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Responsibilities Of A Freight Forwarder

By on June 19, 2014 in Trade Policies with 0 Comments
Freight Forwarder

Freight forwarders are one of the important elements International trade.

International trading is always sensitive to the perfect and safe transport of the goods from one country to another. Freight forwarders are the agents engaged in the transportation process of the goods which work on the behalf of the importer or the exporter to facilitate easy and smooth movement of the goods. Freight forwarders are only the service providers who arrange all the materials that you may be needing in order to deliver your products on time and without any damage. The core responsibility of a freight forwarder is to ensure that the transportation of the goods is being done in the most cost-effective and least time consuming way. Freight forwarders are very crucial. While selecting a freight forwarder for any of your transportation requirements, be very conscious about the credibility and reliability of the forwarders. Apart from this the cost should also be kept in mind. Select the freight forwarders according to your budget and check that the rates are reasonable.

Some of the major responsibilities of a freight forwarder are :

Identifying the best route: The first and foremost responsibility of a freight forwarder is to identify the best route for transporting the goods. The best route is the one which will take the minimum transportation time and cost. After identifying the route, the forwarder does the other booking.

Selecting the mode of transport: After selecting the route the next job of the freight forwarder is to decide the mode or means of transportation i.e. air, road, rail or sea. The mean of transport should be selected according to the type of the products and the time consumed.

Double check the packaging: Another responsibility of the forwarder is to check the packaging of the goods. Freight forwarders are fully aware of the transportation conditions and handling of the products so, they do or check the packaging of the products to ensure safe and comfortable delivery of the products.

A freight forwarder must double check the product packaging according to the medium of transport

A freight forwarder must double check the product packaging according to the means of transport.

Further negotiations with middle men: The importer or the exporter, who hires a freight forwarder, only makes the payment to the forwarder. All the payments of the middle men involved in the process of transferring and delivering the products are done by freight forwarder only. Cost cutting is the major benefit of hiring a freight forwarder. They have good contact with the transporters and other service providers and they negotiate well with the middle men and help in reducing the over all cost of transferring the goods. Freight forwarders identify the most time-effective and cost effective route and hence ensure the reduction in the cost of transportation.

Doing all the paper works: Freight forwarders are responsible for doing all the paper work involve in the entire transportation process. Getting all the licenses and permissions are required for the movement of the goods are being taken by the freight forwarder only.

Getting the insurances: Getting the insurance with the third party or the transportation claims of the client. If in case the third party, like the air, sea or road transporters, fail to deliver the products on time or if any damage occurs to the products during the transportation, the third party will bear the cost and not the trader.

Tracking of goods: Once the goods have been dispatched from the port or airport, the freight forwarder keeps a track on the movement of the goods and can keep the trader informed. Advanced satellite technologies help in easily tracking the current positions of the products or consignments.

Customs clearance: Custom clearance means that the goods will not face any problem in passing through the customs. Customs clearance help in ensuring smooth and uninterruptedĀ  movement of goods across the international boundaries.

Freight forwarders are the important players of international trade in the current scenario. These service providers make you free from the stress of whether the good with reach the buyer on time or not. Freight forwarders will take the entire responsibility of transferring the goods safely and on time.

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