Freight forwarding is cargo delivery from the consignor to the consignee by any mode of transport.
Provision of forwarding services to the fullest extent involves a turnkey delivery, i.e. acceptance from the supplier, delivery and loading operations, traffic rate payment, unloading and delivery to the recipient.
Freight forwarding regulations are laid down in the Civil Code of the Russian Federation and FIATA documents (International Federation of Freight Forwarders Associations).
What does the service include
Forwarding services include the following:
- transportation scheme development;
- making agreements and contracts for the carriage;
- execution of supporting documents;
- calculation and payment of tariffs and charges;
- insurance of cargoes, representing client’s interests if an insured event occurs;
- provision of customs broker services in international transportation;
- searching for cargoes in the event of their loss in transit;
- provision of information on package location;
- execution of documents for non-standard cargoes transportation (oversized, heavy, dangerous).
Freight forwarding and delivery
The forwarder represents and protects the interests of the cargo owner. Large and small companies use the service in arranging cargo transportation.
Small shippers prefer entrusting most logistic services to providers, while large companies use freight forwarders only in the areas of their interest, for example, when testing a new transportation scheme.
Logistic services lie in two planes –legal and manufacturing. The legal component involves arranging of a transportation process and advisory services. Freight forwarding and delivery in a production-technical aspect requires the availability of own capacities – rolling stock, warehouses, loading equipment etc.
Logistic outsourcing is based on the concept of PL-provider. There are 4 main types of Party Logistics:
- 1PL — a local company operating in one direction, for example, a customs broker;
- 2PL — transport operator, an intermediary between cargo owner and carrier;
- 3PL — full cycle freight forwarding and transportation, i.e. from door to door in the optimal way;
- 4PL — complex logistic integration of processes.