Freight Forwarding
Freight forwarding is the service of arranging and coordinating the transport of goods on behalf of a buyer or supplier, often across multiple carriers and borders.
A freight forwarder organises the movement of goods from origin to destination, booking sea, air, road or rail transport, consolidating shipments, arranging insurance, and handling documentation and customs formalities. Forwarders do not usually own the transport; they act as intermediaries who use their networks and expertise to move cargo efficiently.
For buyers importing goods, a forwarder simplifies complex international logistics — managing carriers, warehousing in transit, and the paperwork that keeps shipments moving. Understanding freight forwarding helps procurement teams calculate landed cost accurately and set the right Incoterms, which determine who arranges and pays for each leg of the journey.
Frequently asked questions
- What is freight forwarding?
- Freight forwarding is the service of arranging and coordinating the transport of goods on behalf of a buyer or supplier, including carriers, documentation, insurance and customs.
- Does a freight forwarder own the transport?
- Usually not. A forwarder acts as an intermediary that books and coordinates carriers and services, using its networks and expertise rather than owning ships, planes or trucks.
Related terms
Customs Clearance
Customs clearance is the process of getting imported or exported goods approved to cross a border by meeting documentation, duty and regulatory requirements.
Read definitionIncoterms
Incoterms are standardised international trade terms that define who is responsible for shipping, insurance, duties and risk at each stage of a delivery.
Read definitionBill of Lading
A bill of lading is a legal shipping document issued by a carrier that acts as a receipt for goods, a contract of carriage and, often, a document of title.
Read definitionInbound Logistics
Inbound logistics is the movement, receiving and storage of goods coming into an organisation from its suppliers.
Read definitionExplore related across the knowledge graph
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