INTL729 - Freight Forwarding: Export Policies, Logistics & Solutions

This report provides an overview of freight forwarding processes, focusing on export policies and logistics solutions. It covers key aspects such as shipment logistics, essential documents like letters of credit and commercial invoices, and considerations for selecting transportation methods. The report also addresses potential disruptions and alternative routing strategies. It includes a company letterhead, buyer information, and a flowchart illustrating the process from warehouse to client. Furthermore, it explores factors influencing pricing, the importance of information sharing within freight forwarding companies, and various revenue streams. The report concludes with typical commercial and transportation documents, including a commercial invoice, packing list, and bill of lading.

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: ……………………