What is a freight forwarder?

A freight forwarder is a logistics professional who uses their knowledge of transportation tactics and organizational skills to coordinate the movement of goods from manufacturers to retail locations, company storage facilities or directly to customers.

Freight forwarder roles and responsibilities

Freight forwarders have a variety of roles and responsibilities to ensure the efficient transportation of goods. Here are some common roles and responsibilities that freight forwarders have, according to the International Forwarding Association (IFA):

• Work closely with shippers, manufacturers and corporations to devise a plan for transporting goods from one destination to another
• Negotiate with shippers to determine freight pricing
• Research and obtain insurance to protect goods should they get lost or damaged during the transportation process
• Connect with warehouse facilities to create more options for freight storage at varying points during the transportation process
• Prepare documentation to ensure goods can be transported both at the national and international levels
• Use knowledge of technology to purchase and coordinate transportation procedures via advanced IT software programs

Freight forwarder qualifications and requirements

Here are some typical education qualifications that freight forwarders should possess, according to the National Customs Brokers & Forwarders Association of America, NCBFAA:

1. High school diploma

As freight forwarders don’t need to obtain a specific degree, some candidates may have a high school level education. This is a common education level for freight forwarders.

2. Bachelor’s degree

Some freight forwarders may have a bachelor’s degree in business management, shipping management, supply chain management or a related area. This may mean they can contribute in-depth business practices to the process.

3. Licensure

Before hiring a freight forwarder, be sure that they have the correct licensure. There are plenty of licensing opportunities depending on the type of activities they participate in. For example, freight forwarders may receive licensure from the following entities:

• Federal Maritime Commission
• U.S. Department of Transportation (Federal Motor Carrier Safety Administration)
• International Air Transport Association

4. Expertise

It may be beneficial for freight forwarders to have a few years of experience working in transportation and logistics. Further, for freight forwarders working with international traders, a knowledge of one or more foreign languages could help enhance communication efficiency.

Benefits of using a freight forwarding service

Review these benefits of using a freight forwarding service to determine whether or not it’s right for your business:

• Minimizes stress:Allowing a professional service to handle the transportation process can improve processes and reduce stress on a company’s employee resources and workflows. This also helps you focus on other important areas of your business of which you have more knowledge.
• Ensures compliance with transportation regulations:Freightforwarders have expert knowledge of trading laws and transportation regulations for goods across both national and international boundaries.
• Improves shipping time:Freight forwarders know the best routes and methods for transporting goods to the final destination.
• Increases customer satisfaction:Freight forwarders typically can aid the quality and efficiency of shipping methods to promote undamaged and quick delivery of goods to satisfied customers.

Related: 7 of the Most Important Characteristics of Great Customer Service

Freight forwarding FAQs

What does a forwarder do?

A forwarder ensures that goods get from one entity to another entity via road, sea, rails or air. This requires them to have superb interpersonal communication, problem-solving and organizational skills.

Where does a freight forwarder work?

A freight forwarder can work for a specific freight forwarding corporation or as an individual, providing transportation solutions to businesses and individuals.

What is the difference between carrier and freight forwarder?

According to Texas International Freights, the difference between a carrier and freight forwarder is that carriers are the actual transporting entity that moves goods from one place to another. In contrast, freight forwarders are responsible for overseeing the process of selecting carriers and routes for transportation. Therefore, these two roles interact with and benefit one another, but they are not the same.

What do clearing and forwarding entail?

According to Freight Forwarding, clearing and forwarding is when clearing agents ensure goods get cleared through customs and that any international transportation taxes get paid. Then the freight forwarder prepares the means of travel for those goods.