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  • Writer's pictureOlivia

How is Freight Forwarding Single Handedly Creating Strong Revenue Streams?

From 1950 through 2022, the US exported an average of 64.35 USD billion, with an all-time high of almost 261 USD billion in August of 2022. Given the recent observation of the tremendous growth of freight forwarding, the statistic is not surprising.

What Is Freight Forwarding?

The coordination and transportation of products from one location to another using one or more carriers through air, sea, rail, or land is known as freight forwarding.

With the founding of the Canadian International Freight Forwarders Association in 1948, Canada acknowledged the significance of freight forwarding for international trade (CIFFA). The CIFFA realized that in order to ensure that commodities move across borders, internationally, and around the world in a timely and effective manner, freight forwarding, whether it be by land, marine, rail, or air, required coordination, regulation, and generally accepted best practices.

The foundation of freight forwarding is the effective and economical movement of commodities that are kept in good condition along their journeys. Freight forwarders become professionals in handling the logistics required to guarantee that items arrive on schedule in order to achieve this. Having the appropriate instruments at your disposal is essential for successful trading and transportation in developing international markets.

Freight forwarders use the most recent developments in information technology to manage the risks and rewards of shipping both nationally and globally by negotiating tariffs, and customs rules, and being proficient in the requirements of shipping by land, sea, rail, and air.

Types of Freight Forwarding

The type of freight that freight forwarders handle is often used to categorize them. Transporting goods over water is referred to as ocean freight. While truck freight is transported by land in big rig trucks across the nation, air freight is the load that travels to its destination via airplane.

Ocean Freight Forwarding

Ferries and ships are employed in this type of freight shipping, which is mostly utilized for international shipping, to transport cargo across oceans. It is the most traditional and established option accessible for both local and international transportation when it comes to carrying large containers.

Anything that is too big, expensive, or time-sensitive to ship by air usually uses ocean freight services. The only drawback is that it could take longer than other types. It is one of the most cost-effective methods of transporting products and goods, nevertheless.

Air Freight Forwarding

The freight service that manages cargo during air transportation is known as air freight forwarding. Freight forwarders handle the transportation of commodities over long distances and frequently use several different means of transportation. They are in charge of the shipment from the time it departs one nation until it reaches its final destination in a different nation.

Shipments including parcel deliveries, non-machine freight, and machine freight can all be included in air freight forwarding services. Automobiles, electronics, clothing, food, machinery, and parts for manufacture are typical products shipped by air freight.

Truck Freight Forwarding

A service that specializes in organizing the transportation of merchandise between sites by truck is known as truck freight forwarding. To carry freight from one location to another, the freight forwarder will make use of its networks of private vehicle owners and shipping businesses.

The service of truck freight forwarding is specialized. As a result, it frequently pertains to certain shipments or items. Truck freight forwarders frequently use refrigerated vehicles and are capable of transporting heavy or temperature-sensitive cargo.

Functions of a Freight Forwarder

In the freight sector, freight forwarders act as shipping companies' representatives. They enable cargo transactions by working with freight firms and freight agents. On behalf of their client, one of their main duties is to organize freight.

● Coordinating the freight shipment, supplying a freight bill, managing customs clearance, and other tasks are included in this. The management of freight claims is another major obligation of freight forwarders. At the destination, shipments must be inspected, and any disagreements with carriers or consignees must be settled.

● The auditing services are the responsibility of freight forwarders. This also applies to the metering and weighing of freight for the transportation of heavy or bulk items. In some circumstances, freight forwarders also take care of the distribution and storage of commodities. For instance, a freight forwarder can organize shipping from the producer or importer to the warehouse of a retailer. When necessary, a freight forwarder will also take care of distribution and freight consolidation.

In some circumstances, the freight forwarder manages the cargo documents. Depending on the form of transportation, this may also include documents for import/export and customs clearance. The packaging and labeling of freight shipments is ensured by freight forwarders. Moreover, freight forwarders make sure that commodities are transported with the proper temperature. They make sure freight is handled with care, avoiding damage or pilferage.

Freight Forwarding Policies and Regulations

In international transport, separate freight forwarders are often used to organize the export of a consignment and to organize the import of the consignment in the country of destination. Freight forwarders often have arrangements between themselves to optimize the transport of several consignments through consolidation of consignments or by subcontracting the arrangements for a specific part of the transport leg.

In freight forwarding, the international and national regulations on the goods, transport means and routes have to be taken into account. The required procedures and formalities for authorities have to be followed.

FIATA is the International Organization of Freight Forwarders, which publishes a number of rules, best practices, and standardized FIATA documents and their electronic equivalents, such as the FIATA Multimodal Transport Waybill and FIATA Forwarding Instructions.


The "one-stop-shop" for all of your transportation requirements is not a freight forwarder. Instead, a lot of freight forwarders collaborate closely with freight brokers or agents who act as the point of contact for customers and freight forwarding businesses. Both sides may benefit from this in terms of pricing and customer service. Also, some smaller shippers might discover that hiring just one business is more convenient than trying to manage several connections at once.

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