What does a Freight Forwarder do?




The activity of a freight forwarder in foreign commerce is defined in the U.S. Code of Federal Regulations Title 46 Part 510. These activities can be summarized as:
  1. Making arrangements for the transportation of commodities to foreign destinations and engaging inland and ocean carriers on behalf of the shipper.
  2. Arranging for warehouse storage
  3. Arranging for cargo insurance.
  4. Clearing shipments in accordance with United States government export regulations.
  5. Handling money received from the shipper and disbursing it to service providers engaged on the shipper's behalf. Also arranging credit with service providers on the shipper's behalf.
  6. Giving expert advice to exporters concerning Letters of Credit, other documents, licenses or inspections, or on other problems related to the shipment being handled for export.

F.M.C. licensed foreign freight forwarders acquire an intimate knowledge of ocean carriers, their strengths and weaknesses. There are several hundred liner services and numerous other ship owners. However, often there is only one of those carriers which is best to carry your specific product from it's orgin to it's intended destination within a particular time frame at the right cost. Whether there is only one best carrier or several from which to choose, your forwarder's advice will be invaluable in making that choice.

Many forwarders are just as knowledgeable of air, truck and rail transport as they are of ocean carriage.

Forwarders engage these other type of carriers on a daily basis. An F.M.C. licensed forwarder can usually be counted upon to provide an unbaised and knowledgeable opinion as to what mode of transport is best for your shipment, and engage the proper parties to carry out your wishes.





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