Freight forwarding is a service offered by logistics companies, concerned with shipping bulk consignments across international borders. Freight forwarding companies not only take care of the deliveries but also supervise the handling, storing, warehousing and transportation. It is like a helping hand that aids business owners in carrying out their business smoothly and effectively with the help of advanced technologies. In this article, we will be talking about the way freight forwarding helps businesses in today’s world.
What is Freight Forwarding?
Freight forwarding refers to the process where a freight forwarding company acts as a mediator between shippers(businesses and online sellers) and transportation service companies. It is considered to be cost-effective as it helps business owners reduce costs and increase efficiency. It not only focuses on delivery but handles all other aspects too, like warehousing, storing, and transportation. They establish relationships with the companies that handle the shipments and help in planning every step of the shipment on a client's behalf. Freight forwarding companies work with these transportation companies that ship the bulk consignments by road, water, air and rail freight.
Who is a Freight Forwarder?
Freight forwarding companies prepare the shipment processes for the business, where they manage storage, transportation, customs, and last-mile delivery, on behalf of the shipper. Here are a few services offered by the freight forwarding companies:
- They help fill the insurance claims for you when necessary
- They help negotiate the freight charges on behalf of their clients
- They prepare all the documentation necessary for the import and export of goods
- They help select the transportation providers to move the goods
- They also manage inventory during the transportation and storage processes
Key Stages of Freight Forwarding
Let us now understand the key stages of freight forwarding-
- Export haulage: This is when the transportation company picks up the products from a company to the freight forwarder's warehouse. This is often carried out by trucks.
- Export customs clearance: Before sending the products out of the country, the custom must approve them.
- Items checkpoint: The goods are checked thoroughly by the receiving team making sure that all the items have reached safely without damage.
- Import customs clearance: The custom of the receiving country checks and approves the products before allowing them to be sent further.
- Destination arrival and handling: The products successfully arrive at the final destination i.e. the warehouse or storage of the company in the foreign country, where the documents are thoroughly verified. The products are thus prepared to be sent to the end customer.
- Import haulage: This step happens when the product finally arrives at the final destination i.e. the end customer from the import warehouse. Just like export haulage, the company can select which type of transport facility they want to employ.
What are the Benefits of Freight Forwarding Companies
Freight forwarding companies act as a relief to businesses and help them function smoothly:
Cost-effectiveness
Freight forwarding helps businesses reduce costs that are involved in shipment and delivery. They handle these activities on their own which helps them connect with companies that provide services on a massive scale with less costs.
Efficiency
Freight forwarding is an efficient way to handle the business as it helps take off a chunk of responsibility from the business owners as they delegate this to the freight forwarding companies. This allows them to focus on other necessary tasks like marketing and sales.
Storage facilities
Freight forwarding companies provide business owners with storage facilities and warehouse spaces so that businesses don’t have to invest in renting or buying spaces and can still carry out their business easily with minimal investment.
Security:
Freight forwarding companies have the right tools and skills in place to transport any kind of cargo, big or small. They know how to take care of fragile products with care so that these delicate items make it to their destination safely. They have a standard shipping insurance policy in place to help you prevent the monetary loss caused due to loss and damage to the shipment in transit.
Conclusion
Freight forwarding is the most efficient and economical way to expand your business with minimal hassle. Going global with your products demands a hell of lot of a effort and skills, and this is where the freight forwarding companies come into play. They take care of the order fulfilment process, which is considered the most crucial part of the business.
If you want to opt for a reliable and economical freight forwarding company to aid your business, connect to NimbusPost and get in touch with the top companies with comparison all at one platform.
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