Freight forwarders play a major role in the transportation industry. This is so because they help companies to streamline the process of transporting or shipping goods. Importing and exporting goods can become expensive and time-consuming for manufacturers that have bulk shipping needs. Freight forwarding can help to reduce the costs incurred by companies and improve operation efficiency.
Defining the Freight Forwarder
A freight forwarder is a company that works as the intermediary between transportation firms that deal with the export and import of goods as well as the businesses that require them. Every aspect of the transportation process is handled by freight forwarders. This starts from the storage of goods before shipping down to making sure that they get through customs. They don’t get to move the goods themselves. However, they establish connections with companies that handle them so that they can plan each step of the shipment process on behalf of the client. Freight forwarders work together with transportation companies that ship products using air, water, rail, or road.
Key Stages of Freight Forwarding
Freight forwarding undergoes several stages. These include the following:
This is the first step of the process. This is when the transportation company acquires products from a warehouse of the freight forwarder. This step is often handled by trucks, but the mode of transport depends on what material is shipped as well as the distance from the warehouse. It may take days or a couple of hours for the shipment to arrive.
Export customs clearance
Before any international shipment may enter a different country, the customs personnel in the country of origin must approve the departure. The products or items and the corresponding paperwork must correlate. They also have to validate the legality and safety of the item before it is allowed to leave the country.
This Freight Forwarding step is also known as origin handling. This is when the receiving group unloads the items into the warehouse. They inspect the products that arrive to make sure that there are no damages. They also confirm their correspondence with the booking orders. The freight forwarding team also ensures that the target destination will accept the shipment. Sometimes items may come with restrictions.
Import customs clearance
Once the shipment arrives at the country of destination, customs authorities check the paperwork and documentation provided by the freight forwarder. This must match the products. The products must also comply with the legal requirements of entry to the destination.
Arrival at the destination and handling
After customs clearance, the product to be shipped is prepared for shipment to the destination, with assistance from a transportation company arranged by the freight forwarders. They receive the paperwork required for shipment.
This is the step when the product arrives at the final destination coming from the warehouse.