Freight forwarders are agents for exporters, importers or shippers that move cargo. These agents often provide exporting companies with freight costs, port charges and consular fees, in addition to other details. Freight forwarders can provide a beneficial service for companies that are interested in moving cargo internationally, as they are experts in the field of international shipping. As such, they understand export and import laws for numerous countries. In addition to logistics planning, a freight forwarder may also handle storage plans for materials once they arrive at their destination.
A freight forwarder will also work with an exporting company to provide them with the fees related to shipping services exporting or important specific shipments. They also handle space reservation on the method of transportation that is being used to move the shipment. Previous to a shipment being made, the freight forwarder will usually review all of the documentation associated with the shipment, and prepare the bill of lading.
Freight forwarders generally work on a fee that is paid by the exporting company. This price is figured into the fee that the exporting company charges their customers for service. Some freight forwarders also work as consolidators, but this is not standard. Freight forwarding companies range in size from small localized firms to those that offer national and international services. Often, it is beneficial if these companies are registered with the International Air Transport Association (IATA).
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