What is a freight forwarder?
Freight forwarder, literally short for freight forwarder, is an international freight forwarder. In terms of job content, it is the acceptance of a client’s commitment to complete a particular aspect of the transport of goods or a link related to it, and any work involved in this area can be done directly or indirectly by finding a freight forwarder to save capital. Depending on the goods there are also overseas agents. A freight forwarder is a general term for the business of providing various transport services in the field of circulation specifically for those who demand and supply capacity for the transport of goods. They serve the whole society and act as a bridge and link between cargo owners and capacity providers, China is one of the biggest importing and exporting markets, and a professional China freight forwarder will build a strong relationship between suppliers and clients.
Mode of transport
- Ocean Freight Forwarding
Refers to the international freight forwarding agent that provides waterborne cargo transportation services and related services. It can be specifically divided into two types of ocean freight forwarding and river freight forwarding.
2、Air freight forwarding
Refers to the international freight forwarder who provides air cargo transportation and related services.
3、Land transport agency
Refers to the provision of road, rail, pipeline transport and other cargo transportation services and related services of freight forwarding.
4、Intermodal Transport Agency
Refers to the international freight forwarder who provides cargo transportation services such as road, rail, and pipeline transportation and related services. This kind of agent can be further divided into sea-air intermodal transport agent, sea-rail intermodal transport agent, air-rail intermodal transport agent and other types.
As with any logistics service, there are many factors that play into the end-to-end process. Freight forwarding may seem like a win-win situation for customers. Despite this, there are also some caveats to be aware of before diving in with a forwarder service. Below are a few of the advantages and disadvantages of freight forwarding.
Advantages of Freight Forwarders
- Freight forwarder services offer competitive pricing based on services needed by a customer. They can also lower prices through the consolidation of cargo from other customers. This allows for a single full container load with multiple customers’ cargo. Also, this serves to reduce final freight charges for less than container shipments.
- Freight forwarders usually specialize in a specific service, mode of transportation or market. This allows the company to choose the services the forwarder should handle. In turn, this gives the company greater control over the handling of its shipment.
- Knowledge and expertise are crucial when importing or exporting products. This work is performed via the customs clearance process. Freight forwarders have the most up-to-date information on customs regulations. Additionally, they can handle documentation, pay tariffs and handle taxes.
- One of the main advantages of a freight forwarder is their ability to offer services relating to trade. Some services include documentation, bank paperwork, cargo insurance, and inventory management.
Potential Disadvantages of Freight Forwarders
- Often, freight forwarding services aren’t the operators of the transportation moving the cargo. For this reason, their influence on what happens on board the ship, rail car, truck or airplane is minimal. Additionally, their participation in the transportation steps is typically completely hands-off.
- If you perform all documentation and forwarding, your costs are controllable. But, with a freight forwarder, there is no way to know what kind of service markup the forwarder is adding. A company might charge $2,500 for land transportation to a destination. Conversely, a freight forwarder can state the price as $5,500 and skim the $3,000 markup off the top.
- Product loss is a hard reality of some shipping processes. Putting trust in a freight forwarder to handle all shipping can lead to a loss of supply chain control. If the freight forwarder is detail-oriented, things are fine. But ineptitude can wreak havoc on shipments and lead to losses.
Do You Need Freight Forwarding?
Freight forwarding is an easy way to take your business and cargo to the next level. But, there are times when it is more effective to ship directly with the shipping company. Especially when they provide the same end-to-end supply chain services as forwarders, without the markup.If you happen to be in need of one, TJ China freight is highly recommended, offering sea freight, air freight, rail freight, FCL, LCL, DDP, DDU and more. One of the top-ranked companies in China in terms of freight rating.
