Freight forwarding is the process of transportation of goods or cargo through strategic logistics planning from one place to another. Freight forwarding companies are companies that offer services related to the shipment of goods. They employ agents that help facilitate the movement of cargo from one place to another. These freight forwarding companies associate themselves with carriers that offer shipping services via different modes of transportation.
The following steps are involved in a typical freight forwarding process:
Warehouse – The company sends its goods to the warehouse of a freight forwarder. Some freight forwarding companies have their own warehouse, while others have a partnership with third-party warehouse companies. Warehousing and distribution are two central components of the whole freight supply chain. That’s why it is important to find a freight forwarding company that has a strong track record. There are several warehousing services available in Saskatoon. It is not difficult to find warehouses in Saskatoon; a simple google search will suffice.
Inspection – The warehouse workers will inspect the goods and check the items to ensure that the goods were transported without incident.
Customs Clearance (Export): The freight forwarding company employs an agent, known as a customs broker, that helps get the freight to receive the clearance for leaving the country of origin. Customs brokers are very familiar with the rules and regulations of trade and customs duties. Freight forwarders submit the relevant documents and paperwork to customs agents. The customs broker handles all the paperwork and documentation from thereon after.
Customs clearance is an essential protocol that must be followed in order for goods to be imported or exported Internationally. The shipment has to be cleared by a customs officer for it to go through the next stage. If any inconsistency is found in the details of the shipment and the shipper, the shipment will not receive clearance from the customs officer.
After clearance, the customs agent will receive documentation confirming the payment of customs duties. Customs brokers are required for this step as they are highly skilled at this job. They make sure that the shipment gets clearance and arrives at the final destination without any delay.
Customs Clearance (Import): The freight has to go through one more customs clearance; this time it is at the destination country. Once again, the customs broker will have to show relevant paperwork and documentation to the customs officer in order to get import clearance. Import taxes are levied on the goods. After issuing the clearance, your goods will be allowed to enter the destination country. All paperwork and documentation are then transferred to the warehouse of the destination country.
Arrival – Distribution of the goods is the final stage. The goods are transported to the freight forwarding company’s warehouse. The freight forwarding company either receives the goods when they’ve arrived; or might leave the task to a third party. The freight forwarding agency is responsible for monitoring the goods after it reaches the destination country. The goods are moved to the warehouse from where they will be finally distributed to the customer or the client.
Distribution – At this stage, the goods are distributed to the customer or client. The distribution center acts as a bridge between the supplier and the consumer. The warehouse is a building that is used for storing goods whereas the distribution center is a building that displays these products or goods so that customers can buy and meet their demands.
Conclusion – The process of freight forwarding is a complex process but different units within the freight forwarding process perform together to facilitate cargo movement.
- Posted by WiserTech Solutions
- On August 14, 2021