Freight Forwarders in Transport Lesson 5 PDF

AP5305 – INTRODUCTION TO TRANSPORT AND LOGISTICS Lesson 5 – Freight Forwarders in Transport Introduction to freight forwarding Definition: Role: Freight forwarding is a crucial Freight forwarders act as component of transport logistics...

AP5305 – INTRODUCTION TO TRANSPORT AND LOGISTICS Lesson 5 – Freight Forwarders in Transport Introduction to freight forwarding Definition: Role: Freight forwarding is a crucial Freight forwarders act as component of transport logistics, intermediaries between shippers and involving the coordination and various transportation services, management of the shipment of goods ensuring the smooth and efficient from the point of origin to the final movement of cargo. destination. A service used by companies that deal in international or multi-national import and export.  What is a Freight Forwarder? 1 2 A freight forwarder or A freight forwarder is a forwarding agent is a person or company that serves as an a company who co-ordinates intermediary between and organizes the movement of transportation companies shipments on behalf of a that import and export goods shipper (party that arranges an and the businesses that need item for shipment) by liaising them. Freight forwarders with carriers (party that manage every aspect of the transports goods). The freight transportation process, from forwarder chooses whether to storing goods before ship a consignment by road, by shipment to ensuring they air, by rail, or by sea” make it through customs. Examples: DHL Global Forwarding, Kuehne+Nagel, Expeditors, and Panalpina  What is a Freight Forwarder? Role as Cargo Consolidator Differs from Common Carrier An individual or f irm who accepts Freight forwarder does not own less than container load (LCL) any vessel but function as a shipments from individual shippers principal carrier. and combines them for delivery to the carrier in full container load (FCL) shipment. Common Carrier is a person, corporation s and f irms engaged in the business of transporting / carrying of goods / passengers both by land, water or air for compensation, of fering their services to the public. Parties Involved as Freight Forwarder in Consolidation Scheme Shipper Common Carrier Consignee Delivers good to the Owns /chartered a Owner of consignment. carrier. vessel. Bears the freight cost / Transport goods / people To whose order of whose behalf payment is by land, air, water. consignment will be made. delivered at the port of destination. Identify freight forwarders operating in Bahrain (research in class) - Short introduction - Services they of fered Key Responsibilities (1 of 2) Documentation Cargo Booking and Handling Consolidation Customs Clearance Managing shipping Negotiating with carriers Facilitating customs documents, customs for cargo space. clearance processes. paperwork, and Consolidating shipments Handling import and compliance to optimize export documentation to documentation. transportation cost. meet legal Ensuring adherence to requirements. international trade regulations and standards. Key Responsibilities (2 of 2) Communication and Route Planning Coordination Determining the most ef f icient Liaising with various stakeholders, transportation routes, considering including shippers, carriers , and factors such as cost, time, and customs of f icials, providing real - mode of transport. time updates on shipment status to clients. Services Provided by Freight Forwarders Documentation and Packaging Requirements  Transportation documents (1 of 2) Each of the modes of transport has specific documents required for the movement of goods throughout the supply chain operations. These documents specify : ✓ The names of the sender (consignor) and receiver (consignee) ✓ The origin and destination points ✓ The description of the goods to be moved ✓ The freight charges (incoterms- a set of internationally recognized rules which define the responsibilities of sellers and buyers in the export transaction.) ✓ The responsibilities for payment of freight changes  Transportation documents (2 of 2) 1. Commercial invoice: Outlining product value 2. Packing list: details the contents, and often dimensions and weight, of each package or container 3. Bill of lading (BoL): (historically used in sea freight) – is a document issued by a carrier to a shipper confirming receipt of goods in acceptable condition for shipment. Acts as a title to the goods once arrived at destination. 4. Manifest: cargo, passengers, and crew of a ship, aircraft, or vehicle 5. Declaration/certificate of origin (COO): country origins of product/consignment 6. Preference (movement) certificate: Special requirements for goods (e.g. perishable) 7. Material Safety Data Sheet (MSDS): Document required for hazardous goods 8. Forwarders Certificate of Receipt (FCR) document enables the freight forwarder to provide the consignor with a special document as an official acknowledgement that he has assumed responsibility of the goods. https://www.marineinsight.com/maritime-law/freight-forwarding-process-everything-you-wanted-to-know/ COMMERCIAL INVOICE PACKING LIST BILL OF LADING MANIFEST DECLATION/ CERTIFICATE OF ORIGIN PREFERENCE (MOVEMENT) CERTIFICATE  MATERIAL SAFETY DATA SHEET FORWARDER’S CERTIFICATE OF RECEIPT The Freight Forwarding Process https://tgl.co/how-freight-forwarding-works/ ANY QUESTIONS? THANK YOU