Freight forwarders (usually just freight forwarders) are third-party logistics providers. As a third-party (or non-asset-based) provider, forwarders send goods through asset-based carriers and reserve or arrange space for these goods. The carrier types include watercraft, airplane, truck or railway.
Freight forwarders usually arrange for goods to be moved to international destinations. Also known as international freight forwarders, they have professional knowledge, which enables them to prepare and process documents and carry out activities related to international freight. Some typical information examined by freight forwarders are commercial invoices, consignors' export declarations, bills of lading and other documents required by the carrier or the exporting, importing or transshipment countries. Most of this information is now processed in a paperless environment.
In the United States, freight forwarders involved in international ocean transportation are authorized by the Federal Maritime Commission as ocean transportation intermediaries. Similarly, freight forwarders who are engaged in air freight usually get the qualification certification of freight forwarders from the International Air Transport Association (IATA).
What is a freight forwarder?
An international freight forwarder is an agent for exporters to transport goods to overseas destinations. These agents are familiar with foreign import regulations, American government export regulations, modes of transportation and documents related to foreign trade. Export freight forwarders are authorized by the International Air Transport Association (IATA) to operate air transport and the Federal Maritime Commission to operate sea transport.
Freight forwarders help exporters prepare quotations by providing suggestions on freight, port fees, consular fees, special documents fees, insurance fees and their handling fees. They recommend the packing method to protect the goods during transportation, or they can arrange packing at the port or shipping in containers. If the exporter wishes, the freight forwarder can reserve the necessary space on the ship, plane, train or truck. Their service cost is a legal export cost and should be included in the price charged to customers (for pricing information, please refer to chapter 1654 38+0 of the Export Basic Guide). ).
Once the order is ready for shipment, the freight forwarder should review all the documents to ensure that everything is in order. This is especially important for the payment terms of the letter of credit. They can also prepare bills of lading and any special documents. After shipment, they can send the documents to the seller, the buyer or the paying bank. Freight forwarders can also reach an agreement with overseas customs brokers to ensure that the goods meet the requirements of customs export documents. A customs broker is an individual or company authorized to handle customs business on behalf of others. Customs business is limited to trading activities related to the entry and access of commodities; Its classification and valuation; Pay customs duties, taxes or other fees assessed or collected; Or its refund, discount or tax refund.