SA freight forwarder, forwarder, or forwarding agent, is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. Forwarders contract with a carrier or often multiple carriers to move the goods from one country to another

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• Ocean or air freight transportation
• Inland transportation from origin and/or to destination
• Preparation of documentation
• Warehousing and storage services
• Consolidation and deconsolidation
• Cargo insurance and customs compliance

Most freight forwarders will ship through their own bills of lading or waybill. Then, destination agents (freight forwarders overseas) step in. These agents provide delivery of documents, deconsolidation, and collection or delivery. In layman’s terms, a freight forwarder is an entity that arranges the import and export of cargo.

What Does a Freight Forwarder Do?

Many things go into the logistics of international cargo shipping. While freight forwarders handle shipments, it’s vital to also get a handle on what they don’t do. This, in turn, can backtrack into what it is that they do for shippers and customers. There is one golden rule to consider when it comes to freight forwarders. In most cases, freight forwarders are not the ones who are actually moving the cargo. Instead, freight forwarders represent intermediaries. They are the step between shipping customers and transportation services that move cargo. This goes for ocean freight, land transportation, air freight, rail services, and more. Freight forwarders use existing relationships to negotiate the lowest price for cargo moves. These moves occur along the most effective routes through a bidding /contract process. In the end, the goal is to find a carrier that provides the best balance of cost, speed, and reliability.They also handle the logistics required for shipping goods internationally. This is a complex burden of a task for most clients

Freight Forwarders vs Freight Brokers

While sometimes used interchangeably, freight forwarders and freight brokers serve different purposes. A freight broker works as a middleman, serving to connect carriers and shippers. They do not take any responsibility or possession of freight. This means that they are not liable for claims if cargo is damaged or issues arise. They carry their own insurance to protect their assets in case of loss or damage.

Conversely, freight forwarders will actually store physical freight for customers. They also arrange for the transportation of the shipments. While providing the same services as freight brokers, they ship freight under their own bill of lading. Also, they store the freight in warehouses and take responsibility for insurance. Typically, forwarders will not own the ships or equipment the freight is being moved on. But, there are companies, like Crowley Logistics, who own their ships and equipment.

Advantages of Freight Forwarders

As with any logistics service, there are many factors that play into the end-to-end process. Freight forwarding may seem like a win-win situation for customers.

• Freight forwarder services offer competitive pricing based on services needed from a customer. They can also lower prices through the consolidation of cargo from other customers. This allows for a single full container load with multiple customers’ cargo. Also, this serves to reduce final freight charges for less than container shipments.
• Freight forwarders usually specialize in a specific service, mode of transportation or market. This allows the company to choose the services the forwarder should handle. In turn, this gives the company greater control over the handling of their shipment.
• Knowledge and expertise are crucial when importing or exporting products. This work is performed via the customs clearance process. Freight forwarders have the most up-to-date information on customs regulations. Additionally, they can handle documentation, pay tariffs and handle taxes.
• One of the main advantages of a freight forwarder is their ability to offer services relating to a trade. Some services include documentation, bank paperwork, cargo insurance and inventory management.