In the field of foreign trade, freight forwarding refers to "cargo agent" services, encompassing both individual freight agents and forwarding companies. Known in English as Freight Forwarder, Freight Agent, Cargo Agent, or Shipping Agent, these terms share similar meanings but may differ in certain nuances.
Freight forwarders primarily handle international cargo transportation agency services, while also including domestic freight forwarding operations. Their main clients are foreign trade professionals, international trading companies, and manufacturers with import-export licenses.
When a trading company finalizes a sales agreement with an overseas client and prepares to ship goods, they typically engage a freight forwarder to manage the entire transportation process. Acting as intermediaries between cargo owners and carriers (such as shipping lines or airlines), forwarders receive goods and coordinate closely with transportation providers to ensure safe, efficient, and accurate delivery to destinations.
Freight forwarding companies assume numerous responsibilities including booking cargo space, arranging trucking services, handling pick-up and delivery, managing inspection and customs clearance procedures, as well as coordinating transportation, transshipment, warehousing, loading/unloading operations, and processing certificates of origin and cargo insurance. They also handle freight charge settlements and collect payments on behalf of clients, significantly facilitating international trade operations.
In summary, freight forwarders serve as an indispensable component of international trade, enabling foreign trade enterprises to operate with greater efficiency and reliability.
