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Definition of forwarding agent

Freight forwarding is a service used by companies that deal in international or multinational import and export. While the freight forwarder doesn't actually move the
freight itself, it acts as an intermediary between the client and various transportation
services. Sending products from one international destination to another can involve
a multitude of carriers, requirements and legalities. A freight forwarding service
handles the considerable logistics of this task for the client, relieving what would
otherwise be a formidable burden.
Freight forwarding services guarantee that products will get to the proper destination
by an agreed upon date, and in good condition. The freight forwarding service
utilizes established relationships with carriers of all kinds, from air freighters and
trucking companies, to rail freighters and ocean liners. Freight forwarding services
negotiate the best possible price to move the product along the most economical
route by working out various bids and choosing the one that best balances speed,
cost and reliability.
A freight forwarding service generally provides one or more estimates to the client
along with advisement, when necessary. Considerations that effect price will range
from origin and destination to special requirements, such as refrigeration or, for
example, transport of potentially hazardous materials. Assuming the client accepts
the forwarder's bid, the freight is readied for shipping. The freight forwarding service
then undertakes the responsibility of arranging the transport from point of origin to
destination.
There are another definition of forwarding agent that you can understand:
Forwarding agent is as a firm specializing in arranging storage and shipping of
merchandise on behalf of 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, cargo insurance and filling of insurance claims.
Forwarding agent is a person or company that organizes shipments for
individuals or corporations to get goods from the manufacturer or producer to
a market, customer or final point of distribution.
A person, agency, or enterprise engaged in the collection, shipment, and
delivery of goods.
Somebody preparing shipping and customs documents or a person or
company that arranges shipping and customs documents for clients.

Role of forwarding agent


The main purpose of a Forwarding Agent is to arrange cargo movements to
destinations overseas. In this role you could be involved in all modes of
transport including air, sea, road and rail freight.
An International Freight Forwarder will have specialist expertise relating to
preparing and processing documentation for international shipping.
A Forwarding Agent will typically review documentation such as commercial
invoices and shippers export declaration Bills of Lading.
A Freight Forwarder or Forwarding Agent will also look at any other
documents required by the carrier or the country of import or trans-shipment,
including HM Customs documents which are produced digitally, creating
paperless working methods.
The role of Freight Forwarder or Forwarding Agent involves working with
others and so being able to communicate clearly and being very organised is
essential.

Key skills and qualifications of a Freight Forwarder or Forwarding Agent:


Previous experience as a Freight Forwarder or Forwarding Agent is
preferable, but a background in administration may be acceptable.
Good numeric skills are required as the role of Freight Forwarder or
Forwarding Agent deals with quantities and volume.
Problem solving and negotiating skills are also an advantage in the role of
Freight Forwarder or Forwarding Agent.
For those positions that deal with international cargo, ideally you will have
specialist knowledge of the procedures and steps that need to be carried out
to move cargo on an international scale.
Excellent communication skills both written and verbal are required as a
Freight Forwarder or Forwarding Agent is required to liaise with different
organisations/groups in their daily tasks.
Must be familiar with computer software programs eg Word, Excel, etc.

The advantages of forwarding agent:


Organization
The organization of shipping freight is difficult. While freight forwarding companies do
not actually move the freight themselves (though in some cases they do), they help
organize the freight with other companies. These companies will also help develop a
plan to get all your items to their destination with time to spare, and take care of all
the invoicing. No one knows the trucking industry like those who have done the
freighting.
Handles Any Load
In the shipping world there is LTL (Light Truck Load), FTL (Full Truck Load), and
Heavy Duty trucking. Regardless of the type you need it is available. Freight
forwarders do have the ability to arrange any type of shipping often at the lowest
price available. As a company that is huge saving money on all your shipping
needs. Every companys needs are different.
Handle Cost Organization
Billing is one thing but you want to be billed the correct amounts for what it is you are
shipping and billed for the necessary items not extraneous things that do not make
sense. When it comes to handling cost organization freight companies do a good job
of keeping track of all aspects of costs from weight to mileage.
Saves Time
Time is money in business. When time is saved companies can benefit from the
money they can put back into their pockets. Every business tries to come up with
ways to save money and save time. When it comes to shipping needs, they can do
exactly all of that. Shipping and freighting actually takes up a lot of time.

The disadvantages of forwarding agent:


Entrustment Issues
You are entrusting your products to a stranger when contracting a freight forwarding
company. Even though you picked a company that appears stable and competent,
you can never really be sure until the shipment actually arrives at your customer's
dock. It's difficult to discern which is truly a good freight forwarder, since all claim
their service is the best.
Data Deficiency Issues
Michael Comerford and Peter Denno of the Automotive Industry Action Group (AIAG)
pointed out that data deficiencies affects freight forwarders. Writing about the
automotive industry,Cornerford and Denno reported that data deficiencies can delay
15 percent of all ocean shipments. Some common examples of data deficiencies
would be data and documentation lost in translation between languages, or data
simply lost by incompetence. A good freight forwarding company has few data
deficiency issues. A mismanaged freight forwarder, however, has a great deal of
deficiency.
Price Gouging
If you do all the freight forwarding and documentation filing, costs can be controlled.
With a freight forwarder, you never really know how much of a markup in services
the forwarder is adding on. For example, a trucking company may charge you
$3,000 to deliver a shipment. If you contracted an unethical freight fowarder, he may
state the trucking company is charging $5,000.
Product Loss
The Musson Freight Fowarding Company states that loss is sometimes an inevitable
part of shipping. If you entrust a freight forwarding company to do all the packing and
shipping, you do not have control of how the items were packaged in the container. If
the freight forwarding is good, no problems develop. If the freight forwarder is inept,
losses become excessive.

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