Welcome to daily logistics. in this video we are going to talk about Freight Forwarders.
without further due let's get started.
Who is a freight forwarder?
A freight forwarder is a party or a company that acts as the agent of the cargo owner.
They can further describe as the companies specialized in providing logistics services
to their customers. Also, name as international freight forwarders or freight brokers, or
simply forwarders.
These agents are third-party Logistics service providers to the manufacturing
or cargo distributing companies.
Freight forwarders generally have networks of offices around the world. These freight
brokers in different locations may belong to the same group of companies. Or they could
be different companies that mutually agreed to work together as they do not have their
own network to cover the freight forwarding work in different countries.
Having a network helps them to cater to the the demand of their customers in different
countries
without limiting their business. The more the network, the more they become strong players
in the freight forwarding industry. Shippers and consignees find it very easy to work with
freight brokers as they have a network of agencies in other countries.
The freight brokers do all the communications related to the cargo moving from origin to
destination. So the shipper and consignee don’t have to worry about the logistics
arrangements of their goods. Once the goods are handed over to the forwarder at the origin,
they make sure to deliver the goods to the agreed destination.
Some shipping lines have their own freight forwarding companies to facilitate international
trade and increase their control in the logistics industry and enhance customer satisfaction.
for example, A.P. Moller Maersk has merged with Damco to provide freight forwarding facilities
by the Maersk group.
What are the Freight Forwarding Services? Some of the services of freight agents are
as below. Every agent may not provide all the services. But in general bellow services
are available.
Assist cargo owner to move goods from one place to another
Negotiate freight rates and make sure to allocate space from a carrier
Cargo packing/palletising Provide warehousing facility
Track cargo on the cargo owners behalf Arrange/Provide inland transportation as appropriate
Handle export-import documentation CusDec preparation and Cargo Clearance
Do Freight Broker and Customs Broker are Same? They are not the same. But freight brokers
can be customs brokers while customs brokers cannot be freight brokers. Freight forwarding
is a vast area. It includes a lot of job roles. The customs broker’s job role is limited
yet vital in the logistics industry.
The Importance of Freight Forwarders
As they are always at your service you may have not identified their importance. Having
reliable freight brokers for your business will smooth the supply chain of your cargo.
As freight brokers take care of the goods from the shipper’s doorstep to the consignee’s
doorstep trustworthy freight brokers become partners to the company nowadays.
What is the Freight Forwarder’s Cargo Receipt? The freight forwarder’s cargo receipt is
a document. Commonly known as “FCR”. This document act as an acceptance by the forwarder
on safe receipt of cargo. The document is issued to the cargo owner or the shipper
Are you Curious on FIATA? FIATA stands for the International Federation
of Freight Forwarders Association. It is the non-governmental world body representing freight
brokers.
At the country level, freight agents have associations to raise their voice and all
country-level associations become members of FIATA to have a loud voice around the world.
For more information on FIATA. Please visit
Freight Forwarder and NVOCC are the same?
They are not the same and most people think they are the same. Their responsibilities
differ and have different roles before the law. Please read on NVOCC to identify their
role.
that's all for this video. I hope you Gain some Knowledge about Freight Forwarders. Please
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Freight forwarders Visiting our website daily logistic.com.
Thanks for watching.see you in another video.