Freight Forwarder
A company that arranges international shipping logistics on a business's behalf, without owning the ships or planes itself.
In practice
They act as an intermediary who books cargo space, handles customs paperwork, and coordinates multiple carriers across a shipment's journey - valuable for a business that doesn't have the volume or expertise to negotiate directly with shipping lines and customs brokers itself.
A small importer uses a freight forwarder to consolidate its shipment with other businesses' cargo, book ocean freight, and handle customs clearance on arrival.
Why it matters
For a business without in-house logistics expertise, a good freight forwarder effectively becomes an outsourced shipping department, handling complexity that would otherwise require dedicated staff.
Worth knowing
- Typically handles booking, documentation, and customs clearance across multiple carriers in one shipment.
- Can consolidate smaller shipments (LCL) with other businesses' cargo to reduce cost.
- Experience in a specific trade lane or product category often smooths customs clearance.
Related terms
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