Import Process With a Freight Forwarder: Roles and Duties

Importing combines complex logistics processes with equally complicated rules and regulations set by government agencies such as Customs and Border Protection (CBP). This results in a number of specialized jobs and roles to support the process, one of most important being that of a freight forwarder. At USA Customs Clearance, we frequently work with freight forwarders when clearing imports. We’ll explain their role and how they help with the importing process.

Key Takeaways:

• Freight forwarders arrange for the movement of goods on an international level, leveraging network and carrier relationships to ensure quick, efficient freight movement.
• Customs brokerages will often employ or partner with freight forwarders to provide logistics services that go hand-in-hand with US customs clearance.
• Where forwarders handle the actual movement of international freight, customs brokers focus on their clients’ compliance with CBP guidelines, proper submission of documents, and classification of goods.

Let’s take a closer look at the responsibilities of a freight forwarder and how they impact US-based importers. 

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What is Freight Forwarding?

In terms of international shipping, freight forwarding refers to the process of arranging transportation for freight shipments being imported or exported from one country to another. Individuals who act in this role are called freight forwarders. 

Given the weight, size, and expense of freight shipments, simple parcel shipping isn’t an option for them. Freight forwarders establish connections with carriers who move large quantities of goods from one country to another, whether by air, land, or sea. By networking with these carriers, forwarders are able to balance affordability, efficiency, and speed of delivery for international freight like no one else can.

It’s not common for shippers and importers in the US to only employ the services of a freight forwarder during an import transaction. Rather, they’re a link in the chain of logistics and customs clearance, often working as part of larger logistics companies. 

For further clarity, I’ll provide a step-by-step scenario in which you can get an idea of what freight forwarders do and, almost as importantly, what they don’t do.

Related: Customs Broker vs Freight Forwarder: What’s the Difference?

The Process of Freight Forwarding Explained

Let’s say you own a manufacturing business, and you have to import some components or raw materials for your final product from South Korea. To do so, you employ the services of a customs brokerage in the US that also offers international shipping, which is arranged by a freight forwarder. This simplifies the process as you’ll have one point of contact for brokerage and shipping. 

For an import transaction, the freight forwarder’s duties involve the following:

1. Booking transport for the shipment from its warehouse or facility in South Korea to a shipping port, usually via truck.
2. Accurately filling out paperwork specifically related to the logistics portion of the transaction. Examples include certain bills of lading, air waybills, and insurance certificates.
3. Setting up international shipping from the South Korean port to the freight’s destination in the US. This will usually be accomplished via shipping containers and cargo vessels, though expedited air freight shipping is available.
4. (Optional) providing temporary storage for their client’s goods. This is sometimes necessary to time consolidated freight shipments properly, or when unexpected delays occur.
5. Arranging ground transport for the freight shipment once it reaches its port of destination. 

As you can see, these tasks are all focused on transportation itself. While the freight forwarder handles this, a customs broker would focus on paperwork required by CBP, such as the ISF filing, required entry documentation, and proof of a customs bond.

Since forwarders build extensive relationships with international carriers, they can offer lower prices to shippers than shippers would usually find on their own. For instance, forwarders can offer the aforementioned freight consolidation services that effectively split shipment fees between two or more parties. 

They can also offer multiple modes of shipping once your freight reaches the US. This is particularly helpful for shipments that will undergo 500 miles or more of stateside transit since a combination of rail and truckload shipping will be less costly than using a truck for the whole trip.

Keep in mind that the responsibility for who arranges shipping can vary based on the Incoterms® of any given transaction.

Related: The Best Incoterms For Importers: Winning in International Trade

Smooth, Seamless Importing With USA Customs Clearance

When importing goes right, you’ll hardly notice the work and effort that goes into arranging international shipping and clearing US customs. At USA Customs Clearance, we pride ourselves on simplifying every aspect of importing goods to the US so you can focus your attention on marketing and growing your business.

Call our team of US customs experts today at (855) 912-0406, or fill out an online contact form. We’re ready to keep your import business moving forward.