How does freight forwarding work
How does freight forwarding work
Freight forwarding is the coordination and management of the transportation of goods from one place to another. Yes, but how exactly does freight forwarding work? Freight transportation is almost always associated with freight forwarding and most often people don’t even think twice when they have to transport a given load somewhere, they just pick up the phone and dial the number of their trusted or recommended freight forwarding service provider and that’s it. But, if the transportation of certain goods, materials – yours or those you need – is not your everyday life, especially international, most likely many questions arise in your mind and maybe you are a little confused about where to start with freight forwarding or the logistics process in general. Who does what? Who should I contact? What are the steps in the process? What should I do first… These are probably some of the questions you are asking yourself, so we will try to briefly explain the freight forwarding process and how exactly we work, what ours – the freight forwarding service is.
What is a freight forwarder? Freight forwarders specialize in the process of transporting goods and are most in demand when importing and exporting goods. Think of them as similar to a travel agent, but someone who arranges the route for goods instead of people. They act as an intermediary between land, air, and sea carriers to help businesses with the logistics of getting goods from source to destination. Their goal is to provide their client with the most efficient shipping method, using their expertise and experience in the field to assess which mode or modes of transportation would work best based on their needs.
What services do freight forwarders provide? All freight forwarders provide door-to-door delivery service. Good freight forwarders always have an established network of trucking carriers, from airlines, shipping carriers, to rail freight carriers. They are also well-versed in warehousing solutions. Global trade and shipping of goods involves a lot of complex documentation and understanding of various trade rules and regulations. Freight forwarders can help you navigate each country’s customs clearance, documentation requirements, and government surcharges or taxes.
How does the freight forwarding process work? The freight forwarding process begins when the supplier (the shipper) and the recipient (the importer in international freight forwarding) reach an agreement on the terms of purchase, and in international trade and shipping under Incoterms, where all responsibilities for the stages of the freight forwarding process, such as origin processing, inspections, and documentation, depend on the terms chosen. Once the commercial invoice is exchanged between the two parties, a freight forwarder is engaged to manage the transportation process. Specifically, if companies are moving goods internationally, freight forwarders take all the hassle out of it, as they have experience transporting goods through international suppliers. This is one of the many advantages of using a freight forwarder.
Let’s take a closer look at the stages of international transportation. The first stage is origin processing and export clearance. It involves the movement of goods from the supplier’s location. If the goods are not for direct transport – they are loaded and moved to the freight forwarder’s warehouse, and if they are for direct transport – they are loaded onto the truck, in the case of road freight, or transported to the port of origin, to the airport or railway station.
But first, freight forwarders will make a scheduled reservation with the carrier(s) – land, sea or air. They will then facilitate the inspection and certification of the contents of the cargo by the relevant regulatory authority (customs department) of the country of origin. This is usually done by arranging for the cargo to be transported to an export facility. The time required for this step can vary depending on the type of goods, the volume being moved and the distance between the locations.
The second stage is export customs clearance, which involves obtaining permission for the goods to leave the country of origin. Customs clearance documentation must be coordinated and prepared between the supplier and the consignee of the goods, together with the nominated carrier of the shipment, to ensure that all documentation meets regulatory and carrier requirements. Consider this set of documents as a passport for the shipment. Without it, the cargo will not move. Once the goods are approved, they will be placed in international transit.
Import customs clearance is the third stage. Once the cargo arrives at its final destination, its documents will be checked by the country’s customs authorities, and in many countries, by quarantine authorities for different types of goods. In this case, additional movements and handling of the goods may be required depending on the instructions of the regulatory authority. These documents can be prepared by the freight forwarder or customs broker prior to arrival to ensure the efficiency of the process.
The fourth stage is arrival at the destination and handling. Once the shipment has been approved by customs, freight forwarders will arrange for the final handling of the cargo. They can deliver it directly to their freight forwarder partner’s warehouse or to their own if warehousing is required, or directly to the final destination at a time agreed upon by the shipper/recipient.
Do I need a freight forwarder? The export and import process involves in-depth knowledge of logistics planning and a thorough understanding of the required documentation. Freight forwarders are specialists in the transportation of goods and can offer their experience and extensive network of contacts to simplify the process and save your business time. Contact the Grand Logistiks team at 0700 20 255 or office@grandlogistiks.bg for all your freight forwarding needs.
At Grand Logistiks, we offer business-to-business logistics services - domestic transport, international land transport, air transport, sea transport, warehousing and customs clearance for all industries. Get a quote, today!
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*Excuse us if there is an inaccuracy in the translation - a common translator is used.