What is a freight forwarder? A freight forwarder is a company that organises the shipment of goods from one place to another on behalf of importers and exporters. It does not usually own the ships or planes. Instead, it books space with carriers, prepares the paperwork, arranges customs clearance and coordinates every leg of the journey, so your goods arrive on time and on budget.
Shipping is the backbone of global trade. According to UNCTAD, around 80% of the volume of international trade in goods is carried by sea. But moving goods across borders is full of rules, costs and risks, and that is why most businesses use a freight forwarder.
What is a freight forwarder and what does it do?
- Books freight with shipping lines, airlines and couriers, choosing the right mode and route
- Prepares documentation, such as bills of lading, commercial invoices and certificates
- Arranges customs clearance at origin and destination, through a licensed customs broker
- Coordinates pickup and delivery, including trucking, warehousing and consolidation
- Arranges cargo insurance to protect your goods in transit
- Tracks shipments and keeps you informed when plans change
Why international shipping is complicated
On paper, shipping looks simple: goods are packed into containers and moved from port to port on fixed schedules. In practice, importers and exporters deal with trade regulations, duties and taxes, language barriers and different border rules in every country. Without professional help, you risk unexpected costs, long delays, and even having goods seized by authorities for incorrect declarations.
5 reasons you need a freight forwarder
1. Customs clearance done right
Customs clearance is the permission a customs authority gives for goods to enter or leave a country, once duties are paid and requirements met. A licensed customs broker understands tariff classifications and will help you avoid delays and overpaying. Talk to your broker before importing a new product for the first time so there are no surprises. Sneddens has an in-house customs brokerage team.
2. Fewer lost or damaged shipments
Damage and loss are always a risk in international freight. An experienced forwarder reduces that risk with the right packing advice, reliable carriers and cargo insurance if something does go wrong.
3. Options when delays hit
No one controls the weather or port congestion. A freight forwarder who understands the pitfalls keeps you informed and can offer alternatives, such as an emergency air freight shipment, to reduce the impact on your business.
4. Better rates and more choice
Forwarders work with many carriers and buy space across many customers, which gives you access to more routes and better rates than you would usually get on your own, whether by sea freight or air freight.
5. One point of contact
Good, reliable communication is essential. With a freight forwarder, you have one contact managing every leg of the journey, instead of chasing multiple carriers and agents yourself.
Tips before you import or export
- Do your homework. Before you buy or sell, talk to a freight forwarder about the product and the countries involved, so they can advise on customs rules and the best shipping option.
- Pack properly. Make sure your goods, or your supplier’s, are packed for the journey. Ask your forwarder if you are unsure.
- Insure your cargo. Carrier liability is limited, so do not take the risk.
- Declare goods correctly. Incorrectly declared goods can be held or seized.
- Agree trade terms. Understand your Incoterms so you know who pays for what.
Choose the right freight forwarder
Look for a freight forwarder with experience in your trade lanes, an in-house customs brokerage team and a reputation for clear communication. Our importing guide and exporting guide cover the basics if you are just getting started.
Sneddens Global Logistics is an independent New Zealand freight forwarder with more than 20 years in business and a dedicated customs brokerage team. Talk to us about your next shipment: call 0800 76 33 33, email info@sneddens.co.nz or request a free quote.