Freight forwarding process

Freight forwarding process

The 7-Step Freight Forwarding Process

The Freight Forwarding Process: A 7-Step Journey

Step 1: Booking & Planning 🗓️

The process begins when you, the shipper, place a booking with us. We collect all necessary details, including:

  • Cargo Details: Dimensions, weight, volume, and commodity (including the essential HS Code).

  • Incoterms: Defining the division of costs and risks (EXW, FOB, CIF, DAP, DDP, etc.).

  • Mode of Transport: Determining the best option (Air Freight, LCL/FCL Sea Freight, or Multimodal).

Based on these details, we select the optimal carrier, negotiate the best rate, and secure the necessary space (slot booking).

Step 2: Documentation & Compliance 📝

This is the most critical stage for avoiding delays. We ensure every document is accurate, compliant, and ready for all parties involved. Key documents include:

  • Commercial Invoice & Packing List: Detailing the goods and their value.

  • Bill of Lading (B/L) or Air Waybill (AWB): The contract of carriage and title to the goods.

  • Certificate of Origin (CoO): Required for preferential duty treatment.

  • Insurance Certificate: Arranged to protect the cargo against loss or damage.

Step 3: Origin Logistics & Consolidation 📦

Once all documents are prepared, we manage the movement of goods from your warehouse to the carrier terminal (port or airport).

  • FCL (Full Container Load): We coordinate the pickup of the full container from your location.

  • LCL (Less than Container Load): We take your cargo to a Container Freight Station (CFS) or warehouse for consolidation. Here, it is combined with other compatible shipments heading to the same destination to fill a container, offering cost savings.

Step 4: Main Carriage (Transit) 🚢

The physical transport of the goods on the main vessel (ship or aircraft) begins.

  • The carrier issues the official Master Bill of Lading (MBL) or Master Air Waybill (MAWB) to the freight forwarder.

  • We issue the House Bill of Lading (HBL) or House Air Waybill (HAWB) to you, the shipper. This is the document you use to track and manage the shipment.

  • During transit, we provide real-time tracking and communicate any updates or unforeseen deviations.

Step 5: Destination Customs Clearance 🛂

Upon arrival at the destination port/airport, the most challenging step begins. We work closely with our destination-side partners (our agents or branches) to manage the entire customs process:

  • The Consignee’s Customs Broker (CHA) files the Bill of Entry (BoE).

  • Customs assesses the cargo, verifies the documentation, and collects any necessary duties and taxes.

  • Once duties are paid and compliance checks are complete, the Let Import Order is granted.

Step 6: De-Consolidation & Unloading 🚚

After customs clearance, the goods are released from the carrier’s custody.

  • FCL: The container is moved directly to the consignee’s final delivery location.

  • LCL: The container is taken to a local CFS, where the cargo is de-consolidated (separated) from other shipments.

Step 7: Final Delivery (Last Mile) 📍

The final stage is the delivery of the goods to the consignee’s door, according to the agreed-upon Incoterms.

  • We arrange for the local truck or railway transport.

  • We ensure the consignment is safely offloaded and verified by the consignee, finalizing the contract of carriage.


The Value of a Professional Freight Forwarder

In today’s volatile market, relying solely on a carrier for a port-to-port service is risky. A freight forwarder offers essential value:

ChallengeSolution Provided by Globax Solutions
Volatile RatesNegotiate contracts with multiple carriers to provide the best market price.
Customs RiskEnsure 100% compliant documentation to avoid penalties and delays.
Supply Chain DisruptionsOffer alternative multi-modal routes (sea-air, rail-sea) when ports are congested.
ComplexitySimplify the process by acting as a single point of contact for all carriers, warehouses, and customs brokers.

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