Freight Forwarding means more than just moving shipments from one place to another. Freight forwarders (intermediary companies) are in charge of creating the logistics and the loads to move the objects in the name of other companies. Also, they look for transportation methods like road freight. Keep reading to know more about what is freight forwarding.
The freight forwarding world involves various critical aspects, so keep reading below to discover more about shipping and the different transportation movements in the market.
Freight Forwarders and Their Functions
Freight forwarder companies work as third-person agents that coordinate some shipping services. This service includes exporting goods, contacting complete truckload transport services, making shipping, getting goods from a specific manufacturer, and getting it to a final destination, among other activities.
Forwarders work with national and international freight depending on the service but always act as an intermediary. Also, they look for the transportation and shipping costs, which take them to find the faster methods and low prices. They are specialists in logistics, and most of the time, they are trustworthy.
Freight forwarders can help you with customs documentation, bills of lading, customer service, and other activities related to shipping.
What Is Freight Forwarding?
So, what is freight forwarding? It is the act of coordinating and executing the movement of shipping. Unlike the freight forwarders, this is the action they do in the market, which consists of moving across the national or international borders to deliver the products on time.
Furthermore, freight forwarding is more than action because it covers essential areas like keeping the goods in good condition, accomplishing the service, developing the logistics, and delivering on time. The process of freight forwarding is challenging, but its efficiency remains cost-effective. You can find air, road, ocean freight, but the goal is the same, to reach the final destination.
So, freight forwarders use this process to manage the shipping, and at the same time, comply with the regulations and requirements in the borders. It can be a complex job, but it is an opportunity for many business owners.
Types of Freights
There exist different categories of freights due to the many ways of shipping that occur in the market. Also, it depends on if it is international or national.
Here are five common types of freights:
- Less Than Truckload (LTL)
- Full Truckload (FTL)
- Air Freight
- Ocean Freight
- Rail Freight
Less Than Truckload (LTL)
It is one of the most famous methods due to its accessibility. LTL can transport products from 100 to 15,000 pounds, and companies save a lot of money. It is reliable, and one of the advantages is that many businesses can use one truck to deliver the products. It means that freight forwarders can work together and fill up the truckload.
Full Truckload (FTL)
In this case, the truck uses the entire space to transport items from one shipper to one final destination. For this reason, it has a higher cost, and it could carry objects from 5,000 to 50,000 pounds depending on the truckload.
Air Freight
This freight type is one of the fastest options in the market and usually carries smaller packages. It is more expensive, but it is the best way to deliver the items faster. Also, it is known as air cargo, and the price depends on the amount.
Ocean Freight
This method is an option to send items around the globe. Usually, contractors work with full container load (FCL) and less than container load (LCL) to send the products. It could be a cost-effective solution for many shipping agencies. Besides, it takes many months to move packages through the ocean.
Rail Freight
Rails freight is one of the most common types used for shipping. It is economical, and it is one of the most growing transportation areas in conjunction with less than truckload and full truckload. This type of freight is designed to move cargo shipping through railroads and trains.
It is one of the cheaper processes, and it could cost from $100 to $300 depending on the weight and size. Besides, it can be even cheaper if you mix trucks with trains in one shipping. The advantage here is that trains move people and products simultaneously, which helps save a lot of money.
Logistics Company vs. Freight Forwarder
Most of the time, people tend to confuse logistics with freight forwarding. They are pretty similar but different in various aspects. Logistics companies work with supply chains to plan, control, and deliver products or storage. Practically freight forwarders work with logistics to coordinate different parts of the various shipping.
Logistics companies comply with functions that forwarding can’t complete. As mentioned above, forwarders work as third-person agents that coordinate some shipping services. They are in charge of buying and moving the products, while the logistics receive, store, and manage the different products.
Usually, logistic companies don’t have routes, so they have to move through different forwarding services, which is a vital part of the logistics.
Moreover, some private agents and associations help with customs brokerage, so they help with federal requirements, cargo insurance, imports, and exports. Besides, these customs brokers advise you on customs clearance with taxes and international shipping.
Improve Your Freight Forwarding with Our Service
Many people don’t know what is freight forwarding, and they lose money because of that. Working with a company specializing in this process is vital to saving time, money, and stress. It can be the perfect tool if you work with shipping companies.
Every day, millions of packages get their final destination through freight forwarding. As we stated before, freight forwarders use different methods to help customers deliver or move their goods. Now that you have answered your doubts on this process, it is time to look for the service. Look at the different options we offer.
If you have any doubt, we can help you out. We will be more than pleased to help to answer any questions you may have. Don’t be afraid of working with one of the best companies in the market.