Friday, October 16, 2009

Freight Forwarding Definition

What is the definition of Freight Forwarding?

Freight Forwarding definition by

Firm specializing in arranging storage and shipping of merchandise on behalf of its shippers. It usually provides a full range of services including: tracking inland transportation, preparation of shipping and export documents, warehousing, booking cargo space, negotiating freight charges, freight consolidation, cargoinsurance, and filing of insurance claims. Freight forwarding usually ship under their own bills of lading or air waybills (called house bill of lading or house air waybill) and their agents or associates at the destination (overseas freight forwarders) provide document delivery, deconsolidation, and freight collection services. Also called forwarder.

Freight forwarding definition by

A freight forwarding is a third party logistics provider. As a third party (or non asset based) provider a forwarder dispatches shipments via asset-based carriers and books or otherwise arranges space for those shipments. Carrier types include waterborne vessels, airplanes, trucks or railroads.

Freight forwarding typically arrange cargo movement to an international destination. Also referred to as international freight forwarders, they have the expertise that allows them to prepare and process the documentation and perform related activities pertaining to international shipments. Some of the typical information reviewed by a freight forwarder is the commercial invoice, shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import, or transshipment. Much of this information is now processed in a paperless environment.

Freight Forwarding definition by

An organization that collects shipments from a number of businesses and consolidates them into larger shipments for economies of scale. A freight forwarding often also deals with route selection, price negotiation, and documentation of distribution, and can act as a distribution agent for a business. By consolidating loads, a freight forwarding can negotiate cheaper rates of transportation than the individual businesses and can prebook space to ensure a more rapid delivery schedule.

Freight Forwarding definition by

Freight forwarding are commercial entities that arrange for the transportation of freight in exchange for compensation.

At the request of the shipper, the forwarder makes the actual shipping arrangements and provides the necessary services for expediting the cargo to its destination. Forwarders assume all responsibility for the transportation of the shipment from point of receipt to point of destination, including preparing and executing the necessary documentation.

The freight forwarding is paid on a fee bases by the shipper and often receives an additional percentage of the freight charge from the carrier. In contrast, property brokers arrange for the transportation of freight but do not assume responsibility for its movement from origin to destination.