Freight Forwarder - Freight Forwarder Roles in Different Countries

Freight Forwarder Roles in Different Countries

Australia

In Australia most licensed Customs Clearance Agents (now more commonly referred to as Customs Brokers), operate under a freight forwarder.

Bangladesh

In order to start as a freight forwarder a person needs a government license.

Canada

Transport Canada is the federal department responsible for the implementation and enforcement of the transportation policies and programs of the Government of Canada. The Canadian freight forwarding industry falls under the regulatory guidance of Transport Canada. The Canadian Border Services Agency is charged with enforcing the majority of the regulations that international freight forwarders are required to follow. International security measures are the dominant concern of freight forwarders and customs brokers.

The Canadian International Freight Forwarders Association was established in 1948 to support and protect the character, status, and interest of foreign freight forwarders by establishing uniform trade practice and regulations. CIFFA also holds an educational role by providing a certificate and advanced certificate programs.

Ireland

Even in smaller markets, such as Ireland, the role of freight forwarders is strategically important. International merchandise trade is worth €148 billion to the Irish economy. 82% of manufactured products are exported, further highlighting the importance of the freight forwarders to a nations' economy. Associations like the Irish International Freight Association and FIATA help maintain the professionalism of this industry through educational and representative roles. The FIATA Diploma in Freight Forwarding is an example of how this can be achieved.

Kenya

In Kenya freight forwarders are commonly referred to clearing and forwarding agents. A license is required to operate as a freight forwarders in Kenya which can be acquired from Kenya Revenue Authority. Freight forwarders in Kenya are responsible for clearing consignments through Kenya customs, arranging transportation, and forwarding the consignment to the consignee. Both exports and imports are required to be cleared through customs in Kenya.

Nigeria

Freight-forwarding in Nigeria has been in place since the exporting of groundnut as a cash crop since 1914, though not initially as freight forwarding but as the means of transportation of both goods and services from one country to another. Following the methodology of their British forebears, agents were used to facilitate the transport of goods and services.

UK

In the U.K., freight forwarders are not licensed, but many are members of the British International Freight Association. Freight forwarders in the UK consolidate various goods from different consignors into one full load for road transport to Europe, which is often known as groupage. Some freight forwarders offer additional related services like export packing.

USA

In the U.S., companies that handle domestic U.S. freight must be registered with the U.S. Department of Transportation's Federal Motor Carrier Safety Administration. Such forwarders are "carriers" who accept freight for transportation and are liable for transporting the freight from origin to destination, under their own bill of lading. The legal definition at 49 USC 13102 (8)is: FREIGHT FORWARDER.—the term "freight forwarder" means a person holding itself out to the general public (other than as a pipeline, rail, motor, or water carrier) to provide transportation of property for compensation and in the ordinary course of its business — (A) assembles and consolidates, or provides for assembling and consolidating, shipments and performs or provides for break-bulk and distribution operations of the shipments; B) assumes responsibility for the transportation from the place of receipt to the place of destination; and (C) uses for any part of the transportation a carrier subject to jurisdiction of under this subtitle.

International ocean freight forwarders arranging for shipments to and from the US must be licensed by the Federal Maritime Commission as Ocean Transportation Intermediaries. An Ocean Transportation Intermediary is either an ocean freight forwarder or a non-vessel operating common carrier (NVOCC). An ocean freight forwarder is an individual or company in the United States that dispatches shipments from the United States via common carriers and books or otherwise arranges space for those shipments on behalf of shippers. Ocean freight forwarders also prepare and process the documentation and perform related activities pertaining to those shipments. An NVOCC is a common carrier that holds itself out to the public to provide ocean transportation, issues its own house bills of lading or equivalent document, but does not operate the vessels by which ocean transportation is provided. Companies may obtain both licenses and may act in both capacities even on the same shipment. The U.S. legal distinction between the two is that a freight forwarder acts as the agent of a principal (typically a shipper or consignee) and the NVOCC is a transportation company (carrier) that is physically responsible for the carriage of goods and acts as its own principal. Companies acting strictly as an Ocean Freight Forwarder typically do not issue their own contract of carriage (bill of lading) and as agent are generally not liable for physical loss or damage to cargo except in cases of errors in judgment or paperwork or fiduciary responsibility. NVOCC's act as ocean freight carrier and issue their own bill of lading and are legally responsible for physical loss or damage in accordance with the terms and conditions of their bill of lading and tariff. Similar to other countries, freight forwarders that handle international air freight will frequently be accredited with the International Air Transport Association (IATA) as a cargo agent; however, they must obtain an Indirect Air Carrier (IAC) certification from the Department of Homeland Security (DHS).