What Is Freight Forwarding? A Simple Guide for Businesses New to Shipping
Freight forwarding is the process of arranging the movement of goods from one location to another on behalf of a business, using ocean, air or ground transportation. A freight forwarder does not typically own the ships, planes or trucks that carry the cargo. Instead, they coordinate with carriers, handle documentation and manage the process from pickup to delivery.
What Does A Freight Forwarder Actually Do?
A freight forwarder acts as a coordinator between a business and the carriers that move its cargo. This includes booking cargo space, selecting the right mode of transport, preparing shipping documents, arranging customs clearance and tracking the shipment until it reaches its destination. For a business, this means fewer moving parts to manage directly.
Why Do Businesses Use Freight Forwarders Instead Of Booking Directly With Carriers?
Booking directly with a carrier usually means working with one company and one set of routes. A freight forwarder works across a network of carriers, which allows a business to compare options for price, transit time and service level, and choose the combination that fits a specific shipment. This is especially useful for businesses that ship different cargo types, volumes or destinations over time.
Ocean, Air Or Ground: How Is The Right Mode Chosen?
The right mode of transport depends on the type of cargo, how quickly it needs to arrive and the budget available.
Ocean freight is generally used for larger shipments where cost matters more than speed. Air freight is used for time-sensitive cargo that needs to move quickly, even at a higher cost. Ground transportation is used for domestic shipments or as part of moving cargo to and from ports and airports.
Many international shipments use more than one mode of transport at different stages, which is where a freight forwarder’s coordination becomes useful.
What Is Included In The Freight Forwarding Process?
A typical freight forwarding process includes booking cargo space with the selected carrier, preparing and reviewing shipping documentation, coordinating customs clearance for imports and exports, arranging transportation to and from ports, airports or warehouses, and tracking the shipment until delivery.
Who Needs A Freight Forwarder?
Any business that imports or exports goods, whether occasionally or as a regular part of operations, can benefit from working with a freight forwarder. This includes businesses shipping a single pallet as well as those managing freight across multiple countries.
Working With A Freight Forwarding Company
Universal Shipping & Logistics Inc. (USL) is a freight forwarding company based in Chicago, Illinois, helping businesses coordinate ocean, air and ground freight along with customs clearance and delivery. If your business is evaluating freight forwarding options, our team can walk you through what a shipment would look like from booking to final delivery.
Request a freight quote with USL by the provided email.
