Freight Forwarders – What are they?
In the event that you find that you have to plan a relocation you might want to consider freight forwarders. But what are freight forwarders and what role can they play in expediting your shipment?
The freight forwarders
Freight forwarders do not physically transport goods. They act as an mediator between yourself and the various transportation companies. They are known as a Non-Vessel Operating Common Carrier (NVOCC). Also Third Party Logistics Provider.
Basically, they are subject matter experts on logistical administration and logistics networks. They are best used to determine the most cost-effective way to transport goods using different types of transport. More especially, the handling of customs and excise administration that can differ greatly between jurisdictions and which becomes quite complex.
The benefits of using a freight forwarder
The freight forwarder is a one-stop-shop for moving any goods from point A to B. They can really assist in saving time, money and reducing stress.
- They have established networks with service providers across the various modes of transport. These range from international container shipping , cargo trucking, air freight and rail transport.
- Freight forwarders will be able to assess the logistical requirements in order to evaluate quotations that best suit your cost / time requirements.
- They will handle the storage and packing of goods.
- Having all administration managed reduces the load especially for unfamiliar countries. This includes:
- Bill of Lading
- Risk assessment, management and insurance
- Customs and Excise
- The planning and sequencing of a transport itinerary.
- Secure storage
- International payments for service providers
- Tracking and communication on the progress of the shipment.
- Handling of issues that can arise from time to time.
- Delivery to point of destination
In the event that you don’t have experience in the logistics of cross border transport then consider getting a freight forwarder. The benefit of engaging a freight forwarder is of great value. They can also reduce relocation costs and shipping risks.
Armstrong & Associates, Inc (A&A) is a leading Third Party Logistics market research and consulting firm. They have published the Top 25 Global Freight Forwarders List. These were ranked by 2016 Logistics Gross Revenue/Turnover and Freight Forwarding Volumes:
|.A&A Rank||Provider||Gross Revenue (US$ M)||Ocean TEUs||Air Metric Tons|
|1||DHL Supply Chain & Global Forwarding||26,105||3,059,000||2,081,000|
|2||Kuehne + Nagel||20,294||4,053,000||1,304,000|
|9||UPS Supply Chain Solutions||6,793||600,000||935,300|
|13||Hellmann Worldwide Logistics||3,443||902,260||576,225|
|14||Kintetsu World Express||4,373||556,640||495,947|
|20||Hitachi Transport System||6,273||430,000||230,000|
|25||NNR Global Logistics||1,676||146,278||286,897|
Source: Armstong & Associates, Inc- “Top 25 Global Freight Forwarders List “. 2017-09-12. Retrieved 2017-09-12.
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