Tuesday, April 28, 2015

What is Freight Forwarding?


Source: www.cfrrinkens.com

Freight Forwarding is the process of arranging storage, moving of cargo, packing, documentation, and customs clearance of shipments from importers and exporters.

This process of service is an industry that specializes in moving or transporting goods locally and internationally. Most firms cater services for cargos and customs clearances for different goods and facilitate the maintenance of all required documents, making sure that all packages and shipments will arrive to their proper destinations according to the client’s specified time. The companies that offer those services are called freight forwarding firms. An Example of this firm is Orient Freight (http://www.orientfreight.com)

Custom Clearance

According to the business dictionary, this is the documented permission to pass a national customs authority to grant permission for imported goods to allow entering the country, and for export goods exit the country. This process can be performed by the freight forwarding company itself (usually, they have their own shipping agent) or by subcontracting it to a company that offers customs brokerage services. The clearance is a documentary proof that all the required customs duties have been paid and the shipments have been approved.

The advantage of hiring a customs broker is the freeing up of the clients waiting and processing time so that they will receive or deliver the shipments on or before the specified date of delivery. On the other hand, if a freight forwarding firm will do this task, they need enough funds to handle bonds, tariffs, and tax payments necessary for the shipping process.

Documentation Required

Before any freight forwarding service starts, there are documentation required. Clients or customers need to provide well-ordered and accurate documentary requirements to a freight forwarding company for a successful process. Receipt of payments for delivery and the time should be specified on when the process should be done and delivery date for the shipments, products, or cargoes.

Freight Forwarding Services

These are the services offered by a freight forwarding firm or company, although they may vary from one company to another, the customers are to decide on what services are applicable for their shipments and products/goods. Below are some of the well-known services they offer:


I will discuss each service on my next post, this just an overview of the freight forwarding process as a whole. Thank you for dropping by. Have a nice day folks!

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