What Does a Freight Forwarder Do?
To better understand the role of freight forwarders in the supply chain and the benefits they offer to small shippers, let’s look at some common services they provide.
Provide Expertise
Freight forwarders are immersed in the world of international shipping every day. It’s their job to stay up to date on constantly changing international shipping laws, import regulations, customs requirements, and global news to provide the best service to their customers. This deep understanding makes them a great resource on the nuances and best practices for this complex process.
Creating an efficient and cost-effective transportation plan for your shipment is another way the expertise of a freight forwarder benefits your business. A transportation plan is a roadmap that coordinates every touchpoint your shipment makes throughout its journey.
Does your merchandise need to be consolidated? Do you transport your goods to the origin port/ terminal by truck or rail? Should you use an ocean carrier or an air carrier? While it might take you a while to determine the right answers to these questions, a freight forwarder can quickly assemble the best options to create a streamlined operation.
Book Transportation
Choosing a carrier for your freight is like choosing a contractor for your house – you want to make sure they are competent, reliable, and trustworthy to avoid risking your assets. When you work with a freight forwarder, they book with carriers who belong to a trusted network of partner service providers.
Not to mention, freight forwarders handle all the heavy lifting when it comes to securing a spot for your goods – including negotiating rates, booking the load, and providing payment.
Tracking and Tracing
When shipping your goods around the world, tracking and tracing can go a long way for peace of mind. Tracking uses GPS to monitor the location of a shipment in real time, while tracing uses an identifier like a waybill or tracking number to follow the movement of a shipment through the supply chain.
Freight forwarders use these systems to monitor your cargo’s journey from origin to destination, which they can check frequently for progress or sign of delay. If there does happen to be an issue, you can rest assured you will be notified and your freight forwarder will work to resolve it.
Transportation Documentation and Customs
Documentation, customs laws, and trade regulations all add a layer of complexity to the shipping process that can be intimidating even to seasoned shippers. Not only is it time-consuming to manage, but even small errors can lead to additional expenses and delays for your freight.
Freight forwarders take the guess work out of these processes by offering documentation services that handle all the standard transportation paperwork, and work with customs brokers that can facilitate customs clearance at the origin and destination countries for you.
Provide Insurance & File Claims
Liability insurance provided by carriers is limited and will not usually cover the full value of your cargo if it gets lost or damaged. When shipping internationally, freight is exposed to more risk, so getting additional insurance from a third party is a smart investment to protect your assets.
Most freight forwarders make it easy to add this protection by offering cargo insurance as part of their services. And if an incident does happen, the freight forwarder can handle the claims process on your behalf.
