The forwarder is the person responsible to charter the carrier, on behalf of their client, for the transport of the client’s goods. The forwarder is a specialized professional who has the function of intermediation using a broad knowledge of the international transport sector. The forwarder plans, coordinates, monitors and leads all operations necessary for the transport and international freight logistics. The forwarder has branches, subsidiaries or network of foreign correspondents, allowing them to plan and provide services on a regional level required by the needs of its customers.
Knowing the general nature and characteristics of the goods being transported , the forwarder studies the most suitable routes and means in which to transport the goods. Upon proper analysis, the forwarder selects the best option in terms of cost, time and safety. Your budget may include expenses of transportation from the point of departure of the goods to their final destination.
Their services start when client needs their goods to be transported internationally. The freight forwarder and customer formalize paperwork on the goods accompanying documentation. The forwarder advises the client on the most favorable selling conditions to the customer through knowledge of Incoterms (rules of the International Chamber of Commerce).
In addition, the forwarder agrees a plan with the customer on the route and kind of transport to use, and produces the drafting of transportation contracts that will be needed throughout the journey of the goods.
In order to ensure the safety of goods during transport, operators at the warehouses of freight forwarders decide on the type of packaging to be used according to the types of transport in which goods are loaded. There are multiple options to ensure maximum protection: wooden boxes, cardboard boxes, drums, crates, pallets, and containers among other options.
The customer can also obtain insurance through the Freight Forwarder. This is usually done with an open insurance policy through an agreement with the insurer that allows you to issue certificates on their behalf to cover individual shipments, thus saving time and premiums. Overall the Freight forwarder is there supports the client’s side, to help cover the risks.
One of the most important advantages offered by freight forwarder is its ability to provide door-to-door transport. This service often makes use of multimodal transport, consisting of the combination of different types of transport in one shipment. For this type of transport it is essential that the unit of goods will remain unchanged, making the container the ideal instrument for this types of transportation, loadable across trucks or rail cars the same as on the decks of ships.
When goods must pass the border and complete customs formalities, the freight forwarder can handle management of dispatch clearance, in collaboration with its correspondents, who know the customs regulations of each country and the rules of international trade.
Distribution is the final stage of the relationship between the goods and the Freight Forwarder. The business agent producer sends orders directly to the Freight Forwarder who controls the stocks of goods in full trip around the world. Freight Forwarder merchandise to serve new destinations when sales are realized so that coordination between customer and producer Freight Forwarder can be a key element to the success of exports and imports.
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"Don't underestimate the value of Incoterms and their impact on international trade."
Aliona Yurlova, Business Development Manager at iContainersDOWNLOAD THE FREE GUIDE