Essential Terminology for the Auto Transport Industry

What is a Freight Forwarder?

A freight forwarder is a professional who decides and takes care of the shipment of goods to facilitate shipment on behalf of the actual owners. Freight forwarders facilitate the cumbersome process of transporting goods from the place of shipment to the place of destination on behalf of shippers.

The Role of a Freight Forwarder

Freight forwarders play a pivotal role in the global supply chain by offering a range of services:

• Shipment Consolidation: A solution in which several shipper shipments are accumulated or consolidated into one vehicle to achieve the lowest possible costs per shipment unit.
• Carrier Selection: Selecting the suitable carrier based on factors such as price, delivery time, and cargo type or nature.
• Documentation: Completing and submitting various customs and shipping documents since most may be legally required.
• Customs Clearance: Customs compliance, in terms of classification of goods for purposes of tariffs, determination of the value of imported goods, and payment of customs duties, among others.
• Tracking and Visibility: Assisting the shippers and consignees in giving timely information and tracking of shipments.
• Insurance: Sourcing for shipment insurance to mitigate any loss or damage occurring in transit.
• Warehousing and Distribution: Leasing inventories and selling goods to customers whenever required.

Benefits of Using a Freight Forwarder

• Expertise: Thus, the freight forwarders entail extensive information concerning transport chains, laws, and processes.
• Cost Efficiency: Facilitating the contracts with the carriers to get the most reasonable tariffs and, thus, minimize transportation expenses.
• Time Savings: Optimization of the shipping process and increasing the options of decreasing the load on the shippers.
• Risk Mitigation: Coordinating complex aspects and avoiding various risks in international shipping.
• Global Reach: Arranging a list of international carriers and agents to enhance international object transfers.

In other words, these freight forwarders are logistics intermediaries who coordinate the arduous process of the international movement of shipments and goods. This way, the freight forwarders can relieve the required businesses from the transport and logistics functions, thus enabling them to concentrate on their areas of specialization while, on the other hand, the companies are in the hands of professionals when it comes to cargo handling.

Are you interested in specific categories of freight forwarders or the difficulties they face in the market?