How freight forwarding works-
Simply, freight forwarding is the process of moving imports and exports through the supply chain. Freight forwarding businesses work with shipping companies, airlines, haulers and customs authorities to move items from their point of origin to their final destination.
If you are a business owner who wants to ensure that your goods reach your customers on time, you should seriously consider having a smooth-flowing and trouble-free supply chain.
You need someone who can reliably move freight from your warehouse to its destination hassle-free. That is where freight forwarding companies come in.
A freight forwarding company is a third party that organizes your shipment of goods from one point to another. To achieve this, they coordinate the entire process, including using various freight carriers carrying your goods across air, road, ocean, and railway routes.
Though they do not handle the shipping of the goods themselves, they negotiate with shipping providers to get the best possible value from the company shipping the goods.
The freight forwarding process has six steps:
Step 1: Export Haulage: this process involves picking up items from your location and bringing your goods to the freight forwarder’s warehouse.
Step 2: Items Checkpoint: In this process, the freight forwarders receive your goods and inspect them to ensure everything is in proper condition.
Step 3: Export Customs Clearance: With the help of customs brokers, your freight forwarders will obtain clearance for the transport of goods by submitting details about the cargo and supporting documents required.
Step 4: Import Customs Clearance: The freight forwarder, or a nominated customs broker, performs the import customs clearance by the time the freight arrives at the destination country.
Step 5: Destination Arrival and Handling: The freight forwarder receives and ensures that all documents are checked and that all information is correct. They will also inspect and sort the freight.
Exceptional freight forwarding companies offer additional services, such as handling dangerous goods and tracking deliveries for you in real time.
Freight forwarding companies specialize in is preparing the necessary documents and doing the paperwork to move your goods. These documents include:
- Commercial Invoices
- Certificate of Origin Statements
- Bill of Lading Contracts
- Inspection Certificates
- Export Licenses
- Shipper’s Export Declaration Documents
- Export Packing Lists
- And Others
