Silk Bridge Journal

Definition

 A Freight Forwarder is a company responsible for organizing the transportation of goods between the manufacturer and the importer. Depending on the scope of its services, it may coordinate road, sea or air transportation, customs clearance, documentation, insurance and final delivery.

When importing from China or Thailand, a freight forwarder often acts as the coordinator of the entire logistics process. Among other things, it may collect the goods from the factory, deliver them to the port, arrange container loading, prepare or coordinate documentation, and hand the shipment over to other participants in the transportation process.

A good Freight Forwarder does not necessarily own a ship, truck or aircraft. Its primary role is to properly plan and coordinate the transportation process.

Why Should Importers Know This?

 Choosing the right freight forwarder can have a major impact on the final cost and safety of an import. A good logistics partner helps reduce the risk of delays, documentation errors and unexpected charges.

A freight forwarder can also advise on the appropriate mode of transportation, consolidation of several shipments and organization of delivery to the warehouse.

It is important to remember, however, that not every freight forwarder provides the same level of service. For larger orders, it is worth comparing not only the freight price, but also the scope of services, experience, terms of cooperation and transparency of additional charges.

Related Terms

 FOB · CIF · Bill of Lading · Customs Clearance · LCL · FCL · NVOCC

In Practice

Before transportation begins, the importer should establish with the freight forwarder the exact scope of its responsibilities and all expected costs. A good Freight Forwarder can coordinate transportation, documentation, customs clearance and final delivery, meaning that the importer does not have to manage every stage of the process independently.