What is Freight Forwarding?

 Freight forwarding is the coordination and shipment of goods from one place to another via single or multiple carriers via air, marine, rail, or highway.

The importance of freight forwarding for global trade was recognized in Canada in 1948 with the establishment of the Canadian International Freight Forwarders Association (CIFFA). CIFFA recognized that forwarding freight, whether by land, marine, rail or air requires coordination, regulation, and agreed-upon best practices to ensure that goods flow in a timely and proficient manner across borders, overseas, and throughout the world.

The Principles of Freight Forwarding

The principles of freight forwarding are premised on the efficient and cost-effective transfer of goods that are maintained in good condition throughout their travels. 

To accomplish this, freight forwarders become experts in managing the logistics necessary to ensure that goods arrive on time. Successful trade and shipping in expanding globalized markets mean having the right tools at your disposal.

Negotiating tariffs, customs regulations and being fluent in the requirements of shipping by land, sea, rail, and air, freight forwarders manage the risks and benefits of shipping both nationally and internationally using the latest advances in information technology.

Successfully Navigating the World of Freight Forwarding

Having the knowledge and skills to navigate the regulations of freight forwarding is integral to ensuring the successful shipment and delivery of goods. 

Even as the knowledge of customs regulations is an important component, the successful transfer of goods through freight forwarding relies on its service industry. As such, freight forwarding depends on having the right people whose commitment to excellence and customer satisfaction ensures that goods reach their final destination in a timely and efficient manner.

The Duties of Freight Forwarders

First and foremost, a freight forwarding company is responsible for the effective management and organization of importing and exporting freight. While they typically don’t have a hand in the actual movement of cargo, their value comes from the relationships they form with companies across the globe.

Perhaps an illustration would be beneficial. Say you have a load of wind turbine components that are manufactured right here in Canada, and they need to be shipped to a country overseas. As the producer of these components, you could send them yourself. 

First, you would need a trucking company to carry them to a port location, and then you would need an overseas shipping company to load, transport, and unload them in the receiving country. From there, you would need another trucking company in the receiving country to pack them and transport them to their final destination. 

It may seem like a simple process, only involving 3 or 4 other companies, but consider the following. What if you need special permits for the land or ocean travel, because of the size of your wind turbine components? Are there trade restrictions between the countries? Does your shipment contract abide by the best practices of the country you are shipping too, or provide the best price? Who is responsible for your load, and how do you hold them accountable?

Therein lies the primary purpose of freight forwarding companies. It isn’t enough to know the way that your product should be shipped. Instead, it is the minutiae and the specific process of each stage in the shipment that requires the scrutiny and knowledge provided by this essential service. 

Find Your Freight Forwarder Today!

Now that you understand what freight forwarding is and appreciate the value it offers consider finding the right company for your unique shipping needs, best accomplished through proper planning and diligent research, but remember to settle for the best and not the rest!