What is Freight Forwarding?
Freight forwarding is the forwarding of freight between two points. A freight forwarder, either private or commercial, acts as a third party to move freight from one point to another. Freight forwarding usually happens in pairs: one company forwards freight to another, but not always. One-third party makes a claim on the freight that another third party is holding and then that freight is moved.
There are many factors that go into the effective transportation of goods by freight forwarding companies. One factor is the relationship between the shipper and the supplier. Most freight forwarding companies have a long-standing relationship with their customers and they may provide valuable and reliable information on their supplies. These suppliers are important to any long-term supply chain because they act as the go-between for the seller and the manufacturer. The relationship between the buyer and the Supplier may also play an important role in any long-term supply chain because they have an interest in seeing that the supply chain functions as smoothly as possible.
Many businesses depend on imports and exports and need to be flexible to meet their global trade needs. Freight forwarding companies help smooth the global trade process by acting as a liaison between buyers and manufacturers and by facilitating the international shipment of goods. For a company looking to expand its business practices and establish itself globally, it is wise to outsource the movement of goods between various countries. This allows the company to concentrate on its core business activities and services rather than learning about global trade and importing and exporting goods. Global trade has become a vital element in the economic development of most countries and the globalization of the global trade market has provided businesses with a unique opportunity to reach global markets. It has also helped companies reduce their dependence on imported goods which has helped increase the stability of the economy and kept unemployment at manageable levels.