An Outline Of Freight Forwarding Process
Freight Forwarding Process is one of the most important concepts – it occurs next to transport and logistics. In common understanding, international freight forwarding is outsourcing the transport of goods to other entities, i.e. carriers.
However, this is not the correct understanding of shipping. It is also a mistake to use the names forwarder and carrier interchangeably as they are two different activities. Let’s see What is freight forwarding?
We can find similarities between the shipping company and the shipping company, but there are also some differences. It is worth getting to know them before we start cooperation with one of these companies. Because the nature of the contract we conclude in both cases is different.
What Is Freight Forwarding Process?
Freight Forwarding process flow chart is the organization of cargo transport from one point to its destination. This mode of transportation is organized using a forwarding order.
We can divide the forwarding activity into domestic and international, as well as commercial and functional. The Commercial Freight Forwarding Process is a system that distinguishes the ownership of goods from their distribution.
Functional forwarding is the task of the carrier. In this situation, the shipping firm is responsible for ensuring that all records, including bills of lading, are accurate, taking into account the mode of transportation.
The forwarder, in turn, arranges the transport. It is a complicated and responsible task that determines the costs of transport and the safety of the cargo. A forwarder can be a natural person, i.e. an entrepreneur, but also a legal person. The shipping company accepts orders and then selects the appropriate method of transport.
Freight Forwarding Service
The freight Forwarding Process is a service field that is based on organizing the translocation of material goods. The freight forwarder is responsible for the coordination of transport of goods, i.e. a specialist with appropriate skills and competencies. His duty is to carry out activities related to the transport of the shipment, its sending or collection, and delivery to the destination.
Freight Forwarding process flow chart companies also provide transport services, and sometimes also additional services related to supply and distribution.
Scope Of Forwarding Process
The scope of operation of most of the forwarding companies currently operating on the market is usually very wide because the requirements of customers are also very diverse.
Freight Forwarding process flow chart companies most often specialize in the entire process of transporting goods from the supplier to the recipient. Starting from finding the right carrier, through completing all formal issues, to preparing the required documentation.
The freight forwarder is responsible for preparing the cargo for transport. It also takes care of its insurance and arranges customs formalities in the case of international freight forwarding.
Forwarding services can take place using one means of transport or several from different branches of communication. Of course, it all depends on the type of cargo being shipped and the hired shipping company’s network of contacts. It is worth adding that the forwarding can cover both the home country and the international environment.
International Freight Forwarding
The forwarding process in import and export is defined by a number of permanent elements, the presence of which is required for proper operation, and the forwarding process itself is a series of activities aimed at ensuring cargo delivery from the point of dispatch to the point of destination.
There are numerous advantages to having a transportation authority, but it is important to note that there is also a danger. If the seller or the buyer does not have knowledge and experience in this field, he should consult a freight forwarder or other specialist who can provide the necessary and necessary information.
A correctly written inquiry submitted to the forwarder is the first step in the forwarding process. Each inquiry for any type of transport (including sea, groupage, container) should contain the following information:
- The route of transport (place of receipt/loading and place of delivery/unloading) – the lack of clear information about the place of the beginning and end of the transport process. As a result, the price of the forwarder’s service is substantially undervalued.
- Incoterms clause/terms of delivery / – depending on the terms of delivery of the goods included in the purchase and sale agreement, the costs may be different that affect the final price offered by the freight forwarder. This is due to the different levels of obligations and responsibilities of a given party.
- Product name and possibly a short description.
- Shipment size / gross weight, net weight, dimensions / length x width x height /, quantities, packaging description, goods on pallets or in bulk /In the case of container shipments / container type and size / and additional requirements e.g. required cooling temperature for shipments in refrigerated containers / reefers /
Detailed characteristics of the cargo allow for the skillful use of an appropriate means of transport, which has a direct impact on the level of costs. If it is a bulky cargo that exceeds the standard cargo dimensions is helpful to send a drawing in addition to its dimensions.
The biggest difference between a freight forwarder and a carrier is the form of contract that is negotiated for any of the companies that offer these services. The transport contract concluded between the customer and the carrier, concerns the transport of goods or people.