Understanding Shipping: What is a Freight Broker?

Shipping goods across the world can be a complicated business. To manage the whole process yourself could be fraught with difficulty. That is the role of freight forwarders. They essentially act as middle-men, dealing with shipping companies, logistics experts and port authorities. A freight forwarder is an agent who acts on behalf of cargo owners to arrange the transportation of goods. One of their chief responsibilities is to process customs documentation, and all the paperwork and administration that is involved in international cargo shipping.

Before hiring a BCO, it’s important to understand their contract, and what this means for your shipment. A BCO contract specifies the transportation of cargo through either a direct or indirect channel. A beneficial cargo owner or BCO refers to an individual or company who acts on behalf of the importer by taking possession of the cargo when it reaches its destination.

A typical supply chain might start with agricultural produce being harvested at a farm. It is then transported to a storage warehouse in the country of origin, prior to being dispatched to a food processing facility overseas, which makes it into a consumable product that is transported to a retailer. Every stage in this process, including the means of transport, is a link in the supply chain.

Transshipment cargo describes the process that requires cargo to be unloaded from one vessel and reloaded onto another in a different port during transportation. To put it simply, the cargo is shipped from point A to point B via point C where it is unloaded and reloaded. It is from point C that the cargo’s journey to its final destination is made.

One of the most impactful requirements recently implemented is the SOLAS (Safety of Life at Sea) VGM (verified gross mass) regulation, which was introduced by the IMO (International Maritime Organisation) to enhance maritime safety. This regulation states that shippers must provide the accurate gross mass of a packed container before it is loaded onto a ship to prevent incorrect vessel stowage decisions, prevent container stack collapse or the loss of cargo overboard due to instability.

From selecting the best shipping carriers for your products to choosing the right packaging for your cargo, ‘shipping’ implies the entire process of moving your cargo from start to finish. As a business, this offers numerous opportunities for you to enhance your processes and your overall customer experience.

From the initial stages of product design and procurement to the final delivery of goods to your consumers, end-to-end logistics describes the complete management of your supply chain. Sometimes abbreviated as ‘E2E’, end-to-end logistics management is designed to ensure that information, materials, and products flow seamlessly from one stage of the supply chain to the next, enhancing both efficiency and customer satisfaction.

Used by manufacturers, importers and exporters, shipping companies, customs teams, and wholesalers, warehousing solutions are essential organizational, storage, and processing points in many international supply chains.