Scientific Writing Freight Forwarding

Freight Forwarding

ABSTRACT 

The purpose of this study is to explore the overview of freight forwarding. The study seeks to answer the research question:

• What is a freight forwarder?
• Corridor freight mode performance
• Process of freight forwarding.
• Advantages of freight forwarding.

INTRODUCTION

Freight forwarding is Firm specializing in arranging storage and shipping of merchandise on behalf of its shippers. It usually provides a full range of services including: tracking inland transportation, preparation of shipping and export documents, warehousing, booking cargo space, negotiating freight charges, freight consolidation, cargo insurance, and filing of insurance claims. Freight forwarders usually ship under their own bills of lading or air waybills (called house bill of lading or house air waybill) and their agents or associates at the destination (overseas freight forwarders) provide document delivery, deconsolidation, and freight collection services.

International freight forwarders typically handle international shipments and have additional expertise in preparing and processing customs documentation and performing activities pertaining to international shipments.

Information typically reviewed by a freight forwarder includes the commercial invoice, shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import, and/or transshipment. Much of this information is now processed in a paperless environment.

REPORT SCOPE

This report provides a review of current literature on evaluation of corridor freight mode performance. It is important to gain an understanding of the parties involved in freight corridor mode selection, and the system in which they operate. The literature examines the system at various levels of detail. Models of the system may include two parties only (customer/provider) or numerous parties extending to those with indirect involvement.

At a fundamental level, the parties involved in the freight corridor mode selection and use system considered here include:

• The freight customer: is defined as the party who selects the service provider to be used to move a freight shipment from an origin to a destination. Service provider and mode are inextricably linked so it is essentially one decision. The freight customer may be the shipper (consignor), who wishes to have their freight transported to a receiver (consignee).
• The freight transport service provider, or operator, referred to here as the ‘service provider’: serves the freight customer by transporting freight from an origin to a destination. This trip includes collection, line-haul and distribution components. The service provider typically has a modal orientation, such as road, rail, sea or air. Freight may be transported using an individual mode, such as road, rail, sea, air, or pipeline, or by a combination of modes.
• The freight corridor access provider, referred to here as the ‘access provider’: generally does not serve the freight customer directly. Rather, it provides infrastructure and some services that the service provider accesses to move freight.  A service provider may access several freight corridor elements in transporting freight from an origin to a destination, thereby having numerous access providers. A service provider may also serve as its own access provider, which is a form of vertical integration. This has been common on rail in the past.
• The government regulators: covers the government bodies that regulate the provision of freight transport and freight corridor access services. It is recognised that all levels of government are involved in the regulation process. Government regulators are generally not directly involved in the freight customer’s service provider and mode selection process; however, their combined actions have the potential to significantly affect the process.
• External influences: A vast number of external influences exist, which affect decision making by all of the parties in the system and consequently the process of freight mode selection and use. Some of the more significant medium to long term influences are related to either demand or supply.

PROCESS OF FREIGHT FORWARDING

STAGE 1 – EXPORT HAULAGE : The movement of items from a shipper’s location to the freight forwarders warehouse is called export haulage. This usually requires the help of a truck or train to move the them. How long it takes depends on the distance, geographical location and what the items are. This first stage can take anywhere from a few hours to a few weeks.

The first step in the freight forwarding process is to transport the cargo to the freight forwarding firm’s warehouse.