What is Freight Forwarding?

Freight forwarding refers to the process of organizing shipments that will be shipped by different carriers or modes of transport from one place to another.  A freight forwarding agent is the person that knows what documents will be necessary to move shipments from one mode of transport to another and from one country to another.  The freight forwarder handles arrangements for storage or warehousing of shipments as well.  They are responsible for all of the documentation that is needed along with making sure that the documentation and requirements of all points of contact are met.

Most companies and individuals that use freight forwarding services are shipping internationally. Container shipping is the most popular and generally cost effective way to ship products.  A container of product can travel by air, railway, ocean cargo ship, barge, and truck before it reaches its destination.  Meeting the requirements of each of these shipping lines can be a difficult task without a freight forwarder.  This is especially true if the container will be warehoused, sent through customs, or inspected along the way.

Sometimes the freight forwarder is also the carrier, or company that is shipping your products to market.  This can simplify things for you if you are involved in international shipping.  Almost all documents can be sent and approved electronically, along with changes and tracking of your shipment.  International freight forwarders manage different port requirements as well as invoices, and sometimes collection of payment.

Your freight forwarder is basically your advocate when you are trying to get your products to market.  They should look out for your interests as the shipment makes its way to different countries and from warehouse, air freight, ocean cargo, container terminal, or railway system.  If you are shipping internationally, the freight forwarding agent should be licensed by the Federal Maritime Commission as an Ocean Transportation Intermediary.  If you are using air freight services, the forwarder may also be licensed as a cargo agent with the International Air Transport Association.

Many countries will have different requirements for accreditation or licensing of the freight forwarder or the freight forwarding company, so make sure that the international shipping company that you use is qualified to ship to or from the company that you plan to work with.  Ask about experience, shipping times, tracking abilities, and requirements on your end before you choose.  The less involved you have to be, the easier your international shipping experience will be.

Find an ocean shipping company that specializes in international shipping logistics and freight forwarding.  Dealing with ocean freight that is travelling to different countries can be very complicated.  Finding the company that effectively handles most of this for you can be a real asset to your business.