What Is a Logistics Forwarder?
A logistics forwarder works out the best transport routes for your goods across air, trucking, railroad and ocean freight carriers. They have relationships with carriers who service high volume lanes and access to capacity with negotiated rates.
A logistics forwarder focuses on international transportation. They offer a wide range of services from warehouse planning to cargo insurance.
Logistics
In many ways, logistics services are the lifeblood of any business. In today’s fast-paced environment, customers expect — dare we say demand — that products arrive on time and without errors. Companies that don’t handle logistics well can quickly find themselves running into costly obstacles like shipping rates and insurance costs that chip away at profits.
In addition to negotiating freight costs on behalf of their clients, logistics forwarders manage documentation and customs clearance procedures for international shipments. This includes the preparation of all required paperwork, compliance with import and export regulations, and adherence to local customs procedures and requirements.
Freight forwarders also have established global networks of carriers, agents, and partners. These relationships allow logistics forwarder them to expedite the movement of goods across borders, and provide valuable expertise on foreign markets, trade lanes, and local regulations. Logistics providers often leverage these resources and experience when handling their own client’s logistics needs.
In addition to managing a fleet of trucks, trains, and planes, logistics companies utilize advanced information management systems that track the progress of goods along the supply chain. This technology provides clients with access to real-time data about their shipment status, and allows them to make informed decisions based on accurate delivery schedules and route optimizations. This enables businesses to deliver their products on time and reduce fuel expenses.
Transportation
The logistics forwarder arranges the transportation of your goods to their final destination by truck, airplane or ship. They help you to select the best carrier based on your cargo specifications and cost requirements. They can also negotiate rates and contract with carriers on your behalf. They can provide you with cargo insurance and arrange customs brokerage as well.
They can provide less than container load (LCL) shipping for customers who have shipments that don’t require the use of an entire container. This is an economical and environmentally friendly option for smaller shipments. They can also provide freight consolidation services to combine shipments from multiple clients into a single container, saving you even more on transport costs.
Freight forwarders are experts in international transport, which allows them to optimize routes and select the most economical mode of transport for your shipment. They can also advise UPS courier service you on packaging and labeling to comply with international standards. They can also arrange cargo insurance and facilitate customs clearance, and they are knowledgeable about local import and export regulations.
Choose a logistics forwarder that has experience in your industry and has an owned network of local offices. This ensures that all offices work on a consistent system and follow customer-specific SOPs, so they can deliver reliable, consistent service. They should have capacity in your high-volume lane and offer competitive rates. They should also be an Authorized Economic Operator, which enables them to streamline customs clearance by deferring payment of some import duties and charges.
Customs
Freight forwarders are experts in international shipping, which means they know how to navigate the complexities of customs. They can handle everything from preparing and filing the necessary paperwork to arranging for the payment of duty fees on behalf of clients. They can also help clients select the most efficient Incoterm for their shipment based on their budget and time frame.
Depending on their location, a freight forwarder may also offer warehousing services to store cargo before or after it has been shipped. They will work with a network of warehouses around the world and be able to arrange for bonded or non-bonded storage if required. They can also provide a variety of packaging options and labeling to meet all import and export requirements.
A freight forwarder can also arrange insurance for shipments and liaise with carriers on their client’s behalf. They can also optimize routes and use their negotiating power to get better rates. They can also consolidate multiple shipments into a single container to save on shipping costs.
A freight forwarder can also serve as a customs broker if they are licensed by a country’s border agency. A licensed customs broker is a logistics expert in port of entry procedures, admissibility requirements, freight classification and valuation, and duties taxes on imported goods. They can also negotiate tariffs and rates with government officials.
Accounting
A logistics forwarder is a company that manages the logistics of shipping goods internationally, but they do not own or operate ships, trucks, or aircraft. They work as intermediaries between the shipper and carriers, providing services such as freight rate negotiations, carrier selection, customs clearance, and warehouse planning. They are also involved in international trade documentation, and they can act as an Authorized Economic Operator (AEO), which simplifies import/export procedures by allowing them to defer payment of import duties.
In addition to logistics management, logistics forwarders offer a variety of accounting services for their customers. These include tracking all of your business’s revenue and expenses, and preparing financial reports. They can also help you with tax reporting and compliance, and they can even assist you with filing your taxes.
A good logistics accounting software solution will automatically reconcile bank statements with internal ledgers on a regular basis, which will help you save money and time by reducing overcharges. It will also flag invoices that aren’t being paid by their due date, allowing you to avoid late-payment penalties from your carriers. A logistics accounting software system should also have a dashboard that relays all cash management data in real-time. This way, you can see all of your receivables and payables in real-time, and you can make informed business decisions.
