Role of Freight Forwarder
A freight forwarder is one who undertakes as a licensed Customs house broker, customs clearance and forwarding of goods on behalf of his client, including if necessary, procurement and coordination of one or more modes of transport. He may also undertake to carry out additional purposes connected with the most important contract such as warehousing(including storage in transit) group age or consolidation, packaging, documentation, weighing and measurement of freight, container leasing, insurance, currency trade, etc. “The expression carrying on the business of forwarding signifies the dispatching of shipments by any person on behalf of others by ocean-going common carriers in commerce from the Country” and also includes “handling the formalities incidental to these shipments.” Freight forwarders are organizing, encouraging, facilitating, planning and managing global and global logistics services. Services of cargo forwarders length the entire logistics system. They are specialized in a few of the core aspects of the global business and plays a very important part in entire logistics system with international network and provides combined solutions, e.g., import/export documentation, sea transportation, ship agency, aviation, road or rail transport or warehousing. “Over the past, say 10 to 15 years6, freight forwarders remit has widened to add “value adding” services. Changed the spectacle from “asset-based” into “service based” logistics. In short, they are promoting the idea of a lead logistics provider (LLP) or integrator. Apart from engaging in traditional freight forwarding activities, these integrators offer international contract services in response to an increasing industrial demand caused by outsourcing of manufacturing tasks where it is economically beneficial to do so. This outsourcing, in turn, contributes to, e.g., partially fabricated items and consumer goods in need of transport for their respective gathering plants and markets.”
Freight Forwarders are organizing shipments at very competitive rates for exporters/importers. The freight forwarders can also function as an advisor to his client on customer requirements, new markets, competitive circumstances, export strategy, proper trader terms to be contained in foreign trade contracts, documentary credits and in all aspect to his business.Conveying the proper information at the ideal time and to the correct recipient is essential to initiate, facilitate and encourage the physical movement of products. It is crucial to declare the assets and subsequent customs procedures for transit, export, and import, as well as correctly routing cargo across a global logistics network and it is also necessary to prevent hold-ups at boundary crossings or transshipment facilities and also to provide the quality service required by clients.
The role of the freight forwarder is expanding as the method of movement of products. Currently each day, freight forwarders are well arranged and providing the challenges services to the Exporters/Importers for the compliance of formalities involved with the movement of goods. They also render the services of collecting the revenue and remitting to the treasury of their authorities. Safe and timely delivery of these goods at the correct destination is the ultimate goal of any trading, and that is all the more true in foreign exchange. These agents play the significant role in this operation, and also the volume of global trade is not small at all if consumed on a global level and the charge should give to those agents for rendering their technical services to the exporters/importers.
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