International Transport - Freight forwarders
Choosing and managing a freight forwarder
Definition of freight forwarder:
Firm specializing in arranging storage and shipping of merchandise on behalf of its shippers.
It usually provides a full range of services including: tracking inland transportation, preparation of shipping and export documents, warehousing, booking cargo space, negotiating freight charges, freight consolidation, cargo insurance, and filing of insurance claims.
Freight forwarders usually ship under their own bills of lading or air waybills (called house bill of lading or house air waybill) and their agents or associates at the destination (overseas freight forwarders) provide document delivery, deconsolidation, and freight collection services.
If you are planning import or export operations, and would prefer not to manage the logistics by yourself, you can engage a freight forwarder.
Freight forwarders offer a wide range of expertise and services including:
- consolidating smaller shipments to save you time and money;
- detailed knowledge of the rules and regulations that your business must comply with;
- acting as an intermediary when transporting to a new territory;
- arranging for and operating several different transport methods for a shipment as required.
SELECTING AND MANAGING A FREIGHT FORWARDER
You need to make sure you choose a freight forwarder who suits your needs. Questions to consider include:
- Do they have experience transporting your type of goods?
- Are they experienced in shipping to the countries you are targeting? Depending on your needs, you may need to find out whether they have experience of shipping outside the European Union.
- If you need to use several different transport methods, can they handle this?
For a successful partnership, you need to make sure your respective responsibilities are clearly understood and set down. The use of Incoterms, an internationally accepted system of trading terms for the delivery of goods, is recommended to avoid any ambiguity.