A freight forwarder or forwarding agent is a company or person that organizes exports or shipments for individuals or corporations to obtain large orders from the producer or manufacturer to the end-user or final point of destination. The forwarders are the ones who contract with the carrier to facilitate the movement of your products or goods. The forwarders are not really the carrier of goods but the ones that are expert in supply chain management. Take a look at the image shown below:

Logistics proces

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  • Consumer – may be a person or corporation that represents a company, who warrants the expertise of the freight forwarders or agents to transfer their goods from one country to another.
  • Forwarder – expert in supply chain management, who acts as a “travel agent” in the cargo industry or a third-party logistics provider. Forwarders contract asset-based carriers to ship the cargo, may it be from raw agricultural products to manufactured goods. They are also the ones who booked variety of carrier types like ships, trucks, airplanes and trains.
  • Carrier – mostly are the shiplines or airlines that transport goods and products moved by the freight forwarding companies to the destination specifically outlined in the address provided to them by the consumer. Carriers are responsible for any possible loss of goods and products during the transport.
  • End-Consumer– is the person or company who receives the goods or products transported by the carrier.

The international freight forwarders perform their respective duties in correlation to the Export Administration Regulations (EAR). They arrange cargo movement to international destination that allows them to prepare, process and inspect the documentation provided to them by the consumer, and likewise perform related activities regarding international shipments. Forwarding agents also need to adhere to the provisions and restrictions of the EAR about the “Know Your Customer” and “Red Flags.” If forwarders failed to follow the guidelines, they will be held liable and may be sued under the Export Administration Regulations laws.

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Commercial Invoice– is a receipt use in foreign trade. It is the customs declaration provided by the person or company that is exporting a good or product across international borders.

Shipper’s Export Declaration – also known as Automated Export System or Electronic Export Information is the system used by the United State’s exporters to electronically declare the export and trade statistics of their international exports. This information is being shared with Bureau of Industry and Security and other federal agencies that are involved in monitoring US exports.

Bill of Lading – a document issued by the carrier which states the shipment of goods and gives title of that shipment to a specific party. It is one of the three important documents used in the international trade.

Other Documents – are the documents required by the carrier or country where export, import and transshipment took place. Most of this information is process in paperless environment.

STAT Logistics International is one of the example of these expert forwarding companies who do the international movement of goods effectively for the benefit of the international trade and businesses all around the world. STATlogistics ensures the goods and the shipments of products are in good hands and would reach to the specific end-user and the right destination on time.

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