Freight forwarding is not simply cargo transport. It is a comprehensive service covering the entire logistics chain from cargo collection to delivery to the final consignee.
With 17 years of experience and membership in the international PANGEA logistics network, we help ensure the smooth movement of cargo worldwide.
What is freight forwarding?
Freight forwarding is a comprehensive logistics service in which one company coordinates the entire cargo-transport process.
Forwarding involves far more than selecting a vehicle. It is end-to-end management of logistics processes, including route optimisation, preparation of required documents, customs procedures, real-time cargo monitoring and rapid resolution of problems.
The freight forwarder coordinates the entire transport process, allowing you to focus on your core business and growth.
Process
1. Enquiry and cargo-data collection
We gather information about the cargo, route, deadlines, delivery terms and any additional services required.
2. Transport-plan preparation
We select the most suitable transport chain and align responsibilities, deadlines and the key stages of the process.
3. Booking carriers and services
We book transport, terminals, warehouses and other required services and coordinate their schedules.
4. Coordination of documents and formalities
We coordinate transport documents, customs procedures, certificates and other information required for the specific cargo.
5. Shipment monitoring and delivery
We monitor the entire shipment, manage deviations and coordinate delivery to the final consignee.
Enquiry and cargo-data collection
Booking carriers and services
Shipment monitoring and delivery
Transport-plan preparation
Coordination of documents and formalities
- 1
Enquiry and cargo-data collection
- 2
Transport-plan preparation
- 3
Booking carriers and services
- 4
Coordination of documents and formalities
- 5
Shipment monitoring and delivery
Advantages
Price
Freight forwarders move large cargo volumes and can therefore often obtain more competitive rates from shipping lines, airlines and inland carriers. Companies that do not ship regularly usually have less negotiating leverage for such rates.
Single point of contact
The forwarding process can combine cargo collection, transport, warehousing, documentation and delivery, meaning you do not need to find a different provider for every individual stage.
Risk management
A freight forwarder not only responds to problems that arise but also works with vetted partners to maintain service quality throughout the transport chain.
Tracking and information
Freight forwarders can monitor cargo movement throughout the transport process, helping you quickly obtain information about the location and status of your shipment and plan your operations more effectively.
Freight forwarder and customer: what are their functions and responsibilities?
For successful cooperation, it is important to understand clearly the functions and responsibilities of both the freight forwarder and the customer.
- • Select optimal solutions, including the route and suitable transport equipment for the cargo.
- • Coordinate the entire transport process – collection, loading, inspections and delivery.
- • Monitor cargo transport, resolve issues and keep the customer informed about shipment status.
- • Ensure that transport documentation is properly handled.
- • Provide accurate cargo information, including weight, dimensions and characteristics.
- • Pack and label the cargo properly in accordance with the freight forwarder's instructions.
- • Provide all required documents on time during the transport process.
FAQ
A carrier is the company that physically transports the cargo using its own or contracted transport equipment. A freight forwarder is a logistics expert and coordinator who organises the entire transport chain, selects suitable carriers and routes, coordinates customs documentation and helps solve transit-related issues.
Although the freight forwarder organises the shipment and works with vetted partners, the carrier bears liability for physical carriage under the applicable international conventions and transport terms. For greater protection, we recommend insuring the cargo for its full value – the insurance premium is usually only a small part of the total transport cost.
A freight forwarder has access to global logistics networks, such as PANGEA, and significant purchasing volumes, which can provide more competitive rates and more flexible routing than an individual carrier may be able to offer. The forwarder also provides a single point of contact for warehousing, documentation, customs and transport coordination.
The main documents are a commercial invoice, packing list and transport document such as a CMR, Bill of Lading or AWB. Depending on the cargo, certificates of origin, safety data sheets, export/import declarations or other permits may also be required.
