Freight Forwarding: Shipment Logistics, Documents, and Trade Routes

This paper discusses the processes involved in freight forwarding, including shipment logistics, documents, and trade routes. It also highlights the importance of sharing information and identifying customer needs in choosing the correct transportation alternative.

Running head: FREIGHT FORWARDING 1
Freight Forwarding
Name
Institution

FREIGHT FORWARDING 2
Executive Summary
The freight forwarding process involves acting on behalf of the importers or exporters as
well as other companies that perform the organization of efficient, safe, as well as transportation
of goods that are cost effective. This process has numerous activities performed in the offices of
the one taking part in freight forwarding. These processes include documentation from one office
to the other, for instance, receipts of documents from the agent like checking documents as well
as carrier bills among others.
The shipment logistics in the freight forwarding involves having the understanding and
the concepts of the freight forwarding process. For this reason, this paper takes an objective
practice in the processes of freight forwarding, taking into consideration the logistics involved in
the shipment processes, the documents, e.g., letter of credit, export permit, packing list,
commercial involve, the warehousing, among others.

FREIGHT FORWARDING 3
Table of Content
1. Executive Summary …………………………………………………..…………..2
2. Table of contents ……………………………………………………….…………3
3. Shipment Logistics………………………………………………………..……….4
4. A company and letterhead ……………………………………………….………..5
5. Buyer's company name and address …………………………………………….…6
6. Flowchart (warehouse to clients’ door)…………………………………………….6
7. Documents……………………………………………………………………….…7
-Commercial Invoice……………………………………………………………….
-- Packing List………………………………………………………………………
-Bill of Lading…………………………………………………………………...…12
-Export Permit/Declaration……………………………………………………….
- Certif. Origin…………………………………………………………………..
-Letter of Credit……………………………………………………………………13
8. Bibliography…………………………………………………………………........14

FREIGHT FORWARDING 4
Shipment Logistics
In the freight forwarding transportation systems, there are methods used and the alternative
methods of transportation. Among these alternative methods, it is important for the forward
freight company to be in a position to provide the freight solutions to customers according to
their need requirements, choose the right alternative method that best meets the shipping
deadlines (Popovych et al. 2016). More than that, there are arithmetic considerations that are
most efficient to ship a cargo that the company must have at fingertips from the logistical
departments.
As a logistics Director, it is important to realize the criticality of information and stay updated
on the happenings on the international trade routes. The above situation calls for the department
of logistics, the professional freight forwarder, to be in quick awareness of the domestic events
that may hinder the transportation performances (Sedláček, 2017). In the events of such
information, the department is in a position to opt for carriers that have an interchange agreement
with the country’s railways or other modes of transport. In the situation above, the logistics
department would be in a position to opt for other agreement with Canada’s other railway,
Canadian Pacific Railway, among others. In most cases, information concerning such situations
is printed in the CIFFA newspapers or broadcasted.
Considering the closeness of the Toronto to Montreal, the best alternative as the logistics
director is to truck the container from Toronto to Montreal, of course, at additional charges. I
would first ensure I check with the carrier at the ocean in determining whether or not they are
willing to do this (Metzger et al. 2015). If they refuse to truck the container from Toronto to
Montreal, I would in a better position to use my own company’s drayage company to perform

FREIGHT FORWARDING 5
the tracking. In all these cases, it is important to note that additional costs are involved and
would be reflected in the overall payments that will be discussed by the shipper to make them
aware of the situation of the labor strike. During the discussion, it would be important to propose
the methods of overcoming the unexpected problem or event as well as the additional charges
that are involved.
The Letterhead for the company
Company:
GCCAutomobile (Canada
Freight Forwarder)
1234, Mississauga Rd
Mississauga, A1C58D3
.
Fax: [phone]
Phone: [phone]
Cell: [phone]
Email:gccautmobile.cmi.c
om
The company products: Automobile parts

FREIGHT FORWARDING 6
The Buyer name and Address
Name of
the
Company:
Poland Manufacturing Inc.
Polonaise Poste
Pl. Malachowskiego 5612-001
WARSZAWA,POLAND
Fax: [phone]
Phone: [phone]
Email: pmingskeh@comcast. net
A warehouse to Client Flowchart
Receipting client’s purchase order Receipting client’s shipment request
Shipment
Sending shipment
Advice to client
Order Fulfillment
Receipts confirmation to
client
Step 1: Manual Step 2:
Move
Step 3: Counting
Step 4: Full Pallet Step
5: label printing
Packing and replenish
Production
Processes

FREIGHT FORWARDING 7
Routing
160
100 150
120 421
Montrea
l
Toront
o
Oshaw
a
Ottawa
Quebec
City

FREIGHT FORWARDING 8
The trade routes
Calculations
Toronto + Oshawa + Ottawa + Quebec City + Montreal = Total trade routes
120+100+160+150=530km
Logistical questions and solutions
1. State basic knowledge should you have before quoting a customer?
One should know how to calculate the chargeable weights for air, ocean and land
transportation. A firm understanding of Incoterms is a necessity as the responsible
parties (buyer/seller) are clearly defined.
2. Highlight some of the factors that influence the price quoted?
I. Routing
II. Value of the goods
III. Packaging
IV. Volume
V. Contracts
VI. Weight
VII. Dimensions
VIII. Negotiating power with the carriers; and Credit

FREIGHT FORWARDING 9
3. The freight forwarders set their rates based on tariffs obtained from carriers. What should
a freight forwarder look at when quoting these tariff rates?
Under this context, it is important to be aware of the fact that temporary supply and demand
issues can significantly influence the carrier's price quoted (e.g., peak season surcharges).
4. Based on the practices of the freight forwarding processes, why is it important to
encourage the sharing of information throughout the different departments in freight
forwarding company?
Sharing information is important to have a better understanding of the clients’ needs. You
may only be providing the customer with one service, and this is an opportunity to gain more
business.
5. Other than the normal charges included in the freight costs, what should be considered
when quoting a customer?
There are two factors to consider in this case; credit terms (freight forwarders are not banks)
and time (remember the amount of time spent faxing, e-mailing and on telephone calls all cost
money).
6. In the process of presenting alternative routing to a client, what are some
considerations one has to keep in mind? Some of the considerations to be made
include the currency fluctuation, frequency of the carriers, hidden costs that are
included by carriers; and the customer’s requirements (sometimes the time
sensitivity of cargo outweighs the cost).
7. What is the basic importance of a freight forwarder?

FREIGHT FORWARDING 10
The main importance of a freight forwarder is to realize the advantages of multi-freight rates
from the carrier; or at the convenience of the freight forwarder when he is required to forward
some smaller shipments to the same end.
8. For the logistics directorate, state some of the standard rules for “rounding off” freight
volumes?
I. In places where sections of the centimeter are used, measures of 0.5 centimeters
are not be used while those that appear above that measurement are used when
rounding over to the next full number or measurement.
II. In the process of determining the volume using the cube measurements of the
packages, the determination should be measured using six decimal places and
rounded off when a single package is involved.
9. What are some of the areas in a freight forwarder that has high potential in increasing the
revenues?
These areas include de-buffing, local cartage, freight charges (buying at wholesale and selling
at retail), stuffing, packaging, marine insurance, warehousing, customs brokerage among
others (Metzger et al. 2015).
10. In the process of avoiding the bidding struggle with clients, what are some of the things
that the freight forwarders do?
The best way among others to avoid such situations is to remain focused on strategies. Try to
sell the service aspect rather than to participate in eroding rate levels. Another way is to look
for a better mix of cargo to maximize the load factor.

FREIGHT FORWARDING 11
11. State some of the service revenue streams generated by a freight forwarder
The service revenue streams include document preparation; insurance; handling fees;
consulting; and special requests by a customer, such as labeling, among others.
12. State the ability set that a true international freight forwarder apart from carriers and
customs brokers should have?
It is critical for a true international freight forwarder can think of alternatives. Sometimes
freight forwarders are considered planners of transportation.
13. Highlight on the most important action a forwarder can take in choosing the correct
transportation alternative?
It is important that the international forwarder identify the true needs of the customer. This is
achieved by asking the customer questions about their freight, past, present and future
requirements and business demands.
14. What are some of the client needs must you identify, and take into account before
deciding on transportation alternatives?
i. A reasonable cost of transportation
ii. Safety and security of the cargo
iii. Scheduled delivery of the cargo at the destination
15. State some of the basic elements to consider when working out a possible alternative?
The basic elements to consider in working out the possible alternatives include the sensitivity
of time, restrictions in the government, the value of goods, the perishability of the goods, costs,
the transportation mode as well as the cargo itself.

FREIGHT FORWARDING 12
16. State some of the occurring situations that may force a freight forwarder to search for an
alternative?
Some of the unavoidable situations that may force a freight forwarder to look for alternatives
include climate, natural disasters, port congestion, and hostile situations like war, revolutions
and political instability, labor disputes like strikes, lockouts and work slowdown.
Typical commercial and transportation documents
1. Commercial Invoice
A commercial invoice is a legally binding document that links a supplier and a customer
of specific goods and services, stating the amount involved in the contract due to the
customer. In the determination of the customs duties, the commercial invoice is one of
the documents used by the authorities.
Example of a commercial invoice
The seller Invoice No:
Date:
Customer ref:
Customer: Terms of Sale:
Terms of payment:
Ship to: The currency of Settlement:
Mode of shipment:
Quantity Product description Unit of
measurement
Price
Certification: This is to certify the export process and the description of
good are true
Signed: ……………………

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Title:………………………..
2. Packing list
This is a shipping document that details the goods contained in the shipments. The
content of each package as well as the parties involved in the transportation system. It
helps to inform all parties involved with shipping, including transport agencies,
government authorities, and customers, about the contents of the package. Example is
shown below:
The Shipper
Routes: Canada torronto| Montreal| poland Invoice No:
Date:
Customer ref:
Consignee: Bill to:
INFRMATION ON SHIPMENT
Quantity Product description Unit of
measurement
Price
Certification: This is to certify the export process and the description of good are true
Signed: ……………………
Title:………………………..
3. Bill of Lading
Shipper:
GCC Automobile
Bill of Lading
number
K 352318

FREIGHT FORWARDING 14
(Canada Freight Forwarder
1234, Mississauga Rd
Mississauga, A1C58D3
Export References:
CONSIGNEE: (Non-Negotiable Unless Consigned to Order) Forwarding Agent:
CIFFA Forwarder, Toronto, On., Canada
TO ORDER Consignee’s Reference:
Notify Address (Carrier not responsible for failure to notify: see clause 20(1) hereof): Place of Receipt:
Poland Manufacturing Inc.
Poste Polonaise
Direction générale
Pl. Malachowskiego 2
00-940 WARSZAWA
Poland
Toronto, Canada
Pre-Carriage by: CN Rail Place of Receipt by Pre-Carrier: Toronto,
Canada
Place of Delivery:
Ocean Vessel: Maersk Penang Voy.
123
Loading point: Montreal, Canada
Port of Discharge: WARSZAWA
Poland
The delivery point by the carrier:
Container Nos., Seal Nos., Marks, and Nos. Number and Kind of Packages; Description of Goods Gross Weight
(kg)
Measurement (cm)
Meau 999669-1 1 40 ft container said to contain 5,216 kg 20.813
Seal #: 07543 15 pallets of filters freight collect
Documentary credit no.
DCNTBWZ09268
Shipped on board Maersk Penang
V. 123 from loading port Montreal February
5/12
Shipped load, stow and count
Above Particulars as declared by Shipper. Without responsibility or warranty as to correctness by carrier (see clause 11(1) and 11(2)
Total No. of Containers/Packages received
by the Carrier: 1
Shipper’s declared value (see clause 7(1) and
7(2) hereof):
Movement
CY/CY
Currency
USD
Charg
e
Rate Basis WT/MEA/VAL Payment Amount
Place and Date of Issue:
Toronto, Canada, February 6, 2018
Freight Payable at:
Destination
A number of original Bs/l:
3
Total Freight Prepaid Total Freight Collect Total Freight Signature by Carrier or Agent

FREIGHT FORWARDING 15
4. Certificate of Origin
This is a document that details the country of origin of the goods in transit. Depending
on the requirement in each country, this document is normally issued by the chamber of
commerce in the exporting country.
Example:
CERTIFICATE OF ORIGIN
The Shipper and Address: Forwarding Agent:
Consignee name and Address: Notify Party:
Exporting Carrier: Country of Manufacturing:
Date:
Customer ref:
Total number of packages: Date of Export:
INFRMATION ON SHIPMENT
Quantity Product description Unit of measurement Price
Certification: This is to certify the export process and the description of good are true
Signed: ……………………
Title:………………………..

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5. Export Permit
Permit Export
Consignor∕ Exporter
Name…………………………………………..
Address…………………………………….
Source…………………………………………………………………………………
…………………………………………
Type of commodity………………………………………
Special condition………………………………………………………………
Consignee
Name………………………………….
Address……………………………..
Valid till……………………………………………………………….
Exit Point……………………………………………………………..
Authorizing Agent
Name…………………
Address…………………
Date of Export…………………………………………………
Flight No∕ Vessel No……………………………………………
Bill No Quantity value
Permit Place………………………. Date………………. Approved by…………………………………………………

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6. Credit letter
Credit Letter
Date…………………
A STANDBY CREDIT LETTER WHICH IS NOT REVOCABLE NO. (L/C NO.) FOR ($
AMOUNT……………CAD)
THE BENEFITING PARTY APPLICANT
Company: GCCAutomobile
(Canada Freight Forwarder)
1234, Mississauga Rd Mississauga, A1C58D3
Fax: [phone]
Phone: [phone]
Cell: [phone]
Email:gccautmobile.cmi.com
THE AGREED AMOUNT IN
($)...........................Cad.
(Amount in words)---00/100 Canadian Dollars

FREIGHT FORWARDING 18
EXPIRY ………………
At our counters in Ottawa, Ontario
This is at the request of and for the account of our customer (Applicant - Name and Address) the
“Customer,” we at this moment establishes in the Beneficiary’s favor our Irrevocable Standby
Letter of
Credit number (L/C NO.) for a sum not exceeding ($..............................Cad.).
This Credit is given in support of the Customer’s
agreement…………………………………………Exploration Licence No #........... (the
“Licence”) and based on the Terms and Conditionst therein dated …...……equal in the amount
to the sum of this Credit.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………….
Countersigned:
__________________ __________________
(Authorizing stamp and Signature) (Authorizing stamp and Signature)

FREIGHT FORWARDING 19
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