¿What does a Freight Forwarder do in the supply chain?


A freight forwarding company acts as an intermediary between clients and transport agencies to enable the goods intended to be shipped to reach their destination. Freight forwarders play a significant interlinking role In Supply Chain Management as follows:

  1. Global transportation network

Freight forwarders are considered information hubs. They have expertise in international logistical processes, they have a network of cross-border colleagues and contacts, and they know the laws and regulations of various regions as well as intercultural differences.

  1. Integration of operations

Freight forwarders convey the correct information at the right time, to the right recipient, so they unify the different verticals of supply chain management initiating and facilitating the movement of goods.

  1. Consultant/advisory services

Freight forwarders provide advice on topics such as export strategies, trader terms to be included in foreign trade contracts, consumer needs, etc. Supply chains are evolving into multimodal and cross-border systems, so businesses need a service provider to handle the complexities involved.

  1. Cost effective

The most expensive component in the logistic structure of a business is transportation. Thanks to freight forwarders it is possible to achieve a point of competitive differentiation. Because of their established global network, the process of import/export is facilitated, offering standard services at economical prices. 

  1. Legal assistance

Freight forwarders prepare all the necessary documents and certifications. Freight forwarders handle all legal procedures expediting the entire flow of goods from the shipper to the destination.

There is a consensus that DHL Global Forwarding is the largest freight forwarder in the world, other companies named alongside DHL are:

  1. Kuehne + Nagle

  2. DB Schenker

  3. Panalpina

  4. Expeditors

  5. Sinotrans

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