Role Of A Freight Forwarding Company In Freight Forwarding

The Freight Forwarding Company will assist you in international trade without having to expert all the complicated stuff. It includes negotiating and booking Freight Forwarders and completing all necessary import and export documents. They assist with customs payments, customs clearance, insurance arrangements, tracking etc. And shipment tracking as well.

Duty of Freight Company

Freight Forwarders do not Transport your Goods. Its work is carried out by shipping companies, airlines, railway companies and freight carriers. Freight Forwarders simply figure out the most efficient delivery method to meet your delivery requirements, coordinating the efforts of different providers to ensure your shipment arrives at the right place, on time, at the right price.

Here are some questions to help you and your employees better understand the role of Freight Forwarders in your supply chain.

How is freight forwarding different from third-party logistics?

First a short explanation of all these “PL” terms. As a shipper, if you own and operate your own logistics operation, you are the first party. If you contract directly with an asset-based carrier, it is a second party (2PL). 

A 3PL can outsource many aspects of the supply chain. Freight is primarily focused on transportation, but 3PLs can also offer warehousing and delivery services in addition to Freight Forwarding. Many major Freight Forwarders such as Master Movers are also 3PLs that can provide contract logistics and other services.

The Term PLs in Freight Forwarding

Very large companies with multiple 3PLs may choose to use 4PLs. These strategic partners oversee 3PL and Freight Forwarder operations and act as a single point of contact for all corporate logistics and supply chain requirements.

A freight broker is similar to a freight forwarder in that it is an intermediary between you and the carrier. Crossing international borders introduces a whole other level of complexity to the shipping process that not many companies have the resources to manage effectively.

Can you hire a freight carrier directly?

For air freight, you must use a Freight Forwarder rather than a contract with an airline. For ocean freight, Steamboat Lines will not deal directly with you unless you are carrying a large amount of freight. Just as business travelers want to evaluate multiple options before choosing the most suitable flight, cargo carriers want the same flexibility. If you go direct, you are limited to schedules and rates from only the carrier you contract with. But the freight forwarder will review all carrier contracts to best meet your requirements.

What is the freight market? Is it an alternative to freight forwarders?

International Freight Forwarding is much more complicated than travel agency services. When booking a flight from Lahore to Dubai, the only source involved is the airline. Freight Forwarding requires a truck driver to pick up the shipment, a carrier to ship it, a broker to clear customs, a reshipment agent to deconsolidate, and a truck driver to make the final delivery to the destination. In addition, each country has different rules and regulations. A simple booking software cannot solve the complex international shipping process.

Another aspect of Freight Forwarding

What if something goes wrong during the transfer and you need to intervene? The software can automatically route shipments, resolve customs delays, and much more. That is not possible. In such situations, we want to be able to communicate directly with an expert who can understand and solve the problem.

To be clear, the Global Freight Market is not replacing Freight Forwarders who still work behind the scenes, but rather aims to make shipping faster and easier.

What should I look for while hiring a freight forwarding Company?

Here are the main criteria to look for.

• Large corridor capacity. This means they likely have a strong relationship with the carrier providing corridor services, giving them access to capacity at negotiated rates that other carriers may not have. While we can ship anywhere in the world, we are strategically focused on the Asia-Pacific region, connecting our Asian customers with those in North America and Europe.
• Private local office network. An agent-dependent carrier will not provide the same level of consistent service as a proprietary office model where each office operates on a common system and follows customer SOPs. The staff in these local offices have a good understanding of local market rules and communicate with local agents and logistics partners in the local language to get things done.

What are the advantages of Freight Forwarders?

Save money. Freight forwarders have access to excellent rates that can be negotiated with carriers based on bulk shipments. Freight Forwarders can also mix your shipments with shipments from other customers, resulting in much lower consolidation rates.

Reach load capacity. Due to the volume of cargo they handle, larger freight forwarders have the buying power to secure the space they need.

To be flexible. Freight forwarders explore different shipping methods and companies to find the best carrier that fits their cost and service requirements.

The ultimate role for freight forwarders

Coming back to the first question: what does a Freight Forwarder do? In other words, they provide knowledge of all logistical, regulatory and compliance requirements associated with international shipping and execute those requirements on your behalf. In doing so, you will make your life easier and make it easier for your company to do business with foreign customers and suppliers.