What is freight forwarding in logistics and how does it work? This is a question that many inexperienced importers and exporters ask themselves. Moving freight across borders, no matter how small or how large, is a very difficult task to undertake. That’s why many importers and exporters choose to hire a freight forwarder who can take care of the logistical responsibilities for shipments.
Freight forwarding logistics is a service that bridges the gap between the importer/exporter and the carrier(s) handling the shipment. This service takes into account all of the logistical challenges that a shipment could face and provides a shipping plan. Challenges can include anything from storage to tracking, and more.
To understand how freight forwarding logistics can help you, it’s important to understand how it works. We’ll give you the details on this vital service that shippers find so useful.
Freight forwarding logistics services are provided by a freight forwarder. To carry out this service, freight forwarders work on behalf of shippers to get their freight where it needs to go. They do this by analyzing the type of freight that’s being moved and where it needs to be delivered.
All of these partners will play some part in getting your shipment to its final destination. Freight forwarders can work for freight forwarding companies or work independently. In some cases, freight forwarders even work for logistics companies.
International shipping cannot be completed without using different modes of transportation. This is because international shipments have to travel over land sea and air. To move freight across these types of terrain, multiple modes of transport have to be used.
Freight forwarders use their connections with multiple carriers to move freight with the following modes of transportation:
International shipments will make their journey to their destination using at least two of these modes of transportation. At the freight broker’s discretion, they will decide at which point in a shipment’s journey a new method of transport should be used.
Learn more about shipping goods by air and ocean with our articles on the types of air freight shipping services and ocean freight shipping services.
Numerous aspects go into planning out an international shipment. Freight forwarders routinely handle numerous responsibilities by working with the partners that we listed above.
The experience that most people have when they track their freight involves going to the carrier’s site or the site of the company they bought their product from. However, freight forwarders have direct connections with the carriers that move the shipments they handle. This allows them to track freight in real time so they can keep you in the loop on the progress of your shipment.
Utilizing a good route is essential for the transportation of any type of freight. For a freight broker, finding a good route is an important responsibility. Freight brokers typically look for routes that have the following characteristics:
A considerable amount of time is always going to pass when you have to ship freight internationally. However, the goal of a freight forwarder is to find a route with these characteristics so that your freight can get to where it needs to be in as timely manner as possible.
If you’re not sure if you need a freight forwarder, then check out our article to learn more.
Once a route has been decided, your freight forwarder has to book transportation for your goods to travel. They do this by contacting the various carriers that they have relations with to find out if they have any availability. Since your freight will change the mode of transport throughout its journey, freight brokers have to provide carriers with the date they should expect to receive your freight.
For example, it could take a week for your shipment to reach another country. That means your freight forwarder needs to ensure that another carrier who will pick the freight up from the port will have availability the day your freight arrives.
Want to know how this differs from an NVOCC? Read our article to find out.
Your freight forwarder works for you and because of that, they want to make sure that you pay a reasonable rate to the carrier that will be moving your load. Having a freight forwarder negotiate your rates is much better than doing it yourself.
Freight forwarders already have established relationships with the carriers they work with. Therefore, carriers are likely to be more flexible on pricing with a freight forwarder than with an importer or exporter who they don’t know.
While consolidating shipments isn’t something that freight forwarders do all of the time, they can make an exception if the occasion presents itself. Consolidation shipments are when you turn multiple shipments into one. This can be beneficial for a few reasons:
If you have multiple shipments that you need to export, have your freight forwarder consolidate the shipments for you.
You might find at some point during the transit process that you require a place to store your goods. A freight forwarder can use their connections with personnel spanning across the supply chain to warehousing options along the route your shipment will travel. Your freight forwarder can also find a warehouse that will let you store your goods there at an affordable rate.
Utilizing a freight forwarder to perform freight forwarding logistics is not mandatory for the importing/exporting process. That said, unless you have experience completing the tasks that we listed above, it’s best to hire a freight forwarder to help you import and export.
Freight forwarding in logistics will take care of one entire part of the importing/exporting process for you. Doing everything that could be easily done by a freight forwarder will take an unnecessary amount of time.
When you use freight forwarding in logistics, you’ll receive access to the many skills and abilities that freight forwarders have like:
Hiring a freight forwarder to perform freight forwarding logistics services will make internatinal shipping a smoother process. Freight forwarding is commonly used by importers and exporters across the U.S. and the industry doesn’t seem to show any signs of slowing down.
| 2018 | $149.09 Billion |
| 2019 | $139.29 Billion |
| 2020 | $130.01 Billion |
| 2021 | $145.24 Billion |
With the help of a freight forwarder, you’ll be able to ship goods like medical supplies or frozen food overseas.
If you’re not ready to import or export goods and would rather take some more time to learn about the shipping process, then scheduling a consulting session with a freight forwarder is something you should take advantage of. Our experts offer consulting sessions in a 30-minute to a one-hour time slot.
During this time, a freight forwarder can answer any questions that you have about the transit process. They’ll explain to you what your responsibilities are as an importer and can give more information on how they can help you.
At USA Freight Forwarding Services, we have a dedicated team that will accommodate and support the needs of imported or exported freight. We provide essentials services that we know you will find useful like:
With our ground, ocean and air shipping available, you can get your goods transported however you see fit. If you have questions about freight forwarding then schedule a consulting session with one of our freight forwarders. Our freight forwarders have decades of experience and are a wealth of knowledge that you will be able to use to your advantage during a consulting session.
If you’re unsure what your next step should be in the importing/exporting process, fill out our contact form or give our team a call at (866) 941-8081. They can help you make an informed decision on what your next step should be.
