Transport & Freight Forwarding
-
Upload
sayan-majumder -
Category
Documents
-
view
233 -
download
0
Transcript of Transport & Freight Forwarding
-
8/6/2019 Transport & Freight Forwarding
1/11
TRANSPORTATION
BROKERS ANDFREIGHT FORWARDERS
-
8/6/2019 Transport & Freight Forwarding
2/11
Transportation Brokers
Transportation brokers are companies that provideservices to both shippers and carriers by arranging and
coordinating the transportation of products.
They charge a fee to do so, which usually is taken as a
percentage of the revenue collected by the broker from
the shipper. The broker in turn pays the carrier.
-
8/6/2019 Transport & Freight Forwarding
3/11
WHO NEEDS BROKERS ?
Shippers with minimal or no Logistics strength canuse brokers to :
Negotiate rates
Arrange oversees shipments
Broker may assume some of the transportationfunctions LIKE
Things the shipper may not be able to do due to
resource constraints.
Does not replace the transportation Dept of thecompany
-
8/6/2019 Transport & Freight Forwarding
4/11
Freight Forwarders
Freight forwarders purchase transport services from
various carriers.
May not own the equipment themselves.
Many successful air freight forwarders typically purchase
and operate their own equipment, rather than relying onother air carriers.
Freight forwarders consolidate small shipments from a
number of shippers into large shipments moving into a
certain region at a lower rate.
Consolidation----Efficiency---Lower Cost compared to
going Directly to carriers.
Larger volumes --- Faster and comprehensive services.
-
8/6/2019 Transport & Freight Forwarding
5/11
BROKER AND FREIGHT - FORWARDER
FORWARDER: SHIPPER TO
CARRIER AND CARRIER TO
SHIPPER
PRIMARY LIABILITY TO
SHIPPER FOR LOSS , DAMAGE
AND DELIVERY
BROKER: NEITHER
SHIPPER
NOR CARRIER
USUALLY NOT LIABLE FOR
LOSS,DAMAGE
-
8/6/2019 Transport & Freight Forwarding
6/11
1.Terms of Sale FOB Shipping Point, FREIGHT COLLECT
Title passes to
buyer
Freight charges
paid by buyer
Seller Buyer
Buyer pays freight
charges
Buyer bears freight
charges
Buyer owns goods in
transit
Buyer files claims(if any)
-
8/6/2019 Transport & Freight Forwarding
7/11
2.Terms of Sale FOB Shipping Point, FREIGHTALLOWED
Title passes to buyer
Freight charges
paid by seller
SellerBuyer
Seller pays freight charges
Seller bears freight charges
Buyer owns goods in transit
Buyer files claims(if any)
-
8/6/2019 Transport & Freight Forwarding
8/11
3.Terms of Sale FOB Shipping Point, FREIGHT PREPAID
AND CHARGEDBACK
Title passes to
buyer
Seller Buyer
Seller pays freight charges
Seller bears freight charges
Buyer owns goods in transit
Buyer files claims(if any)
Freight charges paid by seller, then collected from
buyer by adding amount to invoice.
-
8/6/2019 Transport & Freight Forwarding
9/11
4.Terms of Sale FOBDestination, FREIGHT COLLECT
Title passes to
buyer
SellerB
uyer
Buyer pays freight charges
Buyer bears freight charges
Seller owns goods in transit
Seller files claims(if any)
Freight charges paid by buyer
-
8/6/2019 Transport & Freight Forwarding
10/11
5.Terms of Sale FOBDestination, FREIGHT PREPAID
Title passes to
buyer
Freight charges paid by
seller
Seller Buyer
Seller pays freight
charges Seller bears freight
charges
Seller owns goods intransit
Seller files claims(if any)
-
8/6/2019 Transport & Freight Forwarding
11/11
6.Terms of Sale FOBDestination, FREIGHT COLLECT
ANDALLOWED
Title passes to
buyer
Seller Buyer
Buyer pays freight charges
Seller bears freight charges
Seller owns goods in transit
Seller files claims(if any)
Freight charges paid by buyer, then charged to seller
by deducting amount from invoice.