The Advantages of Freight Forwarder

by Michelle Hickman; Updated September 26, 2017
Freight forwarders have expertise in shipping cargo to international markets.

Companies use freight forwarders when they need help with transportation matters of products. Freight forwarders assist both importers and exporters with international trade by finding the best modes of transportation for the goods to reach their final destination. Freight forwarders arrange the shipping of goods between the supplier and the distributor.

Cost

Freight forwarders offer competitive costs based on the level of services a company needs. Freight forwarders can also lower prices to a specific company by making arrangements with other businesses that need shipments sent by the same transportation service to the same destination. The freight forwarder does this by taking the company's shipments and consolidating them with the shipments from other businesses to create a single load to transport. This method cuts the price of freight charges.

Specialization

A freight forwarder generally specializes in one type of service area, market or mode of transportation. This can allow a company to pick and choose how many shipping services the freight forwarder should handle, giving the company more control over how its shipment is handled. By understanding the company's type of product, the freight forwarder knows with whom to book the appropriate routes and the best type of shipping transportation that ensures the company's shipment reaches its destination in the same condition as when it left the warehouse.

Customs Knowledge

Freight forwarders have knowledge and expertise regarding importing and exporting products through customs services. The freight forwarder has the most current information regarding the customs regulations of other countries and can fill out all the necessary paperwork, pay the required tariffs or handle other taxes. This prevents the company's shipment from sitting in the loading dock while the company's shipping manager struggles to file unfamiliar paperwork.

Special Services

Another advantage a freight forwarder can offer a company includes trade-related services, according to Business Link. Such services consist of handling all documentation for shipments, such as the bill of lading and bank papers to release payment. A freight forwarder also offers insurance services for all shipped products and manages the inventory so the accurate amount of products is transported.

About the Author

Based in southwestern Pennsylvania, Michelle Hickman has written since 2006 on an array of topics including lifestyle, writing instruction and financial services. Her first articles appeared in "The Pittsburgh Tribune Review: Focus Magazine." She holds a certification in computer and information science from Central Westmoreland Career and Technology Center.

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