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Originally Posted On: Logistics 101: What Is Freight Forwarding Exactly? – bmtscorp

 

Today, there are over 194 countries around the world. With freight forwarding, it allows you to ship your items wherever they need to be across the globe.

As a business owner, you might wonder what freight forwarding is. This article will take a look at freight forwarding. Read on to explore more about this form of transportation and how it’ll make moving supplies easier.

What Is Freight Forwarding?

Freight forwarding companies such as JS Forwarding have a method for shipping your goods from one place to another through multiple transport options. This can include by train, sea, rail, and air.

If you’re a business that needs worldwide logistics for your products, freight forwarding can benefit you to get it where it needs to go. This can include non-businesses that have large loads of items as well. Hiring a company can make the shipment of your items much quicker and easier.

Freight Forwarding Benefits

The freight forwarding process allows you to have experienced companies ship your items through their network of contacts. This will ensure that you get great rates for your need to ship the items.

They can also help you with other parts of the process including insurance, packing, storage, import/export documentation, and inventory management.

Keep in mind that there might be additional services that they don’t initially go over. Ask ahead about any extra fees.

The shipping process can include:

  • The bill of lading contract
  • Export licenses
  • Customs declaration
  • Export packing list
  • Inspection certificate
  • Shippers will export documents

Freight forwarding can help with:

  • Warehouse storage
  • Cargo insurance
  • Container tracking
  • Ocean transportation
  • Customs clearance
  • Air transportation
  • Freight rate negotiation
  • Inland transportation
  • International or documentation import and export

Freight Brokers

Freight brokers are different than freight forwarders. Freight brokers are those who connect the carriers with the shippers.

They don’t take responsibility for your items. They’re often able to get lower rates due to offering high amounts of business to carriers.

Carriers enjoy working with freight brokers since it’ll save them the resources and time necessary in order to find clients. They also receive a portion of the total cost for each transaction.

Freight brokers often:

  • Arrange transportation
  • Handle insurance claims
  • Use transportation routes
  • Handle the negotiation of rates

The benefits include the fact that freight brokers can offer increased resources or capacity. They also have the optimization of different modes of transportation and routes. There’s also a decrease in the cost of transportation.

You’ll Want To Think About

Before shipping the items, you’ll want to think about what type of goods they are whether they’re highly valued, hazardous, etc. Next, think about the size of the items.

Take into account the quantity of the items and how they can be packaged. Decide whether it’ll be shipped internationally, statewide, or domestically.

Some Items Can’t Be Shipped

Make sure that your items can be shipped in advance. Some items that might not be able to be shipped are food, alcohol, weapons, drugs, dangerous goods, perishable items, and food. International laws can change so it’s important to check with the freight forwarding company in advance.

What Are Inbound and Outbound Freights?

International shipping can include inbound and outbound freights. Outbound freights are ones that leave a facility, business, or warehouse to go somewhere else. Inbound freights are items that are heading to a business or facility from a vendor.

What Is BOL?

BOL stands for a bill of lading. The bill of lading is a contract that’s between the shipper and carrier. It’ll have all of the information about what’s being shipped. It’ll also state where it’s headed to along with more information.

What Is a PRO Number?

This is the number that’s given to your items when it’s picked up by the carrier. This allows them to see where the freight is located. It’s similar to a tracking number.

What Is a Blind Load?

This is where the shipper and receiver don’t know who the other is. It can also be in situations where the shipment remains hidden.

What Is Flatbed Hauling?

This is shipping for heavy freight or oddly shaped items. They’re too large in size or weight to go onto a traditional truck. Think about items that need open sides in order to unload and load them.

Third-Party Logistics Providers

This is when shippers outsource services in order to save themselves time. Third-party logistics providers often handle the fulfillment, distribution, and warehousing of different services.

Customs Brokers

They’re specialists in the clearance and filling of different customs requirements. They can work with freight forwarders and provide customs brokering or act as an agent.

Expect Delays

Keep in mind that the freight forwarding company isn’t responsible for any shipping delays. Equipment can fail, stall, or overheat.

Traffic and weather can impact the travel of the items as well. Listen to your forwarding company about any delays and understand that they don’t want your items to take longer than expected. They depend on repeat business and their reputation to get your items from point A to point B as fast as they can.

Understanding What Freight Forwarding Is

Now that you’ve explored this guide on what freight forwarding is, you should have a better idea if it’s right for you and your goods. Take your time picking out the right freight broker or forwarding company.

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