Who is Freight Forwarder ?

Summary

This video explains the role of freight forwarders in logistics, detailing how they act as agents for cargo owners and provide various services such as negotiating freight rates, arranging transportation, and managing documentation. Freight forwarders ensure a smooth supply chain by handling the logistics of goods from origin to destination. The video also clarifies the distinction between freight brokers and customs brokers and highlights the importance of the Freight Forwarder’s Cargo Receipt (FCR). Additionally, it introduces FIATA, the global body representing freight forwarders, and invites viewers to learn more through the website and channel subscription.

Takeaways

• 😀 A freight forwarder is a third-party logistics service provider that acts as an agent for cargo owners.
• 😀 Freight forwarders often have global networks of offices, helping them manage logistics efficiently across different countries.
• 😀 The stronger the network, the more competitive and reliable a freight forwarder becomes in the logistics industry.
• 😀 Freight forwarders handle all communication related to the movement of cargo from the origin to the destination.
• 😀 Some shipping lines own freight forwarding companies to enhance their control over logistics and increase customer satisfaction.
• 😀 Common services provided by freight forwarders include cargo movement assistance, freight rate negotiations, and inland transportation arrangements.
• 😀 Freight forwarders may also offer warehousing, cargo tracking, and export-import documentation handling, such as customs clearance.
• 😀 Freight brokers and customs brokers are not the same, though freight brokers can also act as customs brokers.
• 😀 A Freight Forwarder's Cargo Receipt (FCR) is a document confirming the safe receipt of cargo, issued to the cargo owner or shipper.
• 😀 FIATA is the International Federation of Freight Forwarders Associations, representing freight forwarders globally and providing a unified voice in logistics.
• 😀 Freight forwarders and NVOCCs (Non-Vessel Operating Common Carriers) are different, with distinct roles and responsibilities in the logistics process.

Q & A

What is a freight forwarder?

A freight forwarder is a company or party that acts as the agent of the cargo owner, specializing in providing logistics services. They are often referred to as international freight forwarders, freight brokers, or simply forwarders.

How do freight forwarders operate in different countries?

Freight forwarders typically have networks of offices worldwide. These networks may either be part of the same company or consist of different companies that collaborate to cover freight forwarding needs across various countries.

Why is a network important for freight forwarders?

Having a network allows freight forwarders to cater to the demand of customers in different countries, enabling them to expand their business and become stronger players in the freight forwarding industry.

What are the key services provided by freight forwarders?

Freight forwarders provide services such as cargo movement assistance, negotiating freight rates, cargo packing, warehousing, cargo tracking, inland transportation, and handling export/import documentation.

Do all freight forwarders provide the same services?

No, not all freight forwarders provide the same services. While the mentioned services are common, some freight forwarders may offer a subset of them depending on their capabilities.

What is the difference between a freight broker and a customs broker?

A freight broker can act as a customs broker, but the roles are not the same. Freight brokers are involved in a broader scope of logistics, whereas customs brokers focus specifically on handling customs-related documentation and clearance.

Why are freight forwarders crucial for businesses?

Freight forwarders simplify the supply chain by handling logistics from the shipper’s doorstep to the consignee’s doorstep. They act as reliable partners, ensuring smooth operations and customer satisfaction.

What is a Freight Forwarder’s Cargo Receipt (FCR)?

The Freight Forwarder’s Cargo Receipt (FCR) is a document issued by the freight forwarder to the cargo owner or shipper, confirming the safe receipt of the cargo.

What is FIATA and what role does it play in the freight forwarding industry?

FIATA, the International Federation of Freight Forwarders Associations, is a non-governmental global body representing freight forwarders. It brings together country-level associations to voice their collective interests internationally.

Are Freight Forwarders and NVOCCs the same?

No, freight forwarders and Non-Vessel Operating Common Carriers (NVOCCs) are not the same. They have different roles and responsibilities, especially in terms of legal obligations.