Freight forwarding is the process of organising the shipment of goods from one place to another. A freight forwarder is a company that specialises in this. They don’t move the goods themselves. Instead, they use their expertise to arrange the best means of transport.
A freight forwarder offers several key services:
1. Advice and Planning: They advise on the best route and method of transport. This includes road, rail, air, or sea.
2. Paperwork: They handle customs documents and shipping paperwork. This is vital for smooth transport.
3. Warehousing: They might offer storage solutions before or after transit.
4. Cargo Space Booking: They book the necessary cargo space on ships, planes, or trucks.
5. Insurance: They often provide insurance for your goods during transit.
6. Tracking: They track your shipment, giving you updates.
Common Terms in Freight Forwarding
1. Bill of Lading – A document issued by a carrier to acknowledge receipt of cargo.
2. Consignee – The person or company receiving the goods.
3. Customs Broker – A professional who assists with customs clearance.
4. Incoterms – International commercial terms defining the responsibilities of buyers and sellers.
5. LCL and FCL – Less than Container Load and Full Container Load, respectively.