Freight Forwarder act as intermediaries between the shipper and the final destination of the goods. Although they do not carry out the shipment directly, they manage various modes of transport such as sea, rail, road and air.
Freight forwarders leverage their trusted relationships with carriers and partners, ranging from air freight specialists and overland carriers to transoceanic lines, to negotiate the best possible price.
They use these connections to ensure that goods are transported along established trade routes, evaluating different offers and selecting the best option that optimizes speed, cost and reliability, considering all the variables necessary for each specific analysis.
Key Functions
Their main function is to facilitate and coordinate the transportation of goods from the point of origin to the final destination. They act as intermediaries between exporters, importers and the various actors in the supply chain, including shipping lines, airlines, warehouses and land transportation companies.
Other functions include the following:
-Route and Means of Transport Selection
Using its experience and knowledge, the freight forwarder selects the best route and the most suitable means of transport for the cargo, which may include sea, air, rail or road transport.
-Booking and Coordination
Once the route and means of transport have been defined, the forwarder makes the necessary reservations with the corresponding transport companies. It also coordinates the logistics of collection, storage and delivery of the cargo.
-Documentation Management
Freight forwarders take care of all the documentation required for international transport, such as commercial invoices, insurance policies, customs documents and other necessary permits, complying with customs regulations such as those of the European Union.
-Tracking and Troubleshooting
Throughout the transportation process, freight forwarders continuously monitor to ensure that cargo arrives at its destination safely and on time. If problems arise, they are prepared to resolve them efficiently.
Services offered by Freight Forwarder
There are multiple services that freight forwarders offer:
- Customized Solutions: they tailor their services to the specific needs of each project.
- International Trade Consulting: They offer specialized guidance for companies in foreign trade matters.
- Route and Transportation Optimization: They recommend the best route and the most appropriate means of transportation according to the origin, destination, seasonality and characteristics of the cargo.
- Competitive Rates: They find the most favorable prices and provide preferential rates.
- Use of Specialized Technology: They use advanced computer systems to calculate the most convenient routes.
- Cost Reduction: Hiring a Freight Forwarder is usually cheaper than managing the transport on your own.
- Negotiation and Organization of the International Transport: They are in charge of negotiating and organizing the transport in the country of origin as well as in the country of destination.
- Loading and Unloading Coordination: They supervise the loading, unloading and delivery of goods at the final destination.
- Documentation and Customs Clearance: Advise on the preparation and processing of the necessary documents for import and export, complying with international laws and regulations.
- Transportation Insurance: They provide insurance coverage during the whole process of transportation of goods.
Benefits of Freight Forwarder
We can distinguish 7 benefits that freight forwarders can bring us:
- Enjoy a service specifically adapted to the needs of your company.
- Increase business competitiveness.
- Ensure compliance with the regulations of both the country of origin and destination.
- Obtain more favorable rates compared to direct negotiations carried out by the company.
- Avoid delays or problems during transportation and storage of goods.
- Benefit from a safe and reliable logistics network for the smooth procurement of goods.
- Obtain more competitive prices on imported goods.
In conclusion, freight forwarders play a key role in the global supply chain, acting as expert logistics and transportation facilitators. Their ability to efficiently manage various modes of transportation, negotiate competitive rates and ensure compliance with international regulations makes them valuable partners for exporting and importing companies.
Ultimately, having a reliable Freight Forwarder not only ensures efficiency and safety in the movement of goods, but also contributes significantly to the competitiveness and long-term success of companies in the global marketplace. If you still have any questions, contact us to find out how we can help you.
