How to Role a Forwarder in a Freight Forwarding Company?

Definition and definition of Freight Forwarding

Freight Forwarding is a company that has business in the field of freight forwarding, freight forwarding can also function as EMKL (Shipping Expedition Ship), Sailing, Customs Service, even can also serve as door to door delivery.

Transportation Management Services (freight forwading) is a business activity aimed at stewardship of all activities necessary for the implementation of the delivery and receipt of goods through transportation either by land, sea or air. In this case freight forwading activities may include activities:

• Reception
• Storage
• Sorting (Grouping)
• Packing (Packing)
• Measurement
• Weighing
• Handling the completion of documents of issuance of transport documents
• Calculation of freight costs
• Insurance claim on delivery of goods

As well as settlement of invoices and other charges relating to the delivery of such goods until receipt by the person ordering the goods.

While freight forwarder person or legal entity that carry forwarding work.

 

Duties and Responsibilities of Forwarders in Freight Forwarding companies are:

1. Forwarders only work on “orders” from customers who want their goods shipped to other places.
2. To move the goods to another place the forwarder does not have to own the means of conveyance
3. The forwarder acts as an intermediary between the sender (Shipper), the carrier (Carier), and the consignee (Consignee).

From the definition described above it can be concluded that Freight Forwarder is:

A person or a legal entity that executes an order of delivery of goods (cargo / load) from one or several persons who own goods, which is collected from one place or several places, to the final destination of the recipient of goods through the system of traffic control of goods and documents , Using one or several modes of transport without having to own transport facilities.

 

Role of Freight Forwarder in Company Freight Forwarding operations

Forwarders are places where the owners of goods will receive various advise / advice from him on everything about aspects in shipping and transporting goods:

1. The procedure of packing or packing of goods
2. The destination country of the goods and review the local regulations on the importation of goods from outside.
3. Regarding the best and fastest route and freight routes.
4. Document arrangement and monitoring of goods during shipment process.

To carry out the operational activities, everyday forwarders always involve certain parties in the work and services offered to the owners of goods in order to run smoothly.

 

Parties related to Freight Forwarding are:

1. The owner of the goods (seller or buyer or other party)
2. The Stevedore party in Indonesia is called the loading and unloading company (PBM) which helps the forwarder to carry out the loading and unloading activities.
3. Cargo Surveyor as inspector of goods at port.
4. Party of goods (carier) and cargo documents.
5. Insurance and Bank in terms of documentation and security of goods and related goods systems.
6. Agency and related government agencies such as:
   – Customs
   – trading
   – Transportation and so forth

Here a Forwarder acts as a coordinator in a process of delivery of goods, using selected transportation means by adjusting the type, weight, and value of the goods concerned.

 

The Status of a Forwarder in a Freight Forwarding company

• Consultant of the goods owner.
• The power of the owner of the goods delivered to him for immediate delivery to the place of final destination (acceptance and delivery of goods).
• Coordinator and supervisor on the delivery of goods.

From the above mentioned description then sekarng can be concluded that the party included in the scope of work of a Forwarder is:

1. Package and document delivery services company.
2. EMKL (Marine Cargo Expedition), EMKU (Air Shipment Expedition) and EMKA (Expedition Cargo Railway) and the like.
3. Packing companies or packing companies.
4. Cargo Moving Company (Cargo Moving Company) generally in the above companies works based on contracts of freight / delivery of goods signed by both parties under certain conditions of transportation (usually on the basis of “door to door services” door to door.

Some notions of Freight Forwarding have been discussed in the above. Furthermore, how is the Freight Forwarding company run and how is its performance. As has been explained that basically the Forwarder is an intermediary or agent of the party that requires a cargo space and on the other hand there is the owner of the means of transportation that requires goods to be transported. So a Forwarder must be able to stand up and act well for the benefit and interests of the parties concerned.

At certain moments, the interested parties will always look for a Forwarder to help solve problems arising from the load or vacancy of the loading space. Usually that often require the services of a Forwarder that is the owner of the goods, while the carrier will not always be so because the carrier only faces some problems such as:

1. How are they able to maintain the timeliness that fills the cargo space with the cargo.
2. Furthermore, how they will ensure the cargoes on their vessels are always safe and intact during the transportation process to the destination.

All provisions in the foregoing are clearly stated in a transport contract known as Bill of Lading / BL on sea freight, and on air transport contract is Airway Bill or known as AWB. In both types of cargo documents there are all readable requirements concerning freight provisions binding on both parties.
Then how the flow of operational activities of the company Freight Forwarding. There are several kinds of forwarder stages in the forwarding service business manager. Briefly some of the steps that would normally be taken by Forwarding companies in Operational Activities are as follows:

1. Search for potential customers / users, and if possible be made a customer by: either by post or email by explaining the services offered, or through door to door with field visit or other effective way.
2. Conducting negotiations or other negotiations, so prospective customers agree to use the services offered Forwarding.
3. Carry out preparations to provide the best service to goods that have been received from the owner of the goods.
4. Checking everything necessary for the goods to be sent immediately, such as:
   – Content of goods
   – types of goods
   – Weight of goods
   – Volume of goods
   – Name and Owner of Goods.
   – Where the purpose of this item will be sent.
   – Completeness of supporting documents.
   – Name of the consignee at the destination.
   – Anything and how the requirements of transport facilities.
   – If the item is accompanied by L / C and how the terms are imposed on it.
   – What are the conditions for payment of the mining money and how much is the amount.
   – To whom the goods are submitted for shipment.
   – When finished the process of delivery of goods how the collection procedure to the owner of the goods, where the bill.
   – What about the insurance policy.
5. Process of document management, inspection of goods to customs officers.
6. Negotiate tariff of carrier

 

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Originally posted on August 19, 2017 @ 10:00 am

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