WHAT IS FREIGHT FORWARDERS OR CONSOLIDATES

The freight forwarder---forwarder---is an individual or firm who renders cargo delivery services. In domestic (local) freight forwarding, it is the delivery of goods usually from the exporter's premises to the local customs in exporting, and vice versa in importing. The customs broker also renders local freight forwarding for exporters and importers.

International (foreign) freight forwarding is the delivery of goods from the exporter's premises (or from the port or point of origin) to the port or point of destination (or to the importer's premises).

The freight consolidator---consolidator or groupage operator---is an individual or firm who accepts less than container load (LCL) shipments from individual shippers, and then combines them for delivery to the carrier in full container load (FCL) shipment.

The services of a forwarder are usually available in a consolidator, and the forwarder often engages in the consolidation of cargo. Hence, the term forwarder is often used synonymously with the consolidator.

The forwarder provides a wide range of services. Besides all of the export services available from a customs broker, the forwarder may also arrange for the insurance, export packing and trucking.

The forwarder usually receives the forwarder's charges from the exporter. In addition, it may receive a commission from the carrier---freight company (ocean, air, truck and rail).

In the ocean shipment, the forwarder may 'buy' the shipping space, in a special arrangement with the carrier, and 'resell' the space to individual shippers, instead of receiving a commission. In such an arrangement, the forwarder functions as an independent distribution or logistical company known as the NVOCC (nonvessel operating common carrier) or NVO (nonvessel owner or nonvessel owning carrier), or commonly referred to as the ocean freight consolidator. The Case Sample: Freight Consolidation (1) below illustrates the function of a NVOCC or NVO.