Export Business Process for Freight Forwarders: Do You Really Understand It?

In today’s increasingly prosperous global trade, the cross-border transportation of goods has become more frequent. For many export companies, freight forwarders play a crucial role. So, what kind of complex yet orderly business process does freight forwarder export entail? Today, let’s delve into it together.

Accepting (Commission)

This is the starting point of the business. The exporter (usually referred to as Mr. Zhang or Ms. Li) will submit a (commission) request to the freight forwarder Zhongmaoda. Zhongmaoda will communicate thoroughly with the exporter to understand all kinds of information about the goods, such as the name, quantity, weight, volume, packaging form, port of loading, port of destination, and estimated shipping time. Only by grasping this precise information can Zhongmaoda lay the foundation for subsequent transportation plan formulation.

Booking

Based on the obtained cargo and transportation information, and combined with its understanding of the shipping market, Zhongmaoda books space with suitable shipping companies. In this (link), Zhongmaoda needs to consider factors such as whether the sailing schedule meets the exporter’s needs and whether the freight is reasonable. After communicating and negotiating with the shipping company, the booking confirmation is obtained, clarifying key booking information such as the vessel name, voyage number, and bill of lading number.

Arranging Transportation

After booking is completed, Zhongmaoda begins to arrange the inland transportation of goods from the exporter’s warehouse to the terminal. If it is a full container load, Zhongmaoda will arrange for a container truck to go to the location specified by the exporter for stuffing. If it is a less than container load (LCL), vehicles will be arranged to transport the goods to the designated LCL warehouse for consolidation. At the same time, Zhongmaoda also needs to closely monitor the transportation process to ensure that the goods arrive at the terminal on time and safely.

Customs Declaration and Inspection

After the goods arrive at the terminal, Zhongmaoda must handle the customs declaration and inspection procedures in a timely manner. First, all necessary documents for customs declaration, such as commercial invoice, packing list, customs declaration form, contract, etc., are compiled and prepared. The detailed information of the goods is declared to the customs. After the customs review and approval, the goods are released. If the goods fall into categories requiring inspection and quarantine, Zhongmaoda also needs to declare to the inspection and quarantine authorities in advance to obtain relevant inspection and quarantine certificates.

Loading and Shipping

After the goods pass customs declaration and inspection, the loading notification from the shipping company is awaited. Upon receiving the notification, Zhongmaoda coordinates with terminal operators to load the goods onto the designated vessel according to the shipping company’s stowage plan. After the vessel departs, Zhongmaoda promptly obtains the ocean bill of lading and delivers it to the exporter. The exporter can use the bill of lading for subsequent foreign exchange settlement and other operations.

Cargo Tracking and Information Feedback

From the time the goods leave the exporter’s warehouse until they arrive at the port of destination, Zhongmaoda continuously tracks the transportation status of the cargo. By maintaining close contact with shipping companies, terminals, and other relevant parties, Zhongmaoda promptly obtains information such as the cargo’s location and estimated arrival time, and feeds this information back to the exporter, allowing the exporter to stay informed of cargo dynamics at all times.

Port of Destination Operations and Delivery

Upon arrival of the goods at the port of destination, Zhongmaoda’s agent at the port of destination will be responsible for customs clearance, pick-up, and other procedures. The goods are picked up from the terminal and, according to the requirements of the exporter or consignee, arranged for transportation to the designated location for delivery to the consignee. At this point, the export business process of the freight forwarder is basically completed.

The export business process of freight forwarders is closely linked, and each (link) is crucial. Zhongmaoda, with its professional service and rich experience, escorts exporters and helps goods smoothly enter the global market. We believe that by understanding these processes, exporters can cooperate more closely with freight forwarders in future business and improve trade efficiency. Do you have any other questions about freight forwarder business? Welcome to leave comments and discuss.