Question

In: Operations Management

What is a Freight Forwarder and what services do they offer?

What is a Freight Forwarder and what services do they offer?

Solutions

Expert Solution

Freight Forwarder is the entity which undertakes the responsibility of shipping your goods for exports or receieving and delivery of goods to importer’s premises for imports .

Following are the typical activities involved in shipping of goods once same is manufactured and ready for despatch for exports :

  1. Arrangement of transporter for loading of goods in trucks ( containerized or non containerized ) at factory premises.
  2. Preparation of relevant transport documentation which will enable the trucks carrying consignment to enter the ports
  3. Clearing of shipping bills and other relevant documents by customs authority at the port
  4. Unloading of goods at ports from trailers
  5. Reloading of goods on trailers for intra port transportation to catch the sailing vessel
  6. Placement of trucks under ship’s cranes to make the goods ready for loading on ships
  7. Coordinate with shipping company or its agents or stevedores for loading of goods inside ship’s holds
  8. Securing of goods inside ship’s holds once consignments have been loaded
  9. Issuance of relevant shipment document as proof of exports e.g Bill of Lading
  10. Handover of Bill of lading and other relevant custom documents to manufacturer / exporter as applicable

Following are the typical activities involved in receipt and despatch of goods once same is imported by inbound ships :

  1. Preparation of Bill of entry and submission of same with customs authority along with original copies of bill of lading in order to permit discharge and receipt of goods from the ship
  2. Obtaining Clearance from customs authority to unload and take delivery of goods
  3. Coordinate with shipping company or its agents or stevedoring companies to discharge and delivery of goods
  4. Arrangement of trailers and place them under vessels cranes for taking delivery of goods
  5. Discharge of cargo on vessel trailers and transporting them to importer’s premises
  6. Unloading of cargo from trailers at importer’s premises

The typical role of a freight forwarder is to coordinate and take responsibility of all above activities as described above.


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