In the logistics and import-export industry, terms Forwarder and Forwarding mentioned frequently. But what are they really?? What is the role of Forwarder and Forwarding in the global supply chain?? Let's go together Logistics power Explore details through this article.

What is Forwarder and Forwarding?

What is a Forwarder??

Forwarder, aka Freight Forwarder, is a term used to refer to individuals or companies that provide freight forwarding and transportation services, both domestically and internationally. Forwarder acts as an intermediary, Receive goods from shippers, Organize the consolidation of goods from many small sources to form a large shipment, Then coordinate with transport units to deliver goods to the required destination.

Forwarder is responsible for the entire shipping process, from receipt to delivery, Make sure the goods come to the right place, right time. This is an important link that helps simplify the logistics process for import-export businesses.

What is Forwarding??

Forwarding, hay Freight Forwarding, is a freight forwarding and transportation service. This service includes organizing the transportation of goods from the point of origin to the destination, through methods such as sea, airway, railway or road.

In Vietnam, Forwarding services often focus on container packing, Transporting goods to major ports such as Hai Phong port (north) or Cat Lai port (south). Forwarding is not simply transportation but also includes tasks such as customs clearance, storage, and related services to ensure goods are delivered and received according to procedures.

Forwarding is considered a commercial activity, in which the service provider receives goods from the shipper, transport organization, storage, Complete the paperwork, and deliver goods to the recipient as authorized by the goods owner or related parties.

Distinguishing Forwarder and Logistics

In spite of Forwarder and Logistics are all related to delivery and transportation of goods, These two concepts have different scopes:

• Forwarder: Focus mainly on transporting goods from point A to point B, includes tasks such as booking reservations with shipping lines, do customs clearance, and delivery of goods. Forwarder is part of the logistics chain.

• Logistics: Has a wider range, shipping included, storage, inventory management, pack, and many other services. Forwarder is one of the services in the overall logistics system.

A company Logistics can provide the following services:

1. Store and distribute goods according to orders.

2. Pack, Classify goods as required (Quantity guaranteed, volume, Packaging standards).

3. Label and provide instructions for use.

4. Book with the cruise line (Booking) or issue a House Bill of Lading (HBL).

5. Domestic transportation by road (trucking).

6. Carry out customs clearance procedures.

7. Closing retail items (kho CFS) or shipping in full containers.

8. Ask for quarantine documents, assessment.

9. Carry out procedures for loading goods onto the ship and pay freight.

10. Buy cargo insurance and apply for a certificate of origin (C/O).

11. Hand over documents to customers upon completion.

12. The goods owner's representative carries out additional procedures if required.

Meanwhile, a company Forwarder usually focus on:

1. Domestic transportation (trucking).

2. Negotiate prices and make reservations with shipping lines (Booking).

3. Carry out customs procedures to clear goods.

4. Pack goods into containers.

5. Ask for quarantine documents, assessment.

6. Carry out procedures at the port to bring goods onto the ship.

7. Receive bill of lading (Bill of Lading) and pay the fare.

8. Buy cargo insurance and apply for C/O if necessary.

9. Hand over documents after completing delivery.

10. Representatives carry out other procedures as requested.

The Role of Forwarders and Forwarding in Import and Export

Forwarders and Forwarding play an indispensable role in the logistics industry, especially in the field of import and export. Specifically:

• Process procedures quickly: With extensive experience, Forwarder ensures that import and export procedures are carried out correctly, on schedule, helps save time for shippers.

• Wide connection network: Forwarder has relationships with many shipping lines and international shipping units, Helps choose appropriate and cost-optimized shipping methods.

• Negotiate preferential prices: Thanks to a large partner network, Forwarders can negotiate to receive better shipping rates than when the shipper works directly with the shipping company..

• Save costs for retail goods: Forwarders support retail consolidation (LCL) from many shippers to pack into containers, Helps reduce costs compared to retail shippers renting containers themselves.

• Support international delivery: Forwarders work with international carriers, Ensure goods are delivered on schedule and meet the customer's requirements.

Conclude

Hope this article has helped you understand better Forwarder and Forwarding, as well as their important role in the import-export industry. To update more useful knowledge about logistics, Please follow my website Logistics power frequent!