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The main functions of a freight forwarder

Views: 674     Author: Site Editor     Publish Time: 2023-10-12      Origin: Site

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When there is no freight forwarder, the carrier (such as an airline) has to directly face many shippers or consignees. The existence of a freight forwarder can reduce the heavy workload caused by directly facing the cargo owners, thus allowing the carrier to Concentrate on its core business - transportation.Similarly, the existence of freight forwarders, due to their professional knowledge, eliminates the need for cargo owners to deal with each carrier, reducing the workload of cargo owners.


The main business of freight forwarders, such as booking space for the cargo owner (consignor or consignee), picking up and delivering goods, tracking and checking the status of goods, customs declaration, commodity inspection, warehousing, packaging, document processing, distribution, etc., are greatly reduced. The business difficulty of cargo owners has been reduced.


A freight forwarder is more like a 'dealer'.Freight forwarders with large and stable supply of goods and certain qualifications can obtain the carrier's agency rights (become Shipping Agents).Freight forwarders with carrier agency rights can, on the one hand, apply the carrier's waybill at their workplace, and on the other hand, obtain more favorable freight prices from the carrier.


The freight forwarder in air freight business or sea container LCL business is also like a 'wholesaler'.For example, the characteristic of air freight is that as the volume of goods increases, the unit freight rate will decrease.Therefore, freight forwarders with a large and stable supply of goods can often obtain more favorable shipping spaces from carriers, and then 'retail' the shipping spaces to small freight forwarders or directly to cargo owners.This also allows the carrier to have stable cargo volume and revenue.


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