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Freight forwarding:The steps involved

Posted on - Sep 28,2022


Knowing the steps involved in the business of Freight Forwarding:

Are you wondering about the process involved in freight forwarding?

As a customer do you want to know what to expect when you engage the services of a Freight Forwarding company?

This post will tell you what you should know and expect from your Freight Forwarder. The steps and processes involved in shipping your goods from its point of exit to its final destination.

Step 1: Export to warehouse

First thing first, the goods have to be moved from the shippers locations to the freight forwarders warehouse in order to start a shipping process. A freight forwarder should own or lease a warehouse where goods can be kept, such a warehouse would be in a location with high traffic in demand for the business of freight forwarding.

In cases where a freight forwarder does not have or own a warehouse space,a transport fleet,or other infrastructure for the successful export of cargo to its destination, they LEASE or HIRE such services from companies who own such.

Step 2: Cargo Insurance

This cannot be overemphasized , a good and reliable freight forwarder should be able to obtain the best insurance package for your shipment depending on the type and value of goods shipped. Should anything wrong happen to your shipment a good freight forwarder can assist in claiming insurance for any misfortune.

Step 3: Payment of Shipping and Local taxes

Taxes are compulsory contributions made to the government.A competent freight forwarder who acts as an agent to the cargo owner would pay all the freight and local taxes on behalf of the cargo owner and of course this would be included in the service charge of the freight forwarder. This has to be done to avoid one's shipments from being confisticated(seized) by the authorities.

Step 4: Export Customs Clearance

Before any shipment leaves the country, it must first get clearance from the country where the goods originates from(country of production). This applies to cases of factory made products like cars,foods,medicals,clothings etc. This is usually an agreement done between the freight forwarder and the Consignee(same as the receiver), this agreement is usually done by a Custom Broker on behalf of both parties.

Step 5: Import Custom Clearance

Onces the shipment arrives, authorities in the destination country would check for the import custom document.It is the duty of the freight forwarder to ensure everything is documented and intact for clearance when the cargo arrives. In cases where a Custom Broker was involved then such persons take charge of the clearance process. The interesting part of this stage is that it can even start before the cargo arrives.

Step 6: Receiving and Handling of shipment at its Arrival

Once the shipment arrives at its destination it is the duty of the freight forwarder to receive the cargo, inspect it and ensure everything is intact as it was when it left its previous location. The freight forwarder is to receive all documents of the cargo, carrier bills and any other outstanding bill and begin to work on clearing the cargo for the port.

Step 7: Final Stage (Delivery to the Receiver)

This is called Final stage because it is at the stage the cargo is transported to the destination of the intended receiver, the priority for this stage is for the shipment to arrive just as the sender sent it.

At this stage the job is almost done but keep in mind that this stage is as important as every other stage. In my own opinion I would say it is the most important stage because this stage confirms the level of success of the shipment and the credibility of the freight forwarder.

This process might not necessarily be the work of the freight forwarder, because the delivery can be done by either the freight forwarder or the consignee(the receiver) can choose to go collect the cargo themselves using a local transportation company appointed by the receiver, depending on the agreement reached by the freight forwarder and its customer.

  In conclusion, The shipping industry is one which has really made life easier as we can assess products made from different parts of the world and this is made possible because of the presence of freight forwarders. The role of freight forwarders cannot be taken for granted in the shipping industry as they are the middle men between the sender of the goods and the receiver. Established freight forwarders would Reliable help in planning, coordination and movement of your cargo to its destination efficiently.

At www.afodel.com we work with the best freight forwarding companies to provide customers with the best options when it comes to shipping services.