Freight Forwarder’s Role In Exporting

By J. Nathan May

JAS Forwarding USA

Industry Terms for Forwarders

OTI – Ocean Transport Intermediary NVOCC – Non Vessel Operating Common

Carrier IAC – Indirect Air Carriers Most are Non-Asset Based Cargo Travel Agent Most Do Not Require Service Contracts

What Are We Good For

Provide Shipment Information Prepare Necessary Documentation Move the Shipment

Provide Shipment Information

Find Available Air/Ocean Service Routing Capabilities (3 ports, 3 airports) Packing Requirements Air vs LCL vs FCL ??? Freight Charges

Handling Fees Port Fees Duty Fees Etc.

*****INCOTERMS INCOTERMS INCOTERMS*****

Widely Used Inco Terms

Ex Works (named place) FOB Free on Board (named port) CFR Cost and Freight (named dest. port) CIF Cost, Insurance & Freight (named dest. port) DDU Delivery Duty Unpaid (named place at dest.) DDP Delivery Duty Paid (named place at

destination) MAKE SURE YOUR CUSTOMER UNDERSTANDS

THEIR RESPONSIBLITY

Prepare Necessary Documentation

SED vs. AES AMS/ISF (Import Only…for now) BOL - Inland Insurance Certificate Destination Clearance Banking

Move the Shipment

Secure Space with Air/Ocean Carrier Make Necessary Inland Arrangements Coordinate Inspections, Fumigations, etc. Confirm On Board with MBL

Export Shipment Process Flow

Booking Request

from Shipper

Forwarder Confirms

Space

Pickup and Verification

HAWB/HBL Created

Full Pre-Alert to Shipper

Shipment Arrival

Customs Clearance by

Broker

Delivery is Made

Shipment Available for

Clearance

AES Filing Confirmed

Common Shipper Mistakes

Misunderstanding of Inco Terms Forwarder is NOT Exporter of Record on Ex

Works Shipments Providing Inaccurate Shipment Information Improper Marking/Labeling of Hazardous

Materials Not Using Heat Treated Wood for Packaging Ignoring Export Compliance Regulations“That’s what we pay you for is not enough.”

Forwarder Compensation

Shipper Documentation and Forwarding Fees

Ocean Carrier Brokerage (commission)

Inland Carrier Property Brokerage

Insurance Provider Markup of Premium

The Freight Forwarder coordinates the various parties involved in the cargo movement and services provided are based upon the needs of the individual shipper.

Flexibility is Key Communication is Key Use Our Services to Add Value to Your Product We are an Extension of Your Company