Freight Forwarders – What Is Work, Duties, How To Become A Freight Forwarder

Posted by Jerald

The term forwarder means shipment or delivery. The term “freight forwarders” can refer to both an individual and a company that transports goods both domestically and internationally.

Forwarder – This is a natural person or legal person who professionally appropriate compensation deals with the movement of goods and the activities associated with them (handling, transport, storage, packaging, insurance, distribution, etc.). 

The International Freight Forwarders, as a transport intermediary, returns and collects the goods from the carrier. The air freight forwarders is an advocate of the interests of the cargo and not of either party. Its task is to minimize the total costs associated with the forwarding process.

Freight Forwarders forwarding supplies

The international freight forwarders act as an intermediary between the customer and the carrier. It constantly influences the optimization of the transport service and makes this service much more accessible.

The air freight forwarders, as a transport intermediary, act on their behalf, but on behalf of the customer. There are two exceptions to this rule: own forwarding – the forwarder acts on his behalf and his account; the international freight forwarders have the status of an agent, which means that he acts both on behalf of and for the account of the principal.

The forwarder can also act as an insurance agent, offering customers additional insurance cover for logistics processes. This is possible thanks to the cooperation of operators with insurance institutions.

The Freight Forwarder is obliged to insure the transported goods only based on a written order specifying the value of the shipment and the types of risks for which the goods are to be insured. The air freight forwarders are liable for damage resulting from damage to the shipment, loss, i.e. loss of the shipment, loss, i.e. partial loss of the shipment, and delay in execution.

Means Of Transport, Terminology

Who Is A Freight Forwarder?

The freight forwarder’s job is to plan and execute goods transportation at the request of others. It implies the freight forwarder must handle the set of supplies from the source, documents at the required location warehouse facility, and securing a spot on the plane,  truck, or ship that will distribute the products.

Frequently, the freight forwarder doesn’t handle any of the preceding steps alone. Typically, certain aspects of the operation are outsourced. 

Various Types Of Forwarders

Freight forwarders are divided depending on their organizational structure and size. These are all companies, ranging from a global business with numerous hundred offices throughout the world and thousand representatives to a small size company, ending with one person with a mobile phone.

There are also several smaller shippers (in each country) who typically only have one office. They use subcontractors to handle all their foreign shipments.

How To Choose The Best Forwarder?

Small companies, entrepreneurs, and individuals with no experience in shipping can, in general terms, employ one of the moderate freight forwarders. Some businesses are big sufficient to provide their staff in key places. Furthermore, they normally provide excellent support.

freight forwarder

What Characteristics Distinguish A Strong Forwarder?

A freight forwarder, if a single individual or a large corporation, should be well-versed in his duties. This implies he must be able to move the products from one point to another at the agreed-upon time and cost. However, a freight forwarder’s work entails 90% communication with all relevant parties.

Almost all of the time, it doesn’t matter if the contact is done over the telephone or via automatic messaging via an IT device. The willingness of a freight forwarder to constructively educate its clients will be the most significant factor to consider when selecting a freight forwarder.

Classification Of Freight Forwarders

Due to their specialization, freight forwarders are distinguished:

  • motor vehicles, these are companies offering their road forwarding services through direct contracts with road carriers,
  • railway companies, these are companies offering their rail forwarding services through direct contracts with railway carriers,
  • sea ​​companies, these are companies offering their sea forwarding services through direct contracts with sea carriers and seaports, airlines,

These are companies that offer their air freight forwarding services through direct contracts with air carriers

  • riverside,
  • shipping,
  • phobic,
  • border,
  • customs, authorized to submit loads for customs clearance,
  • reloading and reloading.
freight shipping
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Transport Functions Of A Forwarder

  • advisory – consisting in the cooperation of the forwarder with the parties before concluding a commercial contract,
  • documentation – the forwarder deals with the preparation and completion of documents necessary for the performance of the contract,
  • organizational – it takes place when the forwarder does not perform transport activities on his own, but orders only their performance (so-called clean forwarding), rarely seen at present,
  • executive – when the freight forwarders directly carry out physical activities related to the movement of cargo,
  • banking – the freight forwarder, acting on behalf of the client, settles the costs of shipping operations on his behalf.

How To Become Freight Forwarders?

There are no specific education requirements among job advertisements. However, if someone wants to develop their skills in this direction, they have several paths to choose from. Such opportunities are offered primarily by the forwarding technical college. Learning the profession will give you the basis for starting a job.

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