When small and medium-sized businesses (SMBs) experience growth, logistics can become much more complicated. Freight forwarding can offer an ideal solution for companies expanding their shipping routes globally. Here’s how to get started.
What Is Freight Forwarding?
Freight forwarders—also known as forwarding agents—organize shipments from one country to another. Forwarders do not move the shipments themselves; they work for companies that import and export goods. The client can decide how much involvement the forwarder has in the shipment of goods.
What Freight Can Be Forwarded?
Forwarded freight may be shipped in a variety of containers, such as:
- Packaged containers
- Shipping crates
- Shipping pallets
- Freight boxes
- Drums and pails
- Transit cases
- Bags
How Is Freight Forwarded?
Freight can be forwarded via various means, including:
Air
Sea
Rail
Road
What Services Do Freight Forwarders Provide?
Freight forwarders can typically provide a range of supply chain and logistics services, including:
Ocean or air freight transportation
Goods can be forwarded via ocean or air. Air transportation is faster, while ocean transportation tends to be more affordable. Freight forwarders may work with one or more carriers to transport the goods.
Inland transportation from origin and/or to destination
Road, rail and inland waterways (such as rivers and canals) may all be utilized for freight forwarding. Inland transportation can offer higher capacity while avoiding congestion at seaports. Freight forwarders may work with one or more carriers to transport the goods.
Consolidation and deconsolidation
Consolidation involves packing multiple shipments in a single load. Deconsolidation involves separating different shipments within a single load to prepare them for final delivery. Smaller companies with low-volume shipments can benefit from these services, saving both time and money.
Storage and warehousing services
Freight forwarders can also provide optimized warehousing space and storage solutions to streamline logistics.
Packing of cargo in compliance with export regulations
Export regulations can be complicated to navigate. Freight forwarders can ensure goods are packed properly and are responsible for adherence to regulations.
Customs compliance preparation
Achieving customs clearance can be greatly simplified by working with freight forwarders, who stay up to date with ever-shifting laws and are well-versed in the specific requirements for various types of shipments.
Example of Freight Forwarding
Explore this simple, hypothetical example to see how freight forwarding works:
A factory in Japan manufactures electronics.
An importer in the United States partners with a freight forwarder to receive the goods from Japan.
The freight forwarder handles all documentation to get the products to their final destination in the U.S.
First, they transport the products from the factory to the Japanese airport by truck.
Then they fly the products to New York.
Finally, they truck the products from the New York airport to the importer’s warehouse in the U.S.
