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Definition of Freight Forwarding

Freight Sea Freight Forwarding agency industry in the international freight market, in the cargo owners and carriers, accepting the owner entrusted to do on behalf of the chartering of ships, booking, allocation, repair of the relevant documents, customs clearance, customs inspection, insurance, container transportation, unpacking, the issuance of bills of lading, settlement of transportation and miscellaneous charges, and even the delivery of the bill of lading negotiation and foreign exchange settlements.

International Federation of Freight Forwarders Associations on the definition of freight forwarding agent is: according to the instructions of the customer, for the benefit of the customer and solicitation of goods for the person, who is not the carrier. Freight forwarders can also be these conditions, engaged in activities related to the delivery contract, such as storage, customs clearance, acceptance, collection.

China's international freight forwarding industry management regulations implementation rules are defined as: international freight forwarding agent enterprises can be used as the consignee of import and export goods, the consignor's agent, but also as an independent operator to engage in international freight forwarding business.

International freight forwarding enterprises as agents engaged in international freight forwarding business, refers to the international freight forwarding enterprises to accept the consignee of the import and export goods, consignor or his agent entrusted to the principal or his own name for the relevant business, to collect to the agency fee or commission behavior.

International freight forwarding enterprises as independent operators engaged in international freight forwarding business, refers to the international freight forwarding enterprises to accept incoming and outgoing cargo consignee, consignor or his agent's entrustment, the issuance of transport documents, fulfillment of the contract of carriage and collection of freight and service charges.

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Freight forwarding development

International cargo air freight forwarding industry has been established as early as the tenth century A.D., initially for the Customs Brokerage Company, its practitioners from the international trade enterprises, the quality of the personnel is relatively high, can be done on behalf of the owner of a considerable portion of the international trade business and transportation matters, with the development of trade, and gradually derive a specialized industry, in its development process, some countries had a specialization in the development of international freight forwarding business. In the process of its development, some countries have tried to cancel it, so that owners and carriers direct business relations, reduce intermediate links, but have not succeeded, because of the composition of the international freight market owners, freight forwarders, shipowners (or other shipping capacity), the four main ship generation, and the port terminals, yards, stations, libraries and other objects can not be mixed, part-time, cross-business, the competition in the international freight transport market will be chaotic order.

These jobs have a wide range of contacts, links, is the international trade freight business is quite complicated work relatively centralized, coordination, integration, rationalization of relations, and enhance its professionalism, technical and policy, the formation of the international freight forwarding industry, is the inevitable product of the process of international commodity flows, is an indispensable part of international trade, because of this, the industry is recognized by the world as the International trade enterprises freight forwarding. Its English name is FORWARDERS, and for its establishment of an international organization, that is, "FIATA", the acronym is "FIATA".

Its member countries have developed to more than 130 countries and regions, with more than 3,500 international freight forwarding companies, practitioners have reached more than 8 million people, China's Shanghai, Tianjin, Qingdao, Dalian, Jiangsu, Shenzhen, one after another, set up the International Freight Forwarders Association, the Ministry of Foreign Trade and Economic Cooperation is preparing for the establishment of the China Association of International Freight Forwarders will lead the associations around the world, and to join the international organizations Become a member state.

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Freight forwarding service object

From the country Freight forwarding agent international freight forwarder's basic nature, freight forwarding is mainly to accept the entrustment of the principal, on the transportation of the goods concerned, transit, warehousing, loading and unloading and other matters. On the one hand, it and the shipper of the goods to enter into a contract of carriage, at the same time he signed a contract with the transportation sector, for the shipper of the goods, he is also the carrier of the goods.

At present, a considerable portion of the cargo agent to master a variety of means of transportation and storage of goods in the depot, in the operation of its business for the transportation of goods, including air, land and sea.

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Scope of business of freight forwarders

Services for consignors

Freight Forwarders Freight forwarders take the place of consignors to undertake in the transportation of different goods in any one of the formalities:

1, in the fastest and most economical mode of transportation, arranging for the appropriate packaging of the goods and choosing the route of transportation of the goods.

2. Suggesting warehousing and distribution to the customer.

3.Selection of reliable and efficient carriers and conclusion of transportation contracts.

4.Arranging weighting and measuring of goods.

5, for cargo insurance.

6. Consolidation of goods.

7, storage of goods before shipment or before distribution of goods at destination.

8, arrange for transportation of the goods to the port, handle customs and related documents, and hand over the goods to the carrier.

9. Undertake payment of freight and customs duties and taxes on behalf of the shipper/importer.

10, Handling any foreign exchange transactions related to the transportation of goods.

11, from the carrier to obtain a variety of signed bills of lading and hand them over to the consignor.

12, through contact with the carrier in the freight forwarder's agent in foreign countries, to monitor the process of transportation of goods, and to let the shipper know where the goods are going.

Services for Customs

When a freight forwarder acts as a customs agent for customs formalities relating to imported and exported goods, he represents not only his client but also the customs authorities. In fact, in many countries he is licensed by these authorities to carry out customs formalities and is responsible to the customs for declaring the exact amount, quantity, and name of the goods in the documents issued at an early date so that the government will not lose money in these respects.

Services to Carriers

Freight forwarders make timely bookings with carriers, agree on charges that are fair and reasonable to the consignor and carrier, arrange for deliveries at the proper time, and settle freight accounts with carriers in the name of the consignor.

Services for airlines

Freight forwarders in the air transportation industry, acting as an agent for airlines. It is designated as an agent of the International Air Transport Association (IATA) in the rules established by IATA for the purpose of transporting cargo by air. In this relationship, it utilizes the airlines' freight forwarding means to serve the cargo owner and is paid a commission by the airline. At the same time, as a freight forwarder, it continues to serve the consignor or consignee by providing a means of service appropriate to the degree of air transportation.

Service for liner companies

Freight forwarders and liner companies, with the business of the relationship between the different, in recent years by the freight forwarders to provide consolidation services, that is, consolidation services for groupage cargo has been established between them and the liner companies and other carriers (such as railroads) closer links, however, some countries have refused to pay commission to the freight forwarder, so they are world-wide fought the demand for commissions.

Provision of LCL services

With the growth of international trade in class shipments, the introduction of consolidation and LCL services, in the provision of which the freight forwarder assumes the role of principal. Consolidation and consolidation of the basic meaning is: a shipment of a number of consignors to another destination of a number of consignees of small pieces of goods together, as a whole transportation of goods to the destination of the freight forwarder, and through which a single ticket of goods to the consignee of each.

Freight forwarder to issue a bill of lading, that is, sub-bill of lading or other similar receipts to the consignor of each ticket of goods; Freight forwarding agent at the port of destination, with the initial bill of lading to the consignee. The consignee and consignor of the LCL are not directly connected with the carrier, for the carrier, the freight forwarder is the consignor, and the agent of the freight forwarder at the port of destination is the consignee. Therefore, the carrier issued to the forwarder is the whole bill of lading or freight bill. If the consignor or consignee has special requirements, the freight forwarder can also engage in pickup and delivery services at the place of shipment and destination, providing door-to-door services.

Provide multimodal transport services

In the role of the freight forwarder, containerization of a more far-reaching impact is that he intervened in the multimodal transport this is that he acted as the main carrier and assumed the organization of a single contract, through a variety of modes of transport for the door-to-door transport of goods. It can be negotiated and contracted separately as a party with other carriers or other service providers.

However, these subcontracts do not affect the execution of the contract of multimodal transportation, that is to say, they do not affect the obligations of the consignor and his liability for damage to and loss of the goods in the course of multimodal transportation. When a forwarder acts as an intermodal operator, it is usually required to provide a comprehensive "package" of services that includes all transportation and distribution processes, and to assume a higher level of responsibility for its customers.

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Responsibility of freight forwarders

1, the basic responsibility

as the carrier to complete the transportation of goods and responsibility (by the issuance of freight documents, with their own transportation, or entrusted to other people to complete the transportation of goods, and collect freight). As the carrier to complete the carriage of goods is not directly liable (issued by another person freight documents, using the mastery of the means of transport, or rent another person's means of transport, or entrusted to another person to complete the carriage of goods, and is not directly liable).

When carrying out business activities on the basis of an agreement or a contract with the principal, or on the instructions of the principal, the forwarder shall be under the usual responsibility for the completion of the assignment, in particular within the scope of the authorization. Report truthfully all important matters. The situation and information provided to the principal in the commissioned business must be true, and the principal shall have the right to recover from the freight forwarder and revoke the agency contract or agreement if any loss is caused by concealment or inaccurate information provided. Obligation of confidentiality. The information obtained in the process of freight forwarding agent to a third party leakage. At the same time, may not transfer the agency with others.

2, the period of responsibility

from the receipt of the goods until the destination of the goods to the consignee, or according to the instructions of the consignee will be placed in the consignee's instructions to the location has been completed and to fulfill the contractual obligation of delivery.

3, the responsibility of the contract

International freight forwarders should be responsible for their own loss of goods caused by the failure to perform the contract.

4, the responsibility for warehousing

Freight forwarders in the acceptance of the goods ready for warehousing, should be in receipt of the goods to the principal receipt or warehouse certificate, and in the warehousing of the goods during the period of its duties, according to the characteristics of the goods and packaging, choose a different way of storage.

5, the rights of the principal shall pay the corresponding costs

Freight forwarder for the delivery of goods, storage, insurance, customs, visas, documents, and other services for the provision of all the costs arising from the freight forwarder, but also to pay for the contract due to reasons beyond the control of the freight forwarder can not be fulfilled and the other costs incurred.

If the loss of or damage to the goods is within the scope of the insurer's contract, the freight forwarder, after compensation, from the owner of the goods to obtain subrogation rights, compensation or reimbursement from other responsible parties. When the freight forwarder makes full compensation for the goods, the ownership of the goods in question is transferred to the freight forwarder.

6, the exclusion of liability

① due to the negligence or fault of the principal ② due to the principal or other agents in the loading and unloading, warehousing or other operations in the process of negligence ③ due to the natural characteristics of the goods or the potential for defects ④ due to the packaging of goods is not solid, unclear sign ⑤ due to the delivery of goods to the geological unclear, incomplete, inaccurate ⑥ due to the contents of the goods is not clear, incomplete statement ⑦ Due to force majeure, natural disasters, accidental reasons, but if it can be proved that the loss or damage to the goods is caused by the freight forwarder's fault or negligence, or the loss of the goods, damage to the team should be liable for compensation.

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Freight forwarder's liability

International Association of Freight Forwarders general terms and conditions of the team also provides for the principle of compensation by two aspects: one is the principle of liability, and the second is the limitation of liability.

One, the principle of liability

The consignee in the receipt of goods found that the goods loss or damage, and can prove that the loss or damage is caused by the freight forwarder negligence, that is, to the freight forwarder to make a claim, in general, the notice of the claim does not exceed the number of days after the arrival of the goods, or else as the freight forwarder has completed the delivery of the obligation.

Second, the limitation of liability

From the existing international conventions, some use a single standard method of compensation, some use a double standard method of compensation, the compensation method of international freight forwarders should be the same, but the actual practice is not the same, there is a big difference.

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China's freight forwarding analysis

According to China's accession to the World Trade Organization commitments, after December 11, 2005, China's freight forwarding industry will be fully open to the outside world. On the occasion of the imminent opening up of China's freight forwarding industry, Li Limou, Secretary General of China International Freight Forwarders Association (CIFA), made a thorough analysis of the phenomenon presented by China's international freight forwarding industry.

China international freight forwarding industry as a service trade, relying on the rapid development of foreign trade has made remarkable achievements and made positive contributions. At present there are a large number of enterprises in the fierce market competition to stand out, these enterprises to speed up China's international freight forwarding industry to participate in the pace of competition in the international market.

Here should especially mention two points: one is the quantity and quality of the relationship. The second is the problem of opportunity. With a certain amount of accumulation, that is, the better the foundation is laid, the more will produce accomplished companies.

Reviewing the history of the growth of China's freight forwarding enterprises, before 1988, there are only two freight forwarding companies in the country, that is, the China National Foreign Trade Transportation Corporation and China Ocean Shipping Company. 1988 March State Council issued a document, "shipping agency, freight forwarding agency business to implement a number of business, they are by the shipping company and the owner of the goods to choose their own, no department shall not intervene and restrictions. intervention or restriction by any department". In the following years, China's international freight forwarding enterprises were established one after another, and as time advances, China's international freight forwarding enterprises have been on the horse, its development trend can not be ignored, China's international freight forwarding industry presents a vibrant scene.

By the end of 1993, the Ministry of Commerce (former Ministry of Foreign Trade and Economic Cooperation) approved the international freight forwarding enterprises **** 510. By the end of 1999, the country **** have been approved by the Ministry of Commerce (former Ministry of Foreign Trade and Economic Cooperation) of the international freight forwarding enterprises reached 1,600. Without the accumulation of so many international freight forwarding enterprises, of course, there will not be now many outstanding achievements of the international well-known freight forwarding enterprises, because the quality of the basis is the quantity, the accumulation of quantity finally reached a qualitative leap.

The second important factor is opportunity. China's international freight forwarding industry of insight, have seized the great situation around 1993, set up their own freight forwarding company. As we all recognize the truth, a person's life will always encounter a few opportunities, 1993 is engaged in China's international freight forwarding industry knowledgeable people's opportunities. 1993 around the establishment of the freight forwarding company is the person who dares to seize the opportunity and good at grasping the opportunity. A company in its development on the road, although there are business management, personnel training, marketing management and many other issues that need to be decided, but to seize the opportunity is still the most important.