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national import and export. While the freight forwarder doesn't actually move the freight
itself, it acts as an intermediary between the client and various transportation services.
Sending products from one international destination to another can involve a multitude of
carriers, requirements and legalities. A freight forwarding service handles the
considerable logistics of this task for the client, relieving what would otherwise be a
formidable burden.
Freight forwarding services guarantee that products will get to the proper destination by
an agreed upon date, and in good condition. The freight forwarding service utilizes
established relationships with carriers of all kinds, from air freighters and trucking
companies, to rail freighters and ocean liners. Freight forwarding services negotiate the
best possible price to move the product along the most economical route by working out
various bids and choosing the one that best balances speed, cost and reliability.
A freight forwarding service generally provides one or more estimates to the client along
with advisement, when necessary. Considerations that effect price will range from origin
and destination to special requirements, such as refrigeration or, for example, transport of
potentially hazardous materials. Assuming the client accepts the forwarder's bid, the
freight is readied for shipping. The freight forwarding service then undertakes the
responsibility of arranging the transport from point of origin to destination.
One of the many advantages of using freight forwarding is that it handles ancillary
services that are a part of the international shipping business. Insurance and customs
documentation and clearance are some examples. As a consolidator, a freight forwarding
service might also provide Non-Vessel Operating Common Carrier (NVOCC)
documentation, or bills of lading. Warehousing, risk assessment and management, and
methods of international payment are also commonly provided to the client by the freight
forwarding service.
A good freight forwarding service can save the client untold time and potential headaches
while providing reliable transportation of products at competitive rates. A freight
forwarding service is an asset to almost any company dealing in international
transportation of goods, and is especially helpful when in-house resources are not versed
in international shipping procedures
The FIATA short-hand description of the freight forwarder as the 'Architect of Transport'
illustrates clearly the commercial position of the forwarder relative to his client. In
Europe there are forwarders that specialise in 'niche' areas such as Railfreight and
collection and deliveries around a large port. The latter are called Hafen(port) Spediteure
(Port Forwarders). A forwarder in some countries may sometimes deal only with
domestic traffic and never handle international traffic. (see also Forwarding Agent).
In modern times the forwarder still carries out those same responsibilities for his client.
He still operates either with a corresponding agent overseas or with his own company
branch-office. In many instances, the freight forwarder also acts as a carrier for part of a
movement it can happen that in a single transaction the forwarder may be acting either as
a carrier (principal) or as an agent for his customer[4].
UK
In the U.K., freight forwarders are not licensed, but many are members of the British
International Freight Association (BIFA). Freight forwarders in the UK consolidate
various goods from different consignors into one full load for road transport to Europe,
this is often known as groupage. Some freight forwarders offer additional related services
like export packing and case making. The regulations regarding exporting untreated
timber pallets and cases has become increasingly more strict and in many countries an
exporter will be expected to provide a phytosanitary certificate or risk the expense of
having their cargo fumigated.
Australia
In Australia most licensed Customs Clearance Agents (now more commonly referred to
as Customs Brokers), operate under a freight forwarder.
Ireland
Even in smaller markets, such as Ireland, the role of freight forwarders is strategically
important. International merchandise trade is worth €148 billion to the Irish economy [5].
82% of manufactured products are exported, further highlighting the importance of the
freight forwarders to a nations' economy. Associations like the Irish International Freight
Association and FIATA help maintain the professionalism of this industry through
educational and representative roles. The FIATA Diploma in Freight Forwarding is an
example of how this can be achieved.
Nigeria
Nigeria is a very large market dealing with import and export. Freight-forwarding in
Nigeria has been in place since the exporting of groundnut as a cash crop since 1914,
though not initially as freight forwarding but as the means of transportation of both goods
and services from one country to another. Following the methodology of their British
forebears, agents were used to facilitate the transport of goods and services.