Freight Forwarding

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What is Freight Forwarding?

A Freight Forwarder (often referred to as just forwarder) is basically a third party Logistics provider. As a third party (or non asset based) provider a forwarder dispatches shipments via Freight Train Shipping, Container Shipping, asset based carriers and books or otherwise arranges space for those shipments. Freight Forwarders are businesses that consolidate shipments from multiple agents to fill individual trailers bound for Door to Door destination cities.

It is valuable to use LTL services when your freight weighs, either actual or dimensional, is less than the partial load threshold price for your destination city. For example, this would be between 1,850 pounds Atlanta, GA to Orlando, FL and 2,950 pounds between Atlanta, GA and Seattle, WA. Carrier types include waterborne Vessels, Airplanes, Trucks, and Railroads.

What is a Freight Forwarder?

An international freight forwarder is an agent for the exporter in moving cargo to an overseas destination. Freight forwarders typically arrange cargo movement to an international destination. Also referred to as International Freight Forwarders, they have the expertise that allows them to prepare and process the documentation and perform related activities pertaining to international shipments.

Get a list of International Freight Forwarders or some of the typical information reviewed by a freight forwarder is the commercial Invoice, Shippers Invoice, Shippers Export Declaration, Bill of Lading and other documents required by the carrier or country of Export, Import or transshipment. Much of this information is now processed in a paperless environment.

What is LTL Freight?

Less Than Trailer Loads, or LTL as it is commonly called, is freight that is always moved based on weight. This can be actual or dimensional, whichever is greater. LTL freight is moved using "Freight Forwarders".In the U.S., a freight forwarder involved with international ocean shipping is licensed by the Federal Maritime Commission as an Ocean Transportation Intermediary. Similarly, freight forwarders that handle air freight will frequently be accredited with the International Air Transport Association (IATA) as a cargo agent

FCL

Abbreviation for "Full Container Load."

FD

Abbreviation for "Free Discharge."

Feeder Service

Cargo to/from regional ports are transferred to/from a central hub port for a long-haul ocean voyage

FEU

Abbreviation for "Forty-Foot Equivalent Units." Refers to container size standard of forty feet. Two twenty-foot containers or TEU's equal one FEU

Firkin

 A capacity measurement equal to one-fourth of a barrel

Fixed Costs

Costs that do not vary with the level of activity. Some fixed costs continue even if no cargo is carried. Terminal leases, rent and property taxes are fixed costs.

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Flat Car

A rail car without a roof and walls.

Flat Rack/Flat Bed Container

A container with no sides and frame members at the front and rear. Container can be loaded from the sides and top.

Foreign Trade Zone

A free port in a country divorced from Customs authority but under government control. Merchandise, except that which is prohibited, may be stored in the zone without being subject to import duty regulations.

Foreign Sales Corporation

Under U.S. tax law, a corporation created to obtain tax exemption on part of the earnings of U.S. products in foreign markets.  Must be set-up as a foreign corporation with an office outside the USA. Freight Forwarding

Foul Bill of Lading

A receipt for goods issued by a carrier with an indication that the goods were damaged when received. Compare Clean Bill of Lading. Freight Forwarding

Free of Particular Average (FPA)

A marine insurance term meaning that the assuror will not allow payment for partial loss or damage to cargo shipments except in certain circumstances, such as stranding, sinking, collision or fire.

 Freight Forwarding and Freight Shipping, Freight Trucking Container Companies.

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