ROLE OF A FREIGHT FORWARDING AGENT IN THE EXECUTION OF AN IMPORT AND EXPORT CONTRACT

 

WHO IS A FREIGHT FORWARDER?

A freight forwarder can be a person or a company, that dispatches the shipment or arrange

carriers as well as space for it for a third party; a third-party here can be a person, a small size business or well-established commercial firm. Freight forwarders organize transportation for the goods, within country, outside the country or both.

FUNCTIONS PERFORMED BY A FREIGHT FORWARDING COMPANY OR A FORWARDER:

1. Give recommendations to the exporter  

i. The Freight forwarder advice the exporters about their responsibilities and responsibilities as per law                                  

ii. They help the exporter in choosing the most affordable means of freight shipping; they also bargain for the best cargo shipping rates inland                                                            

iii. They make the exporter choose the best way to ship their goods                                        

iv. Give marking and packaging recommendations                                                

v.  Give explanations of port functionality      

vi. Makes clear what tasks they would perform and what the exporter would require to perform during the shipping process                                                           

vii. Check import license, when needed          

viii. Give advice on ways of receiving payment of exported goods                                

ix. Inform in advance about the possible problems of freight shipping                              

x.  Provide a complete estimate of export                                                                      

xi. Understand and organize Letters of Credit                                                                  

xii. They may help exporters get in touch with the experts of trades like international marketing, financing, international banking, marine insurance and government export    

xiii.  The majority of forwarders uses a library to learn about various ports in the respective country

2. Perform freight shipping operation         

i. Make sure that the freight shipping is under control and the goods are safe while in transit                                                                 

ii.  Speed up production and delivery              

iii. Channelizing the process of empty container to be sent/returned after filled in with the goods                                                       

iv.  Picking the right mode of transportation, and transporter                                                   

v. Determining the itinerary                              

vi. Deal with booking and shipping of the shipment, which need special considerations like port of destination, ETA destination required, port of export, size and type of container, and the type  number of packages  

vii. Offer NVOCC consolidation facility to exporters for FCL and LCL modes

3. Documentation in International Freight Shipping                                                                  

 i.  Notarizes and certifies the invoices on behalf of the exporter                                        

ii.  A forwarder is also responsible for getting insurance certificate, inspection certificate, special customs invoices, and certificate of origin                                                                       

iii. Forwarders prepare dock receipts, lading bill, warehouse receipt, and AID documents  

iv.  Some also assist or prepare commercial invoice, packing list, export license, drawback forms, consular invoices, draft and shipper’s export declaration for the exporters

4. Keep the Shipper Notified                            

i.  Notices are usually sent to consignee, consignee’s broker, and shipper                        

ii. Notify the exporter for insurance, L/C, contract, and payment                                        

iii. Track the shipment when need, and help the shipper fill claim and learn from the errors made earlier

5. Send documents for collection                  

i.  Send documents to shipper’s international sales representative, consignee or their broker, and to bank