What is Freight Forwarding?

A company that moves cargo abroad on behalf of an exporter is called an international freight forwarder.

Freight forwarders understand the import rules and regulations of foreign countries, the various modes of shipping and the documents associated with foreign trade.

Many freight forwarders are licensed by the International Air Transport Association (IATA) to manage air freight and the Federal Maritime Commission to manage ocean freight.

Freight forwarders provide advice and assistance on freight costs, port charges, consular fees, documentation costs, insurance costs and their handling fees. They also suggest the appropriate packing methods in order to ensure that the shipment is protected during transportation.

Freight forwarders ensure that all appropriate documents (including letters of credit, bill of lading and other special required documentation) are correct once the shipment is ready.

Freight forwarders also make arrangements with overseas customs brokers to make certain that the shipment complies with customs documentation regulations.