Freight forwarding is similar to air freight, except that it involves shipping both passengers and freight. A freight forwarder, either an individual or a business, is someone or entity that organizes shipments to a final destination, usually a port of destination, to bring goods from the original manufacturer to a point of sale or distribution. Forwarders contract directly with carriers or more than likely multiple carriers to safely move the goods. The carrier is the one that takes possession of the freight and moves it to where it is needed most.
Most freight forwarding companies operate on the same principles but have different ways of doing business. They have to make sure their clients are satisfied with the service they provide. They also need to make sure that the goods arrive on time to their clients. With the growth of the online market, freight forwarding companies have expanded their business to include online services, such as international e-shipping.
International e-commerce has increased the need for freight forwarding companies. Shipping goods this way allows shippers to access the entire world at a click of a mouse. Rather than having to store the items that they wish to ship, the shipper can simply place the order with an online shipping company, and that order will be moved along with the rest of the shipment when it arrives at its destination. There is no need for warehousing, no need for a truck, and no need for customs brokers to deal with the customs brokerPhilippines themselves. Because of this, international shipments have drastically increased in recent years.
It is important that a freight forwarding company is a highly organized business. They must have adequate tracking on all shipments, and they should only forward to countries that the client certifies as safe for shipment. The shipper must also ensure that the carriers are appropriately licensed to transport the items, and that they follow all of the necessary paperwork and laws. Many of the carriers require that the shipper fill out and sign a document known as a “packing slip,” which verifies that the shipper is aware of all of the laws relating to the country in which the carrier is mailing the item. Failure to do so can result in penalties or fines.
One of the most important aspects of the freight forwarding process involves warehousing. It is important that the shipper have a proper warehouse, which can hold all of the items that the carrier requires shipping. Without good storage, the carrier may experience a surge in orders, forcing them to add even more shipping space. Some freight forwarding companies are able to rent warehouses for a low monthly fee, which allows the shipper to have a steady flow of goods on hand. Other companies do not have the ability to rent warehouses but do allow the shipper to use their trucks to ferry the goods directly to their customers.
Many international freight forwarders also handle international parcels. These types of deliveries can be difficult for individual sellers to handle. Freight forwarding companies typically have international movers in place, allowing them to accept and deliver shipments to any part of the world. They are also knowledgeable about customs requirements, as well as the regulations for each country in which the international shipment is being sent. This knowledge will help the seller stay ahead of his or her competitors.