28 August 2019

The freight forwarder and its advantages

Do you know what a freight forwarder is? This figure is very important for organizing international freight transport. In the following article we explain its functions and the advantages of hiring it.

The freight forwarder, also called freight forwarder, is the person (physical or legal) responsible during the international transport of goods, with the aim of ensuring that it is carried out safely, efficiently and profitably. The freight forwarder therefore acts as an intermediary between the importer, the exporter and the companies involved in the transport.

The functions performed by the freight forwarder include planning, processing and managing the transportation of goods between customs. In addition, this person is responsible for carrying out all the formalities regarding documentation, process, insurance and transport costs.

Advantages of having a forwarding agent
The freight forwarder facilitates the shipment for both the importer and the exporter. This translates into a number of benefits:

• Advice on the most cost-effective and efficient alternative.
• Preparation and presentation of the documentation required for export.
• Accomplishment of the procedures to pack, stirrup and load the merchandise.
• Management with customs agents abroad to ensure compliance with regulations.
• Simplifies the process and management and can access better prices.

As you can see, the performance of a freight forwarder is essential to ensure the proper movement of goods from one country to another. This provides greater security when it comes to avoiding setbacks, as well as more accurate budgeting.

Types of freight forwarders
Depending on the functions to be performed during the transport of goods, there are different types of freight forwarders. The different classes are described below:

• Multimodal Transport Operators (MTO): includes all the necessary formalities and operations from the place of origin to the destination. This type of agent is capable of coordinating all the means of transport necessary to carry out the transaction.
• Air Transport Agents: Manage the expeditions of goods from airlines, usually long distance. This person must be a member of IATA.
• Road Transport Agents: These are the intermediaries that act between carriers and shippers, responsible for the transport of goods by road.
• Port Agents: They act at airports, seaports and cargo terminals, thus taking responsibility for the transfer of goods from one mode of transport to another.
• Cargo Agents: They act as agents for the shipowners, responsible for the operational management of the vessel. This person delivers and receives the letter during the maritime transport.
• For more information, the figure of the freight forwarder is regulated in Spain by Law 16/1987 on Land Transport, LOTT, since 1987.