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All you need to know about Freight Forwarder


A freight forwarder agency is a company or a corporation which ships and receives goods on behalf of any other company. A freight forwarder is also known as a non-vessel operating common carrier (NVOCC). Their importance in the import and export operations can be understood by the fact that they are the real importers or exporters on behalf of the company for which they are working.

Freight Forwarders can use a variety of shipping modes and routes for exporting and importing according to their convenience. Forwarders contracts with different carriers and other modes of transport for exporting or importing or exporting the goods.

So basically freight forwarders are the companies who have expertise in handling import-export operations. Freight forwarders are needed to have a licence in different countries for shipping or delivering goods. There are various types of freight forwarders which deal in exporting or importing goods. The different types of freight forwarders are:

  • Consolidators – This function involves grouping or assembling diverse shipments from various customers to make up full container loads, thus obtaining lower freight rates.

  • Multimodal – A multimodal transport operator offers “one-stop shopping” for traders. They help in the door to door to delivery of the products and is also involved in insurance and other management works.

  • Customs brokers – These parties act as the agents of exporters and importers to process customs declarations and other formalities and pay duties and taxes.

  • Port agents – This agent represents the shipper at the point where the goods are transferred from one transport mode (typically, from a truck or lorry) to another (as to a seagoing vessel or aeroplane).

  • Airfreight agents – These agents process shipments for airlines and may have the authority to issue air waybills. Frequently, the air freight agent also handles customs clearance.
  • Road haulage brokers – Road haulage brokers help in transportation via roads. This helps in the home to home delivery transportation throughout the most accessible mode of transport that is roadways — road haulage brokers act as the middle man between the shipping company and the leading company.

  • Loading brokers – These brokers act as the agents of ship owners to obtain and process cargo shipments. But generally, the loading broker represents a company whereas the freight forwarder is the representative of the shipping or transporting company. Well, different types of freight forwarder perform different kinds of transportation work?


Concluding the points and functions of freight forwarders in the import and export process, we can say that the freight forwarders are the base of the transporting and receiving goods. They help choose the effective routes, get the paperwork done and all other functions of products carrying business.

They work on behalf of large companies which needs to send their goods out from where they are produced. Freight forwarder companies expertly handle all the tasks related to transport. They play an important role in the development of any economy. Freight forwarder companies have great importance in both developed and developing economies because the commerce world has become mobile today. Export and import have become the basis of business and commerce.

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