Condiciones Logísticas Forwarding(Forwarder)

• - Definition
  Forwarding has a dictionary definition of transportation. From the perspective of logistics, it refers to import/export and customs clearance. In short, it means performing the transportation service on behalf of the shipper after receiving cargo from the shipper to the desired destination of the shipper such as pickup, inbound/outbound, shipment, transportation, insurance, storage, delivery, and documentation.

(Source : Clipart Korea)

• - Definition
  Forwarder often refers to a freight forwarder or a forwarding agent.
  
  
• - Role
  A forwarder is multimodal and is in charge of logistics-related work such as transportation, customs clearance, and shipment. A forwarder also arranges the process of receiving and transporting cargo in place of the shipper so that the shipper can concentrate on logistics transport.
  
  
• - Types
  ① Importer-type Consolidated Transport
  This is a type where one forwarder gathers cargo of multiple exporters in a container on behalf of the importer and transports it to the importer.
  
  ② Consignor-type Consolidated Transport
  This is a type where one consignor’s cargo is transported to many consignees. This refers to a case where there is one exporter but many importers (consignees) at the destination.
  
  ③ Forwarder-type Consolidated Transport
  This is a type where one forwarder gathers many exporters’ cargo and transports it to many importers. Currently, most of Korean forwarders do a cargo pickup business having their partners overseas.

• A forwarder receives a container from a shipper, confirms the weight and quantity, and requests shipping (S/R) to a carrier. Afterward, the forwarder receives an M B/L (Master Bill of Lading: Bill of lading carrier issues to a forwarder) and MRN (Manifest Reference Number) from the carrier. The forwarder reports a cargo manifest as a related document to the Customs Service and issues an H B/L (House Bill of Lading: Bill of lading forwarder issues to a shipper) to the shipper.
  
  Then, the forwarder sends an O B/L (Original Bill of Lading) to the local partner. The local partner requests transferring of cargo to the carrier agency and delivers arrival and confirmation information to the buyer. If all the above process is complete and settlement is over, the partner receives a D/O (Delivery Order) issued by the importer, and the business terminates.
  
  - S/R : Shipping Request
  - B/L : Bill of Lading
  - D/O : Delivery Order

• - Work Scope
  A forwarder is a mediator of global transport and assists all stages of trade. A forwarder conducts business on all of the logistics so that items are delivered from the shipper to the importer such as pickup, transport, shipment, inbound/outbound, storage, delivery, and documentation. To do this, a forwarder establishes partnerships with necessary domestic transport companies, customs brokers, and ocean/air carriers.
  
  
• - Competency
  A forwarder basically needs information on forwarding and trade business affairs, and foreign language proficiency is also important. Moreover, fast judgment and determination are required to cope with situations as there could be numerous variables in the logistics business. Last but not least, a forwarder needs to communicate with an active mindset.

(Source : Clipart Korea)

Additionally, a forwarder’s professional competency is more emphasized following diverse social issues such as port congestion and harbor strike caused by the recent outbreak of COVID-19. A forwarder should understand the characteristics of cargo per shipper, use various forwarding methods to minimize the inbound/outbound lead time, and provide customer-tailored services. Rather than merely moving cargo, a forwarder should diagnose and analyze the level of logistics to induce efficient methods of bringing profit to the business and provide optimized logistics consulting to customers.

(Source : Clipart Korea)