspection, animal and plant inspection, import and export control, etc., and assist the client in designing and selecting appropriate treatment plans to avoid and reduce unnecessary risks, setbacks and waste.



5.Cost reduction effect

International freight forwarders master the market situation of cargo transportation, warehousing, loading and unloading, and insurance, and have long-term, close and friendly cooperative relations with cargo transportation parties, warehouse custodians, ports, airports, stations, yard operators and insurers. They have rich professional knowledge and business experience, favorable negotiation position, and skilled negotiation skills. Through the efforts of international freight forwarders, they can choose the best transportation route and mode of transportation, the best warehouse custodian, loading and unloading operator and insurer, strive for fair and reasonable rates, and even benefit all relevant parties through the consolidation effect, thereby reducing the business costs of cargo transportation parties and improving their main business benefits.



6. Financing role

International freight forwarders have a close relationship with the transport parties, warehouse custodians, loading and unloading operators, banks, customs authorities, etc., and they understand each other, have close relations, cooperate for a long time, and trust each other. International freight forwarders can pay relevant fees and taxes on behalf of consignees and consignors, settle relevant fees with carriers, warehouse custodians, loading and unloading operators in advance, and provide fee and tax guarantees or risk guarantees to carriers, warehouse custodians, loading and unloading operators, banks, and customs authorities with their own strength and reputation, which can help clients to raise funds, reduce capital occupation, and improve capital utilization efficiency.



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