Understanding Freight Forwarders and Its Role in Logistics

The term freight forwarding is familiar to many, but not everyone understands its definition and role. Indeed, freight forwarding is closely related to import and export, but only some people know this service is more than just shipping goods.

A freight forwarding company, or simply a freight forwarder, is responsible for transporting and delivering goods while managing the entire logistics process.

Freight forwarder thorough services include logistics consultation, starting from handling customs permits related to customs duties in each country, international import and export documentation, shipping insurance, packing and storing goods in the forwarder’s warehouses, selecting the safest and most economical shipping routes, and coordinating the goods shipments.

Generally, freight forwarders conduct all their operational processes independently, but some forwarders collaborate with third parties to complement the facilities. So, what are the roles and advantages of freight forwarders?

See also: NLE Remains The Government’s Focus for 2024 Economic Growth

Roles of Freight Forwarders

Freight forwarders’ responsibilities are more than just shipping and receiving goods. They undertake several tasks before the goods reach their destinations.

Firstly, they handle various shipment documents, such as Letters of Credit (LC), applicable regulations, Bill of Lading contracts, export licenses, certificate of origin statements, customs permits, etc.

The next task is to select routes to shorten the duration and costs for better effectiveness and efficiency. Freight forwarding companies also determine transportation modes for delivery to destination areas while booking cargo space for delivery efficiency.

For land, sea, or air shipping, freight forwarders’ duties are monitoring and ensuring the safe arrival of goods to the destinations.

They are also responsible for receiving goods, particularly sorting and packaging goods to ensure their safety and neatness.

Next, the goods’ weight and dimensions are measured before being taken to the warehouse for storage while awaiting scheduled delivery to the recipient.

Furthermore, freight forwarders are responsible for delivering goods to the consignee and distributing them as requested.

See also: Understanding LCL: A Key Term in Freight Shipping

In case of damage or loss, the freight forwarder is responsible for handling and filing claims to the insurance company.

Advantages of Freight Forwarders

Freight forwarders have several advantages for exporters and importers. Their expertise and experience guarantee efficient, affordable, and time-saving delivery.

More practically, they manage all shipping, allowing companies to focus on business strategies.

Freight forwarders also offer advantages that can make shipping faster and safer by significantly shortening the shipping duration compared to self-arranged shipments.

Regardless of the volume, freight forwarders provide tailored solutions for large and small quantities. Additionally, they offer more cost-effective shipping rates than regular shipping companies, enabling businesses and SMEs to save time, effort, and cost.

Their capabilities extend to handling various commodities, from food items to beverages and raw materials for manufacturing companies.

With a broader scale than regular shipping companies, freight forwarders are a reliable option for various export and import needs.

See also: The Prediction of Logistics Sector Growth in Political Climate

For SMEs selling their products on e-commerce, freight forwarders can efficiently minimize the hassle process of cross-border shipping. Additionally, SMEs can negotiate shipping costs, enabling them to reduce their overall expenses significantly.

Choosing a Reputable Freight Forwarder

Considering the complex procedures, vast distances, and considerable financial outlays, choosing a reputable freight forwarder is crucial.

With extensive experience in the industry, SELOG, a business line of PT Serasi Autoraya or SERA and part of PT Astra International Tbk, is one of these logistics companies.

SERA, initially established to provide vehicle rental solutions, has become the largest, industry-leading transportation provider.

With over 32 years of experience, SERA continues innovating and providing effective, efficient, and high-quality logistics services through SERA Logistics (SELOG).

SELOG is here to serve the customers’ needs in end-to-end logistics through diverse services, including Contract Logistics, Shipping Services, Shipping Agency, Freight Forwarding, Warehouse and Yard Management, and Courier Services.

See also: Get Ready to Profit: Logistics Business Prospects in 2024

Driven by the latest digital technologies, SELOG services not only bring greater convenience to your business but are also practical and efficient.

With its Astra Fleet Management Solution (FMS), SELOG provides businesses in Indonesia with IT-based comprehensive solutions for managing fleet vehicles.

This company also has a well-maintained fleet of vehicles and equipment. Thus, they are ready to use anytime. To learn more about SERA’s profile and its services, including SELOG, visit its official website at