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Freight Forwarder’s Role In Exporting By J. Nathan May JAS Forwarding USA.

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Presentation on theme: "Freight Forwarder’s Role In Exporting By J. Nathan May JAS Forwarding USA."— Presentation transcript:

1 Freight Forwarder’s Role In Exporting By J. Nathan May JAS Forwarding USA

2 Industry Terms for Forwarders OTI – Ocean Transport Intermediary NVOCC – Non Vessel Operating Common Carrier IAC – Indirect Air Carriers Most are Non-Asset Based Cargo Travel Agent Most Do Not Require Service Contracts

3 What Are We Good For Provide Shipment Information Prepare Necessary Documentation Move the Shipment

4 Provide Shipment Information Find Available Air/Ocean Service Routing Capabilities (3 ports, 3 airports) Packing Requirements Air vs LCL vs FCL ??? Freight Charges Handling Fees Port Fees Duty Fees Etc. *****INCOTERMS INCOTERMS INCOTERMS*****

5 Widely Used Inco Terms Ex Works (named place) FOB Free on Board (named port) CFR Cost and Freight (named dest. port) CIF Cost, Insurance & Freight (named dest. port) DDU Delivery Duty Unpaid (named place at dest.) DDP Delivery Duty Paid (named place at destination) MAKE SURE YOUR CUSTOMER UNDERSTANDS THEIR RESPONSIBLITY

6 Prepare Necessary Documentation SED vs. AES AMS/ISF (Import Only…for now) BOL - Inland Insurance Certificate Destination Clearance Banking

7 Move the Shipment Secure Space with Air/Ocean Carrier Make Necessary Inland Arrangements Coordinate Inspections, Fumigations, etc. Confirm On Board with MBL

8 Export Shipment Process Flow Booking Request from Shipper Forwarder Confirms Space Pickup and Verification HAWB/HBL Created Full Pre-Alert to Shipper Shipment Arrival Customs Clearance by Broker Delivery is Made Shipment Available for Clearance AES Filing Confirmed

9 Common Shipper Mistakes Misunderstanding of Inco Terms Forwarder is NOT Exporter of Record on Ex Works Shipments Providing Inaccurate Shipment Information Improper Marking/Labeling of Hazardous Materials Not Using Heat Treated Wood for Packaging Ignoring Export Compliance Regulations “That’s what we pay you for is not enough.”

10 Forwarder Compensation Shipper Documentation and Forwarding Fees Ocean Carrier Brokerage (commission) Inland Carrier Property Brokerage Insurance Provider Markup of Premium

11 The Freight Forwarder coordinates the various parties involved in the cargo movement and services provided are based upon the needs of the individual shipper. Flexibility is Key Communication is Key Use Our Services to Add Value to Your Product We are an Extension of Your Company

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