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Điều khoản Logistics Forwarding(Forwarder)

Ngày đăng kíMAR 02, 2023

  1. 1)Concept1)Concept
    • - 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.
    Illustration images of containers, aviation, and ships on the world map (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.
  2. 2)Process and Work2)Process and Work
    Process Flow Illustration Image
    • 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 and Competency
    • - 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.
    COVID-19 Images (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.

    Cell phone image (Source : Clipart Korea)
  3. 3)Digital Transformation3)Digital Transformation
    • Currently, the world is experiencing logistical disturbance caused by COVID-19 and Russia-Ukraine war, and the aftermath is continuing even now. Inflation is shown worldwide, and it is unclear when this situation will end. In addition, as the e-commerce market expanded due to the increase in contactless consumption caused by COVID-19, the smooth movement and securing of cargo became important. In this condition where uncertainty is rampant, the logistics industry is trying a new change by adopting “digital transformation.” A typical example is digital forwarding.
    an image of a pile of machines (Source : Clipart Korea)
    • As explained before, digital forwarding is providing the forwarding service of the forwarder based on a digital platform. With a digital platform, more diversified and highly utilized services can be safely provided to shippers. In a gradually uncertain global logistics market, the key success factor of digital forwarding lies in how to use cutting-edge technologies such as cloud and AI to avoid supply chain crises.

      In the process of export/import logistics, repetitive work such as quoting, shipment booking/confirmation, transport/transit, tracking, communication, and billing requires a great deal of time and cost. The digital transformation of logistics enabled all the logistics processes to be performed in one digital forwarding platform. Moreover, even real-time monitoring allowed sufficient securing of visibility in logistics which was difficult to predict. Digital forwarding simplified complex paperwork with automation technology and made logistics easier by quickly categorizing and analyzing various data.

      Compared to traditional forwarding, the advantages of digital forwarding can be organized into three. First, fast speed of business processing. The work efficiency can be increased by reducing the unnecessary lead time compared to the traditional forwarding method. With the digital platform, communication which used to be only done via e-mail, phone, etc. can be done way quicker, and quotes that used to take days can be checked instantly. Second, an increase in operational efficiency. To send cargo, various documents should be exchanged. However, in a digital forwarding platform, errors could be reduced by adopting technologies such as OCR, and analysis and management of data could be easily done. Adding to this, billing and settlement is carried out faster in the platform. Last, securing cargo visibility. By offering real-time visibility of cargo, the time is reduced for finding issues, and problems can be rapidly addressed, thus, decreasing damages.

      Through gradually developing technical skills, the forwarding service in the future will expand more and more.