A Brief Overview of Freight Forwarding

A Brief Overview of Freight Forwarding

Small and medium-sized manufacturers could grow to a point when they need to figure out how to ship their products locally and internationally. In most cases, shipping is not something they do in-house because it would not be cost-effective.

They would much rather focus on making products and selling them. They leave the shipping to a company that specializes in it. Freight forwarding in the Philippines may be the solution they need. Here are some basic facts about it.

Definition

Freight forwarding is an arrangement between a customer and a freight forwarder to handle the storage and shipping goods anywhere the customer wants. They help the customer lower their shipping costs and make it easier to keep track of shipments.

The freight forwarder is not a shipper or carrier, however. They do not actually move the goods themselves. An easy way to think of freight forwarders is a go-between for the customer and the shipper. The purpose of the freight forwarder is to make shipping as easy as possible for the customer.

Functions

Freight forwarders handle many of the things required to transport goods. They book the cargo space for shipping to specific locations. They can lower costs for the customer by negotiating for better rates with shippers.

They can also combine smaller shipments from other customers together to save on transportation fees. They arrange for and track the shipment of goods from start to finish. They may provide or arrange for the storage of goods in some different places.

However, the best thing about freight forwarders is their extensive knowledge of the shipping and export documents needed to move goods internationally.

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Freight forwarding is the best way for small- and medium-sized companies to move goods — especially when shipping requirements are complex. Most manufacturers typically do not have the time, money, or knowledge to handle these things on their own. It just makes practical sense to outsource the work.