In logistics, goods or products are transported from one place to another in different ways. “Freight forwarder” is the company that acts as a bridge between carriers and goods/load owners. In other words, it is the responsible company that performs this work. Freight forwarder is responsible for the whole process from the moment the goods are loaded on the ship, train, plane or truck until they are delivered to the final destination. Freight forwarder companies are in relationship with many freight carriers in the logistics and transport sector. Thus, they can give services through different logistics companies even if they do not have their own fleets, planes, ships, etc. Moreover, they  provide these services at very affordable prices.

What is a Freight Forwarder? What are Freight Forwarder Responsibilities?

Freight forwarder is known as “transport organizer”. The role of a freight forwarder can be described precisely with this expression.  It is responsible for the goods or freight to be transported within the scope of the company's working areas. Freight forwarders follow the customs clearance procedures of importers and exporters in the fields of transportation. They are also responsible for the storage process of the goods before they are shipped.

What Are Freight Forwarders Responsibilities?

Freight forwarder companies have a wide range of responsibilities. What does a freight forwarder do? Although the responsibilities of the freight forwarder vary according to the type of service it provides, they include the process from the transportation of the goods to the delivery. Details such as how the supply chain will be completed, which mode of transportation will be preferred, which paperwork can vary.

Freight forwarders are common mostly on rail and road transport.

They provide the necessary documents and information to the customer because they have sufficient knowledge about international trade.

Freight forwarder  also arranges the necessary customs duties on behalf of the client. In other words, it can also apply for permission on behalf of the customer. The forwarder, who has knowledge and experience about the whole process, can handle transactions faster.

Freight forwarder also offers groupage service to individuals. In order to reduce costs, it can group small packages from different product owners together and group them as large loads.

Freight forwarder is also responsible to the carrier company. Some countries work with customs clearance or import clearance. Therefore, it is necessary to have a permit to import some goods.  Freight forwarder applies these procedures for its client and follows the whole process. In this way, the person carrying the goods can travel more comfortably and safely.

The possibility of breaking the goods during transportation is closely related to the transportation companies. In case of damage to the goods, the freight forwarder insures the freight.  It also determines which type of transportation is needed.

When the product is imported, mostly VAT and import taxes are paid. In such cases, the expense is paid from the budget allocated to freight forwarders.

Why Is a Freight Forwarder Needed?

Today, companies aim to increase the quality and customer satisfaction, reduce costs, and minimize the problems that may occur during product transportation. They also want to eliminate the costs of recycling. All these processes require coordinated and planned work. At this point, the Freight forwarder has an important role. Everything should be organized because there are many stages during the transportation of the goods and the problem that may occur at each stage is likely to adversely affect another stage.

First of all, the freight forwarder gets all the information it needs from the company.  The fee and details of the work are requested. Then, it is searched which services will be got from which institution. A budget is prepared with the research. A working map is created. Required documents related to customs are prepared. Profit and loss reports are prepared and shared with the customer when all the necessary things are completed.

What Features Should Freight Forwarders Have?

There are some features that a freight forwarder should have.  These features are important to complete all transactions smoothly. Most importantly, a freight forwarder should have all the information about customs procedures. Considering that customs protocols may differ from country to country and even from port to port, it is very important to be an expert in this subject.

Freight forwarders should also have the ability to offer a solution in any situation. Should have the ability to solve problems in a short time in case of unexpected weather conditions or technological problems. If you plan to work with a freight forwarder, you should make your choice considering all these details.

What are Freight Forwarder Types?

The transportation industry is developing day by day. In the transportation, goods can be transported in different ways such as road, air, sea, and railway. However, each option has different procedures and documents required. Depending on the type of goods to be transported, the method is preferred.  If road transport is preferred, all documents required for customs must be available. All the administrative procedures required before or after the customs clearance are completed by the Freight forwarder. Afterwards, the customs clearance process of the goods is completed.

Maritime transport is carried out according to the procedures of the port operators. All required documents and forms are prepared according to the procedures of the port operator.

The documents required for all goods to be transported by air transport are also prepared by the freight forwarder. Freight forwarder, which is an intermediary between freight and airline in air transport, is a kind of agency.

Freight forwarders must have the necessary authorizations and equipment. Freight forwarders play an important role in international trade in order to manage the needs arising from the growing world trade with globalization.

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