What are the main functions of a freight forwarder?

With the continuous improvement of international trade and freight systems, especially the popularization of freight forwarding letters of credit, customs and commercial insurance systems, the status of freight forwarding has gradually improved.

The main functions of a freight forwarder:

Without a freight forwarder, carriers (such as airlines) have to deal directly with many shippers or consignees. The existence of freight forwarders can reduce the heavy workload caused by carriers facing shippers directly,forwarding freight allowing carriers to focus on their core business - shipping. Similarly, the existence of freight forwarders, because of their professional knowledge, eliminates the need for shippers to deal with every carrier, reducing the shipper's workload.

The main economic business of freight forwarding, such as booking warehouses for cargo owners (shippers or consignees),fcl logistics picking up and delivering goods, tracking information to inquire about the actual situation of the goods, customs declaration, commodity inspection, warehousing, packaging, document processing, and distribution (BreakBulk), etc., can greatly reduce the difficulty of business management for cargo owners.

A freight forwarder is more like a "distributor". A freight forwarder with a large number of stable supplies and certain qualifications can obtain the carrier's agent (become a shipping agent).cfs charges Freight forwarders with carrier agency rights can, on the one hand, apply the carrier's waybill to their workplaces, and on the other hand, obtain preferential freight rates from the carrier.

A freight forwarder for international air freight business or ocean container LCL business is also like a "wholesaler". For example, the characteristic of air freight is that as the freight volume increases, the unit freight rate will decrease. Therefore, freight forwarders with a large and stable supply can often "grant" more favorable locations from carriers and then "retail" those locations to smaller freight forwarders or sell directly to shippers. This also allows carriers to have stable freight volumes and revenue.

For the carrier, the freight forwarder is relatively regarded as the shipper (shipper or consignee); for the shipper, the freight forwarder is relatively regarded as the carrier. Domestic freight forwarding management is relatively strict and must be approved by foreign trade, shipping and other departments before the industrial and commercial department can register as a legal freight forwarding company.

In addition, there is a special situation, that is, the so-called "first generation" and "second generation" distinction. This is particularly true among air freight forwarders. "First generation" refers to those freight forwarders that are legally registered and have obtained the carrier's agency rights. The situation of "second generation" is more complicated, mainly including freight forwarders that are legally registered but have not obtained the carrier's agency rights, companies that are engaged in freight forwarding business without being legally registered or registered for other businesses, and some foreign freight forwarders operating in China. at. "Second generation" always has limitations of one kind or another, such as being unable to issue waybills, freight or freight forwarding invoices, etc. Therefore, when approaching business, you must understand the nature of the other party.