If you are in a business that involves moving goods from one place to the other, you must have heard about freight forwarding. What is freight forwarding and what are the best freight forwarding companies in India? Let's delve into all this but before that lets put on our thinking hats.
Think about these three scenarios: A precision-engineered German automobile being delivered to a shop across the ocean, a consignment of rare African coffee which was packed in Ethiopia and now has arrived at a cafe in New York, or a shipment of advanced electronics which is manufactured in Shanghai and is being delivered to Silicon Valley. On the surface, these three may appear as mere deliveries but scratch the surface and you will unearth a modern-day marvel!
These examples are testament to the beauty of global commerce, which functions with expertise. The unseen engine driving this marvel is the freight forwarder, a key force which is generally underrated in the world of trade.
Today's globalized world has made international borders and geographical barriers obsolete. Businesses are able to ship raw materials, finished products, or even personal goods across the globe at ease, without facing any issues. And this happens due to freight forwarders.
But what exactly is freight forwarding, and how does it work? Let’s dive in.
When we are looking to understand what is freight forwarding, we can consider it as a pair of invisible handles which collect the goods from their point of origin and deliver it to their final destination. This is done with strategic coordination and management. Now this movement of goods can happen across international borders and through multiple modes of transit.
One key point to note here is that freight forwarders do not own the vessels, trucks, or aircraft. Instead they work as expert intermediaries. Freight forwarders are equipped with tremendous industry knowledge and have extensive networks. Plus they update themselves with advanced technologies in this field. And they bring all this expertise into play so that your cargo reaches its destination in the best possible way. Their role is similar to that of a logistics architect. They are responsible for designing seamless pathways that make their ways through a complex global landscape.
Let's look at some numbers to understand the impact of freight forwarders. The global freight forwarding market is projected to reach USD 581.94 billion in 2025 and grow at a compound annual growth rate (CAGR) of 4.47% to hit USD 724.16 billion by 2030.
With the value of world trade reaching $28.5 trillion in 2022, as reported by the United Nations Conference on Trade and Development (UNCTAD), the responsibility shouldered by freight forwarders is immense. This field, however, requires precision as a single error in documentation or routing can result in delays, penalties, or lost opportunities.
Now that we understand what is freight forwarding, the next question to think is, how is freight forwarding different from rudimentary shipping? The answer lies in the involvement a freight forwarder has in the entire operation and their approach. Freight forwarding isn't limited to moving goods, it is about offering strategic solutions that are offered keeping in mind the exact needs of the customers.
To make things clear, let us look at some of the features of freight forwarding companies:
Strategic Transportation Planning
Every shipment is carefully analyzed and a decision is taken to decide the best mode of transport. Let's take an example of a 40-foot container which is scheduled to travel from Mumbai to New York. This container may take 25-35 days via ocean freight to reach its destination or it can cover the same distance in 2-3 days by air. Now, what works best in this situation?
Freight forwarders make a decision by taking into consideration various variables such as volume, urgency, budget and then create an optimal route for transporting the shipment. This results in saving costs and time.
Documentation Precision
International shipping requires a plethora of documents. From bills of lading to export declarations and from certificates of origin to other invoices, there is a huge pile of paperwork involved. In 2023, U.S. Customs and Border Protection processed over 35 million import entries, each requiring flawless paperwork.
An error in documentation can halt progress of the shipment and mess with the entire timelines or incur fines. Freight forwarders bring in their expertise in compliance and efficiency so that these obstacles are kept at bay and shipments move quickly to the next point.
Customs and Regulatory Mastery
Navigating customs is an uphill task. It involves tariffs and regulations that vary significantly from region to region. For example, if you are bringing lamps to the USA, you have to pay 1.5% duty. But for the same lamps in Brazil, you end up paying 10% duty.
Freight forwarders serve as your liaison with customs authorities. As they have the expertise in handling these processes, they ensure smooth clearance and reduce the costs. Customs delays account for a considerable loss in trade value annually. Thus investing in a freight forwarding agency mitigates that risk and ultimately saves costs!
Carrier Network Management
Freight forwarders have strategic relationships with leading carriers for ocean and air freight. This network enables them to enjoy competitive rates and reliable capacity. They are also experts in creating a link between the multiple transport modes as per the scheduling and requirement of your goods. They ensure your goods transition seamlessly from one mode to another (from shop to rail or from rail to truck) quickly and efficiently.
Risk Mitigation
The world of logistics is full of uncertainties. There is always the danger of a challenge looming in the shape of weather disruptions or labor strikes or some other issue. Sometimes, even inadequate packaging can cause delays.
Freight forwarders are equipped to mitigate these risks through the safety net of insurance options. Freight forwarders not only transport your cargo, they protect it!
Freight forwarding isn't just a cog in the wheel, it is in fact the linchpin. It is a crucial element that drives global trade and makes it easy for several companies and individuals to send goods to other parts of the world.
Increase in efficiency : As freight forwarders use optimized routes and modes, they are able to reduce time and costs. Thus, your shipments take less time to reach your destination.
Reduction in costs: Freight forwarders use cost-saving techniques such as merging smaller loads into one container. This ultimately helps you to reduce costs.
Less risky : Freight forwarders are the experts in this field and they also have the safety net of insurance. So they ensure minimum delays and damages.
Global reach : With freight forwarders, you virtually have limitless reach. You can go across countries and continents irrespective of your business being a small or a big one. They take care of logistical headaches and you can explore new shores.
Peace of Mind : Logistics is a world in itself. It has plenty of aspects including paperwork, compliance and tracking. Freight forwarders handle this all enabling you to focus on growing your business.
Now that you have decided to use a freight forwarder, the next big question is: Which one to choose?
Here are a few parameters you can check :
1. Experience : Experience has no substitute. Having a forwarder with a proven track record in your industry will save a lot of hassles in the future. An experienced forwarder will already be aware of common challenges and will move things quickly.
2. Global Network : Choose a forwarder with an excellent network of carriers and agents across the world. This will ensure you enjoy more flexibility and reliability.
3. Customs Expertise : This is a crucial parameter. You should go for a forwarder having complete knowledge of regional regulations.
4. Technologically advanced : The forwarder must have real-time tracking, digital documentation, and analytics are some of the key technology tools non-negotiable. You want visibility, not guesswork.
5. Customer Service : You need a forwarder who handles your queries, offers explanations and most importantly does all this in a quick time.
6. Tailored Solutions : A growing business will have evolving requirements. Your forwarder should offer customized plans to match your budget and timeline.
Kindly visit their website, check for testimonials and see if their communication style matches yours.
If you are searching for the freight forwarding companies in India , then look no further than Atlantic Express. At Atlantic International Express, we excel at offering freight forwarding services to a vast number of businesses.
Here are a few parameters that make us stand out:
We offer complete freight forwarding services. We take care of pickup, delivery and all other processes. We are experts in ocean freight as well as air cargo.
We have strategic partnerships with top-tier airlines, shipping lines, and trucking firms. This helps us to offer competitive rates and provide reliable capacity, even during peak seasons.
We use cutting-edge tracking tools and digital documentation. This ensures you are always in the loop regarding your shipment’s status.
Our expert team members are pros in handling global regulations, minimizing delays and costs.
We provide comprehensive insurance options that protect your cargo from unforeseen hiccups.
We’re not just forwarders; we’re your logistics allies, turning global trade challenges into opportunities.
What is freight forwarding? Freight forwarding is a world in itself. It is the work that happens 'behind the stages'. Freight forwarders keep the supply chains moving through their global network of carriers and other players. Freight forwarders are a boon for businesses as they help in saving costs and increasing the speed of logistics. Importantly, they solve all the hassles related to logistics and enable businesses to focus on their core competencies. Forwarders such as Atlantic are the ideal option as we have decades of experience, robust network and technology-driven tools.
There are primarily four types of freight forwarding based on the mode of transportation: sea freight forwarding, air freight forwarding, land (or ground) freight forwarding (which includes trucking and rail), and intermodal freight forwarding (a combination of two or more modes).
Ideally you should go with the best freight forwarder companies for your business. To choose a freight forwarder, consider their experience in your industry, range of services, network of global partners, reputation and their pricing.
Freight forwarders typically charge based on factors like the mode of transport, weight or volume of the shipment, distance, and additional services (e.g., customs clearance, insurance, or warehousing).
Sea freight forwarding involves arranging the transportation of goods via cargo ships across oceans or waterways. It’s ideal for large, heavy, or bulk shipments and is generally more cost-effective than air freight, though slower.
Benefits include expert handling of logistics, cost optimization through negotiated carrier rates, time savings on paperwork and coordination.
Yes, many freight forwarders handle customs clearance as part of their services. They prepare and submit necessary documentation, calculate duties and taxes, and ensure compliance with import/export regulations.
