What is Freight Forwarding in Logistics?
Freight forwarding is when a business uses a logistics company to arrange the shipment of goods or materials from one place to another. These companies have the benefit of thorough knowledge of all transportation methods and how best to move your goods. They can be used for national and international shipping and are generally efficient and cost-effective. They will arrange every detail of the journey for you, meaning there is no risk of important customs documentation being forgotten or misfiled, and everything arrives in good condition.
It is simple in its process. The logistics company will negotiate with freight providers to get the best price available for the business and will compare all possible routes and shipping methods to see which is the most suitable. Although they are often used by importers and exporters and handle a lot of international freight, they are also suitable for within-country transport, particularly for high-value goods where you need secure freight handling.
Types of Services
There will be many services that a freight forwarding company can undertake for their client company.
- They can organise customs clearance and import and export documentation for international shipping, otherwise known as customs brokerage.
- They can organise shipping insurance
- Some companies organise packing and storage before the delivery of goods
- The cost effective transfer of goods
- Usage of Pallet Networks
How Does it Work?
The logistics company will move your products or goods from your location to their own. At this point, they should undertake a thorough inspection to make sure there has been no damage. The company will then get custom clearance for the items they are shipping or any other legal requirements which are required for transport. They will organise the mode of transport and will make sure that all documents have been received by the relevant authorities, and then inspect and sort the cargo to ensure there has been no damage.
Benefits of a Freight Forwarding Service
A freight forwarding service can help to improve the speed of your deliveries by choosing the most effective method at that time – rather than a company relying solely on sea freight because it’s what they know, for instance. They can also help with the efficiency of your pallet deliveries as they have the experience of knowing transport details in depth, so they will have long-term relationships with transportation companies within their pallet network, and know the best methods for shipping your cargo.
Because they have a wealth of experience, they are also able to create the appropriate documentation for your shipment – accurately and at the right time. International shipping can be a source of stress and worry for companies, as they must obtain customs clearance. Delays at this point because the wrong paperwork has been completed can have a large impact on the supply chain. Having an expert in the legalities performing this task on behalf of shippers can remove this worry and allow companies to focus on their normal day-to-day activities – confident in the knowledge that nothing will be forgotten.
A significant benefit of using a freight forwarding company is that they are normally able to save you money. They will have long-standing contracts with others and a vast network of contacts, so they will be able to provide you with the best deal for your shipments. They will be able to determine whether it is better for you to have single or multiple carriers, find deals on cargo insurance and generally get better pricing than a company working on its own.