Parties and roles
Freight forwarder
A company that organises the transport of goods for its customers, booking carriers, preparing documents and coordinating customs along the route.
In four languages
A freight forwarder plans and manages the whole movement rather than owning the ships or trains. It books space with shipping lines, trucking and rail operators, collects goods from suppliers, prepares or checks documents, arranges export and import clearance with licensed brokers, and tracks the shipment until delivery. Some forwarders also issue their own house bill of lading, in which case they act as carrier towards the customer. For importers buying from several Chinese factories, the forwarder is often the single contact who joins the pieces together. Example: a Dubai trader buys from suppliers in Yiwu, Foshan and Guangzhou. The forwarder collects the cartons into its Guangzhou warehouse, counts and photographs them, consolidates them into one container, files the export declaration, and arranges arrival, clearance and last-mile delivery in Dubai.
Questions
What is the difference between a freight forwarder and a shipping line?
The shipping line operates the vessels and carries the container. The forwarder organises the shipment for you, books with one or more lines, and handles documents, pickup, customs and delivery around the sea leg.
Do I need a forwarder if my supplier ships CIF?
Under CIF the supplier books the sea freight, but you still need someone to handle destination charges, the delivery order, customs clearance and delivery, which is usually a forwarder or clearing agent.