Understanding Shipping: What is a freight forwarder?

/pt/lp/blog/key-terms/2023/freight-forwarder

Understanding Shipping: What is a freight forwarder?

19/12/2023

Updated: 19/08/2025

 

Key Takeaways:

  • Freight forwarders act as intermediaries, which helps to simplify global shipping by handling relationships between your business, shipping companies, logistics experts, and port authorities when transporting goods.
  • One of the key strengths of freight forwarders is their detailed knowledge of customs laws, tariffs, and documentation requirements.
  • Freight forwarders operate across sea, air, rail, and road and often specialize by industry (e.g. food, pharmaceuticals, or automotive shipping).

 

Shipping goods across the world can be a complicated business, and it can be helpful to have some help on hand, especially during busy periods.

This is where a freight forwarder could come in and help alleviate some of the pressure. Acting as middlemen, freight forwarders deal with shipping companies, logistics experts and port authorities. Working on behalf of cargo owners to arrange the transportation of goods, one of their chief responsibilities is to process all the paperwork, including customs documentation, bills of lading and import/export paperwork involved in international cargo shipping.

They act like a travel agent for your shipments, helping to reassure that transportation will be an efficient process. Freight forwarders try to find the most cost-effective way to transport cargo, including selecting optimum routes, times and costs.

Many freight forwarders started out as customs brokerage experts. They have a wealth of experience in the procedures, legislation, customs tariffs and rules around import and export duties, all of which helps ensure that the administrative aspect of organising international shipping run smoothly.

Determining Whether Freight Forwarding is Right for You?

There are several instances where the services of a freight forwarding company might be used:

  • Customs regulations
  • Helping to prepare the necessary shipping documents, such as bills of lading, export declarations, and customs clearance documents
  • Import/Export clearance
  • Arranging transport
  • Packaging and labelling
  • Logistics and security
  • Insurance
  • Tracking and monitoring of shipments

 

In these instances, or if you’re looking for added support when shipping large volumes of goods, it might be worth considering working with a freight forwarder.

Different Types of Freight Forwarding

Freight forwarders serve customers shipping cargo by sea, air, rail or highway, and operate on an end-to-end basis. Some will specialise in certain industries like food, automotive, pharmaceuticals or clothing.

Export haulage and customs clearance

Typically, on international shipments, the first stages of the freight forwarding process involve transporting the goods to the freight forwarder’s warehouse or port of load. Customs officials inspect the goods leaving the country of origin and must approve the product, its safety and legality, and the customs documentation before this can happen.

Items checkpoint and customs clearance

Goods will be inspected in the destination country, to ensure that they match the booking documents and have arrived undamaged. Freight forwarders can be on hand to ensure that goods with restrictions, such as alcohol, dangerous items and perishable produce, meet each country’s regulations.

Arrival, handling and import haulage

After import checks have been made, paperwork is confirmed for the products. The goods make the last stage of their journey by road, rail or whichever mode of transport is suitable for the goods and the final destination.

Freight Forwarders: Customs Regulations Experts

Perhaps the most specialised area for freight forwarders, and the one that most intimidates shippers, is the procedures and documentation around customs clearance.

Freight forwarders can apply for AEO (Authorised Economic Operator) status, which is granted by national customs authorities to companies that meet supply chain security and compliance standards. AEO-certified forwarders benefit from faster customs clearance, fewer inspections, and recognition across other jurisdictions.

Freight forwarders have a detailed knowledge of customs tariffs and import and export clearances for commercial and non-commercial goods. Many forwarders also have direct access to customs authorities’ electronic systems (e.g., HM Revenue & Customs in the UK), enabling declarations to be submitted quickly and efficiently.

Freight Forwarding Jargon-Buster

  • FOB
    Free on board.
    A shipment term that defines the point in the supply chain when a buyer or seller becomes liable for the goods being transported.

  • CIF
    Cost, Insurance and Freight. With Cost, Insurance, and Freight, the seller covers the costs, insurance, and freight of a buyers order while in transit.

  • DDP
    Delivered Duty Paid. Responsibilities and costs of delivery are covered by the seller, including export and import formalities, fees, duties and taxes.

  • Inco-terms
    11 internationally recognised rules defining the responsibilities of buyers and sellers of goods, with regards to insurance, shipment, documentation, customs clearance and other logistics activities.

Ask MSC

Here at MSC we provide consultation and advice on all your shipping requirements, and can help with our range of shipping and logistics services. Contact us today to explore how MSC’s full range of shipping and transportation solutions could be beneficial for your business.

Discover our Range of Solutions

Shipping Solutions

Learn More

Inland Transportation & Logistics Solutions

Learn More
MEDLOG Argentina

Warehousing & Storage Solutions

Learn More

Digital Business Solutions

Learn More

FAQs

Do freight forwarders own ships or trucks?

No, typically freight forwarders act as intermediaries between shippers and carriers and therefore don’t own vessels or vehicles. However, some larger freight forwarding companies may own or lease transport assets in specific markets or regions.

What services does a freight forwarder provide?

Freight forwarders typically offer:

  • Route and carrier selection
  • Customs documentation and clearance support
  • Export/import paperwork services
  • Insurance arrangement
  • Tracking and monitoring of shipments
  • Coordination of multiple transport modes
  • Risk management and regulatory compliance services

What is the difference between a freight forwarder and a carrier?

A carrier owns the transportation equipment and is responsible for physically moving the cargo. A freight forwarder arranges and manages the entire shipping process for the shipper rather than transporting the goods themselves.