A freight service provider assists in the forwarding of goods or freight to a specified destination by rail, air or sea. It is necessary for all types of businesses engaged in supply chain activities. The term simply implies the involvement in the movement of freight from one point to another. Goods may be transported either by road (for commercial purposes) or by rail (for public sector). For the purpose of this discussion we have only dealt with the movement of goods by rail. Freight forwarding involves another aspect such as the supply chain aspects involved in this activity.

A fba freight forwarder provider links you with numerous different options in your shipping corridors. This enables you to select the best service, price and mode of transport that meet the requirements and criteria of your distribution center. It also enables you to make informed decisions about the speed of delivery and the type of customs brokering required for certain shipments. It ensures that the time of shipment and its arrival at the destination happens on time.

The importance of freight forwarding is exemplified by the growth in its sector. In today’s scenario, most cargo companies are either wholly or partly owner of multiple warehouses and depots. They need a system and a network of contacts to make sure that they regularly communicate and meet with their clients so that they can perform their logistical duties efficiently.

Distribution centers are where your goods are stored until you are ready to send them to your customers. Most distribution centers are fully managed by their own logistics department. However, there are some distribution centers where the management of the entire logistics process is being handled by a separate entity – the freight service provider. This separates the management of the entire supply chain from the actual movement of your product to the final consumer.

There are two types of cargo logistics firms: land-based and sea freight forwarders. A land-based freight service provider has its own trucks and shipping arrangements, while a sea freight forwarder leases or owns the vessels and has an agreement with a carrier to arrange the transportation of your consignment. While a sea freight forwarder has the capacity to move bulk shipments and heavy cargoes, it is expensive and comes with a number of restrictions. You can only use sea freight forwarders for perishable goods, hazardous products, perishable items and perishable goods. Your consignment must be stored and shipped on board Gulf carriers and smaller vessels.

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