From CEOpedia | Management online
See also

Forwarder for adequate compensation deals with the movement of goods and other activities associated with it (handling, transport, storage, packaging, insurance, distribution, etc.). Forwarder as a transportation broker transmits and/or receives the goods from the carrier. Freight forwarder is representative of the interests of the cargo, not any of the parties involved. His task is to minimize the total costs associated with the shipping and transportation.

Forwarder, act as an intermediary, acts in his own name but on behalf of the client. There are two exceptions to this rule:

  • the so-called. self forwarding - forwarder acts in its own name and for its own account,
  • In Anglo-Saxon countries forwarder has the status of an agent, which means that works both on behalf of and for the account of the client.

Freight forwarder is obliged to insure the transported goods, only upon the written order that specifies value of the goods, and also the types of risks to which the goods must be insured. Forwarder is liable for damages, the loss of consignment or partial loss of the consignment and delay in execution.

Forwarder also has a duty to provide advice to its client, to the best of his knowledge. In the case of failure of information, delays, or for incorrect information forwarder can be held liable.

Functions of forwarder

  • advisory - involving cooperation of forwarder with the parties before the conclusion of a commercial contract.
  • documentary - forwarder is involved in the preparation and completion of documents necessary for the execution of the contract,
  • organizational - occurs when the forwarder does not perform transport operations alone, and only order their execution (so-called pure forwarding), now rarely seen,
  • executive - when forwarder directly perform physical activities associated with the movement of goods,
  • banking – forwarder, acting for the account of the client, and on his behalf determines and accounts the cost of shipping operations.

Classification of forwarders

Due to the specialization there are following types of forwarders:

  • road forwarders - offering their services of road forwarding through direct contracts with road carriers and truck companies,
  • railway forwarders - offering their services by train through direct contracts with rail carriers,
  • marine forwarders - offering their services of sea freight through direct contracts with maritime carriers, ports, etc.
  • airline forwarders - offering their air forwarding services through direct contracts with airlines,
  • river forwarders,
  • distribution forwarders,
  • FOB forwarders,
  • border forwarders,
  • customs forwarders - authorized to the presentation of the goods for customs clearance,
  • handling forwarders.

See also: