Freight forwarders play an important role in international shipping by coordinating the transportation of goods for exporters and importers. They perform various key functions, including advising exporters, arranging shipping operations, completing necessary documentation, notifying shippers of status updates, and sending documents for payment collection. Freight forwarders select appropriate transportation modes, book cargo space, consolidate shipments, arrange insurance and payments, assist with customs clearance, and monitor shipments to ensure safe delivery of goods. Their services help coordinate the complex international shipping process for clients.

1. ROLE OF FREIGHT
FORWARDER
BY MANISH MANGHNANI

2. DIFFERENCE BETWEEN FREIGHT BROKER &
FREIGHT FORWARDER
• A freight broker is just what you would imagine when thinking of the word broker. They
bring together a buyer of services and a seller of services. In this case the person or
company that needs shipping services is buying (even though they may be selling a product,
they are purchasing a service – namely, shipping – in order to sell it). The seller is the carrier,
often a trucking company. Freight brokers have the expertise, the contacts, and the
knowledge to initiate this buy and sell transaction. They negotiate with the parties and
initiate the terms. They may be a single person, in theory, even running it out of a home
office
• A freight forwarder does much of what a freight broker does, but with additional benefits
and services. They assemble, disassemble, or consolidate shipments so they are sent in the
most efficient manner. Because of this, they are bound to be more than just a single person
working out of a small office. They require more logistical capital to make it work. There are
also considerable legal differences between the two. Although both are legal and legitimate
services, freight forwarders have a statutory freight claims liability, which means they are
liable and responsible if something goes wrong with the freight. Under the law, they are
considered a Common Carrier and are required to have this additional insurance. Freight
brokers can get that additional liability coverage, but they are not required to have it. And
since it usually costs twice as much as contingent coverage, they often do not have that
additional insurance. Contingent coverage does not benefit the shipper, but is insurance for
the broker. Freight forwarders have more comprehensive cargo insurance and have much
more incentive, if there is a claim, to represent the shipper and his or her best interests.
This is a significant difference. For many people and companies, it is a deciding factor on
which type of service to use. Since these are inherently bulk and costly shipments, liability
can be a major factor.

3. WHO IS A FREIGHT FORWARDER?
• A freight forwarder can be a person or a
company, that dispatches the shipment or
arrange carriers as well as space for it for a third
party; a third-party here can be a person, a small
size business or well-established commercial
firm. Freight forwarders organize transportation
for the goods, within country, outside the
country or both.

4. HERE ARE THE TOP 5 TYPICAL FUNCTIONS
PERFORMED BY A FREIGHT FORWARDING
COMPANY OR A FORWARDER
• Give recommendations to the exporter
• Perform freight shipping operation
• Documentation in International Freight Shipping
• Keep the Shipper Notified
• Send documents for collection

5. GIVE RECOMMENDATIONS TO THE
EXPORTER
• The Freight forwarder advice the exporters about their responsibilities and
responsibilities as per law
• They help the exporter in choosing the most affordable means of freight
shipping; they also bargain for the best cargo shipping rates inland
• They make the exporter choose the best way to ship their goods
• Give marking and packaging recommendations
• Give explanations of port functionality
• Makes clear what tasks they would perform and what the exporter would
require to perform during the shipping process
• Check import license, when needed

6. CONTD..
• Give advice on ways of receiving payment of exported goods
• Inform in advance about the possible problems of freight shipping
• Provide a complete estimate of export
• Understand and organize Letters of Credit
• They may help exporters get in touch with the experts of trades like
international marketing, financing, international banking, marine insurance
and government export
• The majority of forwarders uses a library to learn about various ports in the
respective country

7. PERFORM FREIGHT SHIPPING
OPERATION
• Make sure that the freight shipping is under control and the goods are safe
while in transit
• Speed up production and delivery
• Channelizing the process of empty container to be sent/returned after filled
in with the goods
• Picking the right mode of transportation, and transporter
• Determining the itinerary
• Deal with booking and shipping of the shipment, which need special
considerations like port of destination, ETA destination required, port of
export, size and type of container, and the type / number of packages
• Offer NVOCC consolidation facility to exporters for FCL and LCL modes

8. DOCUMENTATION IN INTERNATIONAL
FREIGHT SHIPPING
• Notarizes and certifies the invoices on behalf of the exporter
• A forwarder is also responsible for getting insurance certificate, inspection
certificate, special customs invoices, and certificate of origin
• Forwarders prepare dock receipts, lading bill, warehouse receipt, and AID
documents
• Some also assist or prepare commercial invoice, packing list, export license,
drawback forms, consular invoices, draft and shipper’s export declaration for
the exporters

9. KEEP THE SHIPPER NOTIFIED
• Notices are usually sent to consignee,
consignee’s broker, and shipper
• Notify the exporter for insurance, L/C, contract,
and payment
• Track the shipment when need, and help the
shipper fill claim and learn from the errors made
earlier

10. SEND DOCUMENTS FOR COLLECTION
• Send documents to shipper’s
international sales representative,
consignee or their broker, and to
bank

11. DEVELOPING FREIGHT BROKERING
SKILLS
• COMMUNICATION
• USE OF TECHNOLOGY
• CUSTOMER DEALING
• ORGANIZATION AND MANAGEMENT

12. SCOPE
• In International trade, freight forwarders
are rendering services to
exporters/importers and perform
procedural and documentary formalities.
The Freight Forwarders are provided
following services to their clients,

13. EXPORTS
• Select suitable mode of transport
• Slot booking in the Vessel
• Container Booking at Competitive rates
• Insurance arrangement
• Cargo Consolidation
• Weighment and measurement services
• Payment of freight and other relevant charges
• Arranging transport of containers/goods to the port
• Custom clearance
• Documentation formalities
• Monitoring shipment and follow up with other agencies
• Arranging “Shipped on Board” bill of lading.
• Assisting exporters for Export promotion schemes and claims

14. ANY QUERIES?
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