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What is a freight forwarder? The answer form Chinese freight forwarder company

Views: 3     Author: Site Editor     Publish Time: 2022-05-27      Origin: Site

What is a freight forwarder? The answer form Chinese freight forwarder company

When importing goods from China or other countries, importers usually have to use the services of freight forwarders. Freight forwarders agents or freight forwarders companies are mainly involved in organizing the transportation of goods. In the following article, we describe what a freight company is? What services can the freight company provide? And why do you need a shipping company?

Freight forwarding is a part of the TSL industry - transportation, freight, and logistics. Transport is the transport of persons or goods; Freight forwarding is to organize safe and effective transportation, while logistics includes planning and managing the supply chain. Freight forwarders can provide a wide range of TSL services and have their fleet, customs agents, etc. However, freight forwarders can only organize and outsource specific tasks to other companies.

Why do I need a freight forwarder?

Hiring a freight forwarder can make the whole process easier to manage. Some companies may not have international trade services but provide services in a given country or a customs zone. In most cases, these freight companies only provide road freight.

Importing goods from outside the EU is a slightly complicated process. It is usually necessary to transport goods by two or more modes of transport (also called multi-modal transport). Customs clearance is also complicated; Therefore, it is better to use the service of a freight forwarder.

In general, using a freight forwarder makes your shipment easier and safer. Especially for those who do not understand the overseas transportation process, a series of tedious work in logistics customs declaration can be alleviated by entrusting a freight forwarder.


What services do freight forwarders provide?

Freight forwarders provide services for companies and individuals. They act as intermediaries between producers or suppliers and recipients of goods.

The services provided by freight forwarders include:

▪Plan and organize necessary means of transportation to make the goods arrive at the destination in the shortest time

▪ Handling goods requiring special storage conditions, such as low temperature

▪ Packaged goods

▪ Cargo storage

▪ Complete necessary documents

▪ insurance contract

▪ Handle customs clearance procedures

▪ Product tracking

Some freight forwarders do not transport dangerous goods, perishable goods, drugs, alcohol, or batteries. This may be due to the lack of experience of the freight forwarder with such products or the carrier's decision.

How is the forwarding process?

The stages of the freight forwarding process can be divided into 7 steps :

1. transportation from the production site to the warehouse.

2. export customs clearance.

3. check the goods according to the documents.

4. transport to the importing country.

5. import customs clearance.

6. store the goods in the warehouse.

7. deliver the goods to the designated place.

The first and final stages do not need to be the freight forwarder's responsibility. Export clearance may also (depending on the Incoterms rules) be the responsibility of the seller, not the freight forwarder.

Incoterms 2020 is a set of international trade rules that have come into force since 2020. Incoterms regulate the allocation of costs and responsibilities between buyers and sellers. The selected rules define when the seller's freight forwarder operates and when the importer's freight forwarder handles transactions.

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