Freight forwarding refers to the business of handling transportation formalities, picking up, dispatching and transporting goods on behalf of others.

Freight forwarders, some of which are middlemen, or shipping companies or airlines that do not own ships or aircraft, are freight forwarders. Their responsibilities are to transport the consigned goods from one place to another through the designated transportation channels, and to act as agents for transportation companies (sea, land and air) to collect and transport goods.

In the international freight market, the freight forwarding industry is between the cargo owner and the carrier. It accepts the entrustment of the cargo owner to handle ship chartering, space booking, stowage, making relevant documents, customs declaration, inspection application, insurance, container transportation, unpacking, issuing bills of lading, settling freight and miscellaneous charges, and even presenting documents for negotiation and settlement of foreign exchange.

Characteristics of International Freight Forwarders

1. Liner transportation has fixed routes, fixed ports, fixed shipping dates and fixed rates, which are its most basic characteristics.

2. The exemption of the rights and responsibilities of both parties is based on the terms of the bill of lading issued by the shipping company or its agent, and is subject to unified international conventions, without the need for a separate transport contract.

3. The time limit for the carrier to be responsible for the goods is from the time when the goods are loaded onto the ship to the time when the goods are unloaded, that is, "ship's side to ship's side" or "hook to hook".

4. The carrier is responsible for loading, unloading and stowage operations, and sometimes for handling operations from the wharf to the ship's side (or from the ship's side to the wharf warehouse). The cargo business at both ends of the route is generally arranged and handled by entrusted agents.

Advantages of international freight forwarding

✔️It is conducive to the development of core industries

It is difficult for non logistics enterprises to be comprehensive in logistics because of their expertise. Therefore, enterprises should concentrate on the business they are familiar with, allocate resources to the core business, focus on the core business, improve the competitiveness of enterprises, and leave logistics and other auxiliary functions to more professional freight forwarding companies.

International freight companies can meet these needs in a fast, more cost-effective way, and these services are difficult to achieve by manufacturers alone. Similarly, freight forwarders also have the ability to meet the needs of potential customers of manufacturing enterprises, thus promoting the communication between manufacturers and retailers.

If enterprises build their own warehouses and network facilities, they need huge investment capital, and can not obtain income in the short term. This will be a heavy economic burden for enterprises lacking funds, especially SMEs. However, if freight forwarders are used, they will not only reduce the capital occupied by inventory and the investment of fixed capital, realize the rational utilization of resources, but also gain a competitive advantage in the industry of the same industry.

International freight forwarders form alliances with various logistics enterprises, learn from each other's logistics management experience, and improve their management level and service quality. It is conducive to achieving economies of scale and enhancing the competitiveness of enterprises.

Conclusion

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