Freight forwarder

The storefront of one of many freight forwarders located around Guangzhou's garment districts. The list of destinations indicate that this business serves importers of Chinese clothes to countries such as Russia and Azerbaijan.

A freight forwarder, forwarder, or forwarding agent is a person or company that organizes shipments for individuals or other companies and may also act as a carrier. A forwarder is often not active as a carrier and acts only as an agent, in other words as a third-party (non-asset-based) logistics provider that dispatches shipments via asset-based carriers and that books or otherwise arranges space for these shipments. Carrier types include ships, airplanes, trucks, and railroads.

Freight forwarders typically arrange cargo movement to an international destination. Also referred to as international freight forwarders, they have the expertise that allows them to prepare and process the documentation and perform related activities pertaining to international shipments. Some of the typical information reviewed by a freight forwarder is the commercial invoice, shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import, or transshipment. Much of this information is now processed in a paperless environment.

The FIATA short-hand description of the freight forwarder as the 'Architect of Transport' illustrates clearly the commercial position of the forwarder relative to his client. In Europe there are forwarders that specialise in 'niche' areas such as Railfreight and collection and deliveries around a large port. The latter are called Hafen(port) Spediteure (Port Forwarders). A forwarder in some countries may sometimes deal only with domestic traffic and never handle international traffic. (see also Forwarding Agent).

History of freight forwarding

The original function of the forwarder, or spediteur, was to arrange for the carriage of his customers' good by contracting with various carriers. His responsibilities included advice on all documentation and customs requirements in the country of destination. His correspondent agent in far-away lands looked after his customers' interests and kept him informed about matters that would affect movement of goods.

In modern times the forwarder still carries out those same responsibilities for his client. He still operates either with a corresponding agent overseas or with his own company branch-office. In many instances, the freight forwarder also acts as a carrier for part of a movement it can happen that in a single transaction the forwarder may be acting either as a carrier (principal) or as an agent for his customer.

Freight forwarder roles in different countries

World

The world is full of freight forwarders dealing with customs and laws in country to country transactions. The leading freight forwarders deal with carriers like DHL, FedEx, KLine, Mearsk, and Hapag-Lloyd, to name a few. However the largest and most prestigeous freight forwarder in the world is the Swiss-German company, Kuehne + Nagel .

USA

In the U.S., a freight forwarder involved with international ocean shipping is licensed by the Federal Maritime Commission as an Ocean Transportation Intermediary. Similarly, freight forwarders that handle air freight will frequently be accredited with the International Air Transport Association (IATA) as a cargo agent.

UK

In the U.K., freight forwarders are not licensed, but many are members of the British International Freight Association (BIFA). Freight forwarders in the UK consolidate various goods from different consignors into one full load for road transport to Europe, this is often known as groupage. Some freight forwarders offer additional related services like export packing and case making. The regulations regarding exporting untreated timber pallets and cases has become increasingly more strict and in many countries an exporter will be expected to provide a phytosanitary certificate or risk the expense of having their cargo fumigated.

Australia

In Australia most licensed Customs Clearance Agents (now more commonly referred to as Customs Brokers), operate under a freight forwarder.

Ireland

Even in smaller markets, such as Ireland, the role of freight forwarders is strategically important. International merchandise trade is worth €148 billion to the Irish economy . 82% of manufactured products are exported, further highlighting the importance of the freight forwarders to a nations' economy. Associations like the Irish International Freight Association and FIATA help maintain the professionalism of this industry through educational and representative roles. The FIATA Diploma in Freight Forwarding is an example of how this can be achieved.

Nigeria

Nigeria is a very large market dealing with import and export. Freight-forwarding in Nigeria has been in place since the exporting of groundnut as a cash crop since 1914, though not initially as freight forwarding but as the means of transportation of both goods and services from one country to another. Following the methodology of their British forebears, agents were used to facilitate the transport of goods and services.