Several key players are involved in freight shipping depending on the shipper’s requirements and the shipping company’s capabilities and services. Let’s look at the role of each party involved in freight transportation:
Freight Forwarders
A freight forwarder is a company that coordinates the movement of the freight shipment to its final destination on behalf of the shipper.
The roles of a freight forwarder include:
Providing domestic and international freight transportation services, including preparing and processing the documents for international shipments and clearing imported goods for delivery to the recipient.
Booking cargo space for shipments, specifically for shippers on the ocean or air transportation and negotiating freight rates
Offering cargo collection, handling, and warehousing services.
Providing assembly, packaging, and consolidation services.
Freight Brokers
A freight broker is a middleman who organizes safe, efficient, and cost-effective transportation for cargo owners. It doesn’t take possession of the shipment but serves as an intermediary between shippers and carriers.
The roles of a freight forwarder include:
Maintaining deep knowledge of the trucking industry (truck capacity, load demand, freight rates, etc.) to manage carriers, shippers, and freight transport efficiently.
Negotiating shipping rates and terms and facilitating real-time communication between the shipper and the carrier.
Achieving supply chain coordination to ensure cargo movement to its final destination.
NVOCC
An NVOCC (Non-Vessel Operating Common Carrier) performs all the ocean freight services as a shipping carrier but does own an actual vessel or intermodal transportation. NVOCCs usually own and operate their fleet of containers and lease warehouses or distribution centers.
The roles of an NVOCC include:
Facilitating clear communication between shippers and carriers to smooth on-time delivery.
Ensuring competitive prices for FCL (full container load) and LCL (less than container) shipments.
Arrange container capacity for cargo of all sizes.
Enabling shippers to diversify their carrier base based on capacity and freight rate requirements.
Leveraging global transportation to provide real-time status of cargo to shippers.
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