Freight forwarding is a service that acts as an intermediary between clients involved in international import and export and various transportation carriers. Freight forwarders are responsible for ensuring products reach their destination on time and in good condition by utilizing established relationships with air, truck, rail, and ocean carriers. They negotiate prices to move products along economical routes balancing speed, cost and reliability. Key factors for freight forwarders include expertise, customization, flexibility, reliability, meeting deadlines, international presence, quality certification, experience, company size, access to information technology, competitive prices, and minimizing taxes.
2. WHAT IS FREIGHT
FORWARDING
Freight forwarding is a service used by
companies that deal in international or multi-
national import and export. While the freight
forwarder doesn't actually move the freight itself,
it acts as an intermediary between the client and
various transportation services. Sending
products from one international destination to
another can involve a multitude of carriers,
requirements and legalities.
3. RESPONSIBILITIES FOR
FREIGHT FORWARDING
Freight forwarding services guarantee that products
will get to the proper destination by an agreed upon
date, and in good condition.
The freight forwarding service utilizes established
relationships with carriers of all kinds, from air
freighters and trucking companies, to rail freighters
and ocean liners.
Freight forwarding services negotiate the best possible
price to move the product along the most economical
route by working out various bids and choosing the one
that best balances speed, cost and reliability.
9. FACTORS EXPLANATION
Expertise- Degree of expertise in
providing relevant services.
Customization- Ability to meet unique
customer requirements.
Flexibility- Ability to provide both air
and sea freight services.
Additional logistic services- Ability to
provide a wide range of services.
Reliability- Reliability of the IFF's
service.
10. FACTORS EXPLANATION
Meeting Deadlines- How well the IFF
meets pickup, delivery and distribution
deadlines.
International Deployment- No. of
branches/offices worldwide; no. of
countries in which the IFF is
represented.
Quality certification- How well the IFF
meets ISO 9002 and IATA and FIATA
standards.
11. FACTORS EXPLANATION
Experience- Years of forwarding activity.
Company size- No. of IFF company
employees.
Information availability- The ability to
access/interface with the IFF's
information technology.
Reliable information-The reliability of
IFF's information systems.
Online pricing - The ability to receive
price quotes over the Internet.
12. FACTORS EXPLANATION
Reports tools- The customer's ability
to produce status reports
independently.
Competitive prices- Ability to offer
attractively priced services.
Taxation- Ability to minimize the
customer's tax payments.
Classification retention- Ability to
create a customs classification data
base