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What is Freight Forwarding?

Posted by Janet Turner on Mar 9, 2016 3:06:24 PM


For you to understand what we do, you must be conversant with what freight forwarding is.
The name is somewhat self-explanatory; freight forwarding is the coordination and shipping of commodities from one place to another using either a single or multiple carriers via marine, road, air, or rail.

It's important to know that freight forwarding doesn't just operate freely (all freight forwarders should be licensed through the Federal Maritime Commission (FMC)); it’s coordinated and regulated using best practices to ensure that we provide you with quality services that are offered in a timely and professional manner, whether across borders or overseas.

What are the functions of freight forwarders?

  • Packing, warehousing, and movement the movement of cargo to its destination
  • Making arrangements for cargo insurance
  • Documentation and custom clearance
  • Payment of freight and local duties
  • Transportation distribution analysis
  • Cargo consolidation

Using a forwarder can cut your transportation costs, since most freight forwarders can arrange for transport of huge consignments at reasonable charges.

What are the principles followed in freight forwarding?

The policy of freight forwarding is chiefly geared toward the cost-effective and efficient transfer of your goods, which are to be maintained in perfect condition throughout the journey. For any seasoned freight forwarder to accomplish this, they must have attained expertise in managing the logistics to ensure your shipment arrive on time.

What is the process followed in freight forwarding?

  1. Understanding and meeting regulations: when importing or exporting overseas, it's important to understand and abide by customs regulations and all trade rules.
  2. Documentation and compliance: a company is required to know the different rules and requirements for either exporting or importing.
  3. Packing & shipping: in this stage, all goods are labeled and packed carefully so they arrive in good shape and without problems either through water, air, rail, or road.
  4. Transportation insurance: the freight forwarder should have the right cargo insurance for international shipping. If your cargo is being transported by air or sea, transportation insurance is necessary before beginning the journey.
  5. Report on arrival: all shipment entries are reported to the customs office at the time of arrival for accounting and clearance. At this level, a broker will be required to submit proper documentation for approval.
  6. Release of goods: after your products have been successfully discharged, the importer’s agent fills out a release package (Inward Cargo Manifest) either on a paper document or electronically. Your broker ensures the right documents are in place.
  7.  Accounting for Taxes: in this stage, your customs broker will need to submit a final accounting package to customs to pay taxes and applicable duties. If there are any compliance-related matters, your freight specialist will work with you to correct them.

How can you identify the best freight forwarding company?


Download Accelerated International Forwarders Brochure

Topics: International Relocation, Freight forwarding, Logistics

Janet Turner

Written by Janet Turner

Janet Turner is the Director of Sales and Marketing at Accelerated International Forwarders.

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