How does freight forward work?
A freight forwarder is a person or company responsible for managing the successive transport of imported or exported goods on behalf of their client. They play a crucial role in trading and international trade activities. An international freight forwarder must master the logistical, legal and customs aspects, and constitute all the mandatory documents. Let’s find out in detail how does freight forward work.
What is a freight forwarder?
A freight forwarder is known as an operating carrier who organizes shipments for companies or individuals to get goods from the customers or manufacturers.
- It is mandated by the recipient or the sender of goods
- Organizes and coordinates successive modes of transport; sea, land, and air
- Manages all quires relating to necessary logistics and transit
- Takes care of the administrative formalities
- It is responsible for customs clearance
- Ensures compliance with the regulations in force in each country
- Plays a crucial role in import-export activities.
How does freight forward work?
The role of a forwarder is to ensure that the goods entrusted to him arrive at the final destination in the State. The international freight forwarder plays a key role in the commercial success of global trade activity. Their multiple skills depend on the proper functioning of their exports and exports of goods that pass through the territories in which they carry out their activity.
1. Ensure the follow-up between the different modes of transport
The forwarder is the guarantor of the good routing of the goods. They organize and coordinates shipments via multimodal transport i.e., road transport, in particular, navigation by sea or by plane.
2. Find places to transit goods
The freight forwarder assumes this mission by owning storage places or renting warehouses for this purpose. They organize, store, package, and dispatch the goods according to precise standards to be observed.
3. Optimize shipping costs
The freight forwarder will group different goods within the same shipment. This makes it possible to recoup the costs incurred by an exporter by purchasing a large volume of freight transport.
4. Contact the right people to reserve loading and unloading spaces
Freight forwarders have a well-stocked contact book and select the best operators. Contact and coordinate all actors such as transporters, insurance companies, customs offices, etc. They are an asset for international trade activities, deliveries and shipments benefit from the best conditions.
5. Negotiate transport costs
This is an additional advantage provided by an international freight forwarder. The forwarders can manage a high volume of freight transport as they are in a position to lower prices in front of carriers.
6. Guarantee the goods
The freight forwarder is aware of the insurance conditions depending on the means of transport and the type of goods transited. They ensure the permanent traceability of the goods to be able to inform the customer and guarantee that the goods arrive at their destination.
7. Complete all administrative formalities relating to shipments and exports
A freight forwarder guarantees the editing and presentation of all mandatory documents at the right time. They complete all administrative formalities according to international laws and pay the fees due. They coordinate all transport logistics by ensuring the publication of necessary documents such as customs clearance in all countries.
Swiss Air & Road Cargo AG is Switzerland’s leading transport and logistics company providing value-adding services to road transport, air freight, logistics, forwarding and customs
As a fully integrated transport and logistics service provider, Swiss Air & Road Cargo AG is able to make your logistics network more (cost) efficient, whatever your business sector is.