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JNB254 Principles Of Freight Forwarding

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  • Course Code: JNB254
  • University: University Of Tasmania
  • Country: Australia


Task description & requirements
Freight forwarders perform an important role in the international carriage of goods by performing a range of functions and duties on behalf of importers and exporters.
a. Discuss with examples what circumstances lead to importers and exporters using the services of freight forwarders to coordinate the carriage of their goods.
b. Discuss with examples the primary duties expected and the accepted liabilities that accompany the execution of a freight forwarders role as a forwarding agent.
This assignment must be presented in a format that includes a cover page, a table of contents, and a reference page. See the Assessment Criteria Rubric for Assignment 1 on the following page for information about the criteria and the standards by which your work will be judged.



Circumstances lead to exporters and importers using the services of the freight forwarders for coordinating charge of the goods

Freight forwarding is the service that is used by the entities those deal in the multi-national or international export and import though the freight forwarder does not move freight itself actually, it acts as the intermediary among client and different transportation service. Moving the products from 1 international destination to other may involve the multitude of the requirements, legalities and carriers.  Freight forwarders handle considerable logistics of the task for its clients and relief the client from the formidable burden. Further, the business affairs or the trade industry require the entities to implement effective methods for maintaining the desirable flow of the competitiveness and profits (Huang et al., 2018). Expansion of the market is viable approach for the purpose of growth that is used by the entities for widening the commercial territory and for making sales at the higher levels. Further, the increasing demand for the exports as well as imports all over the globe make the freight forwarder key player in the global commerce (Poliak et al., 2018). Obviously the entities involved with exports and imports have particular requirements for the freight forwarders however, below are the most common requirements from the freight forwarder –

  • Freight forwarders provide the importers and exporters with the easier and quicker solutions to shopping process. The freight forwarders further handles everything associated with shopping of goods and hence they act as the intermediaries among the firm and transport company (Archetti & Peirano, 2019).
  • They offer the crucial advice to all the entities regarding the embedded issues in the freight movement particularly across the international borders. Considering the extensive expertise, the freight forwarders assure that all the shipping documents are in appropriate order and all pertinent of the requirements are met. Freight forwarders or the exporters and importers prepare the special documentation on behalf of consignor, for example the bill of landing (Gil-Saura, Berenguer-Contri & Ruiz-Molina, 2018).
  • Procedure for moving the cargo to the foreign locations can be quite burdensome, particularly if the exporter or importer is not familiar with the protocol of foreign exporters. The best option here is to consult the freight forwarder. The professional freight forwarder have the extensive knowledge regarding transport solution sin the foreign destinations as they are working in the same industry for long times. They are also familiar with the foreign regulations and laws associated with the foreign trade. Most of the freight forwarders in Singapore offer service package for comprehensive logistics and are licensed by particular regulation bodies (Archetti & Peirano, 2019).
  • With various entities operating within freight forwarding industry, selecting right service provider is quite challenging. Provider of professional service shall provide the timely and cost effective services (Gil-Saura, Berenguer-Contri & Ruiz-Molina, 2018).

Hence, the exporters and importers require the services of freight forwarders for getting reliable services, better communication, one stop solutions, competitive rates and good relationship in working context. For example, freight forwarders handle everything associated with shopping of goods and hence they act as the intermediaries among the firm and transport company


Primary duties and accepted liabilities of the freight forwarders as the forwarding agent

The terms forwarding agent and freight forwarders are generic terms that encompasses different specialized profession as the professional. Some of the forwarders provide wide range of the functions whereas others generally restrict themselves to the particular or specialty geographical coverage. These different kinds of function are mentioned below. Further, it is crucial for the traders understanding that the forwarders may act as the principle or agent with variations in the legal consequences (Popovych, Shyriaieva & Selivanova, 2016). Primary duties of the freight forwarders are as follows –

  • Provide advice regarding export costs including the port expenses, freight cost, consular fees, insurance costs, special documentation costs and the merchandise costs.
  • Planning most appropriate route for the shipment, considering the dangerous or perishable nature of goods, transit time, cost and safety
  • Contracting and making reservation for necessary cargo space on ship, aircraft, truck or train.
  • Contracting or advising the insurance for merchandise transportation on behalf of client and assistance, if required in case of accident (Savic, 2018).
  • Providing advice on most appropriate way for transporting the cargo and carry out procedures for loading, stowing and packing of the merchandise.
  • Presentation and preparation of the trade and transport documents required for the purpose of import and export including bill of lading, CMR and Airway bill.
  • Handling with the customs agents in abroad for assuring that the documents and goods are complied with the customs regulations (Savic, 2018).
  • Acting as the intermediary in the customs negotiations all over the world for guiding cargo efficiently.
  • Use of the e-commerce, satellite systems and internet technology for allowing real time tracking for transporting the goods.
  • Advising on the legislation that has impacts on the international trade, social and political situations as well as various other factors that may have impact on goods’ movement (Savic, 2018).

Accepted liabilities from freight forwarders are as follows –

  • Cargo and legal liabilities – any type of physical damage or physical loss to the cargo during the transit that is caused by negligent act, omission or error will make the transporter liable for the actions and  he might be sued y the client against damage or loss to the cargo
  • Fines and the duty liabilities – claims owing to the unintentional breach of any statutory regulation or statutory requirements may result into fines or any kind of fiscal charges or any other type of penalties imposed by any authority shall be borne by freight forwarder (Jacobs, 2015).
  • Third party legal liability – any kind of physical damage or loss to the property of 3rdparty, consequential loss that is legally recoverable, bodily injury arising from operation of freight forwarder will be claimed as the freight forwarder will be held responsible for this.
  • Error and omission liability – any kind of legal liability arising out of operators of freight forwarder following any negligent act, omission or error by freight forwarder or subcontractor or his agent will make him liable for compensating the loss incurred by client (Lee, 2017).


Archetti, C., & Peirano, L. (2019). Air intermodal freight transportation: the Freight Forwarder Service Problem. Omega.

Gil-Saura, I., Berenguer-Contri, G., & Ruiz-Molina, E. (2018). Satisfaction and loyalty in B2B relationships in the freight forwarding industry: adding perceived value and service quality into equation. Transport, 33(5), 1184-1195.

Huang, G., Xu, X., Song, H., & Lim, H. (2018). Analysis on the Development of International Freight Forwarding Company-Taking Changbao International Freight Forwarding (Shanghai) Co., Ltd as an Example. Global Finance Review, 1(1).

Jacobs, A. (2015). The effects of the concentration in the liner shipping industry on the services provided by ocean freight forwarding companies (Doctoral dissertation).

Lee, E. S. (2017). Managing Inter-firm rivalry dynamics of freight forwarders: The impact of knowledge and environments.

Poliak, M., Šimurková, P., Ja?kiewicz, M., & Hernandez, S. (2018). Unification Proposal on Market Access for Freight Forwarding in the European Union. New Trends in Production Engineering, 1(1), 197-203.

Popovych, P., Shyriaieva, S., & Selivanova, N. (2016). Analysis of the interaction of participants freight forwarding system. Journal of Sustainable Development of Transport and Logistics, 1(1), 16-22.

Savic, I. (2018). In Freight Forwarding: Law and Logistics. Zbornik PFZ, 68, 303.


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