The main functions of Freight Forwarding are:
(i) Freight Forwarder’s Role in the Supply Chain: Usually, it has been confined to organising transport and preparing documents as an agent of the shipper. With development the role of the freight forwarder also changed due to containerization and multimodal transportation, instead of being just an intermediary, few become transport operators providing container services, as well as multimodal international and inland transportation.
The Freight Forwarder can fulfil the below services:
(a) Act as a shipper’s agent organising transport services and preparing documents.
(b) Act as a transport expert advising shippers on cost-efficient and better means of transport.
(c) Act as a multimodal transport organiser. It acts as the principal transport organiser with direct contractual accountability for the carriage of goods door to door, assuming accountability for those transport segments for which he may not be the actual operator.
(d) Act as an expert service provider in container packing /unpacking, packing, customs clearances and the raising of insurance claims.
(ii) Activities of Freight Forwarders:
(a) Negotiating Contracts.
(b) Processing Documentations.
(c) Booking Cargo with the carriers.
(d) Issuing their own approved house bill of lading.
(e) Organising movement of Cargo.
(f) Providing expert advice and consultancy.
(iii) Freight Forwarders - Main Functions:
(a) Play the consultant role.
(b) Advice on –Custom Clearance, Export cost, import duty, special tariffs, other duties and tax.
(c) Documentation advises.
(d) Determining optimum shipping route.
(e) Reservation of Cargo space.
(f) Advise.