What Is Freight Forwarder? | How to Get a Reliable Freight Forwarder?

What Is Freight Forwarder? | How to Get a Reliable Freight Forwarder?

In the world of international trade, freight forwarders are essential. When you need to ship goods to your country, your first thought will likely be finding a reliable freight forwarder to help you arrange the shipment. This is because the process of international shipping can be quite complex. The following article aims to improve your understanding of forwarders. Let’s take a closer look.

• Meaning and Types of Freight Forwarders
• What Do Freight Forwarders Do?
• Differences between Forwarders and Brokers, NVOCC, Carrier, and 3PL
• How to Find a Freight Forwarder?
• Qualities of a reputable freight forwarder
• Conclusion

Meaning and Types of Freight Forwarders

Description of Freight Forwarders

Freight forwarders, also known as forwarding agents, act as intermediaries between buyers and sellers, responsible for delivering goods from the seller to the buyer.

Freight forwarders work with shipping companies, airlines, and other transportation companies to become their agents. They then book space from these companies, collect goods, and provide various transportation services including customs clearance and arranging shipment, greatly improving the overall transport efficiency.

You may wonder if it’s possible to bypass freight forwarders and book directly with shipping companies and airlines. However, it’s impractical. For example, in sea freight, if you want to book directly with shipping companies, your cargo volume should be especially huge, such as dozens or even hundreds of containers of cargo per month. If your cargo volume is small, the shipping company will not accept your order at all. Additionally, the shipping company only provides vessels. You still need a forwarder to help you deal with other complicated issues.

Therefore, whether your cargo is large or small, you can save time and effort by entrusting a freight forwarder. Moreover, freight forwarders have partnerships with shipping companies and can get discounts from these companies, resulting in lower prices than if you contacted them yourself.

Types of Freight Forwarders

There are many types of forwarders. This article has divided them into two types based on the type of services they provide: all-inclusive forwarders and dedicated forwarders.

An all-inclusive forwarder can deal with all procedures for you from the seller to your destination. These forwarders can provide a variety of transportation methods by land, sea, and air. They can also provide you with the best transportation plan according to the quantity and properties of your goods, saving you a lot of trouble.

Compared with all-inclusive forwarders, dedicated forwarders have their advantages when shipping to certain countries. They work with forwarders or brokers who have strong customs clearance capabilities in the destination country, making the whole shipping process smoother and shortening the shipping time.

Countries like Russia, Brazil, Turkey, India, etc., are not easy to clear customs. Therefore, when shipping to these countries, it’s better to choose a dedicated forwarder.

What Do Freight Forwarders Do?

International forwarders are usually responsible for transportation and handling all tasks quickly and effectively. For example, if you want to import goods from China to the USA and ship cargo by sea, forwarders mainly provide the following services:

• Booking space from shipping companies
• Collecting goods
• Providing customs clearance services
• Arranging shipment

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Stage 1: Booking and Pick-Up

Your forwarder will know the weight, volume, and shipping plan in advance and book the space with a shipping company. If you require your forwarder to pick up the cargo from the factory, he will negotiate with the supplier about the pick-up time and then arrange trucks to load the cargo into the container at the appointed place.

Before loading, the forwarder will check the quantity and packaging to ensure that the goods are in good condition before shipping. Then, the containers will be sent to the dock and wait for loading on the ship.

Stage 2: Export Customs and Loading

At this stage, your forwarder will prepare detailed information and all supporting documents about the cargo, then fill in the declaration form, and go through the export customs declaration. For ISF filing — which is mandatory for all ocean cargo entering the USA — your import freight forwarder can help you do it correctly and in a timely manner if you require assistance.

After completing these steps, he will receive a release pass. Once the cargo is approved by customs, containers will be loaded onto the ship and placed in the designated space, ready for the vessel to set sail. After the ship departs, your forwarder can help track the cargo transportation and keep you informed of the logistics information in a timely manner.

Within a few days of the ship’s departure, your forwarder will issue the bill of lading to your supplier. The supplier will give it to you after receiving your order payment for subsequent pickup. Additionally, he can also help you deal with cargo insurance if required.

Stage 3: Import Customs Clearance

When the ship arrives at the designated port in the USA, your forwarder may not directly finish the cargo import procedures for you. They will find their cooperative U.S. customs companies or local U.S. forwarders to help you, as the locals will be more familiar with customs procedures and requirements. This approach can greatly improve efficiency.

Stage 4: Delivery to Destination

The forwarder can also help you send goods to your destination after clearance. For example, if you are a US Amazon FBA seller, your forwarder can help you contact truck companies, express companies, or their local cooperative forwarder companies to transport your goods from the US port to the Amazon FBA warehouse.

Differences between Forwarders and Brokers, NVOCC, Carrier, and 3PL

When searching for “freight forwarder” on Google, you may also find related terms like “broker,” “NVOCC,” “carrier,” “3PL,” and more. Below we briefly explain the differences between these terms.

Freight Forwarder vs. Customs Broker

Both freight forwarders and customs brokers play an important role in international trade. The difference is that the freight forwarder is responsible for shipping goods to their destination within a specified period of time. The international transportation of goods involves several links, such as booking, cargo handling, import and export customs clearance, cargo transportation, etc. These works can be done by forwarders.

While the customs broker is only responsible for customs clearance when the goods arrive in the country of import. As we discussed above, lots of international forwarders also need to cooperate with local brokers to help their customer’s clearance and customs exams if there is.

Freight Forwarder vs. NVOCC

NVOCCs (Non-Vessel Operating Common Carriers) are agents of shipping companies. They provide only ocean freight services. You can consider them as ocean forwarders.

Freight Forwarder vs. Carrier

A carrier is a shipping company, airline, railway company, etc. They actually help you ship cargo by their ship, airplane, and vehicle. Freight forwarders are agents of carriers. They provide shipping services for buyers or sellers. In real business, you deal more with a forwarder, rather than a carrier.

Freight Forwarder vs. 3PL

3PLs, also known as third-party logistics, can provide more services than forwarders. They have warehouses to help you store, package, and deliver to your end consumers. Not all forwarders can do these for you. Some large freight forwarders rent warehouses in destination countries and can provide these services.

For example, if you have an online store and want to focus your energy on store marketing, then you need someone to help you deliver the package to your customer. At this time, you can outsource to a 3PL company. Amazon FBA is a typical mode of third-party logistics.

How to Find a Freight Forwarder?

From Supplier’s Forwarders

Usually, your suppliers will have their long-cooperative forwarders. You can ask your suppliers if you need one. It will be much easier than sifting through millions of forwarders on your own. You don’t need to worry too much about the supplier making money from it. After all, they also want to do business with you in the long run, so they are not willing to lose your order.

From Google or Social Media

You can also find forwarders from common search engines and social media like Linkedin and Facebook. Many forwarders are now marketing themselves in these places. But be careful the way you search. For example, if you want to find a dedicated freight forwarder to Brazil, you can enter the text, “shipping from China to Brazil” or “freight forwarder Brazil” in the search bar.

Of course, this is not to say that the higher the ranking the more reliable the forwarder because some professional forwarders may not be good at marketing.

From the Online Freight Marketplace

Platforms such as Alibaba and Freightos can provide you with many freight forwarder options. By filling in the cargo information such as origin, destination, weight, dimensions, value, etc., these platforms can help you calculate the shipping costs of many forwarder companies. You can compare the prices easily and choose the best one. Also, you can place orders on these platforms, which greatly improves the experience and efficiency.

Recommendations from your network

It’s a plus if your acquaintances are willing to recommend reliable freight forwarders. You can leverage their experience to find the one that best suits your business needs. However, it’s essential to verify whether these freight forwarders are capable of handling your particular cargo. If you’re transporting sensitive goods, make sure to inquire if they can accommodate them.

Qualities of a reputable freight forwarder

The above are just some tips to help you identify potential freight forwarders. However, it’s essential to communicate and evaluate whether they meet your requirements before making a decision. Listed below are four common traits of dependable forwarders you can use as a reference.

Transparent pricing structure

It’s frustrating to discover hidden costs that weren’t disclosed when you agreed on the price. Price transparency avoids any unpleasant surprises and provides peace of mind when dealing with your trading partners.

Thorough understanding of international freight

A competent freight forwarder should have extensive knowledge of international freight policies and procedures, import clearance regulations, and be able to provide professional advice on any concerns you may have.

Timely communication

A reliable forwarder should be able to answer your questions promptly and accurately. They should provide real-time logistics information to ease your worries. Moreover, in case of any issue, they should actively seek solutions.

Proper licensing and documentation

A trustworthy forwarder can demonstrate their professionalism through credentials such as WCA and IATA. Reviewing these documents can assist you in selecting a suitable forwarder.

Conclusion

We hope that this article has provided you with a comprehensive understanding of the term “freight forwarder.” If you have any questions, please do not hesitate to leave a comment below.

Onestopimport is a leading sourcing company in China, dedicated to sourcing and customizing a wide range of products from China and arranging the best transportation options. We have reliable supplier resources and long-term cooperation with forwarders. Whatever your sourcing needs are, we can provide the best solutions. Just CONTACT US.