Freight forwarder plays integral part of transportation process

by Ellen Welby

The freight forwarder plays an integral part in the transportation process. Freight forwarders act on behalf of the exporter in arranging ocean or air transport services. They are familiar with the import rules and regulations of foreign countries, methods of shipping, U.S. Government export regulations and documents connected with foreign trade.

Freight forwarders can provide a number of services. During the initial planning phases, they can help choose the carrier and the most economical shipment size. At the beginning of the sale, the freight forwarder can provide an exporter with quotations on a number of costs. This information can be used in preparing an accurate price quotation to foreign customers.

At the shipper's request, the freight forwarder can make the actual arrangements and provide the necessary services for expediting the shipment to its overseas destination. This can include:

--Providing advise on foreign import regulations,

--Arranging for inland transportation,

--Booking space with the ocean or air carrier,

--Completing export documentation,

--Arranging for cargo insurance,

--Providing guidance on packaging, marking and labeling,

--Arranging for products to be packed and containerized,

--Freight consolidation, but this is not a standard service.

Freight forwarders operate on a fee basis paid by the exporter. The fees consist of an agreed-upon amount, plus documentation charges. The cost for the services should be figured into the price charged to the customer. Freight forwarders also collect a percentage of the freight costs from the carrier.

There are several criteria to consider when selecting a freight forwarder:

1) Is the freight forwarder licensed or approved by the appropriate entities?

Ocean freight forwarders must be licensed by the Federal Maritime Commission to handle ocean cargo. Although not legally required, the International Air Transport Association (IATA) registers freight forwarders to deal with international air cargo shipments.