WHAT IS A FREIGHT FORWARDER? MEANING, FUNCTIONS AND RESPONSIBILITIES

Cargo Flores Jan 01, 2025 0 Comment

Welcome to Cargo Flores, your reliable partner in logistics and transportation. We want to be the perfect alternative for the management of your international logistics, we are passionate about excellence, and constant innovation and we offer our full commitment. We want to exceed your expectations and build long-term relationships. Join our family and experience a quality service that adapts to your constantly evolving needs.

We will now discuss some aspects of the international freight forwarder that we believe will help you better understand the transcendental role he plays in the world of international trade:

FREIGHT FORWARDERMEANING. WHAT IS A FREIGHT FORWARDER?

A freight forwarder is a person or company specialized in the management and coordination of international shipments of goods. Its main function is to organize the transportation of goods from the point of origin to their final destination, ensuring that the operation is carried out in an efficient, safe, and cost-effective manner.

The freight forwarder acts as an intermediary in the freight logistics chain, connecting several key participants, such as producers, exporters, importers, shipping lines, airlines, land transport companies, warehouses, and customs, among others. Its role is essential to ensure smooth and efficient logistics in international trade.

THE IMPORTANCE OF THE FREIGHT FORWARDER IN INTERNATIONAL FREIGHT LOGISTICS

Freight forwarders have extensive knowledge in the logistics of international freight forwarding, as well as in customs regulations and the necessary procedures for the clearance of goods in different countries. In addition, freight forwarders have a network of contacts and suppliers that allows them to offer integrated and customized door-to-door services to their customers.

In short, a freight forwarder is a key intermediary in international trade, responsible for coordinating and managing the various logistics processes required to ship goods from one part of the world to another.

Their role is essential to ensure that goods reach their destination safely, efficiently, and in compliance with international regulations and standards.

With all this in mind, at Cargo Flores we know that international logistics can be a challenging journey, but we are here to make it easier for you. Our experience allows us to anticipate potential problems and offer quick solutions that adapt to your company’s needs.

We offer a personalized service to ensure that we meet the specific requirements of our clients. Our commitment is to provide complete advice and support at every step of the process, offering valid alternatives and maintaining constant communication so that you feel informed at all times.

ROLE OF A FREIGHT FORWARDER

The main functions of a freight forwarder are as follows:

Advice and planning: the freight forwarder advises clients on the best transport options, the most efficient routes, the most suitable means of transport, and the customs and documentation requirements necessary for the shipment of the goods.
Coordination of the logistics chain: the freight forwarder is responsible for coordinating and managing all the processes in the logistics chain for the transport of goods, from collection at the place of origin to delivery at the final destination.
Supplier contracting and management: the freight forwarder contracts and coordinates the services of the different suppliers involved in the logistics chain, such as shipping lines, airlines, land transport companies, warehouses, among others.
Processing of customs documentation: the freight forwarder is responsible for processing all customs documentation required for the clearance of goods in different countries, such as commercial invoices, certificates of origin, permits, and licenses, among others.
Monitoring and control of the goods: the freight forwarder constantly monitors the goods throughout the logistics process to ensure that the established deadlines are met and that the goods arrive in perfect condition at their final destination.
Incident and claims management: in the event of incidents arising during transport, the freight forwarder is responsible for managing them and making the corresponding claims to the suppliers involved in the logistics chain.
Information management: last but not least, one of the main functions of the freight forwarder is to keep its customers and partners informed in a timely manner, providing access to this information through the most appropriate and advanced technological channels (online, unassisted reports, integrations, etc.).

ADVANTAGES OF WORKING WITH A FREIGHT FORWARDER

Experience and knowledge: The freight forwarder has extensive experience and expertise in the international transport sector, allowing them to offer advice and solutions tailored to the needs of each client.
International coverage: The freight forwarder usually has a wide network of partners around the world, which allows them to coordinate shipments in multiple countries and modes of transport. This facilitates logistics and route optimization.
Time and cost savings: The freight forwarder is responsible for managing all aspects related to transportation, allowing companies to save time and costs in managing their transport operations.
Safety and security: The freight forwarder is responsible for ensuring that all rules and regulations in international transport are complied with, which guarantees the safety and security of the goods throughout the transport process.
Flexibility and adaptability: The freight forwarder is able to adapt to the specific needs of each client, allowing it to offer customized solutions tailored to the needs of each shipment.
Network of contacts: The freight forwarder has a wide network of contacts in the transport sector, allowing it to access a wide range of transport options and find the most suitable solution for each shipment.
Improving efficiency in the supply chain: The freight forwarder is a strategic ally for companies seeking to optimize their transportation operations and improve the efficiency of their supply chain, as it is responsible for coordinating all aspects related to transportation and ensuring that all deadlines and requirements are met.
Negotiating competitive rates: freight forwarders have the ability to negotiate preferential rates with carriers and logistics service providers, which can result in significant savings for companies.
Problem resolution: In the event of shipment problems or mishaps, freight forwarders are equipped to take corrective action and resolve issues effectively.
Cargo insurance: Freight forwarders often offer cargo insurance options to protect goods in transit, providing importers and exporters with peace of mind.

RESPONSIBILITIES OF THE FREIGHT FORWARDER

The responsibilities of the freight forwarder are as follows:

LEGAL AND CONTRACTUAL RESPONSIBILITIES.

The freight forwarder has a number of legal and contractual responsibilities in relation to the carriage of goods, including the obligation to comply with the terms and conditions of the contract of carriage, the handling of documents and permits, and liability for damage or loss of goods during the carriage.

INSURANCE OF GOODS

The freight forwarder also has the responsibility to manage the insurance of goods during transport as long as such insurance is contracted by the customer, and can offer its customers a wide range of options depending on the needs of each shipment.

CUSTOMS OBLIGATIONS

The management of customs documents is one of the most important functions of the freight forwarder in international transport, since it is responsible for ensuring compliance with customs and tax obligations of customers in the different countries of origin and destination.

DOCUMENT MANAGEMENT

The freight forwarder can offer document management services, ensuring that all legal and customs requirements are met and facilitating the import or export process for its customers.

MEANS OF TRANSPORT USED BY THE FREIGHT FORWARDER

Maritime: Maritime transport is one of the most used means of transport by freight forwarders in international transport, as it allows the transport of large volumes of goods over long distances. The freight forwarder is in charge of managing all aspects related to maritime transport, such as contracting ships, planning the route and delivery times, and managing the necessary documentation.
Air: Air transport is another means used by freight forwarders in international transport, especially for shipments of high-value or urgent goods. The freight forwarder is responsible for managing all aspects related to air transport, such as contracting airlines, planning the route and delivery times, and managing the necessary documentation.
Land: Land transport is used by freight forwarders in national and international transport, and can be carried out by road, rail or even inland waterways. The freight forwarder is responsible for managing all aspects related to land transport, such as hiring carriers, planning the route and delivery times, and managing the necessary documentation.

TRENDS AND CHALLENGES IN THE FREIGHT FORWARDING SECTOR

Digitalization of processes: One of the main challenges facing the freight forwarding sector is the digitalization of processes, which involves the use of technologies such as artificial intelligence, blockchain or robotics to improve the efficiency and transparency of transport processes.
Changes in regulations and trade policies: the freight forwarding sector is influenced by changes in regulations and trade policies at the international level, which can affect transport conditions and clients’ customs and tax obligations.
Sustainability and the environment: Sustainability and the environment are increasingly important in the freight forwarding industry, and forwarders are expected to adopt more sustainable and environmentally friendly practices in the transportation of goods.

DO YOU NEED THIS TYPE OF SERVICE TO MANAGE YOUR INTERNATIONAL FREIGHT FORWARDING OPERATIONS?

If your company needs this type of service to manage your international freight forwarding operations, do not hesitate to contact us! In our team, we have experts in the transport and logistics sector, with extensive experience in the management of shipments of all types of goods.

We offer customized solutions adapted to the needs of each client, with the objective of optimizing the efficiency of your supply chain and guaranteeing the safety and security of your goods throughout the entire transportation process. Contact us today and find out how we can help you take your shipments to the next level.