Freight Forwarder - History of Freight Forwarding

History of Freight Forwarding

One of the earliest freight forwarders of record is the now defunct Thomas Meadows and Company Limited of London, England, established 1836. According to "Understanding the Freight Business," written and published by the executive staff of Thomas Meadows and Company in 1972, the advent of reliable rail transport and steamships created the demand for the then fledgling freight forwarding industry. New world trade patterns developed between Europe and North America, creating additional demand. The first international freight forwarders were actually innkeepers in London who held and re-forwarded the personal effects of their hotel guests.

The original function of the forwarder was to arrange for the carriage of his customers' goods by contracting with various carriers. His responsibilities included advice on all documentation and customs requirements in the country of destination. His correspondent agent overseas looked after his customers' goods and kept him informed about matters that would affect movement of goods.

In modern times the forwarder still carries out those same responsibilities for his client. He still operates either as a domestic US carrier, or otherwise with a corresponding agent overseas or with his own company branch-office. In a single transaction, it can happen that the forwarder may be acting as a carrier (principal) or as an agent for his customer or both.