Freight Forwarding 101: The Basics of Freight Shipping
-American New Logistics Editorial Team
Freight forwarding is the process of transporting cargo from one location to another. It includes everything from loading and unloading shipments at ports to arranging customs clearance in other countries.
What Is Freight Forwarding?
Freight forwarding is a vital part of international trade. Goods shipped by air, sea, or land must pass through multiple locations before reaching their final destination. This means that freight forwarders play a critical role in ensuring that these shipments reach their destinations safely and efficiently.
The term “freight forwarding” refers to the process of moving goods from one location to another. In order to move cargo around the globe, companies hire freight forwarders to arrange transportation services. These companies act as intermediaries between shippers and carriers, helping them coordinate logistics and ensure that shipments arrive at their destinations safely and on time.
Types of Freight Forwarders
There are three main types of freight forwarders: ocean carriers, railroads, and trucking companies. Ocean carriers transport cargo by ship. Railroads move cargo via train. Trucking companies use trucks to deliver goods. Each type has its own advantages and disadvantages.
Ocean carriers are typically used for transporting large quantities of cargo across long distances. For example, ocean carriers are often used to transport bulk commodities such as grain from one country to another. However, ocean carriers are expensive because they require specialized equipment and skilled crews. In addition, ocean carriers are limited in terms of where they can travel. Because ships must navigate around land masses, ocean carriers cannot go directly from one port to another.
How Does Freight Forwarding Work?
Freight forwarding involves coordinating shipments between different parties. It includes planning, booking, tracking, and payment. A freight forwarder will work with shippers, receivers, and other logistics providers to ensure that shipments arrive at their destination safely and efficiently.
The process of freight forwarding begins with a shipment being booked. Shippers must provide information such as the type of goods being shipped, the origin and destination, and the date of delivery. Once the shipment has been booked, the freight forwarder will coordinate the shipping details with the receiver. The freight forwarder will then book a truck to transport the shipment from the sender to the receiver. After the shipment arrives at the receiver, the freight forwarder coordinates the release of the shipment from the truck to the receiver. Finally, the freight forwarder collects payment from the shipper and pays the driver.
How Much Does Freight Shipping Cost?
Freight forwarding costs vary based on the size of shipment, the distance traveled, and the type of cargo being shipped. In general, international shipments cost more than domestic shipments because of customs fees and additional insurance requirements.
The average shipping rate for a standard package weighing between 50 pounds and 100 pounds is $50-$100. For larger packages, rates increase depending on weight and destination. A typical international shipment weighs around 1,000 pounds and costs anywhere from $1,500-$2,000. Domestic shipments weigh less than 50 pounds and cost around $25-$35.
If you want to ship something internationally, you'll likely pay more than if you were sending it domestically. International shipments typically require a customs broker, which means you'll be paying a fee to the company handling the transaction. You'll also need to pay for insurance, which protects against damage during transit.
