In International Trade, exporters and importers have the challenge of facing complex logistics of arranging the transportation of goods from one country to another country. There are multiple layers of approvals that has to be taken and multiple local and international carriers need to arrange the transportation
of goods. This is where the Freight Forwarder comes-in as a service provider acting as an intermediary using their expertise, resources and global network to support the exporters and importers. Freight Forwarders will manage the documentation, export customs clearance and other approvals, arrange the local transport, arrange the international transport by sea, air, road, rail and arrange the import customs clearance and delivery to the importer. A comprehensive and complete service is offered by a Freight Forwarder by collaborating with truckers, shipping lines, airlines, railways at both the origin and at destination with the support of their global partners. These services ensure a cost-effective, efficient movement of goods across the international borders and managing the critical links in the global supply chain.

What are the main characteristics of a Freight Forwarder?

• Being an Intermediary

Freight Forwarder work on behalf of shippers, leverage their commercial relationship to negotiate for best competitive rates, space and services with ocean carriers, airlines, railways and truckers. Freight Forwarders enter in to service contracts with different carriers which allow them to offer best rates and multi-carrier and multimodal transportation (combination of two or more modes of transport) options to shippers.

• Comprehensive Services

Freight Forwarder manage the entire process of shipping goods from origin to destination, covering various transportation modes like sea, air, road, rail or a combination of transportation modes. Documentation, Compliance and Approvals A significant part of the service of a Freight Forwarder involves, handling the crucial mandatory paperwork and compliance requirements of international shipping and navigating complex customs regulations and export & import clearance processes at both origin and destination. 

• Expertise and Global Network

Freight Forwarders utilize their extensive knowledge of international trade, local regulations, international cross-border regulations, carrier options and efficient routes, multimodal transport options, time critical transport options to optimize shipments and ensure smooth delivery. Freight Forwarders have partnerships with similar professional entities across the continents to cover the globe, and provide these end-to-end services for shipments from origin to destination.

• Supply Chain Management

Freight Forwarders effectively manage the entire movement of goods from exporter’s door to importer’s door, thereby improving and optimizing the overall efficiency of supply chains, benefiting businesses by ensuring timely and safe delivery of shipments.

Why and who uses a Freight Forwarder? 

• Essentially, Exporters and Importers have to face a lot of challenges in navigating many complex regulations, compliance requirements, extremely tight time schedules and having to deal with multiple parties to ship the goods across international borders. And they will need a lot of in-house expert personnel to handle all these matters, if they are to do everything by themselves.

• Companies involved in International Trade or Global Commerce also need to manage the complex international shipping process, similar to Exporters and Importers, to ensure seamless and efficient movement of their products across international borders.

• However, Exporters, Importers and International Trading Companies can avail the services of a Freight Forwarder, who will offer a total solution for all the requirements in shipping the goods across international borders. Their comprehensive services include – documentation, export customs clearance, obtain relevant approvals, trucking from factory/warehouse to the port/airport and shipping the goods across international borders through shipping lines, airlines and railways as a single mode of transport or through a combination of these modes of transport, which is known as Intermodal Transport and Multimodal Transport.

But it doesn’t stop there with a Freight Forwarder. Any shipment which arrives at the destination too, can be handled by the same Freight Forwarder. Through their International Partners in all countries covering the globe, they can offer at the destination the required services including – import customs clearance, payment of import duty & taxes on behalf of the importer and delivery by truck from port/airport to importer’s warehouse/shop or any designated location.

MendisOne is a One-Stop-Shop which offers professional, seamless, efficient, cost-effective and comprehensive International Shipping Services through it’s specialized companies, Premium Trading and Logistics, and Prudential Shipping to all Exporters, Importers and International Trading Companies in Sri Lanka and across all continents covering the globe.