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Home Terminology of services Terminology of Liability What is a Freight Forwarder

What is a Freight Forwarder

 

 

An independent business which assembles collects and consolidates less-than-truckload freight.  Also, a person acting as an agent in the transshipping of freight to or from foreign countries and the clearing of freight through Customs for compensation.

 

International Ocean Freight Forwarders are agents for the exporter in moving cargo to an overseas destination. who are familiar with the import rules and regulations of foreign countries. The Federal Maritime Commission (FMC) regulates ocean freight.  All companies offering ocean freight must be licensed by the FMC.

 

A freight forwarder (often just forwarder) is a third party logistics provider. As a third party (or non asset based) provider a forwarder dispatches shipments via asset based carriers and books or otherwise arranges space for those shipments. Carrier types include waterborne vessels, airplanes, trucks or railroads.

 

Freight forwarders typically arrange cargo movement to an international destination. Also referred to as international freight forwarders, they have the expertise that allows them to prepare and process the documentation and perform related activities pertaining to international shipments. Some of the typical information reviewed by a freight forwarder is the commercial invoice (for commercial export), shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import, or transshipment. Much of this information is now processed in a paperless environment.

 

In the U.S., a freight forwarder involved with international ocean shipping is licensed by the Federal Maritime Commission as an Ocean Transportation Intermediary. Similarly, freight forwarders that handle air freight will frequently be accredited with the International Air Transport Association (IATA) as a cargo agent.

 

Freight forwarders assist exporters in preparing price quotations by advising on freight costs, port charges, consular fees, costs of special documentation, insurance costs, and their handling fees. They recommend the packing methods that will protect the merchandise during transit or can arrange to have the merchandise packed Packing Supplies / Pallets Source at the port or containerized. If the exporter prefers, freight forwarders can reserve the necessary space on a vessel, aircraft, train, or truck. The cost for their services is a legitimate export cost that should be included in the price charged to the customer.

 

Ocean Freight Forwarders. Are not NVOCC’s, A forwarder is another type of transportation service provider altogether. They are, however, often confused. A forwarder can assist a shipper in arranging for international transportation services, but it is not a carrier. It has no tariffs and does not issue a bill of lading in its own name. If a shipment is lost or damaged, a forwarder can assist the shipper in recovering for the loss but cannot it self be responsible.

 

Once the order is ready for shipment, freight forwarders should review all documents to ensure that everything is in order. This is particular importance with letter of credit payment terms. They may also prepare the bill of lading and any special required documentation. After shipment, they can route the documents to the seller, the buyer, or to a paying bank. Freight forwarders can also make arrangements with customs brokers overseas, or with consigned agents to ensure that the goods comply with customs export documentation regulations. A customs broker is an individual or company that is licensed to transact customs business on behalf of others. Customs business is limited to those activities involving transactions related to the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes, or other charges assessed or collected; or the refund, rebate, or drawback thereof.

 

Freight forwarders are not custom brokers and do not supply information of duties and etc. on the other end of destination. For consumers who seek for information of duties and etc. check the custom regulation forms. Air Freight Forwarders are licensed by the Transportation Security Administration (TSA) in conjunction with the Federal Aviation Administration (FAA) and related agencies in the USA to handle Air Freight.


 

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