Freight Forwarder
Definition
A freight forwarder is an intermediary that arranges international shipments on behalf of shippers, booking space with ocean and air carriers, preparing documentation, and coordinating handoffs along the route. Forwarders do not usually operate the ships or planes themselves.
In Practice
Forwarders buy capacity from carriers in volume and resell it, which gives smaller shippers access to rates and space they could not get directly. A good forwarder also manages the paperwork chain: booking confirmations, bills of lading, packing lists, and the customs documents each country requires.
For a planner, the forwarder is often the single point of contact for an international move. When a vessel is rolled or a container is held at customs, the forwarder is who provides status and options. Their consolidation services also let you ship less-than-container volumes economically by sharing container space with other shippers.
For example, a furniture importer bringing 15 cubic meters from Vietnam would ask its forwarder to book LCL space, collect cargo from the factory, clear customs at destination, and arrange final delivery to its warehouse.
Related Calculators
Related Terms
Ocean freight is the transport of goods by sea, typically in standardized containers aboard container ships. It is the dominant mode for international trade, offering the lowest cost per unit at the price of long transit times.
Customs ClearanceCustoms clearance is the process of getting goods approved by government authorities to enter or leave a country, including filing declarations, paying duties and taxes, and satisfying any inspections. Goods cannot be delivered until clearance is complete.
Bill of LadingA bill of lading is the legal document issued by a carrier that serves as a receipt for goods, evidence of the transport contract, and in ocean shipping, a document of title to the cargo. It travels with, and controls, the shipment.
Freight ConsolidationFreight consolidation combines multiple smaller shipments into one larger load to reduce transportation cost per unit. Consolidated freight is later separated and delivered to individual destinations.