When we talk about the freight forwarder or the forwarding agent, they are playing a major role to perform the commerce or the international services of carrying goods. In general terms, freight forwarder agent is acted as the link between carrier and the goods owners in which they offer clearing or the forwarding services.
Currently, the freight forwarders have somehow adopted with some latest technologies which has made the carrier of goods from one place to another a safe approach. They hence transport the carriage by their own means or by simply contracting rest of the transport providers.
Hence, the freight forwarders are not at all taking the carriage ownership but they are rather using the declarations made by goods owners to see what the goods are, their weights, dimensions or the purpose of carriage.
What are the Roles and Functions of a Freight Forwarder Company?
Now you might be thinking about the roles and functions performed by the freighting companies at a global level! No doubt that the role of freight forwarder will vary on the basis of size and type of employer. Few of the core roles are:
1. Giving advice to shipper
Forwarding agent is responsible where they help and advice the clients for transporting the goods much more efficiently from buyer to seller. They even inform the clients as in advance related to the possible challenges towards the freight transportation.
Plus, freight companies even negotiate with the transport agents for reducing the shipping carriage costs. In short, the knowledge about the shipping regulations, transportation costs and the banking practice will ease the process of shipping.
2. Booking of freight space on transportation modes
One major role of the freight forwarder is to book the cargo space on trains, airplanes or the ships. Most of the freight forwarders are having vast expertise and they have an extensive network for enabling the client to perform import/export from the individual countries.
Most of the international forwarding agents are providing shipping options which is based on air freight, containerization as well as road haulage.
3. Warehousing, packaging & distribution
Before the shipment or even after the goods have been arrived, freight forwarding agent will arrange the goods for the warehousing, packaging or the distribution. Forwarder can even store the goods before they import or export while awaiting for the distribution or the transportation.
Most of the times, the contract of transportation can often include with some basic storage services just before and after the cargo delivery.
4. Providing service of insurance
Another major role of international forwarding agents is that they are providing the service of insurance. Unlike the cargo underwriters, these agents arrange the cargo insurance for the service fee as the agents for the clientele.
There are some reliable freight forwarders who are suggesting their clients to purchase the insurance cover for their cargo on the gratis basis. Countries like EU member states considered it illegal to sell insurance.
5. Perform custom clearance and documentation
Last but not the least; one major role of forwarding agent is also linked with the export of documentation as well as shipping requirements. They will prepare and submit the documentation related to the import and export of goods. Hence, they make sure that the activities are performed as complying with the legal and the custom requirements or the sales agreement.
Thus, forwarder is also representing the customer during the course of duty payment as well as custom assessment or even taking the freight services after the clearance.
Freight forwarding companies do play a major role in the industry of global freight shipping. As the structure of intermodal transport is becoming complex, the role of freight forwarder is gaining much more attention.