International Freight Fording: Why? And How?

Tripoto

Why International Freight Forwarding?

Transaction of goods and services between two different nations is known as export and import. The country or the company that sends goods is known as exporter and the other one that receives is called importer. This is a vast business and most of the governments across the globe encourage exports as they are a huge source of getting foreign revenue. Exports create employment opportunities as well for the trained and skilled workforce within a country.

Sending goods from one nation to the other is not as simple as giving a utensil to our neighbor or sending a postcard to a relative inviting them on a traditional occasion. The process of sending goods to the other nation is known as International Freight Forwarding. This process involves so many operations and other sub divisions that perform a piece of work to complete desired give and take.

Let us discuss an example of sending a consignment of finished goods from Australia to Gulf.

Initially properly packed goods will be needed to be moved to a warehouse near an international port. Essential formalities regarding container packing list, invoices, details and taxations should be completed. Then the container carrying the goods to be exported will be loaded on a commercial ship for transportation of goods by sea. After taking the most convenient route, this ship would arrive at Singapore. Another company that offers further transportation would be assigned with the material and documents. There would be some other formalities related to customs and insurance. Then the goods will be loaded to another ship that will transport them to specified country in Gulf region. After customs checks and formalities the goods would be required to be transported through road carriers to the exact address of the receiver.

It would be practically difficult and costly to involve own workforce to complete the job. That is the reason this process is outsourced to professional companies who have the required manpower, skill and network to carry out the job.

How does an ideal International Freight Forwarder work?

They work as all-in-one solution providers for international logistic needs. They have their own dealer network or tie ups with various companies across the world to provide hassle free logistics services.

They act as a broker between their clients who hire them and the end customer to whom the products are to be delivered. They take care of storage and warehousing near ports and airports, transportation of goods through roads and trains, loading and unloading of packaging in ship and planes through variety of specialist agencies involved in the process.

Most importantly, they always have a trained team which handles all legal formalities such as custom and insurance. Custom department of different countries ensure avoiding trafficking of illegal matters such as drugs and have set rules and regulations regarding various duties and taxes on different listings of goods. While insurance provides risk coverage for damages during transportation of goods. These are some of the formalities involved when goods are transported internationally.

These International Freight Forwarders can be a cost effective choice for goods transportation. As they place orders for transportation in bulk quantities frequently to various airlines and shipping corporations, they can send across the packaging at affordable cost for their clients. If a small quantity is sent through these companies independently, it would be costly for the exporter, as the charges may be calculated according to size, weight and distance of transportation solely for the consignment being transported.

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