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What role does a Freight Forwarder typically fulfill?

Importer of record

Arranging shipments with carriers

A Freight Forwarder primarily functions to arrange shipments with carriers. This role is central to their operations because they have established relationships with various carriers and possess the expertise necessary to negotiate rates, routes, and schedules to ensure that goods are transported efficiently and cost-effectively. Their responsibility includes planning the logistics of transportation, preparing shipping documentation, and sometimes consolidating cargo for more efficient shipping.

While Freight Forwarders may also engage in activities related to tracking cargo movements and might assist with customs clearance, their main function is the orchestration of the shipping process itself. This includes coordinating between different transportation modes (air, sea, truck) and managing logistics to ensure timely delivery. The role of an importer of record is often held by the entity that owns the goods being shipped, which can be separate from the Freight Forwarder. Similarly, while they may receive goods temporarily for consolidation or staging, this is not their primary role.

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Receiving goods for delivery

Tracking cargo movements

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