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If you want to make international trade more relevant for your business then you must get in touch with freight forwarding firms. To deal with trade complexities in an efficient manner and to speed up the whole process you must consider freight forwarding service providers. Their expertise and years of experience help you to go through various trade phases in smooth and effective manner.

A Freight Forwarding process consists of agents and freight forwarders who arranges for the movement of commodities from one country to the other. In simple words, they are the one who facilitates the overseas import and export of goods.For efficient freight forwarding container shipping is considered. Various types of containers such as LCL , reefer containers etc are used.Freight forwarding firm is needed for hassle free movement of goods, Route optimization, Insurance, Consolidation, Inventory management, Agility, Guaranteed best rates.There are generally two types of freights:

  • 1) Ocean Freight: If you want to use the simplest and the most common mode of transport to import and export your goods, you must choose Ocean freight. It is considered as one of the most common modes of transport that usually all the importers and exporters use. Read more.
  • 2) Air Freight: Air freight shipping is the transfer and shipment of consignments via an air carrier or air cargo, which can be charter or commercial. These shipments travel out from aviation gateways to planes and can be shipped anywhere in the world. Read more.

Services provided by freight forwarding

  • Customs clearance
  • Import export documentation
  • Insurance
  • Packing
  • Storage
  • Inventory management
  • DSV tracking

Freight forwarding process:

The freight forwarding process consists of several stages.

  • 1) The first stage involves transport of goods from your product manufacturing phase to a designated warehouse, sometimes it is owned or can be leased by the freight forwarding company.
  • 2) The second stage involves receiving of consignment and checking them for accuracy in terms to ensure that every item was transported without incident or any kind of fault.
  • 3) The third stage requires the freight forwarder to submit required Shipping documents to customs agents for the customs procedure who will further sign off for allowing the consignment to leave their country of origin.Following are the required documents:
  • 4) The fourth stage, equally important as it involves the process of having the consignment received. All countries may not offer customs agents to receive the consignment. Instead, the freight forwarding company itself have to be responsible for it.

These stages can be broken in 6 key steps:

  • 01
    Export haulage – the transfer of consignment from its original source i.e. manufacturing place to the freight forwarders warehouse.
  • 02
    Export customs clearance – the consignment receive clearance for shipment i.e. to leave its country of origin.
  • 03
    Origin handling – the inspection and validation of the cargo against the booking documents.
  • 04
    Import customs clearance – the unloading, customs clearance paperwork for your cargo will be checked by the respected authorities.
  • 05
    Destination handling – the handling of consignment being shipped once it reaches the destination, including transfer to the import warehouse i.e. freight forwarders warehouse.he
  • 06
    Import haulage – the final transfer of consignment from the import warehouse to buyer’s place.

Advantages:

  • Flexibility
  • Versatility
  • Cost effective
  • Container shipping
  • Hassle free
  • Provide additional services to customers
  • No more dealing with customs clearance
  • Manageability
  • Smooth shipment of goods from one end to another

The main advantages of working with Connect2India for freight forwarding are:

  • check_circle_outlineWe are industry expertise and posses better knowledge
  • check_circle_outlineWe have certain buying power that can help in reducing transport costs
  • check_circle_outlineYou can focus towards your business, as we will handle all complex transport or customs procedures.
  • check_circle_outlineWe have a worldwide network of agents that can make trading easier than expected.
  • check_circle_outlineHaving us with your business will provide confidence to export and import in/from new markets.

Modes of Freight Forwarding

  • airplanemode_active
    Air Freight - Air freight shipping is the transfer and shipment of consignments via an air carrier or air cargo, which can be charter or commercial. These shipments travel out from aviation gateways to planes and can be shipped anywhere in the world. Read more.
  • Ocean Freight - If you want to use the simplest and the most common mode of transport to import and export your goods, you must choose Ocean freight. It is considered as one of the most common modes of transport that usually all the importers and exporters use. Read more.
  • Rail Freight
  • Road Freight
question_answer

FREQUENTLY ASKED QUESTIONS

1. What does a freight forwarding company do?

Freight forwarding companies provide you with following services:

  • Customs clearance
  • Import export documentation
  • Insurance
  • Packing
  • Storage
  • Inventory management

2. What is freight forwarding in shipping?

Freight Forwarding can be considered as a firm that arranges for the movement of commodities from one country to the other. In simple words, a Freight Forwarder is someone who facilitates the overseas import and export of goods. Freight forwarders are needed for hassle free movement of goods, Route optimization, Insurance, Consolidation, Inventory management, Agility, Guaranteed best rates.


3. How much does freight forwarding cost?

Following costs are incurred in freight forwarding:

  • Air freight or ocean freight forwarding pricing:
    • Airline security charge
    • Fuel surcharge
    • Cargo screening
  • Pickup charge
  • Freight forwarder handling fee
  • AES fee
  • TSA security charge

4. Do I need a freight forwarder?

Yes for the smooth shipping of goods. Here are various ways in which freight forwarder can help exporters. Typically, a freight forwarder is able to understand the requirements and can identify the best transportation for the shipment in the required timeframe and at the most competitive price.

As well as they are able to offer:

  • Customs clearance?– Most freight forwarders should be able to complete the whole customs paperwork on exporter’s behalf, as well as must offer the facility to pay tax and other duties owed to customs on your behalf.
  • All other shipping documentation?– Export documentation such as Bills of Lading, Certificates of Origin, letters of credit and other documents required by banks before payment is released should be arranged by them.
  • Insurance?– Can provide you relevant insurance services to insure your shipments towards various risks.

5. How do I choose a freight forwarder?

To choose a freight forwarder following things must be taken into consideration:

  • What you actually need
  • What to look for: Experience counts
  • Comparing prices

6. What is the purpose of freight forwarder?

The main purposes of working with freight forwarder are:

  • They are industry expertise and posses better knowledge
  • They have certain buying power that can help in reducing transport costs
  • You can focus towards your business, as freight forwarder will handle all complex transport or customs procedures
  • They have worldwide network of agents that can make trading easier than expected
  • Having them with your business will provide confidence to export and import in/from new markets.

7. How Container Shipping Process works?

Container shipping services are crucial for international trade. Whether you are purchasing goods from India or you are purchasing goods from abroad, having an economical way for the shipment of goods is necessary. This is the exact scenario where container shipping services come into the role play.
Read More.

Freight Forwarding Articles

  • Letter of Credit - An LC is a financial document which is provided by a third party i.e. a bank or a financial institution that guarantees the payment for goods and services to the exporter once the exporter submits the required documents. More about Letter of Credit.
  • Bill of lading - Bill of lading can be considered as a contract between the owner of the goods and the carrier. It is the document which is used to provide proof or evidence of shipment. More about Bill of lading.
  • Demurrage - Delays in shipping are common, which may lead customers to incur a multitude of some extra charges which the customers have not catered for. One such extra charge is the Demurrage charge. More about Demurrage.
  • Detention vs Demurrage - Demurrage and detention are related to both import and export. Thus we must understand both these terms respective to import containers as well as export containers. More about Detention vs Demurrage.
  • Inbound Logistics - To understand inbound logistics meaning one must know that the main focus of inbound logistics is on transportation and storage of incoming goods. More about Inbound Logistics.
  • DSV Tracking - With DSV tracking service you can track all shipments of 591 couriers at a single platform. You can view the latest delivery status of your shipments and can also check the detailed tracking history and expected delivery time for each shipment. More about DSV Tracking
  • Switch :Bill of Lading - A switch Bill of Lading can be considered as a second set of Bill of Lading that is issued by the shipping carrier (or their agent) for substituting the original bills of lading and is issued at shipment time. More about Switch Bill of Lading

Know More About Freight Forwarding

  • Warehousing - A warehouse is known as a building used for commercial purposes such as storage of goods. It only offers storage solutions to the owner whereas distributor centres are different. More about Warehousing.
  • Marine Insurance - Marine insurance insures the goods when they leave the warehouse of the seller until it reaches the warehouse of the buyer. More about Marine Insurance.
  • Documentation - To know more about required documents. More about Documentation.
  • Certificates of Origin - It is the document that certifies where the export commodity are manufactured originally. It can be provided within two formats i.e. paper based certificate of origin or electronic certificate of origin. It is also used for claiming benefits under free trade agreements. More about Certificates of Origin.
  • Shipping Documents - Various documents such as bill of lading, packing list for export, commercial invoice, sea waybill, inspection certificate are termed as international shipping documents. More about Shipping Documents.

Looking to ship your products? or looking for any other export import services? Talk to our global trade experts now.

Features of Connect2India finance

Why finance with Connect2India

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Easy processing

Complete online application process makes it easier for us to process forms faster and provide same day loan approvals.

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Collateral free loans

No need to put your valuable assets in risk, we have unsecured loan that do not require any collateral.

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No hidden costs

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Loan repayment structure can be customized depending upon how your business is growing.