Globalization has meant that businesses benefit from sourcing products at the lowest cost from countries around the world and has seen a corresponding increase in the shipping of freight. Shipping international freight can be challenging, however, as language, customs and financial issues need to be dealt with and this is why companies turn to international freight forwarders.
An international freight forwarder is responsible for organizing the transportation of goods between locations; they co-ordinate the shipment of goods using a range of carriage services including air, ocean, road and railways depending on the product shipping requirements. They manage the process from storage to final delivery and are an intermediary between the person or company that requires shipping and the transportation services that are used for transporting it. They have expertise in negotiating on price with the transport services companies and will determine the fastest, most reliable and economic route for the required shipment. In addition they are familiar with the customs and other regulatory requirements in different countries which can vary significantly between jurisdictions.
A freight forwarder will manage the whole supply chain of the shipping process and assist with the following:
• Clearing customs
• Providing the required export and import documentation and the shipper’s export declaration document
• Insuring the freight
• Packing and storage of the freight before it is sent
• Inventory management
An international freight forwarder is the intermediary between the shipper and shipping services taking responsibility for the process right up to the final point of distribution. While the forwarder does not move the freight, they arrange all the necessary steps before transportation services complete the process. Considering that a delay at any point in the transportation process can lead to significant costs they are almost a necessity when shipping international freight. They can facilitate the process because they have established relationships with carriers and can negotiate the best possible price and the most economic trade routes by that optimize speed, cost, and reliability. Some freight forwarders specialize in particular shipping methods and types of cargo which can also be advantageous for products that require special handling or customs clearance.
The main advantage of freight forwarding is that operators have specialized knowledge of the countries that they operate in as well as having a wide network of contacts in shipping companies that they use to perform the shipping process as efficiently and economically as possible. They can also help with payments in foreign currencies to international shipping companies.
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