Domestic Freight Forwarder: Understanding Their Role

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Master the complexities of domestic freight forwarding with our comprehensive guide. Learn how they navigate regulatory landscapes, manage logistical hurdles, and provide indispensable services to businesses of all sizes.
By  Natalie Kienzle
Published Date:June 30, 2023

A domestic freight forwarder ensures the safe, reliable, and efficient movement of goods within the borders of North America. They understand the challenges of shipping within such a large and diverse area. With the right expertise and experience, they get goods to where they need to go, smoothly and swiftly.

According to the International Federation of Freight Forwarders Associations (FIATA), a domestic freight forwarder is responsible for shipping arrangements within the same country. They handle jobs like coordinating transport logistics, ensuring regulatory compliance, and handling documentation. Professional forwarders make deliveries efficient and punctual.

Find out how a domestic forwarding service can keep your goods moving after they’ve arrived from overseas or from across the border.

What are Domestic Freight Forwarders and Why Are They Important?

A reliable domestic freight forwarder is necessary when you need to move goods within the country. Expanded eCommerce and logistics services make it possible for shipping to go to anyone’s front door. In a country as large as the United States, the importance of a domestic freight forwarder is also on the rise. 

A forwarder can take care of various details for businesses with shipping needs:

  • Shipping documents
  • Coordinating transport services
  • Shipment tracking
  • Warehouse arrangements
  • Advice on packaging
  • Negotiating freight charges and rates
  • Freight consolidation

Working with a forwarder who already has a clear understanding of these items, means you don’t need to dedicate someone on your staff to coordinate shipping. Get help with freight trucking services, rail cargo arrangements, and even domestic air freight.

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The Rise of North American Domestic Freight Forwarding Services

The domestic freight forwarding industry in the U.S. has boomed over the past decade. As more products come in from overseas, the need for trucks and railways has gone up. 

The growth is due to many factors:

  • Advancements in technology
  • Increased eCommerce activities
  • More complex supply chains

Domestic shipping has always been around, but was dominated by a few major parcel carriers. Major online retailers, such as Amazon, have revolutionized the shipping industry just with the wide variety of things that can be ordered. 

Consider of the following trends in domestic logistics:

  • eCommerce Shipping: In 2018, Amazon delivered about 750 million packages to U.S. households. By 2021, the number of deliveries had gone up to 4.75 billion per year. That’s an increase of 600%. 
  • New Technology: Logistics and freight companies now use cloud-based catalog systems and AI algorithms to find the most efficient way to organize and deliver goods. 
  • Increased Cross-Border Trade: The U.S. Trade Representative (USTR) reported an increase in trade with Canada and Mexico of about $500 billion. This was in just a ten-year period from 2009 to 2019. 

How do all these goods get moved around? It’s been made possible with domestic freight forwarding services that know how to best navigate the various transport systems available. 

Thankfully, there are a wide range of shipping options available, known as multimodal shipping. To meet customer demands, many shipping combinations are used. As solutions become more complex, the services of a forwarder become more necessary. 

The Shift to Multimodal Transportation

If you thought arranging a single truckload from one point to another was challenging, prepare for the next step. Multimodal transportation solutions combine different modes of transport (like truck, rail, and air) to get a job done.

A domestic forwarder is the best solution for organizing deliveries that might need to travel in different ways. 

  • Air
  • Truck
  • Rail
  • Water

In recent years, many businesses have turned to multimodal solutions to optimize their supply chains. As a result, the demand for freight forwarders, who can effectively manage these complex logistics operations, has increased.

Changing Values of Single vs Multimodal Freight Shipments (2007 – 2017)

Transport ModeTotal Value (2017)Percentage Growth
Single Mode$11.7 trillion24.2%
Multimodal$2.1 trillion48.8%
Source: Bureau of Transportation Statistics(BTS)

While single mode transports, especially trucks, remain the top way to ship goods around the country, the growth of multimodal use far outpaces it. 

Within multimodal transports, some combinations are growing faster than others. Even methods such as barge shipping along rivers and other internal waterways like the Great Lakes, has been increasing. 

Growth of Multimodal Shipping Combinations (2007 – 2017)

Shipping CombinationPercentage Growth
Truck & Rail85.9%
Truck & Water330.6%
Rail & Water214.1%
Source: BTS

Whatever combination it takes to get freight where it needs to be, a domestic freight forwarder can make it happen. 

USA Freight Forwarding Services offers a wide variety of options to clients for shipping modes, including international arrangements for importers and exporters. 

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Exploring the Different Types of Ground Freight Forwarding

While air cargo has its place in domestic shipping, it’s more popular as an international option. Ground freight forwarding is the real key player in domestic logistics. 

It includes anything that doesn’t involve flight:

  • Internal waterways
  • Truck
  • Railways

Leveraging the different modes and shipping combinations can help companies get goods shipped almost anywhere. From towns and cities along the Great Lakes to bustling city centers, no client is out of reach.

How Ground Freight Forwarding Streamlines Domestic Logistics

Even without the presence of international freight regulations, shipping in the U.S. isn’t a straight forward process. Depending on the destination or the commodity, there are still a number of laws and regulations that come into play. 

Let’s consider some of the biggest obstacles to domestic shipping and how a freight forwarder helps. 

  1. State by state regulations

If a company needs to ship products that are oversized or classified as hazardous materials, they need to account for different regulations based on each state they travel through. 

Working with a forwarder familiar with your industry ensures that your shipment is arranged so that it meets the standards in every state it passes through. Important documents are handled professionally, and your shipment stays safe. 

  1. Coordination with international shipping

For goods coming in through major ports, there is still a need to transfer goods to local retailers or distribution warehouses. Not every ocean freight service has supporting partners on land. 

Domestic freight services can arrange for goods to be moved from ports through drayage or transload. A forwarder can then work with your company to make sure those same goods are sent to their final destinations. 

  1. Planning consolidated shipments

For many small to medium businesses, shipping a full truckload isn’t reasonable. When arranging shipments in-house, these are often the only options available. 

By working with a domestic ground forwarder, a business gains access to options like Less-Than-Truckload (LTL) shipping. These allow for smaller shipments to go out. A forwarder can also coordinate with a warehouse facility to help businesses consolidate shipments for efficiency. 

When these things are handled by logistics professionals, your company can focus on what it does best. Streamlined services will be fewer errors and cost savings in the long-run. 

Semi truck and dry van trailer on a winding road

The Critical Role of Cross-Border Freight Forwarding in Today’s Global Economy

Ever since the United States-Mexico-Canada Agreement (USMCA) went into effect, most trade restrictions between the three countries were lifted. Fewer restrictions mean goods are now going in and out more than ever before. 

While these are international shipments, freight forwarding services that serve all of North America are in a position to smooth things out. 

A freight forwarder with presence in all three nations can help with many cross-border needs, such as:

  • Customs regulations
  • Leveraging the USMCA trade agreement
  • Dealing with language barriers
  • Rural logistics in Canada and Mexico
  • Security in high-risk regions
  • Documenting regulated commodities

With the right forwarder, your business can bring in new goods and take advantage of new markets. The USMCA opened up trade for imports and exports to expand. 

Increased Trade Values With Canada and Mexico 2020-2021

Country and YearExports ValueImports Value
Canada (2020)$255 billion$270 billion
Canada (2021)$307 billion$357 billion
Mexico (2020)$212 billion$325 billion
Mexico (2021)$276 billion$384 billion
Source: BTS

By simplifying the complex and handling the unexpected, freight forwarders play a critical role in successful cross-border trade. Your contribution to the global economy might only be a train ride away. 

Choosing the Right Domestic Freight Forwarding Services

Choosing the right domestic freight forwarding service can be the difference between seamless logistics and a chain of disruptive issues.

When working without a freight forwarder or with an inexperienced one, mistakes can easily happen.

  • Paperwork errors lead to delays and hefty fines
  • Miscalculations of different transport modes raises costs
  • Cross-border regulation troubles can have severe legal impacts

Rather than risk damaging your business, find a forwarder you can rely on. We’ll look into the main things to consider when selecting domestic freight forwarder and provide a checklist to evaluate their services.

Key Factors to Consider When Selecting Domestic Freight Forwarding Companies

Modern supply chains are more complex than ever. It’s one of the main forces driving the current forwarding industry. Businesses are bigger, inventories are more complex, and people are more demanding. 

For a business to stand out, they need to make sure they have products on hand for every part of their operation. The easiest way to do this is to leave shipping in the hands of experts. 

When looking into different forwarding companies, consider the following:

  1. Experience: A long history usually means that a company has a better understanding of regulations and first-hand knowledge of proven procedures.
  2. Partner Network: Relationships with carriers and connections helps forwarders provide options for different shipping needs.
  3. Service Scope: Make sure the right services are offered, including the ability to arrange freight shipments with different transport modes. 
  4. Customer Service: If other clients are leaving bad reviews, chances are you will too. Make sure there are good references available. 
  5. Compliance: Permit violations get expensive fast. When you need to ship regulated freight, it needs to be right the first time. 
  6. Cost: Quality costs, but it shouldn’t bankrupt you. Make sure a company is willing to negotiate based on your needs. 

To break down this process even further, our next section will provide an overall checklist that businesses can use when evaluating domestic freight forwarding services. 

Evaluating Domestic Freight Forwarding Services: A Checklist for Businesses

Knowing what the key factors are is important, but a simple checklist can help you narrow down your options faster. 

Use the following questions to see if the domestic forwarder you’re considering meets your company needs:

  • Does the freight forwarder have years of experience in the domestic market?
  • Can the forwarder provide the exact shipping services you require?
  • Is their customer service responsive and attentive?
  • Does the forwarder provide insurance options and have back-up plans in case of issues during transit?
  • Are the costs transparent, competitive, and without hidden charges?
  • Does the freight forwarder have technology for real-time tracking and communication?

When you can respond positively to these questions, you’re on the right path to successful shipping. Contracting with a forwarder is an investment, one that could have far-reaching consequences. 

At USA Freight Forwarding Services, we want to make sure that clients never regret a contract. International or domestic, our goal is to help your business thrive. 

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You Need Reliable Freight Forwarding 
Let USA Freight Forwarding Services be your partner.

Find Value and Reliability with USA Freight Forwarding Services

Avoiding issues with your domestic and international shipments starts with hiring the right help. Working with a qualified domestic freight forwarder gives you access to expertise that elevates your business. 

With USA Freight Forwarding Services, you’ll work with industry leaders that have decades of experience dealing with permit arrangements and international guidelines. 

  • Air Cargo
  • Marine Shipping
  • International Freight Services

Complete a contact request form today and take the first step to simplifying your domestic freight needs. Already know your shipping specifics? Get a risk-free quote today or call us directly at (866) 941-8081

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