Role of freight forwarder in international trade


Before discussing Role of Freight Forwarder in International Trade we will put some light on the background. Trade has been the major source of earning in human history. People moved their camels and horse carts in a caravan. They used them for the transportation of goods to various parts of the earth. Similarly, traders used to procure and stock and stock the food. Like, they had food grains, spices, cotton, and precious stones to transport them. Thus they transported them to places where demand was high. Hence, the traders got a profit through bilateral trade. Then, there was the specialist. They helped them in trading. Like they knew the routes and had exposure to the traveling. Unfortunately, they could not protect them from all types of hazards. For example bandits, looters, and food deficiencies. The trade route travel time at different places was with them.

The trade routes in which those specialists were not accompanied resulted in the failures. Since then, time has changed and technology in making goods have improved. It has enabled the customers in each corner of the world. Also, people do a comparison of the cost at their fingertips. Similarly, the manufacturer easily finds its clients in minutes. They also, agree on the rates and cost of the goods. Hence, the bankers easily transfer the amount within no time. The manufacturers agree upon the manufacturing time through the letter of credit.

Role of freight forwarder companies in export import

Then, people found the process of exports of goods. Thus, they required specialist groups or resources. They could transport the goods to destined countries safely. In ancient times, the use of special groups leads to failure. Similarly, in the modern era, people have named these groups forwarding companies. Nowadays, trading people need freight forwarders in international export and imports.

They are agents who are specialized in communication. Similarly, they are experts in information technology. They can easily contact the clients in other parts of the world. Then, the forwarding companies plan the shortest route and most economical routes. Also, the forwarding agents ensure the port condition, unloading capabilities, and storage capacities.

Then they also monitor the weather conditions of the shipment route through satellite coverage. In addition, they have ship health certificates verified. So that they don’t face any problems during the shipment. The company has installed a tracking system. This system manages to track the cargo along the route.

Role of freight forwarders in international trade. How they do their job

The freight forwarders are the group of people who do the following jobs

  • First of all they manage and plant the trade step to step
  • Next, they are responsible for both imports and exports of the goods
  • Also, they make sure there is no interruption in the trading procedure
  • Then, they re- do the entire steps of trading if any fault occurs

The role of forwarding companies in the international trade of import and export

Role of Freight Forwarder in International trade is of vital importance. The manufacturers of the goods hire these companies for import and export of goods. They do this for the export of the goods to required destinations all over the world. Below is the job list of the freight forwarders in international trade

Role & Planning of Freight Forwarders in International Trade

The companies must have proper planning for time and plan the route of the shipments.

Negotiation skills

Similarly, they must have good negotiation skills. And they should have all information regarding economic rates of the freights.


The clients are conscious about their goods. Hence they should provide proper safety and protection to the shipment packages.


The freight forwarders must be well informed about the custom taxation laws, rules and duties.

Destination ports

In addition, they should be aware of the dock at the destination ports.


Hence, they must know about the storage capacity at the destination ports yards

Clearance time

Additionally, they must know about the clearance time required at the destination ports.


So, the companies should have a proper tracking system for any time and destination


They must be an expert in the insurance procedures

Risk factors

Also, the freight forwarders must have technical skills to analyze the risk factors. For example, risk can be due to the weather, climate, etc.

Transportation mode

They must have good knowledge about the transportation mode required by the client

Shipping laws

Then, they must know about international shipping laws.


The forward agent should have warehouses at the shipping port to store the goods.


They must be aware of the railway and trucking yard’s capacities at destination ports.