Freight Forwarder

Posted in Operations and Supply Chain Terms, Total Reads: 575

Definition: Freight Forwarder

A freight forwarder or forwarding agent is an individual or a company which organizes shipments for organizations to source goods from the manufacturer to the final point of distribution or consumer. It may move a wide range of products as cargo, ranging from manufactured goods to raw agricultural products, owing to its expertise in the logistics network. The freight can be taken through a variety of shipping providers, such as ships, trucks, railroads and airplanes. International freights are handled by international freight forwarders, who have expertise in preparing and processing of documentation, customs and shipment.

The freight forwarder does not moves the products itself, rather it acts as an intermediary between shipper and transportation services like cargo shipping, expedited shipping by air and moving goods by truck or rail.

The most economical route is selected out by bids, on the basis of cost, speed and reliability. The freight forwarder establishes relationships with all kinds of carriers, from trucking companies to air freighters, in order to be able to negotiate best possible price for shipment. Freight forwarders have expertise in handling international shipments from one destination to another, which would pose a formidable burden on the client.

The advantages of deploying a freight forwarder are:

• Reliable transportation of products at competitive rates

• Time saving

• Relief from burden of international shipping procedures

• Ancillary services like insurance, customs documentation, non-vessel operating common carrier documentation, bills of lading, warehousing ,risk assessment and management, methods of international payment


Hence, this concludes the definition of Freight Forwarder along with its overview.


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