Freight Forwarding Essentials

Understanding the fundamentals of freight forwarding and how Flint streamlines these operations.

What is Freight Forwarding?

A freight forwarder acts as an intermediary between shippers and transportation services, coordinating the movement of goods across international borders.

Key Responsibilities

• Documentation - Preparing shipping documents
• Customs Clearance - Managing import/export procedures
• Carrier Selection - Choosing optimal transport methods
• Cargo Insurance - Arranging coverage
• Tracking - Monitoring shipment progress
• Problem Resolution - Handling delays and issues

Types of Freight

Ocean Freight

FCL (Full Container Load)

• Exclusive use of container
• 20ft, 40ft, 40ft HC containers
• Direct seal from origin to destination
• Better security and less handling

LCL (Less than Container Load)

• Share container space
• Consolidation at CFS
• Cost-effective for small shipments
• Longer transit times

Air Freight

• Fastest transit times
• Higher costs
• Weight and dimension limits
• Time-sensitive cargo
• High-value goods

Ground Transportation

• Trucking - Door-to-door delivery
• Rail - Long-distance bulk cargo
• Intermodal - Combined transport modes

Key Documents

Bill of Lading (B/L)

Primary shipping document serving as:

• Receipt of goods
• Contract of carriage
• Document of title

Types of B/L:

• Master B/L - Issued by shipping line
• House B/L - Issued by freight forwarder
• Seaway Bill - Non-negotiable
• Telex Release - Electronic release

Commercial Invoice

Details of the transaction:

• Seller and buyer information
• Description of goods
• Values and quantities
• Terms of sale (Incoterms)
• Country of origin

Packing List

Detailed breakdown:

• Package contents
• Weights and dimensions
• Package marks and numbers
• Material details

Certificate of Origin

Proves country of manufacture:

• Required for customs
• Determines duty rates
• Trade agreement eligibility

Incoterms 2020

Common Terms

EXW (Ex Works)

• Buyer arranges all transport
• Seller's minimum obligation
• Transfer at seller's premises

FOB (Free on Board)

• Seller loads goods on vessel
• Risk transfers at ship's rail
• Buyer pays ocean freight

CIF (Cost, Insurance, Freight)

• Seller pays to destination port
• Includes insurance
• Risk transfers at origin port

DDP (Delivered Duty Paid)

• Seller's maximum obligation
• All costs and risks to destination
• Including customs duties

Choosing Incoterms

Consider:

• Control over shipping
• Risk tolerance
• Cost allocation
• Customs expertise
• Insurance requirements

Customs Process

Import Process

1. Pre-arrival - Document preparation
2. Arrival - Goods reach port
3. Declaration - Submit to customs
4. Examination - Physical/document check
5. Duty Payment - Calculate and pay
6. Release - Goods cleared

Required Documents

• Commercial invoice
• Packing list
• Bill of lading
• Certificate of origin
• Import license (if required)
• Inspection certificates

HS Codes

Harmonized System codes:

• 6-10 digit classification
• Determines duty rates
• Required globally
• Product-specific

Container Types & Sizes

Standard Containers

20' Container

• Internal: 19'4" × 7'8" × 7'10"
• Capacity: 33 CBM
• Max weight: 28,000 kg

40' Container

• Internal: 39'5" × 7'8" × 7'10"
• Capacity: 67 CBM
• Max weight: 28,000 kg

Special Containers

• High Cube - Extra height (9'6")
• Open Top - No roof
• Flat Rack - No walls
• Reefer - Temperature controlled
• Tank - Liquid cargo

Freight Calculations

Ocean Freight

Volume Weight

CBM = Length × Width × Height (meters)

Chargeable Weight

Greater of:

• Actual weight
• Volume weight (1 CBM = 1,000 kg)

Air Freight

Volumetric Weight

Volume Weight = (L × W × H in cm) / 6,000

Chargeable Weight

Greater of:

• Actual gross weight
• Volumetric weight

Common Challenges

Documentation Errors

• Incorrect details
• Missing documents
• Late submission
• Inconsistencies

How Flint Helps:

• Automatic validation
• Error detection
• Document matching
• Compliance checks

Delays

• Port congestion
• Customs holds
• Weather issues
• Carrier problems

How Flint Helps:

• Real-time tracking
• Proactive alerts
• Alternative routing
• Quick document updates

Communication Issues

• Multiple parties
• Language barriers
• Time zones
• Information silos

How Flint Helps:

• Centralized platform
• Automated notifications
• Multi-language support
• Stakeholder portal

Industry Terminology

Common Abbreviations

• B/L - Bill of Lading
• POL - Port of Loading
• POD - Port of Discharge
• ETD - Estimated Time of Departure
• ETA - Estimated Time of Arrival
• T/T - Transit Time
• D/O - Delivery Order
• THC - Terminal Handling Charges
• BAF - Bunker Adjustment Factor
• CAF - Currency Adjustment Factor

Stakeholders

• Shipper - Sender of goods
• Consignee - Receiver of goods
• Carrier - Transportation company
• NVOCC - Non-vessel operating common carrier
• Customs Broker - Customs clearance agent
• Notify Party - Party to be notified

Best Practices

Documentation

1. Double-check all details
2. Maintain consistency across documents
3. Submit documents early
4. Keep copies of everything
5. Use standard formats

Communication

1. Confirm receipt of instructions
2. Provide regular updates
3. Document all changes
4. Set clear expectations
5. Respond promptly

Risk Management

1. Verify trade compliance
2. Arrange adequate insurance
3. Check carrier credentials
4. Monitor political situations
5. Have contingency plans